1-1 By: Driver (Senate Sponsor - Leedom) H.B. No. 2662
1-2 (In the Senate - Received from the House May 12, 1993;
1-3 May 13, 1993, read first time and referred to Committee on Economic
1-4 Development; May 22, 1993, reported adversely, with favorable
1-5 Committee Substitute by the following vote: Yeas 10, Nays 0;
1-6 May 22, 1993, sent to printer.)
1-7 COMMITTEE VOTE
1-8 Yea Nay PNV Absent
1-9 Parker x
1-10 Lucio x
1-11 Ellis x
1-12 Haley x
1-13 Harris of Dallas x
1-14 Harris of Tarrant x
1-15 Leedom x
1-16 Madla x
1-17 Rosson x
1-18 Shapiro x
1-19 Wentworth x
1-20 COMMITTEE SUBSTITUTE FOR H.B. No. 2662 By: Leedom
1-21 A BILL TO BE ENTITLED
1-22 AN ACT
1-23 relating to standards for long-term care insurance policies.
1-24 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-25 SECTION 1. Section 3, Article 3.70-12, Insurance Code, is
1-26 amended to read as follows:
1-27 Sec. 3. Minimum standards for long-term care insurance.
1-28 (a) The State Board of Insurance by rule shall establish specific
1-29 standards for provisions of long-term care insurance policies and
1-30 standards for full and fair disclosure setting forth the manner,
1-31 content, and required disclosures for the marketing and sale of
1-32 long-term care insurance policies. Those standards are in addition
1-33 to and in accordance with applicable laws of this state, including
1-34 Subchapter G of Chapter 3 of this code, applicable federal law, and
1-35 any rules, regulations, and standards required by federal law.
1-36 (b) The standards established under Subsection (a) of this
1-37 section shall cover the following:
1-38 (1) terms of renewability;
1-39 (2) initial and subsequent conditions of eligibility;
1-40 (3) nonduplication of coverage;
1-41 (4) coverage of dependents;
1-42 (5) preexisting conditions;
1-43 (6) termination of insurance;
1-44 (7) continuation or conversion;
1-45 (8) probationary periods;
1-46 (9) benefit limitations, exceptions, and reductions;
1-47 (10) elimination periods;
1-48 (11) requirements for replacement;
1-49 (12) recurrent conditions;
1-50 (13) definitions of terms; and
1-51 (14) inflation protection.
1-52 (c) The standards established under Subsection (a) of this
1-53 section may:
1-54 (1) establish standard claim forms;
1-55 (2) establish standard benefits for:
1-56 (A) skilled nursing care;
1-57 (B) intermediate nursing care;
1-58 (C) custodial care; and
1-59 (D) home health care;
1-60 (3) require coverage for skilled nursing care,
1-61 intermediate nursing care, and custodial care to facilitate
1-62 comparison among long-term care insurance products;
1-63 (4) require insurers to offer coverage for home health
1-64 care benefits;
1-65 (5) require that premium rates may not be raised for a
1-66 covered individual unless either the covered individual requests
1-67 and receives a change of benefits or the increase is made for all
1-68 members of the class to which the individual has been assigned by
2-1 the insurer; or
2-2 (6) require an insurer to pay for services covered by
2-3 the policy that are rendered by any institution licensed to provide
2-4 those services under Chapter 242, Health and Safety Code.
2-5 (d) <(b)> Any rules issued by the State Board of Insurance
2-6 under this section shall include requirements no less favorable
2-7 than the minimum standards of benefits for long-term care insurance
2-8 adopted in any model laws or regulations relating to minimum
2-9 standards for benefits for long-term care insurance and mandated by
2-10 federal law.
2-11 (e) <(c)> In addition to other provisions of this section, a
2-12 long-term care insurance policy or certificate subject to this
2-13 article may not contain a provision which denies a claim for losses
2-14 incurred more than six months from the effective date of coverage
2-15 for a preexisting condition. A policy may not define a preexisting
2-16 condition more restrictively than a condition for which medical
2-17 advice was given or treatment was recommended by or received from a
2-18 physician within six months before the effective date of coverage.
2-19 The State Board of Insurance by rule may provide for additional
2-20 reasonable regulation of preexisting conditions consistent with
2-21 this section. That authority includes the authority to extend the
2-22 limitations periods set forth in this section as to specific age
2-23 group categories in specific policy forms, based on the board's
2-24 first finding that such an extension is in the best interest of the
2-25 public.
2-26 SECTION 2. The importance of this legislation and the
2-27 crowded condition of the calendars in both houses create an
2-28 emergency and an imperative public necessity that the
2-29 constitutional rule requiring bills to be read on three several
2-30 days in each house be suspended, and this rule is hereby suspended,
2-31 and that this Act take effect and be in force from and after its
2-32 passage, and it is so enacted.
2-33 * * * * *
2-34 Austin,
2-35 Texas
2-36 May 22, 1993
2-37 Hon. Bob Bullock
2-38 President of the Senate
2-39 Sir:
2-40 We, your Committee on Economic Development to which was referred
2-41 H.B. No. 2662, have had the same under consideration, and I am
2-42 instructed to report it back to the Senate with the recommendation
2-43 that it do not pass, but that the Committee Substitute adopted in
2-44 lieu thereof do pass and be printed.
2-45 Parker,
2-46 Chairman
2-47 * * * * *
2-48 WITNESSES
2-49 No witnesses appeared on H.B. No. 2662.