1-1                                   AN ACT
 1-2     relating to application requirements for participation in the Texas
 1-3     Health Insurance Risk Pool.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 10(a), Article 3.77, Insurance Code, is
 1-6     amended to read as follows:
 1-7           (a)  Any individual person who is and continues to be a
 1-8     resident of Texas and a citizen of the United States shall be
 1-9     eligible for coverage from the pool if the individual provides to
1-10     the pool [evidence is provided of]:
1-11                 (1)  a notice of rejection or refusal to issue
1-12     substantially similar individual insurance for health reasons by
1-13     one insurer, other than a [two insurers.  A] rejection or refusal
1-14     by an insurer offering only stop-loss, excess loss, or reinsurance
1-15     coverage;
1-16                 (2)  a certification from an agent or salaried
1-17     representative of an insurer, on a form developed by the board and
1-18     approved by the commissioner, that states that the agent or
1-19     salaried representative is unable to obtain substantially similar
1-20     individual insurance for the individual with any state-licensed
1-21     insurer that the agent or salaried representative represents
1-22     because the individual will be declined for coverage as a result of
1-23     a medical condition of the individual under the underwriting
1-24     guidelines of the insurer [with respect to the applicant shall not
 2-1     be sufficient evidence under this subsection];
 2-2                 (3) [(2)]  an offer to issue substantially similar
 2-3     individual insurance only with conditional riders;
 2-4                 (4) [(3)]  a refusal by an insurer to issue
 2-5     substantially similar individual insurance except at a rate
 2-6     exceeding the pool rate;
 2-7                 (5)  evidence of [(4)] the individual's maintenance of
 2-8     health insurance coverage for the previous 18 months with no gap in
 2-9     coverage greater than 63 days of which the most recent coverage was
2-10     through an employer sponsored plan; or
2-11                 (6) [(5)]  diagnosis of the individual with one of the
2-12     medical or health conditions listed by the board under Section 6(c)
2-13     of this article and for which a person shall be eligible for pool
2-14     coverage [without applying for health insurance coverage].
2-15           SECTION 2.  This Act takes effect September 1, 1999, and
2-16     applies only to an application for coverage under the Texas Health
2-17     Insurance Risk Pool under Article 3.77, Insurance Code, as amended
2-18     by this Act, that is filed with that pool on or after the effective
2-19     date of this Act.
2-20           SECTION 3.  The importance of this legislation and the
2-21     crowded condition of the calendars in both houses create an
2-22     emergency and an imperative public necessity that the
2-23     constitutional rule requiring bills to be read on three several
2-24     days in each house be suspended, and this rule is hereby suspended.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 1097 was passed by the House on May
         4, 1999, by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 1097 was passed by the Senate on May
         26, 1999, by the following vote:  Yeas 30, Nays 0.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  _____________________
                            Date
                    _____________________
                          Governor