H.R. No. 1218 R E S O L U T I O N 1-1 BE IT RESOLVED by the House of Representatives of the State 1-2 of Texas, 74th Legislature, Regular Session, 1995, That House Rule 1-3 13, Section 9(a), be suspended in part as provided by House Rule 1-4 13, Section 9(f), to enable the conference committee appointed to 1-5 resolve the differences on House Bill No. 1367 to consider and 1-6 take action on the following matters: 1-7 House Rule 13, Section 9(a)(4), is suspended to permit the 1-8 committee to add the following section to the bill: 1-9 SECTION 1. Amend Article 21.21-8, Insurance Code, by adding 1-10 new Sections 4 and 5 to read as follows: 1-11 Sec. 4. AFFIRMATIVE DEFENSE. A legal entity engaged in the 1-12 business of insurance as specified in Section 1 of this article is 1-13 not in violation of the prohibited acts defined in or determined 1-14 pursuant to Section 2 of this article if the refusal to insure; the 1-15 refusal to continue to insure; the limiting of the amount, extent, 1-16 or kind of coverage; or the charging of an individual a different 1-17 rate for the same coverage is based upon sound actuarial 1-18 principles. 1-19 Sec. 5. EXCEPTION. A legal entity engaged in the business 1-20 of insurance as specified in Section 1 of this Article is not in 1-21 violation of the prohibited acts defined in or determined pursuant 1-22 to Section 2 of this article if the entity provides insurance 1-23 coverage only to persons who are required to obtain or maintain 2-1 membership or qualification for membership in a club, group, or 2-2 organization so long as membership or membership qualifications are 2-3 uniform requirements of the insurer as a condition of providing 2-4 insurance, and are applied uniformly throughout this state, and the 2-5 entity does not engage in any of the prohibited acts defined in or 2-6 determined pursuant to Section 2 of the article for persons who are 2-7 qualified members, except as otherwise provided in this section. 2-8 Explanation: This change is necessary to clarify the 2-9 operation of Article 21.21-8, Insurance Code, as added by H.B. No. 2-10 668 of the 74th Legislature, Regular Session.