By Maxey H.B. No. 1190 74R5341 PB-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to a prohibition of the use of certain underwriting 1-3 guidelines by health insurers. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subchapter B, Chapter 21, Insurance Code, is 1-6 amended by adding Article 21.21-7 to read as follows: 1-7 Art. 21.21-7. PROHIBITION ON USE BY HEALTH INSURERS OF 1-8 UNDERWRITING GUIDELINES BASED ON FLUENCY IN ENGLISH 1-9 Sec. 1. DEFINITIONS. In this article: 1-10 (1) "Health insurer" means any insurance company, 1-11 group hospital service corporation, or health maintenance 1-12 organization that delivers or issues for delivery an individual, 1-13 group, blanket, or franchise insurance policy or insurance 1-14 agreement, a group hospital service contract, or an evidence of 1-15 coverage that provides benefits for medical or surgical expenses 1-16 incurred as a result of an accident or sickness. 1-17 (2) "Underwriting guideline" means a rule, standard, 1-18 marketing decision, or practice that is used by a health insurer or 1-19 an agent of a health insurer to examine, bind, accept, reject, 1-20 cancel, or limit insurance coverage to groups of consumers of 1-21 insurance. 1-22 Sec. 2. APPLICATION. This article applies to any health 1-23 insurance policy, agreement, contract, or evidence of coverage 1-24 delivered or issued for delivery by a health insurer. 2-1 Sec. 3. PROHIBITION. A health insurer may not use an 2-2 underwriting guideline that is based in whole or in part on the 2-3 ability of an insured or an applicant for insurance coverage to 2-4 speak English fluently or to be literate in the English language. 2-5 Sec. 4. PENALTY. A health insurer who violates this article 2-6 commits an unfair practice in violation of Article 21.21 of this 2-7 code and is subject to the penalties imposed under that article. 2-8 SECTION 2. This Act takes effect September 1, 1995, and 2-9 applies only to a health insurance policy, contract, agreement, or 2-10 evidence of coverage that is delivered, issued for delivery, or 2-11 renewed on or after January 1, 1996. A policy, contract, 2-12 agreement, or evidence of coverage that is delivered, issued for 2-13 delivery, or renewed before January 1, 1996, is governed by the law 2-14 as it existed immediately before the effective date of this Act, 2-15 and that law is continued in effect for that purpose. 2-16 SECTION 3. The importance of this legislation and the 2-17 crowded condition of the calendars in both houses create an 2-18 emergency and an imperative public necessity that the 2-19 constitutional rule requiring bills to be read on three several 2-20 days in each house be suspended, and this rule is hereby suspended.