Bill Text: TX SB2071 | 2021-2022 | 87th Legislature | Introduced
Bill Title: Relating to consumer protections for accident and health insurance that excludes coverage for preexisting conditions.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2021-04-01 - Referred to Business & Commerce [SB2071 Detail]
Download: Texas-2021-SB2071-Introduced.html
| 87R6144 SMT-D | ||
| By: Menéndez | S.B. No. 2071 | |
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| relating to consumer protections for accident and health insurance | ||
| that excludes coverage for preexisting conditions. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subtitle A, Title 8, Insurance Code, is amended | ||
| by adding Chapter 1223 to read as follows: | ||
| CHAPTER 1223. PREEXISTING CONDITION COVERAGE EXCLUSIONS | ||
| SUBCHAPTER A. GENERAL PROVISIONS | ||
| Sec. 1223.0001. APPLICABILITY OF CHAPTER. This chapter | ||
| applies to an individual or group accident and health insurance | ||
| policy that excludes coverage for preexisting conditions, | ||
| including: | ||
| (1) an individual accident and health insurance policy | ||
| governed by Chapter 1201; | ||
| (2) a group accident and health insurance policy | ||
| governed by Chapter 1251; or | ||
| (3) a short-term limited-duration insurance policy | ||
| governed by Chapter 1509. | ||
| Sec. 1223.0002. RULES. The commissioner may adopt rules | ||
| necessary to implement this chapter. | ||
| SUBCHAPTER B. REQUIREMENTS AND EFFECTS OF PREEXISTING CONDITION | ||
| EXCLUSIONS | ||
| Sec. 1223.0101. HEALTH INFORMATION DISCLOSURE REQUIRED. | ||
| (a) An insurance policy governed by this chapter may not exclude | ||
| coverage for a preexisting condition unless the application or | ||
| enrollment form for the policy requires disclosure of prior | ||
| illness, disease, or physical conditions or of prior medical care | ||
| and treatment. | ||
| (b) An insurer may not require a disclosure of the health | ||
| information of an applicant's or enrollee's family member in an | ||
| application or enrollment form for an insurance policy governed by | ||
| this chapter unless the family member is also seeking coverage | ||
| under the policy. | ||
| Sec. 1223.0102. TERMINATION REQUIREMENTS. (a) An insurer | ||
| may not terminate an insurance policy governed by this chapter | ||
| before the expiration date except for: | ||
| (1) failure to pay the premium or other applicable | ||
| charges for coverage; | ||
| (2) material failure to abide by rules, policies, or | ||
| procedures of the plan; | ||
| (3) fraud or misrepresentation affecting coverage; | ||
| (4) a request from the policyholder to cancel | ||
| coverage; and | ||
| (5) a cause for termination the commissioner | ||
| determines is not objectionable. | ||
| (b) If an insurer terminates an insurance policy governed by | ||
| this chapter before the policy expiration date, the insurer must | ||
| send written notice to the insured that includes: | ||
| (1) the specific reason the policy was terminated; and | ||
| (2) notice that the insured may file a complaint with | ||
| the department if the insured believes that the policy was | ||
| inappropriately terminated. | ||
| SECTION 2. Not later than January 1, 2022, the commissioner | ||
| of insurance shall adopt rules necessary to implement Chapter 1223, | ||
| Insurance Code, as added by this Act. | ||
| SECTION 3. Chapter 1223, Insurance Code, as added by this | ||
| Act, applies only to an insurance policy delivered, issued for | ||
| delivery, or renewed on or after January 1, 2022. | ||
| SECTION 4. This Act takes effect September 1, 2021. | ||
