SRC-AAA S.B. 682 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 682
By: Armbrister
Economic Development
4-7-97
As Filed


DIGEST 

Currently, Texas Department of Insurance rules require advertisements that
refer to rates for health insurance coverage to disclose exclusions,
reductions, and limitations.  This interpretation may restrict the
advertising of rates because most policies contain the standard laundry
list of exclusions, such as cosmetic surgery and self-inflicted injuries.
This bill clarifies the ability to advertise rates for health insurance
coverage, without the listing of all exclusions and benefit limitations if
accompanied by disclaimers of insurers and health maintenance
organizations. 

PURPOSE

As proposed, S.B. 682 clarifies the ability to advertise rates for health
insurance coverage, without the listing of all exclusions and benefit
limitations if accompanied by disclaimers of insurers and health
maintenance organizations. 

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 Section 2, Article 3.70-2, Insurance Code, by adding
Subsection (N), to provide that notwithstanding the provisions of Article
21.21, Insurance Code, an advertisement for an individual or group policy
of accident and sickness insurance, and an evidence of coverage issued by
a health maintenance organization subject to the Texas Health Maintenance
Organization Act may include rates without listing of all exclusions and
benefit limitations if accompanied by disclaimers which clearly indicate
that the advertised rates are illustrative and that benefit limitations
and exclusions may apply. 

SECTION 2. Emergency clause.
  Effective date: upon passage.