Texas 2021 - 87th Regular

Texas Senate Bill SB2071 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	87R6144 SMT-D
2	2	By: Menéndez S.B. No. 2071
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to consumer protections for accident and health insurance
8	8	that excludes coverage for preexisting conditions.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subtitle A, Title 8, Insurance Code, is amended
11	11	by adding Chapter 1223 to read as follows:
12	12	CHAPTER 1223. PREEXISTING CONDITION COVERAGE EXCLUSIONS
13	13	SUBCHAPTER A. GENERAL PROVISIONS
14	14	Sec. 1223.0001. APPLICABILITY OF CHAPTER. This chapter
15	15	applies to an individual or group accident and health insurance
16	16	policy that excludes coverage for preexisting conditions,
17	17	including:
18	18	(1) an individual accident and health insurance policy
19	19	governed by Chapter 1201;
20	20	(2) a group accident and health insurance policy
21	21	governed by Chapter 1251; or
22	22	(3) a short-term limited-duration insurance policy
23	23	governed by Chapter 1509.
24	24	Sec. 1223.0002. RULES. The commissioner may adopt rules
25	25	necessary to implement this chapter.
26	26	SUBCHAPTER B. REQUIREMENTS AND EFFECTS OF PREEXISTING CONDITION
27	27	EXCLUSIONS
28	28	Sec. 1223.0101. HEALTH INFORMATION DISCLOSURE REQUIRED.
29	29	(a) An insurance policy governed by this chapter may not exclude
30	30	coverage for a preexisting condition unless the application or
31	31	enrollment form for the policy requires disclosure of prior
32	32	illness, disease, or physical conditions or of prior medical care
33	33	and treatment.
34	34	(b) An insurer may not require a disclosure of the health
35	35	information of an applicant's or enrollee's family member in an
36	36	application or enrollment form for an insurance policy governed by
37	37	this chapter unless the family member is also seeking coverage
38	38	under the policy.
39	39	Sec. 1223.0102. TERMINATION REQUIREMENTS. (a) An insurer
40	40	may not terminate an insurance policy governed by this chapter
41	41	before the expiration date except for:
42	42	(1) failure to pay the premium or other applicable
43	43	charges for coverage;
44	44	(2) material failure to abide by rules, policies, or
45	45	procedures of the plan;
46	46	(3) fraud or misrepresentation affecting coverage;
47	47	(4) a request from the policyholder to cancel
48	48	coverage; and
49	49	(5) a cause for termination the commissioner
50	50	determines is not objectionable.
51	51	(b) If an insurer terminates an insurance policy governed by
52	52	this chapter before the policy expiration date, the insurer must
53	53	send written notice to the insured that includes:
54	54	(1) the specific reason the policy was terminated; and
55	55	(2) notice that the insured may file a complaint with
56	56	the department if the insured believes that the policy was
57	57	inappropriately terminated.
58	58	SECTION 2. Not later than January 1, 2022, the commissioner
59	59	of insurance shall adopt rules necessary to implement Chapter 1223,
60	60	Insurance Code, as added by this Act.
61	61	SECTION 3. Chapter 1223, Insurance Code, as added by this
62	62	Act, applies only to an insurance policy delivered, issued for
63	63	delivery, or renewed on or after January 1, 2022.
64	64	SECTION 4. This Act takes effect September 1, 2021.