By Van de Putte S.B. No. 805 77R1154 PB-F A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to parity in certain disability insurance benefits. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Subchapter E, Chapter 21, Insurance Code, is 1-5 amended by adding Article 21.53O to read as follows: 1-6 Art. 21.53O. PARITY IN CERTAIN DISABILITY INSURANCE BENEFITS 1-7 Sec. 1. APPLICATION. This article applies to a disability 1-8 insurance policy or plan issued under: 1-9 (1) a policy of group accident and health insurance, 1-10 as defined by Section 1, Article 3.51-6, of this code; 1-11 (2) a policy of blanket accident and health insurance, 1-12 as defined by Section 2, Article 3.51-6, of this code; 1-13 (3) an individual policy of accident and sickness 1-14 insurance as defined by Section (B)(3), Chapter 397, Acts of the 1-15 54th Legislature, Regular Session, 1955 (Article 3.70-1, Vernon's 1-16 Texas Insurance Code); or 1-17 (4) an evidence of coverage as defined by the Texas 1-18 Health Maintenance Organization Act (Chapter 20A, Vernon's Texas 1-19 Insurance Code). 1-20 Sec. 2. PARITY IN COVERAGE REQUIRED. (a) An insurance 1-21 policy or evidence of coverage subject to this article may not be 1-22 delivered, issued for delivery, or renewed in this state if the 1-23 terms of the policy or evidence of coverage exclude or reduce the 1-24 payment of benefits to or on behalf of an insured or enrollee 2-1 because of a mental illness, disease, or disorder, unless that 2-2 exclusion or limitation is equally applicable to all other 2-3 physically disabling conditions. Each disability policy or plan 2-4 subject to this article must provide parity in benefits for mental 2-5 and physical disabilities. 2-6 (b) A provision in an insurance policy or evidence of 2-7 coverage that violates this section is void. 2-8 Sec. 3. VIOLATION; PENALTY. (a) A violation of this 2-9 article is an unfair and deceptive act or practice in the business 2-10 of insurance for purposes of Article 21.21 of this code and is 2-11 subject to the sanctions and penalties imposed under that article. 2-12 (b) Approval by the commissioner of the policy or product 2-13 form or other form used by the policy or plan issuer under any law 2-14 of this state, including Article 3.42 of this code or Section 9, 2-15 Texas Health Maintenance Organization Act (Article 20A.09, Vernon's 2-16 Texas Insurance Code), is not a defense to an action brought under 2-17 Article 21.21 of this code with respect to a violation of this 2-18 article. 2-19 SECTION 2. Article 21.53O, Insurance Code, as added by this 2-20 Act, applies only to an insurance policy, contract, or evidence of 2-21 coverage delivered, issued for delivery, or renewed on or after 2-22 January 1, 2002. A policy, contract, or evidence of coverage 2-23 delivered, issued for delivery, or renewed before January 1, 2002, 2-24 is governed by the law as it existed immediately before the 2-25 effective date of this Act, and that law is continued in effect for 2-26 that purpose. 2-27 SECTION 3. This Act takes effect September 1, 2001.