RS S.B. 333 75(R)    BILL ANALYSIS


INSURANCE
S.B. 333
By: Harris (Thompson)
3-18-97
Committee Report (Unamended)


BACKGROUND

Currently, Texas law permits the managing conservator of a parent to
receive payments on behalf of a child from an insurer or group hospital
plan, even if the group accident or sickness insurance policy is actually
in the name of the possessory conservator.  Texas law does not allow the
possessory conservator to seek reimbursement directly from an insurer if
the insurance is actually carried by the managing conservator. Thus, a
possessory conservator must ask the managing conservator to submit the
reimbursement.  This leads to many situations in which the possessory
conservator is never reimbursed.  This bill allows the possessory
conservator to seek reimbursement directly from the managing conservator's
insurer or group hospital plan.  

PURPOSE

As proposed, S.B. 333 authorizes a possessory conservator of a child to
seek reimbursement directly from the managing conservator's insurer or
group hospital plan.  

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
rulemaking authority to any state agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Sections (1)-(3), Article 3.51-13, Insurance Code, as
follows: 

Sec. 1.  Authorizes companies which provide group accident and sickness
insurance policies in this state and which provide coverage for a minor
child, to pay benefits on behalf of the child to a person who is not a
member of  the group if a court order providing for the appointment of a
possessory or managing conservator has been issued. 

Sec. 2. Prohibits any requirements imposed on a possessory or managing
conservator of the child  to apply in the case of any unpaid medical bills
for which a valid assignment of benefits has been exercised in accordance
with policy provisions, or to other certain claims submitted. 

Sec. 3. Adds possessory to section, making conforming changes. 

SECTION 2. Effective date: September 1, 1997.
  Makes application of this Act prospective to January 1, 1998. 

SECTION 3. Emergency clause.