By:  Armbrister                               S.B. No. 682

         97S0467/1                           

                                A BILL TO BE ENTITLED

                                       AN ACT

 1-1     relating to advertisements for health insurance coverage.

 1-2           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-3           SECTION 1.  Section 2, Chapter 397, Acts of the 54th

 1-4     Legislature, 1955 (Article 3.70-2, Insurance Code), is amended by

 1-5     adding Subsection (N) to read as follows:

 1-6           (N)  Notwithstanding the provisions of Article 21.21,

 1-7     Insurance Code, an advertisement for an individual or group policy

 1-8     of accident and sickness insurance, including a policy issued by a

 1-9     company subject to Chapter 20, Insurance Code, and an evidence of

1-10     coverage issued by a health maintenance organization subject to the

1-11     Texas Health Maintenance Organization Act (Chapter 20A, Vernon's

1-12     Texas Insurance Code), may include rates without the listing of all

1-13     exclusions and benefit limitations if accompanied by disclaimers

1-14     which clearly indicate that the advertised rates are illustrative

1-15     and that benefit limitations and exclusions may apply.

1-16           SECTION 2.  The importance of this legislation and the

1-17     crowded condition of the calendars in both houses create an

1-18     emergency and an imperative public necessity that the

1-19     constitutional rule requiring bills to be read on three several

1-20     days in each house be suspended, and this rule is hereby suspended,

1-21     and that this Act take effect and be in force from and after its

1-22     passage, and it is so enacted.