INSURANCE CODE

TITLE 8. HEALTH INSURANCE AND OTHER HEALTH COVERAGES

SUBTITLE G. HEALTH COVERAGE AVAILABILITY

CHAPTER 1505. GROUP HEALTH INSURANCE PLANS FOR PERSONS 65 YEARS OF AGE OR OLDER

Sec. 1505.001.  DEFINITION.  In this chapter, "health insurer" means an insurance company authorized to provide a hospital, surgical, and medical expense insurance plan in this state, including:
(1)  a stock insurance company;
(2)  a reciprocal or interinsurance exchange;
(3)  a Lloyd's plan;
(4)  a fraternal benefit society;
(5)  a stipulated premium company;  and
(6)  a mutual insurance company, including a statewide mutual assessment company or a local mutual aid association.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 3, eff. April 1, 2005.

Sec. 1505.002.  PLANS FOR CERTAIN PERSONS 65 YEARS OF AGE OR OLDER.  (a)  Two or more health insurers may provide a hospital, surgical, and medical expense insurance plan under a group insurance policy that covers residents of this state who are at least 65 years of age and the spouses of those residents.
(b)  The participating health insurers may enter into agreements regarding matters within the scope of this chapter, including:
(1)  premium rates;
(2)  policy provisions;  and
(3)  sales, administrative, technical, and accounting procedures.
(c)  Each participating health insurer is subject to regulation under the laws of this state and is severally liable on a group insurance policy issued under this chapter.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 3, eff. April 1, 2005.

Sec. 1505.003.  APPLICATION AND OTHER EVIDENCE OF INSURANCE FORMS.  An application, policy, certificate, or other evidence of insurance form for an insurance plan under this chapter is subject to Chapter 1701.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 3, eff. April 1, 2005.

Sec. 1505.004.  EXECUTION OF POLICY.  An authorized person may execute an insurance policy subject to this chapter on behalf of the participating health insurers.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 3, eff. April 1, 2005.

Sec. 1505.005.  USE OF UNINCORPORATED ENTITY.  (a)  The participating health insurers may issue the group insurance policy in their own names or in the name of an unincorporated association, trust, or other organization formed for the sole purposes of this chapter and evidenced by a written contract executed by the insurers.  An unincorporated association, trust, or other organization formed under this subsection may sue and be sued in the name of the association, trust, or organization.
(b)  A person licensed as a general life, accident, and health agent under Chapter 4054, as a general property and casualty agent under Chapter 4051 authorized to write health and accident insurance under Section 4051.053, or as a personal lines property and casualty agent authorized to write health and accident insurance under Section 4051.402, may act in the licensed capacity in connection with an insurance policy or a certificate of insurance issued by an unincorporated association, trust, or other organization formed under Subsection (a).  The agent is not required to notify the department that the person has been appointed to act for that purpose.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 3, eff. April 1, 2005.
Amended by: 
Acts 2007, 80th Leg., R.S., Ch. 548 (S.B. 1263), Sec. 2.12, eff. September 1, 2007.

Sec. 1505.006.  REQUIRED FILINGS;  DEPARTMENT APPROVAL.  (a)  The participating health insurers shall provide for the filing with the department on behalf of the insurers of:
(1)  a copy of any contract of association or organization or trust agreement entered into by the insurers under this chapter;
(2)  the schedule of premium rates to be charged for the insurance coverage;  and
(3)  the plan for operating and marketing the insurance.
(b)  Except as provided by Subsection (c), a contract, schedule, or plan described by Subsection (a) may not be effective until approved by the commissioner.
(c)  A contract, schedule, or plan described by Subsection (a) that is not approved or disapproved in a written order of the commissioner on or before the 30th day after the date on which the document is filed with the department is considered approved on the 31st day after the date of filing.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 3, eff. April 1, 2005.

Sec. 1505.007.  EFFECT OF COMMISSIONER DISAPPROVAL.  If, after notice and public hearing, the commissioner determines under reasonable assumptions that a premium rate charged for the insurance coverage offered under this chapter or the plan for operating and marketing that insurance is excessive, inadequate, or contrary to the public interest or that any activity or practice performed in connection with the insurance is unfair, unreasonable, or contrary to the public interest, the commissioner shall:
(1)  enter an order containing the commissioner's determination and disapproving the premium rate or plan or the activity or practice;  and
(2)  require the discontinuance of the premium rate, plan, activity, or practice within a period that is not less than 30 days after the date of the commissioner's order containing the determination.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 3, eff. April 1, 2005.

Sec. 1505.008.  EXEMPTION FROM PREMIUM TAXES.  Each premium received for group insurance coverage authorized by this chapter is exempt from any premium tax imposed by any other law of this state.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 3, eff. April 1, 2005.

Sec. 1505.009.  EXEMPTION FROM CERTAIN ANTITRUST REQUIREMENTS.  An association, trust, or other organization formed and operated in accordance with this chapter or an insurance business conducted in accordance with this chapter is not considered a combination in restraint of trade, an illegal monopoly, or an attempt to lessen competition or fix prices arbitrarily and does not otherwise violate the antitrust laws of this state.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 3, eff. April 1, 2005.