By Driver H.B. No. 839
75R4877 SAW-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to prohibiting discrimination by insurers in issuing
1-3 health or life insurance policies to certain persons who are
1-4 victims of family violence.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Subchapter B, Chapter 21, Insurance Code, is
1-7 amended by adding Article 21.21-5 to read as follows:
1-8 Art. 21.21-5. VICTIMS OF FAMILY VIOLENCE. (a) In this
1-9 article:
1-10 (1) "Family violence" means the occurrence of one or
1-11 more of the following acts between persons who reside together or
1-12 who formerly resided together:
1-13 (A) wilfully attempting to cause bodily injury,
1-14 or wilfully or wantonly causing bodily injury;
1-15 (B) wilfully placing another, by physical
1-16 threat, in fear of imminent bodily injury; or
1-17 (C) engaging in any of the following acts with a
1-18 minor under 16 years of age who is not the spouse of the person
1-19 engaging in the act:
1-20 (i) the act of sexual intercourse; or
1-21 (ii) any lewd fondling or touching of the
1-22 person of either the minor or the other person, done or submitted
1-23 to with the intent to arouse or to satisfy the sexual desires of
1-24 either the minor or the other person or both.
2-1 (2) "Insurer" means an insurer who delivers, issues
2-2 for delivery, or renews a policy or contract of life or health
2-3 insurance in this state, including any group policy, contract, or
2-4 certificate of life insurance or health insurance or an evidence of
2-5 coverage delivered, issued for delivery, or renewed in this state
2-6 by an insurance company, including a group hospital service
2-7 corporation under Chapter 20 of this code and a health maintenance
2-8 organization under the Texas Health Maintenance Organization Act
2-9 (Chapter 20A, Vernon's Texas Insurance Code).
2-10 (b) An insurer, solely because an individual has been a
2-11 victim of family violence, may not:
2-12 (1) deny coverage to the individual;
2-13 (2) refuse to renew a policy of insurance covering the
2-14 individual;
2-15 (3) cancel a policy of insurance covering the
2-16 individual;
2-17 (4) limit the amount, extent, or kind of coverage
2-18 available to the individual; or
2-19 (5) charge the individual or a group to which the
2-20 individual belongs a different rate for the same coverage.
2-21 (c) An insurer may not, as a part of an application for
2-22 insurance coverage, require an applicant for insurance to reveal
2-23 whether the applicant has been or may become a victim of family
2-24 violence.
2-25 (d) An insurer who violates this article commits an unfair
2-26 and deceptive practice as defined by Article 21.21 of this code and
2-27 is subject to the penalties imposed under that article.
3-1 (e) An insurer who delivers, issues for delivery, or renews
3-2 a policy or contract of life or health insurance to an individual
3-3 who has been or may become a victim of family violence may not be
3-4 held civilly or criminally liable for the death of, or bodily
3-5 injuries incurred by, that individual as a result of family
3-6 violence.
3-7 (f) Notwithstanding any other provision of this article, an
3-8 insurer may underwrite a risk on the basis of an individual's
3-9 physical or mental condition regardless of the underlying cause of
3-10 the condition, or on the basis of any underwriting criteria not
3-11 prohibited by this code, another insurance law of this state, or a
3-12 rule adopted under this code or another insurance law of this
3-13 state.
3-14 SECTION 2. Section 14(b), Texas Health Maintenance
3-15 Organization Act (Article 20A.14, Vernon's Texas Insurance Code),
3-16 is amended to read as follows:
3-17 (b) Articles 21.21, 21.21A, 21.21-2, 21.21-3, and 21.21-5,
3-18 Insurance Code, Article 21.21-6, Insurance Code, as added by
3-19 Chapter 522, Acts of the 74th Legislature, Regular Session, 1995,
3-20 and Chapter 122, Acts of the 57th Legislature, Regular Session,
3-21 1961 (Article 21.21-1, Vernon's Texas Insurance Code), apply to
3-22 health maintenance organizations that offer both basic and single
3-23 health care coverages and to basic and single health care plans and
3-24 the evidence of coverage under those plans, except to the extent
3-25 that the commissioner determines that the nature of health
3-26 maintenance organizations and health care plans and evidence of
3-27 coverage renders any provision of those articles clearly
4-1 inappropriate.
4-2 SECTION 3. This Act takes effect September 1, 1997, and
4-3 applies only to an insurance policy or contract or an evidence of
4-4 coverage that is delivered, issued for delivery, or renewed on or
4-5 after January 1, 1998. A policy or contract or an evidence of
4-6 coverage that is delivered, issued for delivery, or renewed before
4-7 January 1, 1998, is governed by the law as it existed immediately
4-8 before the effective date of this Act, and that law is continued in
4-9 effect for that purpose.
4-10 SECTION 4. The importance of this legislation and the
4-11 crowded condition of the calendars in both houses create an
4-12 emergency and an imperative public necessity that the
4-13 constitutional rule requiring bills to be read on three several
4-14 days in each house be suspended, and this rule is hereby suspended.