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                                  * * * * *