Bill Text: TX HB3752 | 2021-2022 | 87th Legislature | Comm Sub
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the offering of health benefit coverage by subsidiaries of the Texas Mutual Insurance Company.
Spectrum: Slight Partisan Bill (Republican 8-5)
Status: (Passed) 2021-06-18 - Effective on 9/1/21 [HB3752 Detail]
Download: Texas-2021-HB3752-Comm_Sub.html
Bill Title: Relating to the offering of health benefit coverage by subsidiaries of the Texas Mutual Insurance Company.
Spectrum: Slight Partisan Bill (Republican 8-5)
Status: (Passed) 2021-06-18 - Effective on 9/1/21 [HB3752 Detail]
Download: Texas-2021-HB3752-Comm_Sub.html
87R15991 RDS-F | |||
By: Frank, Oliverson, et al. | H.B. No. 3752 | ||
Substitute the following for H.B. No. 3752: | |||
By: Oliverson | C.S.H.B. No. 3752 |
|
||
|
||
relating to the offering of health benefits by subsidiaries of the | ||
Texas Mutual Insurance Company. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 2054.107, Insurance Code, is amended to | ||
read as follows: | ||
Sec. 2054.107. CERTAIN RELATIONSHIPS WITH OTHER INSURERS | ||
PROHIBITED. Except as provided by Section 2054.602, the [ |
||
company may not have: | ||
(1) an affiliate, spin-off, or subsidiary that writes | ||
a line of insurance other than workers' compensation insurance; or | ||
(2) interlocking boards of directors with an insurer | ||
that writes a line of insurance other than workers' compensation | ||
insurance. | ||
SECTION 2. Chapter 2054, Insurance Code, is amended by | ||
adding Subchapter M to read as follows: | ||
SUBCHAPTER M. SUBSIDIARIES AUTHORIZED TO PROVIDE HEALTH BENEFITS | ||
Sec. 2054.601. DEFINITION. In this subchapter, | ||
"alternative health benefits" means health benefits: | ||
(1) provided by a subsidiary of the company that is not | ||
authorized to engage in the business of insurance in this state; | ||
(2) offered only to: | ||
(A) individuals; | ||
(B) small businesses with not more than 250 | ||
full-time equivalent employees; or | ||
(C) the company's policyholders or their | ||
employees; and | ||
(3) that are not: | ||
(A) provided through an insurance policy or other | ||
product the offering or issuance of which constitutes the business | ||
of insurance in this state; or | ||
(B) benefits subject to the laws governing | ||
workers' compensation in this state. | ||
Sec. 2054.602. HEALTH BENEFITS OFFERED BY SUBSIDIARY | ||
AUTHORIZED. (a) The company may create, acquire, or otherwise own | ||
or operate one or more subsidiaries that offer accident or health | ||
insurance or another type of health benefits or health benefit plan | ||
as provided by this subchapter. | ||
(b) A subsidiary of the company may offer in this state: | ||
(1) accident or health insurance or another type of | ||
health benefit plan authorized under this code, in accordance with | ||
a certificate of authority issued to the subsidiary under this | ||
code; or | ||
(2) alternative health benefits as described by | ||
Section 2054.601. | ||
(c) The company may not be held liable for an act or | ||
obligation of a subsidiary of the company operating under this | ||
section. | ||
(d) A subsidiary of the company may not offer or issue any | ||
policy, plan, or benefits under this section before January 1, | ||
2023. This subsection expires September 1, 2023. | ||
Sec. 2054.603. RULES. The commissioner may adopt rules as | ||
necessary to implement this subchapter. | ||
SECTION 3. This Act takes effect September 1, 2021. |