Bill Text: TX SB451 | 2023-2024 | 88th 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) 2023-02-17 - Referred to Health & Human Services [SB451 Detail]
Download: Texas-2023-SB451-Introduced.html
88R1763 SCL-D | ||
By: Menéndez | S.B. No. 451 |
|
||
|
||
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. 1223.001. 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. 1223.002. RULES. The commissioner may adopt rules | ||
necessary to implement this chapter. | ||
SUBCHAPTER B. DISCLOSURE AND TERMINATION REQUIREMENTS | ||
Sec. 1223.051. 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. 1223.052. 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; or | ||
(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, 2024, 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, 2024. | ||
SECTION 4. This Act takes effect September 1, 2023. |