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A BILL TO BE ENTITLED
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AN ACT
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relating to the use of unapproved or disapproved insurance or |
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health maintenance organization forms. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 541, Insurance Code, is |
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amended by adding Section 541.062 to read as follows: |
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Sec. 541.062. USE OF UNAPPROVED OR DISAPPROVED FORM. (a) |
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It is an unfair method of competition or an unfair or deceptive act |
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or practice in the business of insurance to deny or limit coverage |
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or benefits on the basis of language contained in a document for |
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which form approval is required under Subchapter C, Chapter 1271, |
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Chapter 1701, or Chapter 2301 if, as applicable: |
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(1) the form has not been approved under Chapter 1271, |
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1701, or 2301; |
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(2) the form has been disapproved under Chapter 1271, |
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1701, or 2301; |
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(3) approval of the form has been withdrawn under |
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Chapter 1271, 1701, or 2301; |
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(4) the form was not filed with a certification as |
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described by Section 1701.052; |
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(5) the commissioner has withdrawn an exemption of the |
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form from the approval requirements of Chapter 1701 and the form has |
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not subsequently been approved as required by Chapter 1701; or |
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(6) the form was not adopted by the commissioner under |
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Section 2301.008. |
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(b) This section does not apply to a document that has been |
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replaced or amended and corrected under Section 1701.059. |
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SECTION 2. The change in law made by this Act applies only |
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to a form used to write a document, including a policy, evidence of |
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coverage, or contract, on or after the effective date of this Act. |
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A form used before the effective date of this Act is governed by the |
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law in effect immediately before that date, and that law is |
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continued in effect for that purpose. |
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SECTION 3. 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, 2011. |