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AN ACT
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relating to advertising by certain insurers. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 541, Insurance Code, is amended by |
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adding Subchapter B-1 to read as follows: |
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SUBCHAPTER B-1. ADVERTISING REQUIREMENTS |
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Sec. 541.082. ADVERTISING AND INTERNET WEBSITES. (a) In |
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this section, "insurer" includes: |
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(1) a life insurance company; |
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(2) a health insurance company; |
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(3) an accident insurance company; |
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(4) a general casualty company; |
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(5) a mutual life insurance company or other mutual |
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insurance company; |
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(6) a mutual or natural premium life insurance |
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company; |
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(7) a Lloyd's plan; |
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(8) a county mutual insurance company; |
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(9) a farm mutual insurance company; |
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(10) a reciprocal or interinsurance exchange; |
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(11) a fraternal benefit society; |
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(12) a local mutual aid association; |
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(13) a health maintenance organization; |
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(14) a group hospital service corporation; or |
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(15) a multiple employer welfare arrangement that |
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holds a certificate of coverage under Chapter 846. |
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(b) A web page of an insurer's Internet website must include |
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all appropriate disclosures and information required by applicable |
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rules adopted by the commissioner relating to advertising only if |
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the web page: |
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(1) describes specific policies or coverage available |
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in this state; or |
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(2) includes an opportunity for an individual to apply |
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for coverage or obtain a quote from an insurer for an insurance |
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policy or certificate or an evidence of coverage. |
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(c) As may be permitted by commissioner rule, an insurer may |
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comply with Subsection (b) by including a link to a web page that |
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includes the information necessary to comply with the applicable |
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rules relating to advertising. The link must be prominently placed |
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on the insurer's web page. |
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(d) Web pages of an Internet website that do not refer to a |
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specific insurance policy, certificate of coverage, or evidence of |
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coverage or that do not provide an opportunity for an individual to |
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apply for coverage or request a quote from an insurer are considered |
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to be institutional advertisements subject to rules adopted by the |
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commissioner relating to advertising. |
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(e) Web pages or navigation aids within an insurer's |
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Internet website that provide a link to a web page described by |
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Subsection (b) but that do not otherwise contain content described |
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in Subsection (b) are considered to be institutional advertisements |
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subject to rules adopted by the commissioner relating to |
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advertising. |
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Sec. 541.083. ADVERTISEMENTS TO CERTAIN ASSOCIATIONS. An |
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insurer may advertise to the general public policies or coverage |
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available only to members of an association described by Section |
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1251.052. |
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Sec. 541.084. ADVERTISEMENTS RELATING TO MEDICARE PROGRAM. |
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A person may not use an advertisement for an insurance product |
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relating to Medicare coverage unless the advertisement includes in |
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a prominent place the following language or similar language: "Not |
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connected with or endorsed by the United States government or the |
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federal Medicare program." |
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Sec. 541.085. ADVERTISEMENTS RELATING TO PREFERRED |
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PROVIDER BENEFIT PLANS. It is sufficient for an insurer to use the |
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term "PPO plan" in advertisements when referring to a preferred |
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provider benefit plan offered under Chapter 1301. |
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Sec. 541.086. ADVERTISING REGARDING GUARANTEED RENEWABLE |
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COVERAGE. (a) An advertisement for a guaranteed renewable accident |
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and health insurance policy must include, in a prominent place, a |
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statement indicating that rates for the policy may change if the |
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advertisement suggests or implies that rates for the product will |
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not change. |
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(b) If an advertisement is required to include the statement |
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described by Subsection (a), the statement must generally identify |
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the manner in which rates may change, such as by age, by health |
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status, by class, or through application of other general criteria. |
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Sec. 541.087. ADVERTISEMENTS EXEMPT FROM FILING |
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REQUIREMENTS. An advertisement subject to requirements regarding |
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filing of the advertisement with the department for department |
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review under this code or commissioner rule and that is the same as |
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or substantially similar to an advertisement previously reviewed |
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and accepted by the department is not required to be filed for |
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department review. |
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SECTION 2. Section 541.052(b), Insurance Code, is amended |
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to read as follows: |
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(b) This section applies to an advertisement, announcement, |
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or statement made, published, disseminated, circulated, or placed |
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before the public: |
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(1) in a newspaper, magazine, or other publication; |
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(2) in a notice, circular, pamphlet, letter, or |
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poster; |
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(3) over a radio or television station; [or] |
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(4) through the Internet; or |
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(5) in any other manner. |
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SECTION 3. Section 1652.156(c), Insurance Code, is amended |
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to read as follows: |
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(c) An entity may not use an advertisement for Medicare |
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supplement benefit plans that does not comply with state law, |
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including department rules and Section 541.084. |
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SECTION 4. This Act takes effect September 1, 2007. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 2251 was passed by the House on April |
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27, 2007, by the following vote: Yeas 133, Nays 0, 2 present, not |
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voting; and that the House concurred in Senate amendments to H.B. |
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No. 2251 on May 17, 2007, by the following vote: Yeas 145, Nays 0, |
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1 present, not voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 2251 was passed by the Senate, with |
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amendments, on May 15, 2007, by the following vote: Yeas 31, Nays |
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0. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: __________________ |
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Date |
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__________________ |
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Governor |