| 1 | 1 | | By: Bell of Montgomery H.B. No. 351 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to the provision of workers' compensation insurance and |
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| 7 | 7 | | group accident and health insurance together in a packaged plan. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Subtitle E, Title 10, Insurance Code, is amended |
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| 10 | 10 | | by adding Chapter 2056 to read as follows: |
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| 11 | 11 | | CHAPTER 2056. PACKAGED PLAN OF WORKERS' COMPENSATION AND ACCIDENT |
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| 12 | 12 | | AND HEALTH INSURANCE |
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| 13 | 13 | | Sec. 2056.001. DEFINITIONS. In this chapter: |
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| 14 | 14 | | (1) "Packaged plan" means a plan offering a workers' |
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| 15 | 15 | | compensation insurance policy together with a group accident and |
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| 16 | 16 | | health insurance policy as described in Section 2056.002. |
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| 17 | 17 | | (2) "Workers' compensation insurance company" means a |
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| 18 | 18 | | stock company, mutual insurance company, reciprocal or |
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| 19 | 19 | | interinsurance exchange, or Lloyd's plan authorized to engage in |
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| 20 | 20 | | the business of workers' compensation insurance in this state. |
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| 21 | 21 | | Sec. 2056.002. CONTRACT WITH ACCIDENT AND HEALTH INSURANCE |
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| 22 | 22 | | COMPANY TO PROVIDE PACKAGED PLAN. (a) A workers' compensation |
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| 23 | 23 | | insurance company may contract with an accident and health |
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| 24 | 24 | | insurance company to offer to employers a workers' compensation |
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| 25 | 25 | | insurance policy and a group accident and health insurance policy |
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| 26 | 26 | | together in one packaged plan under which employees and their |
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| 27 | 27 | | dependents are eligible for major medical expense coverage and |
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| 28 | 28 | | employees are covered by workers' compensation insurance. |
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| 29 | 29 | | (b) Nothing in this chapter authorizes a workers' |
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| 30 | 30 | | compensation insurance company to underwrite group accident and |
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| 31 | 31 | | health insurance policies. |
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| 32 | 32 | | (c) A group accident and health insurance policy offered as |
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| 33 | 33 | | part of a packaged plan must be provided by an entity that is |
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| 34 | 34 | | authorized to write group accident and health insurance and is |
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| 35 | 35 | | separate from the workers' compensation insurance company. |
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| 36 | 36 | | (d) To the extent employees contribute to the premiums for |
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| 37 | 37 | | group accident and health coverage provided under a packaged plan |
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| 38 | 38 | | offered under this section, those contributions must exclude any |
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| 39 | 39 | | portion of the premiums allocated to the provision of workers' |
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| 40 | 40 | | compensation insurance. |
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| 41 | 41 | | (e) Notwithstanding any other provision of this chapter, an |
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| 42 | 42 | | accident and health insurance company or workers' compensation |
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| 43 | 43 | | insurance company that contracts to provide a packaged plan under |
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| 44 | 44 | | this chapter is subject to the requirements imposed on an insurance |
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| 45 | 45 | | company under this code for the company's respective lines of |
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| 46 | 46 | | insurance, including the payment of premium and maintenance taxes, |
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| 47 | 47 | | maintenance of reserves, and membership in a guaranty association. |
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| 48 | 48 | | Sec. 2056.003. RULES. The commissioner shall adopt rules |
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| 49 | 49 | | as necessary to implement this chapter. |
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| 50 | 50 | | SECTION 2. Chapter 2056, Insurance Code, as added by this |
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| 51 | 51 | | Act, applies only to a workers' compensation insurance policy and a |
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| 52 | 52 | | group accident and health insurance policy delivered, issued for |
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| 53 | 53 | | delivery, or renewed on or after January 1, 2024. |
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| 54 | 54 | | SECTION 3. This Act takes effect September 1, 2023. |
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