78R263 PB-F

By:  Burnam                                                       H.B. No. 126



A BILL TO BE ENTITLED

AN ACT

relating to parity in certain disability insurance benefits.                  
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.   Subchapter E, Chapter 21, Insurance Code, is 
amended by adding Article 21.53O to read as follows:
	Art. 21.53O.  PARITY IN CERTAIN DISABILITY INSURANCE 
BENEFITS         
	Sec. 1.  APPLICATION.  This article applies to disability 
benefits provided under:
		(1)  a policy of group accident and health insurance, 
as defined by Section 1, Article 3.51-6, of this code;
		(2)  a policy of blanket accident and health insurance, 
as defined by Section 2, Article 3.51-6, of this code;
		(3)  an individual policy of accident and sickness 
insurance as defined by Section 1(B)(3), Chapter 397, Acts of the 
54th Legislature, Regular Session, 1955 (Article 3.70-1, Vernon's 
Texas Insurance Code); or
		(4)  an evidence of coverage as defined by Section 
843.002.          
	Sec. 2.  PARITY IN COVERAGE REQUIRED. (a)  An insurance 
policy or evidence of coverage that provides disability benefits 
subject to this article may not be delivered, issued for delivery, 
or renewed in this state if the terms of the policy or evidence of 
coverage exclude or reduce the payment of benefits to or on behalf 
of an insured or enrollee because of a mental illness, disease, or 
disorder, unless that exclusion or limitation is equally applicable 
to all other physically disabling conditions.  Each policy or 
evidence of coverage subject to this article must provide parity in 
benefits for mental and physical disabilities.
	(b)  A provision in an insurance policy or evidence of 
coverage that violates this section is void.
	Sec. 3.  VIOLATION; PENALTY. (a)  A violation of this article 
is an unfair and deceptive act or practice in the business of 
insurance for purposes of Article 21.21 of this code and is subject 
to the sanctions and penalties imposed under that article.
	(b)  Approval by the commissioner of the form of the policy 
or evidence of coverage or other form used by the issuer under any 
law of this state, including Article 3.42 of this code or Section 9, 
Texas Health Maintenance Organization Act (Article 20A.09, 
Vernon's Texas Insurance Code), is not a defense to an action 
brought under Article 21.21 of this code with respect to a violation 
of this article.
	SECTION 2.   Article 21.53O, Insurance Code, as added by this 
Act, applies only to an insurance policy or evidence of coverage 
delivered, issued for delivery, or renewed on or after January 1, 
2004.  A policy or evidence of coverage delivered, issued for 
delivery, or renewed before January 1, 2004, is governed by the law 
as it existed immediately before the effective date of this Act, and 
that law is continued in effect for that purpose.
	SECTION 3.   This Act takes effect September 1, 2003.