79R4056 KCR-D

By:  Menendez                                                     H.B. No. 765



A BILL TO BE ENTITLED

AN ACT

relating to required minimum annual policy limits for certain group 
accident and health insurance policies.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter E, Chapter 1251, Insurance Code, as 
effective April 1, 2005, is amended by adding Section 1251.202 to 
read as follows:
	Sec. 1251.202.  REQUIRED MINIMUM ANNUAL POLICY LIMITS; 
NOTICE. (a)  This section applies only to a group accident and 
health insurance policy, including a group contract issued by a 
group hospital service corporation, that provides coverage to 10 or 
more policyholders.
	(b)  A group accident and health insurance policy may not be 
issued for delivery in this state unless the policy annually 
provides at least $500,000 of coverage for the diagnosis and 
treatment of catastrophic illness or injury for each individual 
insured under the policy.  For purposes of this subsection, 
"catastrophic illness or injury" includes cancer and any terminal 
illness.
	(c)  An insurer who issues a group accident and health 
insurance policy in this state shall annually notify each 
policyholder in writing, in the manner prescribed by commissioner 
rule, of the annual deductibles, policy limits, and maximum 
out-of-pocket expenses under the policy.
	SECTION 2.  The change in law made by this Act applies only 
to a group accident and health insurance policy that is delivered, 
issued for delivery, or renewed on or after January 1, 2006.  A 
group accident and health insurance policy that is delivered, 
issued for delivery, or renewed before January 1, 2006, is covered 
by the law in effect at the time the policy was delivered, issued 
for delivery, or renewed, and that law is continued in effect for 
that purpose.
	SECTION 3.  This Act takes effect September 1, 2005.