Texas 2021 - 87th Regular

Texas House Bill HB3769 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	H.B. No. 3769
	1	+	By: Smithee (Senate Sponsor - Zaffirini) H.B. No. 3769
	2	+	(In the Senate - Received from the House April 26, 2021;
	3	+	May 4, 2021, read first time and referred to Committee on Business &
	4	+	Commerce; May 13, 2021, reported favorably by the following vote:
	5	+	Yeas 8, Nays 0; May 13, 2021, sent to printer.)
	6	+	Click here to see the committee vote
2	7
3	8
	9	+	A BILL TO BE ENTITLED
4	10		AN ACT
5	11		relating to required disclosures for certain occupational
6	12		insurance policies.
7	13		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	14		SECTION 1. Subtitle C, Title 5, Insurance Code, is amended
9	15		by adding Chapter 564 to read as follows:
10	16		CHAPTER 564. DISCLOSURES FOR THE SALE OF CERTAIN OCCUPATIONAL
11	17		INSURANCE POLICIES
12	18		Sec. 564.001. SCOPE OF CHAPTER; PURPOSE. (a) This chapter
13	19		is intended to require disclosures on policy forms for certain
14	20		occupational insurance policies designed or marketed to provide
15	21		coverage to an employer that elects not to maintain workers'
16	22		compensation insurance coverage under Chapter 406, Labor Code.
17	23		(b) Nothing in this chapter prohibits an employer that is
18	24		not required to maintain workers' compensation insurance coverage
19	25		and has elected not to obtain workers' compensation insurance
20	26		coverage from obtaining occupational accident, disease, or death
21	27		insurance coverage for the employer or the employer's employees.
22	28		Sec. 564.002. APPLICABILITY OF CHAPTER. This chapter
23	29		applies to an insurance company authorized to write accident and
24	30		health insurance or liability insurance, including:
25	31		(1) a surplus lines insurer;
26	32		(2) a Lloyd's plan; and
27	33		(3) a reciprocal or interinsurance exchange.
28	34		Sec. 564.003. EXCEPTIONS. This chapter does not apply to:
29	35		(1) a plan that provides coverage:
30	36		(A) only for a specified disease or another
31	37		limited benefit;
32	38		(B) only for dental or vision care; or
33	39		(C) only for hospital indemnity for hospital
34	40		confinement;
35	41		(2) a Medicare supplemental policy as defined by
36	42		Section 1882(g)(1), Social Security Act (42 U.S.C. Section
37	43		1395ss);
38	44		(3) long-term care coverage or benefits, home health
39	45		care coverage or benefits, community-based care coverage or
40	46		benefits, or any combination of those coverages or benefits;
41	47		(4) an individual or group life insurance policy; or
42	48		(5) individual or group credit life, accident, or
43	49		disability insurance.
44	50		Sec. 564.004. OCCUPATIONAL POLICY DEFINED. In this
45	51		chapter, "occupational policy" means:
46	52		(1) an individual or group accident or health
47	53		insurance policy that explicitly provides coverage or benefits for
48	54		an employer or the employer's employees for an employee's
49	55		occupational bodily injury, disease, or death;
50	56		(2) an employer's insurance policy that explicitly
51	57		provides liability coverage to an employer that elects not to
52	58		maintain workers' compensation insurance coverage under Chapter
53	59		406, Labor Code, for an employee's occupational bodily injury,
54	60		disease, or death in:
55	61		(A) a general liability insurance policy;
56	62		(B) a commercial multiple peril insurance
57	63		policy; or
58	64		(C) any other type of insurance policy designated
59	65		by the department as intended to provide liability coverage to an
60	66		employer that elects not to maintain workers' compensation
61	67		insurance coverage under Chapter 406, Labor Code, for an employee's
62	68		occupational bodily injury, disease, or death;
63	69		(3) an accident, health, or liability insurance
64	70		policy that does not expressly include coverage for occupational
65	71		injuries, disease, or death, but is marketed or sold to or through
66	72		an employer as an alternative to coverage for benefits or liability
67	73		provided by a workers' compensation insurance policy; or
68	74		(4) a policy that includes occupational accident and
69	75		health and liability coverage in the same policy.
70	76		Sec. 564.005. REQUIRED DISCLOSURES FOR OCCUPATIONAL
71	77		POLICIES. An occupational policy shall include the following
72	78		disclosure statement in 10-point boldface type on the first page of
73	79		the policy and on the first page of all materials used in
74	80		advertising or marketing the occupational policy to an employer
75	81		that elects not to maintain workers' compensation insurance
76	82		coverage under Chapter 406, Labor Code:
77	83		"THIS IS NOT A WORKERS' COMPENSATION INSURANCE POLICY. THE
78	84		EMPLOYER DOES NOT OBTAIN WORKERS' COMPENSATION INSURANCE COVERAGE
79	85		BY PURCHASING THIS POLICY, AND IF THE EMPLOYER HAS NOT ELECTED TO
80	86		OBTAIN WORKERS' COMPENSATION INSURANCE COVERAGE, THE EMPLOYER DOES
81	87		NOT OBTAIN THOSE BENEFITS THAT WOULD OTHERWISE ACCRUE UNDER THE
82	88		WORKERS' COMPENSATION LAWS IN THIS STATE. THE EMPLOYER MUST COMPLY
83	89		WITH THE WORKERS' COMPENSATION LAWS IN THIS STATE AS THEY PERTAIN TO
84	90		EMPLOYERS THAT ELECT NOT TO MAINTAIN WORKERS' COMPENSATION
85	91		INSURANCE COVERAGE AND THE REQUIRED NOTIFICATIONS THAT MUST BE
86	92		FILED AND POSTED."
87	93		Sec. 564.006. RULES. The commissioner shall adopt rules as
88	94		necessary to implement this chapter.
89	95		SECTION 2. As soon as practicable after the effective date
90	96		of this Act, the commissioner of insurance shall adopt rules to
91	97		implement Chapter 564, Insurance Code, as added by this Act.
92	98		SECTION 3. Chapter 564, Insurance Code, as added by this
93	99		Act, applies only to an occupational insurance policy delivered,
94	100		issued for delivery, or renewed on or after January 1, 2022. An
95	101		occupational insurance policy delivered, issued for delivery, or
96	102		renewed before January 1, 2022, is governed by the law as it existed
97	103		immediately before the effective date of this Act, and that law is
98	104		continued in effect for that purpose.
99	105		SECTION 4. This Act takes effect September 1, 2021.
100		-	______________________________ ______________________________
101		-	President of the Senate Speaker of the House
102		-	I certify that H.B. No. 3769 was passed by the House on April
103		-	23, 2021, by the following vote: Yeas 143, Nays 3, 2 present, not
104		-	voting.
105		-	______________________________
106		-	Chief Clerk of the House
107		-	I certify that H.B. No. 3769 was passed by the Senate on May
108		-	19, 2021, by the following vote: Yeas 31, Nays 0.
109		-	______________________________
110		-	Secretary of the Senate
111		-	APPROVED: _____________________
112		-	Date
113		-	_____________________
114		-	Governor
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