1-1 By: Harris S.B. No. 333
1-2 (In the Senate - Filed January 28, 1997; February 3, 1997,
1-3 read first time and referred to Committee on Jurisprudence;
1-4 February 18, 1997, reported favorably by the following vote: Yeas
1-5 6, Nays 0; February 18, 1997, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the payments of insurance benefits for a child to the
1-9 possessory or managing conservator of the child.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Sections 1, 2, and 3, Article 3.51-13, Insurance
1-12 Code, are amended to read as follows:
1-13 Sec. 1. An insurer or group hospital service company that
1-14 delivers, issues for delivery, or renews a group accident and
1-15 sickness insurance policy in this state, including a policy issued
1-16 by a company subject to Chapter 20 of this code, that provides
1-17 coverage for a minor child who otherwise qualifies as a dependent
1-18 of a person who is a member of the group may pay benefits on behalf
1-19 of the child to the person who is not a member of the group if a
1-20 court order providing for the appointment of a possessory or
1-21 managing conservator of the child has been issued by a court of
1-22 competent jurisdiction in this or any other state.
1-23 Sec. 2. A group accident and sickness insurance policy
1-24 issued by an insurer or group hospital service company may be
1-25 required to pay benefits pursuant to the terms of the policy and as
1-26 provided by this article on compliance by the person who is not a
1-27 member of the group with the requirements of this article, claim
1-28 application procedures of the insurer or company, and rules of the
1-29 State Board of Insurance. However, any requirements imposed on a
1-30 possessory or [the] managing conservator of the child shall not
1-31 apply in the case of any unpaid medical bill for which a valid
1-32 assignment of benefits has been exercised in accordance with policy
1-33 provisions or otherwise, nor to claims submitted by the group
1-34 member where the group member has paid any portion of a medical
1-35 bill that would be covered under the terms of the policy.
1-36 Sec. 3. Before a person who is not a member of a group is
1-37 entitled to be paid benefits under Section 1 of this article, the
1-38 person must submit to the insurer or company with the claim
1-39 application written notice that the person:
1-40 (1) is a possessory or [the] managing conservator of
1-41 the child on whose behalf the claim is made; and
1-42 (2) submit a certified copy of a court order
1-43 establishing the person as possessory or managing conservator or
1-44 other evidence designated by rule of the State Board of Insurance
1-45 that the person qualifies to be paid the benefits as provided by
1-46 this article.
1-47 SECTION 2. This Act takes effect September 1, 1997, and
1-48 applies only to an insurance policy that is delivered, issued for
1-49 delivery, or renewed on or after January 1, 1998. A policy that is
1-50 delivered, issued for delivery, or renewed before January 1, 1998,
1-51 is governed by the law as it existed immediately before the
1-52 effective date of this Act, and that law is continued in effect for
1-53 this purpose.
1-54 SECTION 3. The importance of this legislation and the
1-55 crowded condition of the calendars in both houses create an
1-56 emergency and an imperative public necessity that the
1-57 constitutional rule requiring bills to be read on three several
1-58 days in each house be suspended, and this rule is hereby suspended.
1-59 * * * * *