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A BILL TO BE ENTITLED
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AN ACT
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relating to requiring insurers to offer conversion of group |
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policies. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 121.256(a) and (b), Insurance Code, are |
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amended to read as follows: |
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(a) An insurer shall [may] offer a conversion policy to each |
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employee, member, or dependent who is covered under a group |
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accident and health insurance policy that is terminating. |
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(b) An [If offered, an] issuer shall issue a conversion |
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policy without evidence of insurability if a written application |
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for the policy and payment of the first premium are made not later |
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than the 31st day after the date of termination. |
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SECTION 2. This Act applies only to an insurance policy or |
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contract or evidence of coverage that is delivered, issued for |
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delivery, or renewed on or after January 1, 2010. An insurance |
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policy or contract or evidence of coverage delivered, issued for |
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delivery, or renewed before January 1, 2010, is governed by the law |
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as it existed immediately before the effective date of this Act, and |
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that law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2009. |