H.B. No. 3769
AN ACT
relating to required disclosures for certain occupational
insurance policies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle C, Title 5, Insurance Code, is amended
by adding Chapter 564 to read as follows:
CHAPTER 564. DISCLOSURES FOR THE SALE OF CERTAIN OCCUPATIONAL
INSURANCE POLICIES
Sec. 564.001. SCOPE OF CHAPTER; PURPOSE. (a) This chapter
is intended to require disclosures on policy forms for certain
occupational insurance policies designed or marketed to provide
coverage to an employer that elects not to maintain workers'
compensation insurance coverage under Chapter 406, Labor Code.
(b) Nothing in this chapter prohibits an employer that is
not required to maintain workers' compensation insurance coverage
and has elected not to obtain workers' compensation insurance
coverage from obtaining occupational accident, disease, or death
insurance coverage for the employer or the employer's employees.
Sec. 564.002. APPLICABILITY OF CHAPTER. This chapter
applies to an insurance company authorized to write accident and
health insurance or liability insurance, including:
(1) a surplus lines insurer;
(2) a Lloyd's plan; and
(3) a reciprocal or interinsurance exchange.
Sec. 564.003. EXCEPTIONS. This chapter does not apply to:
(1) a plan that provides coverage:
(A) only for a specified disease or another
limited benefit;
(B) only for dental or vision care; or
(C) only for hospital indemnity for hospital
confinement;
(2) a Medicare supplemental policy as defined by
Section 1882(g)(1), Social Security Act (42 U.S.C. Section
1395ss);
(3) long-term care coverage or benefits, home health
care coverage or benefits, community-based care coverage or
benefits, or any combination of those coverages or benefits;
(4) an individual or group life insurance policy; or
(5) individual or group credit life, accident, or
disability insurance.
Sec. 564.004. OCCUPATIONAL POLICY DEFINED. In this
chapter, "occupational policy" means:
(1) an individual or group accident or health
insurance policy that explicitly provides coverage or benefits for
an employer or the employer's employees for an employee's
occupational bodily injury, disease, or death;
(2) an employer's insurance policy that explicitly
provides liability coverage to an employer that elects not to
maintain workers' compensation insurance coverage under Chapter
406, Labor Code, for an employee's occupational bodily injury,
disease, or death in:
(A) a general liability insurance policy;
(B) a commercial multiple peril insurance
policy; or
(C) any other type of insurance policy designated
by the department as intended to provide liability coverage to an
employer that elects not to maintain workers' compensation
insurance coverage under Chapter 406, Labor Code, for an employee's
occupational bodily injury, disease, or death;
(3) an accident, health, or liability insurance
policy that does not expressly include coverage for occupational
injuries, disease, or death, but is marketed or sold to or through
an employer as an alternative to coverage for benefits or liability
provided by a workers' compensation insurance policy; or
(4) a policy that includes occupational accident and
health and liability coverage in the same policy.
Sec. 564.005. REQUIRED DISCLOSURES FOR OCCUPATIONAL
POLICIES. An occupational policy shall include the following
disclosure statement in 10-point boldface type on the first page of
the policy and on the first page of all materials used in
advertising or marketing the occupational policy to an employer
that elects not to maintain workers' compensation insurance
coverage under Chapter 406, Labor Code:
"THIS IS NOT A WORKERS' COMPENSATION INSURANCE POLICY. THE
EMPLOYER DOES NOT OBTAIN WORKERS' COMPENSATION INSURANCE COVERAGE
BY PURCHASING THIS POLICY, AND IF THE EMPLOYER HAS NOT ELECTED TO
OBTAIN WORKERS' COMPENSATION INSURANCE COVERAGE, THE EMPLOYER DOES
NOT OBTAIN THOSE BENEFITS THAT WOULD OTHERWISE ACCRUE UNDER THE
WORKERS' COMPENSATION LAWS IN THIS STATE. THE EMPLOYER MUST COMPLY
WITH THE WORKERS' COMPENSATION LAWS IN THIS STATE AS THEY PERTAIN TO
EMPLOYERS THAT ELECT NOT TO MAINTAIN WORKERS' COMPENSATION
INSURANCE COVERAGE AND THE REQUIRED NOTIFICATIONS THAT MUST BE
FILED AND POSTED."
Sec. 564.006. RULES. The commissioner shall adopt rules as
necessary to implement this chapter.
SECTION 2. As soon as practicable after the effective date
of this Act, the commissioner of insurance shall adopt rules to
implement Chapter 564, Insurance Code, as added by this Act.
SECTION 3. Chapter 564, Insurance Code, as added by this
Act, applies only to an occupational insurance policy delivered,
issued for delivery, or renewed on or after January 1, 2022. An
occupational insurance policy delivered, issued for delivery, or
renewed before January 1, 2022, is governed by the law as it existed
immediately before the effective date of this Act, and that law is
continued in effect for that purpose.
SECTION 4. This Act takes effect September 1, 2021.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 3769 was passed by the House on April
23, 2021, by the following vote: Yeas 143, Nays 3, 2 present, not
voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 3769 was passed by the Senate on May
19, 2021, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor