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A BILL TO BE ENTITLED
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AN ACT
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relating to first-party indemnity coverage purchased by insurance |
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purchasing groups. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2201.251, Insurance Code, is amended by |
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adding Subsections (c), (d), and (e) to read as follows: |
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(c) Notwithstanding any other provision of this code, a |
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purchasing group composed primarily of employees of a political |
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subdivision, including a county, municipality, or school district, |
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may purchase first-party indemnity coverage, in addition to the |
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liability coverage described in Subsection (a)(3), on a group basis |
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for other risks to which members may be exposed provided that the |
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aggregate coverage limit per group member for the risk does not |
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exceed three percent of the per member coverage limit for liability |
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coverage. |
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(d) A purchasing group shall notify the commissioner of the |
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group's intent to purchase coverage described by Subsection (c) not |
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later than the 60th day before the date the policy that includes the |
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coverage is initially issued. |
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(e) Subsection (d) does not apply to a purchasing group |
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described by Subsection (c) that was providing to its members |
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coverage described by Subsection (c) on January 1, 2013, and has |
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continued to provide that coverage without lapse. |
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SECTION 2. This Act takes effect September 1, 2013. |