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

INSURANCE CODE

TITLE 8. HEALTH INSURANCE AND OTHER HEALTH COVERAGES

SUBTITLE H. HEALTH BENEFITS AND OTHER COVERAGES FOR GOVERNMENTAL

EMPLOYEES

CHAPTER 1578. PURCHASE OF INSURANCE BY ASSOCIATION OF TEACHERS

AND SCHOOL ADMINISTRATORS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 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, Sec. 3, eff. June 1,

2003.

Sec. 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, Sec. 3, eff. June 1,

2003.

SUBCHAPTER B. PURCHASE OF INSURANCE

Sec. 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, Sec. 3, eff. June 1,

2003.

Sec. 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, Sec. 3, eff. June 1,

2003.

Sec. 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, Sec. 3, eff. June 1,

2003.

Sec. 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, Sec. 3, eff. June 1,

2003.