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A BILL TO BE ENTITLED
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AN ACT
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relating to advertising by certain insurers. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 541, Insurance Code, is amended by |
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adding Subchapter B-1 to read as follows: |
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SUBCHAPTER B-1. ADVERTISING REQUIREMENTS |
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Sec. 541.082. ADVERTISING AND INTERNET WEBSITES. (a) In |
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this section, "insurer" means: |
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(1) a life insurance company; |
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(2) a health insurance company; |
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(3) an accident insurance company; |
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(4) a general casualty company; |
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(5) a mutual life insurance company or other mutual |
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insurance company; |
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(6) a mutual or natural premium life insurance |
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company; |
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(7) a Lloyd's plan; |
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(8) a reciprocal or interinsurance exchange; |
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(9) a fraternal benefit society; |
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(10) a local mutual aid association; |
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(11) a health maintenance organization; |
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(12) a group hospital service corporation; or |
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(13) a multiple employer welfare arrangement that |
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holds a certificate of coverage under Chapter 846. |
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(b) A web page of an insurer's Internet website must include |
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all appropriate disclosures and information required by applicable |
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rules adopted by the commissioner relating to advertising only if |
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the web page: |
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(1) describes a specific policy or specific evidence |
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of coverage available in this state; or |
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(2) includes an opportunity for an individual to apply |
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for coverage or obtain a quote from an insurer for an insurance |
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policy or certificate or an evidence of coverage. |
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(c) An insurer may comply with Subsection (b) by including a |
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link to a web page that includes the information necessary to comply |
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with the applicable rules relating to advertising. The link must be |
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prominently placed on the insurer's web page. |
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(d) Web pages of an Internet website that do not refer to a |
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specific insurance policy or certificate of coverage or do not |
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provide an opportunity for an individual to apply for coverage or |
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obtain a quote from an insurer are not considered to be |
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advertisements subject to rules adopted by the commissioner |
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relating to advertising. |
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(e) Web pages or navigation aids within an insurer's |
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Internet website that provide a link to a web page described by |
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Subsection (b) but that do not otherwise contain content described |
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in Subsection (b) are not considered to be advertisements subject |
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to rules adopted by the commissioner relating to advertising. |
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Sec. 541.083. ADVERTISEMENTS TO CERTAIN ASSOCIATIONS. An |
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insurer may advertise to the general public policies or coverage |
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available only to members of an association described by Section |
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1251.052. |
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Sec. 541.084. ADVERTISEMENTS RELATING TO MEDICARE PROGRAM. |
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A person may not use an advertisement for an insurance product |
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relating to Medicare coverage unless the advertisement includes in |
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a prominent place the following language or similar language: "Not |
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connected with or endorsed by the United States government or the |
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federal Medicare program." |
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Sec. 541.085. ADVERTISEMENTS RELATING TO PREFERRED |
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PROVIDER BENEFIT PLANS. An insurer may use the term "PPO" in |
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advertisements when referring to a preferred provider benefit plan |
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offered under Chapter 1301. |
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Sec. 541.086. ADVERTISING REGARDING GUARANTEED |
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RENEWABILITY OF COVERAGE. (a) An advertisement for a guaranteed |
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renewable accident and health insurance policy must include, in a |
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prominent place, a statement indicating that rates for the policy |
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may change if the advertisement suggests or implies that: |
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(1) the product is guaranteed renewable; and |
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(2) rates for the product will not change. |
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(b) If an advertisement is required to include the statement |
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described by Subsection (a), the statement must generally identify |
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the manner in which rates may change, such as by age, by health |
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status, or through application of other general criteria. |
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Sec. 541.087. ADVERTISEMENTS EXEMPT FROM APPROVAL |
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REQUIREMENTS. An advertisement subject to approval by the |
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commissioner under this code or commissioner rule and that is the |
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same as or substantially similar to an advertisement previously |
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approved by the commissioner is not required to be filed for |
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approval. |
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SECTION 2. Section 541.052, Insurance Code, is transferred |
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to Subchapter B-1, Chapter 541, Insurance Code, as added by this |
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Act, renumbered as Section 541.081, and amended to read as follows: |
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Sec. 541.081 [541.052]. FALSE INFORMATION AND ADVERTISING. |
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(a) It is an unfair method of competition or an unfair or deceptive |
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act or practice in the business of insurance to make, publish, |
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disseminate, circulate, or place before the public or directly or |
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indirectly cause to be made, published, disseminated, circulated, |
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or placed before the public an advertisement, announcement, or |
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statement containing an untrue, deceptive, or misleading |
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assertion, representation, or statement regarding the business of |
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insurance or a person in the conduct of the person's insurance |
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business. |
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(b) This section applies to an advertisement, announcement, |
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or statement made, published, disseminated, circulated, or placed |
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before the public: |
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(1) in a newspaper, magazine, or other publication; |
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(2) in a notice, circular, pamphlet, letter, or |
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poster; |
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(3) over a radio or television station; [or] |
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(4) through the Internet; or |
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(5) in any other manner. |
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SECTION 3. Section 1652.156(c), Insurance Code, is amended |
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to read as follows: |
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(c) An entity may not use an advertisement for Medicare |
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supplement benefit plans that does not comply with state law, |
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including department rules and Section 541.084. |
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SECTION 4. This Act takes effect September 1, 2007. |