By Naishtat                                           H.B. No. 1586
         76R6620 DB-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the coverage by long-term care insurance policies of
 1-3     the parents of an insured or the parents of the spouse of an
 1-4     insured.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Section 3(b), Article 3.70-12, Insurance Code, is
 1-7     amended to read as follows:
 1-8           (b)  The standards established under Subsection (a) of this
 1-9     section shall cover the following:
1-10                 (1)  terms of renewability;
1-11                 (2)  initial and subsequent conditions of eligibility;
1-12                 (3)  nonduplication of coverage;
1-13                 (4)  coverage of dependents;
1-14                 (5)  coverage of parents of the insured and parents of
1-15     the spouse of the insured;
1-16                 (6) [(5)]  preexisting conditions;
1-17                 (7) [(6)]  termination of insurance;
1-18                 (8) [(7)]  continuation or conversion;
1-19                 (9) [(8)]  probationary periods;
1-20                 (10) [(9)]  benefit limitations, exceptions, and
1-21     reductions;
1-22                 (11) [(10)]  elimination periods;
1-23                 (12) [(11)]  requirements for replacement;
1-24                 (13) [(12)]  recurrent conditions;
 2-1                 (14) [(13)]  definitions of terms; and
 2-2                 (15) [(14)]  inflation protection.
 2-3           SECTION 2.  (a)  This Act takes effect September 1, 1999.
 2-4           (b)  The commissioner of insurance shall establish the
 2-5     standards required under Section 3, Article 3.70-12, Insurance
 2-6     Code, as amended by this Act, not later than March 1, 2000.
 2-7           (c)  Section 3(b), Article 3.70-12, Insurance Code, as
 2-8     amended by this Act, applies only to a policy that is delivered,
 2-9     issued for delivery, or renewed on or after April 1, 2000.  A
2-10     policy that is delivered, issued for delivery, or renewed before
2-11     April 1, 2000, is governed by the law as it existed immediately
2-12     before the effective date of this Act, and that law is continued in
2-13     effect for that purpose.
2-14           SECTION 3.  The importance of this legislation and the
2-15     crowded condition of the calendars in both houses create an
2-16     emergency and an imperative public necessity that the
2-17     constitutional rule requiring bills to be read on three several
2-18     days in each house be suspended, and this rule is hereby suspended.