2005 Texas Insurance Code CHAPTER 1254. NOTICE OF RATE INCREASE FOR GROUP HEALTH AND ACCIDENT COVERAGE

INSURANCE CODE

CHAPTER 1254. NOTICE OF RATE INCREASE FOR GROUP HEALTH AND ACCIDENT 
COVERAGE


	§ 1254.001. NOTICE OF RATE INCREASE.  (a) In this 
section, "insurer" means:
		(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 reciprocal or interinsurance exchange;                                 
		(9)  a fraternal benefit society;                                             
		(10)  a local mutual aid association;  or                                     
		(11)  a group hospital service corporation.                                   
	(b)  Not less than 60 days before the date on which a premium 
rate increase takes effect on a group policy of health insurance, 
accident and health insurance, or life, health, and accident 
insurance delivered or issued for delivery in this state by an 
insurer, the insurer shall give written notice to the policyholder 
of:
		(1)  the amount of the increase;  and                                         
		(2)  the date on which the increase is to take effect.                        
	(c)  A health maintenance organization shall give notice of 
an increase in subscriber charges and service fees under a group 
contract or coverage in the same manner as is required of an insurer 
under Subsection (b).
	(d)  An insurer that issues a group policy described by 
Subsection (b) to a multiple employer trust shall give the notice 
required by that subsection to the trustee or group policyholder.
	(e)  The notice required by this section must be based on 
coverage in effect on the date of the notice.
	(f)  This section may not be construed to prevent an insurer 
or health maintenance organization, at the request of a 
policyholder or contract holder, from negotiating a change in 
benefits or rates after delivery of the notice required by this 
section.
	(g)  An insurer may not require a policyholder or trustee 
entitled to notice under this section to respond to the insurer to 
renew the policy or take other action relating to the renewal or 
extension of the policy before the 45th day after the date the 
notice described by Subsection (b) is given.

Added by Acts 2003, 78th Leg., ch. 1274, § 3, eff. April 1, 2005.  
Amended by Acts 2005, 79th Leg., ch. 728, § 11.031(a), eff. Sept. 
1, 2005.