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A BILL TO BE ENTITLED
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AN ACT
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relating to notice of a premium increase for certain health |
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insurance policies. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Section 1201.109, Insurance Code, |
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is amended to read as follows: |
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Sec. 1201.109. NOTICE OF RATE INCREASE FOR MAJOR MEDICAL |
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EXPENSE INSURANCE POLICY. |
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SECTION 2. Section 1201.109, Insurance Code, is amended by |
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amending Subsection (a) and adding Subsection (f) to read as |
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follows: |
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(a) Not less than 60 days before the date on which a premium |
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rate increase takes effect on an individual accident and health |
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insurance policy that provides major medical expense coverage and |
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that is delivered or issued for delivery in this state by an |
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insurer, the insurer shall: |
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(1) give written notice to the insured of the |
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effective date of the increase; and |
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(2) provide the insured a table that clearly lists: |
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(A) the actual dollar amount of the premium on |
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the date of the notice; |
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(B) the actual dollar amount of the premium after |
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the premium rate increase; and |
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(C) the percentage change between the amounts |
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described by Paragraphs (A) and (B). |
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(f) For purposes of this section, "major medical expense |
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coverage" means an individual major medical expense insurance |
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policy to which this chapter applies under Section 1201.003 that |
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constitutes creditable coverage under Section 1205.004. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2013. |
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