79R6333 AJA-F

By:  Taylor                                                       H.B. No. 1775



A BILL TO BE ENTITLED

AN ACT

relating to the meaning of certain terms used in a specified disease 
insurance policy.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter B, Chapter 1201, Insurance Code, is 
amended by adding Section 1201.0601 to read as follows:
	Sec. 1201.0601.  REQUIRED DEFINITIONS:  SPECIFIED DISEASE 
POLICY.  An individual or group specified disease insurance policy 
that uses the term "actual charge" or "actual fee" must define the 
terms as follows:
	"Actual charge" or "actual fee" means the amount actually 
paid by or on behalf of the insured and accepted by a provider for 
services provided.
	SECTION 2.  (a)  Except as provided by Subsection (b) of this 
section, the change in law made by this Act applies only to an 
insurance policy delivered, issued for delivery, or renewed on or 
after the effective date of this Act.  An insurance policy 
delivered, issued for delivery, or renewed before the effective 
date of this Act is governed by the law in effect immediately before 
that date, and that law is continued in effect for that purpose.
	(b)  The change in law made by this Act applies to an 
insurance policy in effect on the effective date of this Act only if 
the policy does not define "actual charge" or "actual fee."
	SECTION 3.  This Act takes effect September 1, 2005.