2005 Texas Insurance Code CHAPTER 1578. PURCHASE OF INSURANCE BY ASSOCIATION OF TEACHERS AND SCHOOL ADMINISTRATORS

INSURANCE CODE

CHAPTER 1578. PURCHASE OF INSURANCE BY ASSOCIATION OF TEACHERS AND 
SCHOOL ADMINISTRATORS

SUBCHAPTER A. GENERAL PROVISIONS


	§ 1578.001. APPLICABILITY OF CHAPTER.  This chapter 
applies only to a voluntary association that is:
		(1)  composed of teachers or school administrators of 
public or private primary or secondary schools, colleges, or 
universities;  and
		(2)  incorporated under federal law or a law of this 
state on a nonprofit membership basis.

Added by Acts 2001, 77th Leg., ch. 1419, § 3, eff. June 1, 2003.           


	§ 1578.002. AUTHORITY TO ISSUE.  Notwithstanding any 
other law, an insurance company authorized to engage in the 
business of insurance in this state may issue a group policy to a 
voluntary association in accordance with this chapter.

Added by Acts 2001, 77th Leg., ch. 1419, § 3, eff. June 1, 2003.           

SUBCHAPTER B. PURCHASE OF INSURANCE


	§ 1578.051. AUTHORITY TO OBTAIN INSURANCE.  (a) A 
voluntary association may obtain for any class of the association's 
membership and for the class's dependents a group policy of:
		(1)  life insurance;                                                          
		(2)  health insurance;                                                        
		(3)  accident insurance;                                                      
		(4)  accidental death or dismemberment insurance;  or                         
		(5)  hospital, surgical, or medical expense insurance.                        
	(b)  The association may obtain a separate policy for each 
type of insurance listed under Subsection (a).
	(c)  The association is the policyholder.                                      

Added by Acts 2001, 77th Leg., ch. 1419, § 3, eff. June 1, 2003.           


	§ 1578.052. PAYMENT OF PREMIUM.  A voluntary association 
that obtains a group policy under this chapter shall pay the premium 
for the policy wholly or partly from money:
		(1)  contributed by the association;  or                                      
		(2)  contributed by the insured association members for 
that purpose.       

Added by Acts 2001, 77th Leg., ch. 1419, § 3, eff. June 1, 2003.           


	§ 1578.053. MINIMUM REQUIREMENTS TO OBTAIN POLICY.  (a) A 
voluntary association may obtain a group policy under this chapter 
only if the policy will cover at least 25 association members on the 
date of issue.
	(b)  If the premium for the group policy is paid wholly or 
partly from money contributed by association members for that 
purpose, the policy on the date of issue must cover at least the 
lesser of 75 percent of the eligible members or 400 members, 
excluding any member whose evidence of individual insurability is 
not satisfactory to the insurer, who elect to make the required 
contributions and to be insured under the policy.

Added by Acts 2001, 77th Leg., ch. 1419, § 3, eff. June 1, 2003.           


	§ 1578.054. AMOUNT OF INSURANCE.  The amount of insurance 
under a policy issued under this chapter must be based on a plan 
that precludes individual selection by the voluntary association or 
an insured association member.

Added by Acts 2001, 77th Leg., ch. 1419, § 3, eff. June 1, 2003.