By: Ellis S.R. No. 1302
1-10 amended by adding 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
1-24 membership or qualification for membership in a club, group, or
1-25 organization so long as membership or membership qualifications are
2-10 ______________________________________
2-11 President of the Senate
2-12 I hereby certify that the above
2-13 Resolution was adopted by the Senate
2-14 on May 28, 1995, by the following
2-15 vote: Yeas 29, Nays 0.
2-16 ______________________________________
2-17 Secretary of the Senate