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A BILL TO BE ENTITLED
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AN ACT
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relating to certain promotional practices not considered to be |
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prohibited discrimination, rebates, or inducements in insurance. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subsection (b), Section 541.058, Insurance Code, |
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is amended to read as follows: |
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(b) It is not a rebate or discrimination prohibited by |
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Section 541.056(a) or 541.057: |
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(1) for a life insurance or life annuity contract, to |
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pay a bonus to a policyholder or otherwise abate the policyholder's |
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premiums in whole or in part out of surplus accumulated from |
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nonparticipating insurance policies if the bonus or abatement: |
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(A) is fair and equitable to policyholders; and |
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(B) is in the best interests of the insurer and |
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its policyholders; |
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(2) for a life insurance policy issued on the |
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industrial debit plan, to make to a policyholder who has |
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continuously for a specified period made premium payments directly |
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to the insurer's office an allowance in an amount that fairly |
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represents the saving in collection expenses; |
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(3) for a group insurance policy, to readjust the rate |
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of premium based on the loss or expense experience under the policy |
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at the end of a policy year if the adjustment is retroactive for |
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only that policy year; |
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(4) for a life annuity contract, to waive surrender |
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charges under the contract when the contract holder exchanges that |
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contract for another annuity contract issued by the same insurer or |
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an affiliate of the same insurer that is part of the same holding |
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company group if: |
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(A) the waiver and the exchange are fully, |
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fairly, and accurately explained to the contract holder in a manner |
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that is not deceptive or misleading; and |
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(B) the contract holder is given credit for the |
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time that the previous contract was held when determining any |
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surrender charges under the new contract; |
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(5) in connection with an accident and health |
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insurance policy, to provide to policy or certificate holders, in |
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addition to benefits under the terms of the insurance contract, |
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health-related services or health-related information, or to |
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disclose the availability of those additional services and |
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information to prospective policy or certificate holders; [or] |
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(6) in connection with a health maintenance |
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organization evidence of coverage, to provide to enrollees, in |
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addition to benefits under the evidence of coverage, health-related |
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services or health-related information, or to disclose the |
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availability of those additional services and information to |
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prospective enrollees or contract holders; or |
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(7) in connection with an offer or sale of a life |
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insurance policy or contract, accident and health insurance policy |
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or contract, or annuity contract, to give, provide, or allow or |
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offer to give, provide, or allow an item that is a promotional |
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advertising item, educational item, or traditional courtesy |
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commonly extended to consumers and that is valued at $25 or less. |
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SECTION 2. Section 1806.053, Insurance Code, is amended to |
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read as follows: |
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Sec. 1806.053. DISCRIMINATIONS OR DISTINCTIONS. Except as |
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provided by this subchapter [Section 1806.056], with respect to |
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business written in this state: |
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(1) an insurer may not discriminate or make a |
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distinction, or permit discrimination or a distinction to be made, |
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among insureds having like hazards with respect to premiums charged |
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for, or dividends or other benefits payable under, an insurance |
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policy; |
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(2) an insurer or an insurer's agent may not make an |
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insurance contract or an agreement relating to that insurance, |
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other than as expressed in the policy; and |
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(3) an insurer or an insurer's agent or other |
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representative may not directly or indirectly pay, allow, or give, |
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or offer to pay, allow, or give, as an inducement to the insured, a |
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rebate payable on the policy or a special favor or advantage in the |
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dividends or other benefits to accrue, or anything of value, not |
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specified in the policy. |
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SECTION 3. Subchapter B, Chapter 1806, Insurance Code, is |
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amended by adding Section 1806.059 to read as follows: |
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Sec. 1806.059. CERTAIN PROMOTIONAL PRACTICES AUTHORIZED. |
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Section 1806.053 does not prohibit an insurer or an insurer's agent |
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or other representative from, in connection with an offer or sale of |
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an insurance policy subject to this subchapter, giving, providing, |
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or allowing or offering to give, provide, or allow an item that is a |
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promotional advertising item, educational item, or traditional |
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courtesy commonly extended to consumers and that is valued at $25 or |
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less. |
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SECTION 4. Subchapter C, Chapter 1806, Insurance Code, is |
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amended by adding Section 1806.1041 to read as follows: |
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Sec. 1806.1041. CERTAIN PROMOTIONAL PRACTICES AUTHORIZED. |
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Section 1806.104 does not prohibit an insurer, an insurer's |
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employee, or a broker or agent from, in connection with an offer or |
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sale of an insurance policy subject to this subchapter, giving, |
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providing, or allowing or offering to give, provide, or allow an |
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item that is a promotional advertising item, educational item, or |
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traditional courtesy commonly extended to consumers and that is |
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valued at $25 or less. |
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SECTION 5. Subchapter D, Chapter 1806, Insurance Code, is |
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amended by adding Section 1806.1541 to read as follows: |
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Sec. 1806.1541. CERTAIN PROMOTIONAL PRACTICES AUTHORIZED. |
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Section 1806.153 does not prohibit an insurer from, in connection |
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with an offer or sale of an insurance policy or contract subject to |
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this subchapter, giving, providing, or allowing or offering to |
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give, provide, or allow an item that is a promotional advertising |
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item, educational item, or traditional courtesy commonly extended |
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to consumers and that is valued at $25 or less. |
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SECTION 6. Section 4005.053, Insurance Code, is amended by |
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adding Subsection (d) to read as follows: |
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(d) Subsection (c) does not prohibit an agent from, in |
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connection with an offer or sale of an insurance policy or contract, |
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giving, providing, or allowing or offering to give, provide, or |
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allow an item that is a promotional advertising item, educational |
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item, or traditional courtesy commonly extended to consumers and |
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that is valued at $25 or less. |
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SECTION 7. The change in law made by this Act applies only |
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to conduct that occurs on or after the effective date of this Act. |
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Conduct that occurs before the effective date of this Act is |
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governed by the law applicable to the conduct immediately before |
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the effective date of this Act, and that law is continued in effect |
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for that purpose. |
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SECTION 8. This Act takes effect September 1, 2013. |