By Uher H.B. No. 2097
75R7537 DLF-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to risk pools established by political subdivisions to
1-3 provide health and accident coverage.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter 172, Local Government Code, is amended by
1-6 adding Section 172.0055 to read as follows:
1-7 Sec. 172.0055. BENEFITS AND COVERAGE; NOTICE OF CHANGE. A
1-8 change to a benefit or coverage provided through a risk pool to an
1-9 individual under this chapter may not take effect until the 60th
1-10 day after the earlier of the date that written notice of the change
1-11 is:
1-12 (1) delivered to the individual; or
1-13 (2) mailed to the individual at the individual's
1-14 address as shown on the records of the risk pool.
1-15 SECTION 2. Section 172.006(b), Local Government Code, is
1-16 amended to read as follows:
1-17 (b) A pool may be administered by a staff employed by the
1-18 pool, an entity created by the political subdivision or group of
1-19 political subdivisions participating in the pool, or a third party
1-20 administrator. The individual responsible for administration of
1-21 the pool, whether employed by the pool, an entity created by the
1-22 political subdivision or a group of political subdivisions
1-23 participating in the pool, or a third party administrator:
1-24 (1) must hold a bachelor's degree in a field relating
2-1 to insurance or finance or hold the professional designation of:
2-2 (A) Chartered Property Casualty Underwriter
2-3 granted by the American Institute for Property and Liability
2-4 Underwriters;
2-5 (B) Certified Insurance Counselor granted by the
2-6 Society of Certified Insurance Counselors; or
2-7 (C) Associate in Risk Management granted by the
2-8 Insurance Institute of America;
2-9 (2) must have at least 10 years experience in
2-10 administration of risk pools, commercial insurance, or risk
2-11 management; and
2-12 (3) during each calendar year, shall participate in a
2-13 minimum of 20 hours of continuing education that:
2-14 (A) is acceptable to the trustees of the risk
2-15 pool; and
2-16 (B) relates to professional insurance, risk
2-17 management, or administration of risk pools.
2-18 SECTION 3. This Act applies only to coverage provided by a
2-19 risk pool under a contract that is entered into or renewed or a
2-20 policy or evidence of coverage that is delivered, issued for
2-21 delivery, or renewed on or after January 1, 1998. A contract that
2-22 is entered into or renewed or a policy that is delivered, issued
2-23 for delivery, or renewed before January 1, 1998, is governed by the
2-24 law as it existed immediately before the effective date of this
2-25 Act, and that law is continued in effect for this purpose.
2-26 SECTION 4. (a) An individual responsible for administration
2-27 of a risk pool under Section 172.006, Local Government Code, is not
3-1 required to satisfy the requirements of Sections 172.006(b)(1) and
3-2 (2), Local Government Code, as added by this Act, before January 1,
3-3 1998, or the requirements of Section 172.006(b)(3), Local
3-4 Government Code, as added by this Act, before December 31, 1998.
3-5 (b) The change in law made by this Act to Section
3-6 172.006(b), Local Government Code, applies only to the
3-7 qualifications of an individual who is responsible for
3-8 administration of a risk pool under a contract entered into or
3-9 renewed on or after the effective date of this Act. The
3-10 qualifications of an individual who is responsible for
3-11 administration of a risk pool under a contract entered into or
3-12 renewed before the effective date of this Act is governed by the
3-13 law as it existed immediately before the effective date of this Act
3-14 and that law is continued in effect for this purpose.
3-15 SECTION 5. This Act takes effect September 1, 1997.
3-16 SECTION 6. The importance of this legislation and the
3-17 crowded condition of the calendars in both houses create an
3-18 emergency and an imperative public necessity that the
3-19 constitutional rule requiring bills to be read on three several
3-20 days in each house be suspended, and this rule is hereby suspended.