By: Harris S.B. No. 333
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the payments of insurance benefits for a child to the
1-2 possessory or managing conservator of the child.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Sections 1, 2, and 3, Article 3.51-13, Insurance
1-5 Code, are amended to read as follows:
1-6 Sec. 1. An insurer or group hospital service company that
1-7 delivers, issues for delivery, or renews a group accident and
1-8 sickness insurance policy in this state, including a policy issued
1-9 by a company subject to Chapter 20 of this code, that provides
1-10 coverage for a minor child who otherwise qualifies as a dependent
1-11 of a person who is a member of the group may pay benefits on behalf
1-12 of the child to the person who is not a member of the group if a
1-13 court order providing for the appointment of a possessory or
1-14 managing conservator of the child has been issued by a court of
1-15 competent jurisdiction in this or any other state.
1-16 Sec. 2. A group accident and sickness insurance policy
1-17 issued by an insurer or group hospital service company may be
1-18 required to pay benefits pursuant to the terms of the policy and as
1-19 provided by this article on compliance by the person who is not a
1-20 member of the group with the requirements of this article, claim
1-21 application procedures of the insurer or company, and rules of the
1-22 State Board of Insurance. However, any requirements imposed on a
1-23 possessory or [the] managing conservator of the child shall not
2-1 apply in the case of any unpaid medical bill for which a valid
2-2 assignment of benefits has been exercised in accordance with policy
2-3 provisions or otherwise, nor to claims submitted by the group
2-4 member where the group member has paid any portion of a medical
2-5 bill that would be covered under the terms of the policy.
2-6 Sec. 3. Before a person who is not a member of a group is
2-7 entitled to be paid benefits under Section 1 of this article, the
2-8 person must submit to the insurer or company with the claim
2-9 application written notice that the person:
2-10 (1) is a possessory or [the] managing conservator of
2-11 the child on whose behalf the claim is made; and
2-12 (2) submit a certified copy of a court order
2-13 establishing the person as possessory or managing conservator or
2-14 other evidence designated by rule of the State Board of Insurance
2-15 that the person qualifies to be paid the benefits as provided by
2-16 this article.
2-17 SECTION 2. This Act takes effect September 1, 1997, and
2-18 applies only to an insurance policy that is delivered, issued for
2-19 delivery, or renewed on or after January 1, 1998. A policy that is
2-20 delivered, issued for delivery, or renewed before January 1, 1998,
2-21 is governed by the law as it existed immediately before the
2-22 effective date of this Act, and that law is continued in effect for
2-23 this purpose.
2-24 SECTION 3. The importance of this legislation and the
2-25 crowded condition of the calendars in both houses create an
3-1 emergency and an imperative public necessity that the
3-2 constitutional rule requiring bills to be read on three several
3-3 days in each house be suspended, and this rule is hereby suspended.