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A BILL TO BE ENTITLED
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AN ACT
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relating to prohibited discrimination on the basis of an |
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individual's political affiliation or expression by certain |
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insurers. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 544, Insurance Code, is amended by |
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adding Subchapter M to read as follows: |
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SUBCHAPTER M. POLITICAL AFFILIATION AND EXPRESSION |
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Sec. 544.601. APPLICABILITY OF SUBCHAPTER. This subchapter |
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applies to: |
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(1) any legal entity engaged in the business of |
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insurance in this state, including: |
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(A) a capital stock insurance company; |
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(B) a mutual insurance company; |
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(C) a title insurance company; |
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(D) a fraternal benefit society; |
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(E) a local mutual aid association; |
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(F) a statewide mutual assessment company; |
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(G) a county mutual insurance company; |
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(H) a Lloyd's plan; |
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(I) a reciprocal or interinsurance exchange; |
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(J) a stipulated premium company; |
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(K) a group hospital service corporation; |
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(L) a farm mutual insurance company; |
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(M) a risk retention group; |
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(N) an eligible surplus lines insurer; and |
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(O) an agent, broker, adjuster, or life and |
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health insurance counselor; and |
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(2) a health maintenance organization. |
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Sec. 544.602. PROHIBITION. Except as provided by Section |
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544.603, a person may not refuse to insure or provide coverage to an |
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individual, refuse to continue to insure or provide coverage to an |
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individual, limit the amount, extent, or kind of coverage available |
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for an individual, or charge an individual a rate that is different |
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from the rate charged to other individuals for the same coverage |
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because of the individual's political affiliation or expression. |
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Sec. 544.603. EXCEPTIONS. A person does not violate |
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Section 544.602 if the refusal, limitation, or charge is: |
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(1) based on sound underwriting or actuarial |
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principles reasonably related to actual or anticipated loss |
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experience; or |
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(2) required or authorized by law or a regulatory |
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mandate. |
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Sec. 544.604. ENFORCEMENT ACTIONS. (a) A health |
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maintenance organization or legal entity engaged in the business of |
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insurance that is found to be in violation of or to have failed to |
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comply with this subchapter is subject to the sanctions provided by |
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Chapter 82 or administrative penalties authorized under Chapter 84. |
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(b) In addition to the procedures provided by Subsection |
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(a), the commissioner may use the cease and desist procedures |
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authorized by Chapter 83. |
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SECTION 2. Subchapter M, Chapter 544, Insurance Code, as |
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added by this Act, does not apply to an insurance policy that is |
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delivered, issued for delivery, or renewed before the effective |
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date of this Act. |
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SECTION 3. This Act takes effect September 1, 2021. |