Bill Text: TX SB840 | 2013-2014 | 83rd Legislature | Enrolled
Bill Title: Relating to certain promotional practices not considered to be prohibited discrimination, rebates, or inducements in insurance.
Spectrum: Bipartisan Bill
Status: (Passed) 2013-05-10 - Effective on 9/1/13 [SB840 Detail]
Download: Texas-2013-SB840-Enrolled.html
S.B. No. 840 |
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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; [ |
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(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 [ |
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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. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I hereby certify that S.B. No. 840 passed the Senate on | ||
March 21, 2013, by the following vote: Yeas 31, Nays 0. | ||
______________________________ | ||
Secretary of the Senate | ||
I hereby certify that S.B. No. 840 passed the House on | ||
April 25, 2013, by the following vote: Yeas 135, Nays 0, one | ||
present not voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
Approved: | ||
______________________________ | ||
Date | ||
______________________________ | ||
Governor |