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A BILL TO BE ENTITLED
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AN ACT
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relating to the offering of health benefits by subsidiaries of the |
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Texas Mutual Insurance Company. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2054.107, Insurance Code, is amended to |
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read as follows: |
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Sec. 2054.107. CERTAIN RELATIONSHIPS WITH OTHER INSURERS |
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PROHIBITED. Except as provided by Section 2054.602, the [The] |
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company may not have: |
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(1) an affiliate, spin-off, or subsidiary that writes |
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a line of insurance other than workers' compensation insurance; or |
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(2) interlocking boards of directors with an insurer |
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that writes a line of insurance other than workers' compensation |
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insurance. |
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SECTION 2. Chapter 2054, Insurance Code, is amended by |
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adding Subchapter M to read as follows: |
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SUBCHAPTER M. SUBSIDIARIES AUTHORIZED TO PROVIDE HEALTH BENEFITS |
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Sec. 2054.601. DEFINITION. In this subchapter, |
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"alternative health benefits" means health benefits: |
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(1) provided by a subsidiary of the company that is not |
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authorized to engage in the business of insurance in this state; |
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(2) offered only to: |
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(A) individuals; |
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(B) small businesses with not more than 250 |
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full-time equivalent employees; or |
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(C) the company's policyholders or their |
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employees; and |
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(3) that are not: |
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(A) provided through an insurance policy or other |
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product the offering or issuance of which constitutes the business |
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of insurance in this state; or |
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(B) benefits subject to the laws governing |
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workers' compensation in this state. |
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Sec. 2054.602. HEALTH BENEFITS OFFERED BY SUBSIDIARY |
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AUTHORIZED. (a) The company may create, acquire, or otherwise own |
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or operate one or more subsidiaries that offer accident or health |
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insurance or another type of health benefits or health benefit plan |
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as provided by this subchapter. |
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(b) A subsidiary of the company may offer in this state: |
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(1) accident or health insurance or another type of |
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health benefit plan authorized under this code, in accordance with |
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a certificate of authority issued to the subsidiary under this |
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code; or |
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(2) alternative health benefits as described by |
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Section 2054.601. |
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(c) The company may not be held liable for an act or |
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obligation of a subsidiary of the company operating under this |
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section. |
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(d) A subsidiary of the company may not offer or issue any |
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policy, plan, or benefits under this section before January 1, |
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2023. This subsection expires September 1, 2023. |
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Sec. 2054.603. RULES. The commissioner may adopt rules as |
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necessary to implement this subchapter. |
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SECTION 3. This Act takes effect September 1, 2021. |