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