SRC-CDH H.B. 839 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 839
By: Driver (Sibley)
Economic Development
5-13-97
Engrossed


DIGEST 

Currently, insurers are not prohibited from denying coverage to a victim
of family violence under the Insurance Code.  Some individuals may not
have access to life or health insurance because insurers may deny
applications, cancel coverage, or raise rates for victims of family
violence.  H.B. 839 would prohibit life and health insurance companies
from denying, refusing to renew, canceling, limiting, or charging a
different rate to a victim of family violence.  Additionally, this bill
authorizes an insurer to underwrite a risk on the basis of an individual's
physical or mental condition provided that criteria is applied
consistently and is not used to avoid providing coverage.   

PURPOSE

As proposed, H.B. 839 prohibits discrimination by insurers in issuing
health or life insurance policies to certain persons who are victims of
family violence. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 21B, Insurance Code, by adding Article 21.21-5,
as follows: 

Art. 21.21-5.  VICTIMS OF FAMILY VIOLENCE

Sec. 1.  DEFINITION.  Defines "family violence."

Sec. 2.  SCOPE OF ARTICLE.  Provides that this article applies only to a
life insurer (insurer) that delivers, issues for delivery, or renews a
life insurance contract or policy in this state and a health benefit plan
issuer (issuer) that provides benefits for medical or surgical expenses
incurred as a result of a health condition, accident, or sickness.
Provides that this article does not apply to the issuer of certain
coverage or policies. 

Sec. 3.  PROHIBITIONS.  Prohibits an issuer or insurer, because of an
individual's status as a victim of family violence, from denying coverage
to the individual, refusing to renew the individual's coverage, cancelling
the individual's coverage, limiting the amount or kind of coverage
available; or charging the individual or a group to which the individual
belongs a different rate for the same coverage.  Prohibits an issuer or
insurer from requiring an applicant to reveal whether the applicant has
been or may become a victim of family violence. 

Sec. 4.  SANCTIONS.  Provides that an issuer or insurer who violates this
article commits an unfair and deceptive practice as defined by Article
21.21 of this code and is subject to the penalties imposed under that
article. 

Sec. 5.  RELEASE FROM LIABILITY.  Prohibits a health benefit plan provider
or insurer from being held civilly or criminally liable for the death of,
or bodily injuries incurred by, an individual who has been or may become a
victim of family violence. 

 Sec. 6.  UNDERWRITING CRITERIA.  Sets forth the terms by which an issuer
or insurer, notwithstanding any other provision of this article, is
authorized to underwrite a risk on an individual. 

 Sec. 7.  CONTINUED COVERAGE.  Provides that this article does not affect
the right of an individual to continued coverage under Section 3B, Article
3.51-6, Insurance Code.   

Sec. 8.  CONFIDENTIALITY.  Prohibits an issuer, insurer, or a person
employed by or under contract with either an issuer or insurer from
releasing information relating to the status as a victim of family
violence of an individual who is clearly a victim of family violence, with
certain exceptions.   

SECTION 2. Amends Section 14(b), Article 20A.14, V.T.C.S. (Texas Health
Maintenance Organization Act), to provide that Article 21.21-5, Insurance
Code, as added by Chapter 522, Acts of the 74th Legislature, Regular
Session, 1995, applies to health maintenance organizations that offer both
basic and single health care coverages and to basic and single health care
plans and the evidence of coverage under those plans, with certain
exceptions. 

SECTION 3. Effective date:  September 1, 1997.
  Makes application of this Act prospective to January 1, 1998.

SECTION 4. Emergency clause.