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A BILL TO BE ENTITLED
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AN ACT
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relating to certain noninsurance benefits and related services for |
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accident, health, life, and long-term care insurance. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 1701, Insurance Code, is |
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amended by adding Section 1701.061 to read as follows: |
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Sec. 1701.061. NONINSURANCE BENEFITS. (a) In this |
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section, "noninsurance benefit" means a good or service provided or |
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disclosed as part of a policy or certificate of insurance that is |
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reasonably related to the type of policy or certificate being |
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issued. Examples of noninsurance benefits include: |
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(1) discount cards for health care programs, vision |
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care programs, dental care programs, prescriptions, physical |
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fitness programs or facilities, or other similar programs; |
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(2) financial planning, will preparation, or similar |
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services; and |
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(3) contributions for educational savings on behalf of |
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a policyholder or certificate holder. |
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(b) An insurer may include a noninsurance benefit that is |
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reasonably related to a policy or certificate as part of the policy |
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or certificate form to be issued to an insured or certificate |
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holder. |
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(c) A policy form filing that includes a noninsurance |
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benefit shall include: |
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(1) a description of the noninsurance benefit; |
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(2) a notice that fully discloses the noninsurance |
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benefit to the policyholder or certificate holder; and |
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(3) an explanation of any condition on which |
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termination of the noninsurance benefit will occur. |
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(d) Section 541.061 applies to a noninsurance benefit |
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provided as part of a policy or certificate. |
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(e) Section 1102.002 does not apply to a noninsurance |
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benefit provided as part of a policy or certificate. |
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(f) The commissioner may adopt rules to implement this |
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section, including rules to: |
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(1) determine which noninsurance benefits are |
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reasonably related to the types of insurance subject to this |
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chapter; |
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(2) ensure that noninsurance benefits included as part |
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of a policy or certificate are not unfairly deceptive or do not |
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otherwise constitute a prohibited inducement; and |
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(3) address application of other chapters of this code |
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to noninsurance benefits provided as part of a policy or |
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certificate, including Chapters 82-84, 222, 257, 463, 541-544, |
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1501, and 1506. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2007. |