CHAPTER 1132. NOTICE OF RATE INCREASE FOR GROUP LIFE INSURANCE - Texas Statutes

INSURANCE CODE

TITLE 7. LIFE INSURANCE AND ANNUITIES

SUBTITLE B. GROUP LIFE INSURANCE

CHAPTER 1132. NOTICE OF RATE INCREASE FOR GROUP LIFE INSURANCE

Sec. 1132.001. NOTICE OF RATE INCREASE. (a) In this section,

"insurer" means:

(1) a life insurance company;

(2) an accident insurance company;

(3) a general casualty insurance company;

(4) a mutual life insurance company;

(5) a mutual or natural premium life insurance company;

(6) a fraternal benefit society; or

(7) a local mutual aid association.

(b) Not later than the 61st day before the date on which a

premium rate increase takes effect on a group policy of life

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) 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.

(d) The notice required by this section must be based on

coverage in effect on the date of the notice.

(e) This section may not be construed to prevent an insurer, at

the request of a policyholder, from negotiating a change in

benefits or rates after delivery of the notice required by this

section.

(f) 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 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1,

2003. Amended by Acts 2003, 78th Leg., ch. 222, Sec. 2, eff.

Sept. 1, 2003.