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AN ACT
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relating to required disclosures for certain occupational |
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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. Subtitle C, Title 5, Insurance Code, is amended |
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by adding Chapter 564 to read as follows: |
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CHAPTER 564. DISCLOSURES FOR THE SALE OF CERTAIN OCCUPATIONAL |
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INSURANCE POLICIES |
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Sec. 564.001. SCOPE OF CHAPTER; PURPOSE. (a) This chapter |
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is intended to require disclosures on policy forms for certain |
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occupational insurance policies designed or marketed to provide |
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coverage to an employer that elects not to maintain workers' |
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compensation insurance coverage under Chapter 406, Labor Code. |
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(b) Nothing in this chapter prohibits an employer that is |
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not required to maintain workers' compensation insurance coverage |
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and has elected not to obtain workers' compensation insurance |
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coverage from obtaining occupational accident, disease, or death |
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insurance coverage for the employer or the employer's employees. |
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Sec. 564.002. APPLICABILITY OF CHAPTER. This chapter |
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applies to an insurance company authorized to write accident and |
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health insurance or liability insurance, including: |
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(1) a surplus lines insurer; |
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(2) a Lloyd's plan; and |
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(3) a reciprocal or interinsurance exchange. |
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Sec. 564.003. EXCEPTIONS. This chapter does not apply to: |
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(1) a plan that provides coverage: |
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(A) only for a specified disease or another |
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limited benefit; |
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(B) only for dental or vision care; or |
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(C) only for hospital indemnity for hospital |
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confinement; |
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(2) a Medicare supplemental policy as defined by |
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Section 1882(g)(1), Social Security Act (42 U.S.C. Section |
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1395ss); |
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(3) long-term care coverage or benefits, home health |
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care coverage or benefits, community-based care coverage or |
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benefits, or any combination of those coverages or benefits; |
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(4) an individual or group life insurance policy; or |
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(5) individual or group credit life, accident, or |
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disability insurance. |
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Sec. 564.004. OCCUPATIONAL POLICY DEFINED. In this |
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chapter, "occupational policy" means: |
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(1) an individual or group accident or health |
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insurance policy that explicitly provides coverage or benefits for |
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an employer or the employer's employees for an employee's |
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occupational bodily injury, disease, or death; |
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(2) an employer's insurance policy that explicitly |
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provides liability coverage to an employer that elects not to |
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maintain workers' compensation insurance coverage under Chapter |
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406, Labor Code, for an employee's occupational bodily injury, |
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disease, or death in: |
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(A) a general liability insurance policy; |
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(B) a commercial multiple peril insurance |
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policy; or |
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(C) any other type of insurance policy designated |
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by the department as intended to provide liability coverage to an |
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employer that elects not to maintain workers' compensation |
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insurance coverage under Chapter 406, Labor Code, for an employee's |
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occupational bodily injury, disease, or death; |
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(3) an accident, health, or liability insurance |
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policy that does not expressly include coverage for occupational |
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injuries, disease, or death, but is marketed or sold to or through |
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an employer as an alternative to coverage for benefits or liability |
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provided by a workers' compensation insurance policy; or |
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(4) a policy that includes occupational accident and |
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health and liability coverage in the same policy. |
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Sec. 564.005. REQUIRED DISCLOSURES FOR OCCUPATIONAL |
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POLICIES. An occupational policy shall include the following |
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disclosure statement in 10-point boldface type on the first page of |
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the policy and on the first page of all materials used in |
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advertising or marketing the occupational policy to an employer |
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that elects not to maintain workers' compensation insurance |
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coverage under Chapter 406, Labor Code: |
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"THIS IS NOT A WORKERS' COMPENSATION INSURANCE POLICY. THE |
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EMPLOYER DOES NOT OBTAIN WORKERS' COMPENSATION INSURANCE COVERAGE |
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BY PURCHASING THIS POLICY, AND IF THE EMPLOYER HAS NOT ELECTED TO |
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OBTAIN WORKERS' COMPENSATION INSURANCE COVERAGE, THE EMPLOYER DOES |
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NOT OBTAIN THOSE BENEFITS THAT WOULD OTHERWISE ACCRUE UNDER THE |
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WORKERS' COMPENSATION LAWS IN THIS STATE. THE EMPLOYER MUST COMPLY |
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WITH THE WORKERS' COMPENSATION LAWS IN THIS STATE AS THEY PERTAIN TO |
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EMPLOYERS THAT ELECT NOT TO MAINTAIN WORKERS' COMPENSATION |
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INSURANCE COVERAGE AND THE REQUIRED NOTIFICATIONS THAT MUST BE |
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FILED AND POSTED." |
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Sec. 564.006. RULES. The commissioner shall adopt rules as |
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necessary to implement this chapter. |
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SECTION 2. As soon as practicable after the effective date |
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of this Act, the commissioner of insurance shall adopt rules to |
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implement Chapter 564, Insurance Code, as added by this Act. |
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SECTION 3. Chapter 564, Insurance Code, as added by this |
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Act, applies only to an occupational insurance policy delivered, |
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issued for delivery, or renewed on or after January 1, 2022. An |
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occupational insurance policy delivered, issued for delivery, or |
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renewed before January 1, 2022, is governed by the law as it existed |
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immediately before the effective date of this Act, and that law is |
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continued in effect for that purpose. |
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SECTION 4. This Act takes effect September 1, 2021. |
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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. 3769 was passed by the House on April |
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23, 2021, by the following vote: Yeas 143, Nays 3, 2 present, not |
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voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 3769 was passed by the Senate on May |
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19, 2021, by the following vote: Yeas 31, Nays 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 |