H.B. No. 3769
 
 
 
 
AN ACT
  relating to required disclosures for certain occupational
  insurance policies.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle C, Title 5, Insurance Code, is amended
  by adding Chapter 564 to read as follows:
  CHAPTER 564. DISCLOSURES FOR THE SALE OF CERTAIN OCCUPATIONAL
  INSURANCE POLICIES
         Sec. 564.001.  SCOPE OF CHAPTER; PURPOSE. (a) This chapter
  is intended to require disclosures on policy forms for certain
  occupational insurance policies designed or marketed to provide
  coverage to an employer that elects not to maintain workers'
  compensation insurance coverage under Chapter 406, Labor Code.
         (b)  Nothing in this chapter prohibits an employer that is
  not required to maintain workers' compensation insurance coverage
  and has elected not to obtain workers' compensation insurance
  coverage from obtaining occupational accident, disease, or death
  insurance coverage for the employer or the employer's employees. 
         Sec. 564.002.  APPLICABILITY OF CHAPTER. This chapter
  applies to an insurance company authorized to write accident and
  health insurance or liability insurance, including:
               (1)  a surplus lines insurer;
               (2)  a Lloyd's plan; and 
               (3)  a reciprocal or interinsurance exchange.
         Sec. 564.003.  EXCEPTIONS. This chapter does not apply to:
               (1)  a plan that provides coverage:
                     (A)  only for a specified disease or another
  limited benefit;
                     (B)  only for dental or vision care; or
                     (C)  only for hospital indemnity for hospital
  confinement;
               (2)  a Medicare supplemental policy as defined by
  Section 1882(g)(1), Social Security Act (42 U.S.C. Section
  1395ss); 
               (3)  long-term care coverage or benefits, home health
  care coverage or benefits, community-based care coverage or
  benefits, or any combination of those coverages or benefits;
               (4)  an individual or group life insurance policy; or
               (5)  individual or group credit life, accident, or
  disability insurance.
         Sec. 564.004.  OCCUPATIONAL POLICY DEFINED. In this
  chapter, "occupational policy" means:  
               (1)  an individual or group accident or health
  insurance policy that explicitly provides coverage or benefits for
  an employer or the employer's employees for an employee's
  occupational bodily injury, disease, or death;
               (2)  an employer's insurance policy that explicitly
  provides liability coverage to an employer that elects not to
  maintain workers' compensation insurance coverage under Chapter
  406, Labor Code, for an employee's occupational bodily injury,
  disease, or death in:
                     (A)  a general liability insurance policy;
                     (B)  a commercial multiple peril insurance
  policy; or
                     (C)  any other type of insurance policy designated
  by the department as intended to provide liability coverage to an
  employer that elects not to maintain workers' compensation
  insurance coverage under Chapter 406, Labor Code, for an employee's
  occupational bodily injury, disease, or death;
               (3)  an accident, health, or liability insurance
  policy that does not expressly include coverage for occupational
  injuries, disease, or death, but is marketed or sold to or through
  an employer as an alternative to coverage for benefits or liability
  provided by a workers' compensation insurance policy; or
               (4)  a policy that includes occupational accident and
  health and liability coverage in the same policy.
         Sec. 564.005.  REQUIRED DISCLOSURES FOR OCCUPATIONAL
  POLICIES. An occupational policy shall include the following
  disclosure statement in 10-point boldface type on the first page of
  the policy and on the first page of all materials used in
  advertising or marketing the occupational policy to an employer
  that elects not to maintain workers' compensation insurance
  coverage under Chapter 406, Labor Code:
         "THIS IS NOT A WORKERS' COMPENSATION INSURANCE POLICY. THE
  EMPLOYER DOES NOT OBTAIN WORKERS' COMPENSATION INSURANCE COVERAGE
  BY PURCHASING THIS POLICY, AND IF THE EMPLOYER HAS NOT ELECTED TO
  OBTAIN WORKERS' COMPENSATION INSURANCE COVERAGE, THE EMPLOYER DOES
  NOT OBTAIN THOSE BENEFITS THAT WOULD OTHERWISE ACCRUE UNDER THE
  WORKERS' COMPENSATION LAWS IN THIS STATE. THE EMPLOYER MUST COMPLY
  WITH THE WORKERS' COMPENSATION LAWS IN THIS STATE AS THEY PERTAIN TO
  EMPLOYERS THAT ELECT NOT TO MAINTAIN WORKERS' COMPENSATION
  INSURANCE COVERAGE AND THE REQUIRED NOTIFICATIONS THAT MUST BE
  FILED AND POSTED."
         Sec. 564.006.  RULES. The commissioner shall adopt rules as
  necessary to implement this chapter.
         SECTION 2.  As soon as practicable after the effective date
  of this Act, the commissioner of insurance shall adopt rules to
  implement Chapter 564, Insurance Code, as added by this Act.
         SECTION 3.  Chapter 564, Insurance Code, as added by this
  Act, applies only to an occupational insurance policy delivered,
  issued for delivery, or renewed on or after January 1, 2022. An
  occupational insurance policy delivered, issued for delivery, or
  renewed before January 1, 2022, 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 4.  This Act takes effect September 1, 2021.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 3769 was passed by the House on April
  23, 2021, by the following vote:  Yeas 143, Nays 3, 2 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 3769 was passed by the Senate on May
  19, 2021, by the following vote:  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor