Bill Text: TX HB3237 | 2013-2014 | 83rd Legislature | Introduced
Bill Title: Relating to first-party indemnity coverage purchased by insurance purchasing groups.
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced - Dead) 2013-04-16 - Left pending in committee [HB3237 Detail]
Download: Texas-2013-HB3237-Introduced.html
| 83R10144 PMO-F | ||
| By: Smithee | H.B. No. 3237 | |
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| relating to first-party indemnity coverage purchased by insurance | ||
| purchasing groups. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Section 2201.251, Insurance Code, is amended by | ||
| adding Subsections (c), (d), and (e) to read as follows: | ||
| (c) Notwithstanding any other provision of this code, a | ||
| purchasing group composed primarily of employees of a political | ||
| subdivision, including a county, municipality, or school district, | ||
| may purchase first-party indemnity coverage, in addition to the | ||
| liability coverage described in Subsection (a)(3), on a group basis | ||
| for other risks to which members may be exposed provided that the | ||
| aggregate coverage limit per group member for the risk does not | ||
| exceed three percent of the per member coverage limit for liability | ||
| coverage. | ||
| (d) A purchasing group shall notify the commissioner of the | ||
| group's intent to purchase coverage described by Subsection (c) not | ||
| later than the 60th day before the date the policy that includes the | ||
| coverage is initially issued. After notice and hearing the | ||
| commissioner may issue any orders authorized by law with respect to | ||
| such coverage. | ||
| (e) Subsection (d) does not apply to a purchasing group | ||
| described by Subsection (c) that was providing to its members | ||
| coverage described by Subsection (c) on January 1, 2013, and has | ||
| continued to provide that coverage without lapse. | ||
| SECTION 2. This Act takes effect September 1, 2013. | ||
