Bill Text: TX HB3769 | 2021-2022 | 87th Legislature | Enrolled
Bill Title: Relating to required disclosures for certain occupational insurance policies.
Spectrum: Bipartisan Bill
Status: (Passed) 2021-06-04 - Effective on 9/1/21 [HB3769 Detail]
Download: Texas-2021-HB3769-Enrolled.html
H.B. No. 3769 |
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relating to required disclosures for certain occupational | ||
insurance policies. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subtitle C, Title 5, Insurance Code, is amended | ||
by adding Chapter 564 to read as follows: | ||
CHAPTER 564. DISCLOSURES FOR THE SALE OF CERTAIN OCCUPATIONAL | ||
INSURANCE POLICIES | ||
Sec. 564.001. SCOPE OF CHAPTER; PURPOSE. (a) This chapter | ||
is intended to require disclosures on policy forms for certain | ||
occupational insurance policies designed or marketed to provide | ||
coverage to an employer that elects not to maintain workers' | ||
compensation insurance coverage under Chapter 406, Labor Code. | ||
(b) Nothing in this chapter prohibits an employer that is | ||
not required to maintain workers' compensation insurance coverage | ||
and has elected not to obtain workers' compensation insurance | ||
coverage from obtaining occupational accident, disease, or death | ||
insurance coverage for the employer or the employer's employees. | ||
Sec. 564.002. APPLICABILITY OF CHAPTER. This chapter | ||
applies to an insurance company authorized to write accident and | ||
health insurance or liability insurance, including: | ||
(1) a surplus lines insurer; | ||
(2) a Lloyd's plan; and | ||
(3) a reciprocal or interinsurance exchange. | ||
Sec. 564.003. EXCEPTIONS. This chapter does not apply to: | ||
(1) a plan that provides coverage: | ||
(A) only for a specified disease or another | ||
limited benefit; | ||
(B) only for dental or vision care; or | ||
(C) only for hospital indemnity for hospital | ||
confinement; | ||
(2) a Medicare supplemental policy as defined by | ||
Section 1882(g)(1), Social Security Act (42 U.S.C. Section | ||
1395ss); | ||
(3) long-term care coverage or benefits, home health | ||
care coverage or benefits, community-based care coverage or | ||
benefits, or any combination of those coverages or benefits; | ||
(4) an individual or group life insurance policy; or | ||
(5) individual or group credit life, accident, or | ||
disability insurance. | ||
Sec. 564.004. OCCUPATIONAL POLICY DEFINED. In this | ||
chapter, "occupational policy" means: | ||
(1) an individual or group accident or health | ||
insurance policy that explicitly provides coverage or benefits for | ||
an employer or the employer's employees for an employee's | ||
occupational bodily injury, disease, or death; | ||
(2) an employer's insurance policy that explicitly | ||
provides liability coverage to an employer that elects not to | ||
maintain workers' compensation insurance coverage under Chapter | ||
406, Labor Code, for an employee's occupational bodily injury, | ||
disease, or death in: | ||
(A) a general liability insurance policy; | ||
(B) a commercial multiple peril insurance | ||
policy; or | ||
(C) any other type of insurance policy designated | ||
by the department as intended to provide liability coverage to an | ||
employer that elects not to maintain workers' compensation | ||
insurance coverage under Chapter 406, Labor Code, for an employee's | ||
occupational bodily injury, disease, or death; | ||
(3) an accident, health, or liability insurance | ||
policy that does not expressly include coverage for occupational | ||
injuries, disease, or death, but is marketed or sold to or through | ||
an employer as an alternative to coverage for benefits or liability | ||
provided by a workers' compensation insurance policy; or | ||
(4) a policy that includes occupational accident and | ||
health and liability coverage in the same policy. | ||
Sec. 564.005. REQUIRED DISCLOSURES FOR OCCUPATIONAL | ||
POLICIES. An occupational policy shall include the following | ||
disclosure statement in 10-point boldface type on the first page of | ||
the policy and on the first page of all materials used in | ||
advertising or marketing the occupational policy to an employer | ||
that elects not to maintain workers' compensation insurance | ||
coverage under Chapter 406, Labor Code: | ||
"THIS IS NOT A WORKERS' COMPENSATION INSURANCE POLICY. THE | ||
EMPLOYER DOES NOT OBTAIN WORKERS' COMPENSATION INSURANCE COVERAGE | ||
BY PURCHASING THIS POLICY, AND IF THE EMPLOYER HAS NOT ELECTED TO | ||
OBTAIN WORKERS' COMPENSATION INSURANCE COVERAGE, THE EMPLOYER DOES | ||
NOT OBTAIN THOSE BENEFITS THAT WOULD OTHERWISE ACCRUE UNDER THE | ||
WORKERS' COMPENSATION LAWS IN THIS STATE. THE EMPLOYER MUST COMPLY | ||
WITH THE WORKERS' COMPENSATION LAWS IN THIS STATE AS THEY PERTAIN TO | ||
EMPLOYERS THAT ELECT NOT TO MAINTAIN WORKERS' COMPENSATION | ||
INSURANCE COVERAGE AND THE REQUIRED NOTIFICATIONS THAT MUST BE | ||
FILED AND POSTED." | ||
Sec. 564.006. RULES. The commissioner shall adopt rules as | ||
necessary to implement this chapter. | ||
SECTION 2. As soon as practicable after the effective date | ||
of this Act, the commissioner of insurance shall adopt rules to | ||
implement Chapter 564, Insurance Code, as added by this Act. | ||
SECTION 3. Chapter 564, Insurance Code, as added by this | ||
Act, applies only to an occupational insurance policy delivered, | ||
issued for delivery, or renewed on or after January 1, 2022. An | ||
occupational insurance policy delivered, issued for delivery, or | ||
renewed before January 1, 2022, is governed by the law as it existed | ||
immediately before the effective date of this Act, and that law is | ||
continued in effect for that purpose. | ||
SECTION 4. This Act takes effect September 1, 2021. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I certify that H.B. No. 3769 was passed by the House on April | ||
23, 2021, by the following vote: Yeas 143, Nays 3, 2 present, not | ||
voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
I certify that H.B. No. 3769 was passed by the Senate on May | ||
19, 2021, by the following vote: Yeas 31, Nays 0. | ||
______________________________ | ||
Secretary of the Senate | ||
APPROVED: _____________________ | ||
Date | ||
_____________________ | ||
Governor |