S.B. No. 1852
 
 
 
 
AN ACT
  relating to disclosures required in connection with the issuance of
  certain health benefit plans.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 1507.006(b), Insurance Code, is amended
  to read as follows:
         (b)  Each applicant for initial coverage [and each
  policyholder on renewal of coverage] must sign the disclosure
  statement provided by the health carrier under Subsection (a) and
  return the statement to the health carrier.  Under a group policy or
  contract, the term "applicant" means the employer.
         SECTION 2.  Section 1507.056(b), Insurance Code, is amended
  to read as follows:
         (b)  Each applicant for initial enrollment [and each
  contract holder on renewal] must sign the disclosure statement
  provided by the health maintenance organization under Subsection
  (a) and return the statement to the health maintenance
  organization.  Under a group evidence of coverage, the term
  "applicant" means the employer.
         SECTION 3.  Subtitle G, Title 8, Insurance Code, is amended
  by adding Chapter 1509 to read as follows:
  CHAPTER 1509.  SHORT-TERM LIMITED-DURATION INSURANCE
         Sec. 1509.001.  DEFINITION.  In this chapter, "short-term
  limited-duration insurance" has the meaning assigned by 26 C.F.R.
  Section 54.9801-2.
         Sec. 1509.002.  POLICY DISCLOSURE FORM. (a)  The
  commissioner by rule shall prescribe a disclosure form to be
  provided with a short-term limited-duration insurance policy and
  application.
         (b)  The disclosure form must be in an easily readable font
  at least 14-point in size and include:
               (1)  the duration of coverage;
               (2)  a statement:
                     (A)  of the number of times the policy may be
  renewed or that the policy may not be renewed, as applicable;
                     (B)  that the expiration of short-term coverage is
  not a qualifying life event that would make a person eligible for a
  special enrollment period; and
                     (C)  that the policy may expire outside of the
  open enrollment period;
               (3)  to the extent the information is available, the
  dates of the next three open enrollment periods under the Patient
  Protection and Affordable Care Act (Pub. L. No. 111-148) following
  the date the policy expires;
               (4)  whether the policy contains any limitations or
  exclusions to preexisting conditions;
               (5)  the maximum dollar amount payable under the
  policy;
               (6)  the deductibles under the policy and the health
  care services to which the deductibles apply;
               (7)  whether the following health care services are
  covered, including:
                     (A)  prescription drug coverage;
                     (B)  mental health services;
                     (C)  substance abuse treatment;
                     (D)  maternity care;
                     (E)  hospitalization;
                     (F)  surgery;
                     (G)  emergency health care; and
                     (H)  preventive health care; and
               (8)  any other information the commissioner determines
  is important for a purchaser of a short-term limited-duration
  insurance policy.
         (c)  An insurer issuing a short-term limited-duration
  insurance policy shall adopt procedures in accordance with
  commissioner rule to obtain a signed form from the insured
  acknowledging receipt of the disclosure form described by this
  section. The rule must allow for electronic acknowledgment.  The
  insurer shall retain an acknowledgment form until the fifth
  anniversary of the date the insurer receives the form, and the
  insurer shall make the form available to the department on request.
         SECTION 4.  Chapter 1507, Insurance Code, as amended by this
  Act, applies only to a policy or evidence of coverage delivered,
  issued for delivery, or renewed on or after the effective date of
  this Act.  A policy or evidence of coverage delivered, issued for
  delivery, or renewed before the effective date of this Act is
  governed by the law as it existed immediately before the effective
  date of this Act, and that law is continued in effect for that
  purpose.
         SECTION 5.  Not later than January 1, 2020, the commissioner
  of insurance shall prescribe the disclosure form required by
  Section 1509.002, Insurance Code, as added by this Act.
         SECTION 6.  Chapter 1509, Insurance Code, as added by this
  Act, applies only to an insurance policy delivered, issued for
  delivery, or renewed on or after January 1, 2020. An insurance
  policy delivered, issued for delivery, or renewed before January 1,
  2020, is governed by the law as it existed immediately before the
  effective date of this Act, and that law is continued in effect for
  that purpose.
         SECTION 7.  This Act takes effect September 1, 2019.
 
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 1852 passed the Senate on
  April 17, 2019, by the following vote: Yeas 31, Nays 0; and that
  the Senate concurred in House amendment on May 23, 2019, by the
  following vote: Yeas 31, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 1852 passed the House, with
  amendment, on May 16, 2019, by the following vote: Yeas 134,
  Nays 0, two present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor