By: Taylor (Senate Sponsor - Averitt) H.B. No. 1775
(In the Senate - Received from the House May 16, 2005;
May 17, 2005, read first time and referred to Committee on State
Affairs; May 20, 2005, reported favorably by the following vote:
Yeas 7, Nays 0; May 20, 2005, sent to printer.)
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.
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