1-1                                   AN ACT
 1-2     relating to health insurance provided through the Texas Health
 1-3     Insurance Risk Pool.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 2(7), Article 3.77, Insurance Code, is
 1-6     amended to read as follows:
 1-7                 (7)  "Health insurance" means individual or group
 1-8     health insurance and includes any hospital and medical expense
 1-9     incurred policy, a fraternal benefit society, a stipulated premium
1-10     company, an approved nonprofit health corporation, health
1-11     maintenance organization subscriber contract, coverage by a group
1-12     hospital service plan, a multiple employer welfare arrangement
1-13     subject to Subchapter I of this chapter, or any other health care
1-14     plan or arrangement that pays for or furnishes medical or health
1-15     care services whether by insurance or otherwise.  The term does not
1-16     include short-term, accident, dental-only, vision-only, fixed
1-17     indemnity, including hospital indemnity insurance, credit
1-18     insurance, long-term care, disability income, or other limited
1-19     benefit insurance, including specified disease insurance, coverage
1-20     issued as a supplement to liability insurance, insurance arising
1-21     out of a workers' compensation or similar law, automobile
1-22     medical-payment insurance, or insurance under which benefits are
1-23     payable with or without regard to fault and which is statutorily
1-24     required to be contained in any liability insurance policy or
 2-1     equivalent self-insurance.
 2-2           SECTION 2.  Article 3.77, Insurance Code, is amended by
 2-3     adding Section 16 to read as follows:
 2-4           Sec. 16.  (a)  An insurer may provide a notification to its
 2-5     insureds regarding the creation of the Texas Health Insurance Risk
 2-6     Pool and the address for information on cost, coverage,
 2-7     eligibility, and other information where an insured can compare his
 2-8     or her current health insurance with the benefits plan offered by
 2-9     the pool.  The insurer shall not incur any liability solely for
2-10     providing such notification.
2-11           (b)  An insurer providing notice under Subsection (a) shall
2-12     provide such notice as prescribed by the commissioner.  The
2-13     commissioner may promulgate rules to implement this section.
2-14           SECTION 3.  Article 3.77, Insurance Code, as amended by this
2-15     Act, applies only to an insurance policy, contract, or evidence of
2-16     coverage delivered, issued for delivery, or renewed on or after
2-17     January 1, 2000.  A policy, contract, or evidence of coverage
2-18     delivered, issued for delivery, or renewed before January 1, 2000,
2-19     is governed by the law as it existed immediately before the
2-20     effective date of this Act, and that law is continued in effect for
2-21     that purpose.
2-22           SECTION 4.  This Act takes effect September 1, 1999.
2-23           SECTION 5.  The importance of this legislation and the
2-24     crowded condition of the calendars in both houses create an
2-25     emergency and an imperative public necessity that the
2-26     constitutional rule requiring bills to be read on three several
2-27     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. 1924 was passed by the House on April
         30, 1999, by a non-record vote; and that the House concurred in
         Senate amendments to H.B. No. 1924 on May 26, 1999, by a non-record
         vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 1924 was passed by the Senate, with
         amendments, on May 21, 1999, by a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  _____________________
                            Date
                    _____________________
                          Governor