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