87R15991 RDS-F
By: Frank, Oliverson, et al. H.B. No. 3752
Substitute the following for H.B. No. 3752:
By: Oliverson C.S.H.B. No. 3752
A BILL TO BE ENTITLED
AN ACT
relating to the offering of health benefits by subsidiaries of the
Texas Mutual Insurance Company.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2054.107, Insurance Code, is amended to
read as follows:
Sec. 2054.107. CERTAIN RELATIONSHIPS WITH OTHER INSURERS
PROHIBITED. Except as provided by Section 2054.602, the [The]
company may not have:
(1) an affiliate, spin-off, or subsidiary that writes
a line of insurance other than workers' compensation insurance; or
(2) interlocking boards of directors with an insurer
that writes a line of insurance other than workers' compensation
insurance.
SECTION 2. Chapter 2054, Insurance Code, is amended by
adding Subchapter M to read as follows:
SUBCHAPTER M. SUBSIDIARIES AUTHORIZED TO PROVIDE HEALTH BENEFITS
Sec. 2054.601. DEFINITION. In this subchapter,
"alternative health benefits" means health benefits:
(1) provided by a subsidiary of the company that is not
authorized to engage in the business of insurance in this state;
(2) offered only to:
(A) individuals;
(B) small businesses with not more than 250
full-time equivalent employees; or
(C) the company's policyholders or their
employees; and
(3) that are not:
(A) provided through an insurance policy or other
product the offering or issuance of which constitutes the business
of insurance in this state; or
(B) benefits subject to the laws governing
workers' compensation in this state.
Sec. 2054.602. HEALTH BENEFITS OFFERED BY SUBSIDIARY
AUTHORIZED. (a) The company may create, acquire, or otherwise own
or operate one or more subsidiaries that offer accident or health
insurance or another type of health benefits or health benefit plan
as provided by this subchapter.
(b) A subsidiary of the company may offer in this state:
(1) accident or health insurance or another type of
health benefit plan authorized under this code, in accordance with
a certificate of authority issued to the subsidiary under this
code; or
(2) alternative health benefits as described by
Section 2054.601.
(c) The company may not be held liable for an act or
obligation of a subsidiary of the company operating under this
section.
(d) A subsidiary of the company may not offer or issue any
policy, plan, or benefits under this section before January 1,
2023. This subsection expires September 1, 2023.
Sec. 2054.603. RULES. The commissioner may adopt rules as
necessary to implement this subchapter.
SECTION 3. This Act takes effect September 1, 2021.