Highlights 77th Texas Legislature - Senate

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INSURANCE
77 th Texas Legislature
Collecting Under Holocaust Victims’ Insurance Policies Issued Before 1946 - H.B. 845
by Representative Nixon, et al.
Senate Sponsor: Senator Shapiro
Prior to and during the Holocaust, insurance companies sold policies to those who subsequently were
Holocaust victims. The survivors and their heirs and designees asked that Texas conform to policies other
states have legislated by extending time lines in order for claimants to receive benefits due them as a result
of recovery of certain papers. The National Association of Insurance Commissioners (NAIC) formed a task
force, resulting in actions now undertaken so that not only may monetary claims be pursued, but restitution
as a moral benefit as well.
Permits a Holocaust victim, or the victim’s heir, assignee, beneficiary, or successor, residing in Texas to
bring an action in a Texas court against an insurer regarding a claim arising out of an insurance policy
purchased or in effect in Europe before 1946.
Prohibits such action from being dismissed for failure to comply with any applicable limitations period if the
action is brought before December 31, 2012.
Authorizes the commissioner of insurance to initiate an examination and, if the commissioner believes that
a violation by an insurer has occurred or is occurring, to impose sanctions, issue a cease and desist order,
assess an administrative penalty, or refer the matter to the attorney general.
Small Employer Carriers and Insurance - H.B. 949
by Representative Averitt, et al.
Senate Sponsor: Senator Fraser
Small employer carriers currently vary the rates of small employer plans based on group size, per the
Texas Administrative Code’s rules. The highest rate factor is prohibited from exceeding the lowest rate
factor by more than 20 percent; however, this rule is difficult to enforce. The Insurance Code contains no
enabling statute for this rule and some small employer carriers use certain risk characteristics as the basis
for varying small employer premiums by a substantial premium percent.
Requires the risk load for a particular small employer group to reflect the risk characteristics of the group.
Insurance for Older Dependent Children - H.B. 1440
by Representative Averitt
Senate Sponsor: Senator Sibley
Currently, health insurance plans terminate coverage for children of enrollees at age 19, or 23 if a
dependent child is a student. The 18-24 age group represents a large portion of the uninsured in Texas,
according to a report from the Health and Human Services Commission.
Raises the age limit to 24 for the coverage of dependents, and allows coverage for grandchildren of health
plan enrollees as well.
Senate Research Center 175