Texas Register, Volume 32, Number 39, Pages 6689-6904, September 28, 2007 Page: 6,740
6689-6904 p. ; 28 cm.View a full description of this periodical.
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TAKINGS IMPACT ASSESSMENT
The Department has determined that no private real property in-
terests are affected by this proposal and that this proposal does
not restrict or limit an owner's right to property that would other-
wise exist in the absence of government action and, therefore,
does not constitute a taking or require a takings impact assess-
ment under the Government Code 2007.043.
REQUEST FOR PUBLIC COMMENT
To be considered, written comments on the proposal must be
submitted no later than 5:00 p.m. on October 29, 2007, to Gene
C. Jarmon, General Counsel and Chief Clerk, Mail Code 113-2A,
Texas Department of Insurance, P.O. Box 149104, Austin, Texas
78714-9104. An additional copy of the comment must be si-
multaneously submitted to Jack Evins, Director of the Adver-
tising Unit, Consumer Protection Division, Mail Code 111-1A,
Texas Department of Insurance, P.O. Box 149104, Austin, Texas
78714-9104. Any request for a public hearing should be submit-
ted separately to the Office of the Chief Clerk before the close of
the public comment period. If a hearing is held, written and oral
comments presented at the hearing will be considered.
STATUTORY AUTHORITY
The new section and amendments are proposed pursuant to the
Insurance Code 541.058, 541.082 - 541.087, 541.401, and
36.001. HB 2252 enacted by the 80th Legislature, Regular Ses-
sion, amended Chapter 541 to add new 541.058 that concerns
certain advertising practices that may be used in the marketing
of accident and health insurance that are not considered discrim-
ination or inducement. HB 2251 enacted by the 80th Legislature,
Regular Session, amended Chapter 541 to add new Subchap-
ter B-1 541.082 - 541.087. Section 541.082 concerns insur-
ance advertising on Internet websites and provides that an in-
surer must, if it advertises on its website, include all appropriate
disclosures and information on its website required by applica-
ble advertising rules if a web page meets the criteria of invitation
to inquire or invitation to contract advertisements. However, in-
vitation to inquire or invitation to contract advertisements may
be permitted by Commissioner's rule to comply with the applica-
ble rules relating to advertising by including a link to a web page
that provides the necessary information to comply with the ad-
vertising rules. Section 541.083 allows insurers to advertise to
the general public policies or coverages available only to mem-
bers of an association. Section 541.084 prohibits the use of
an advertisement for an insurance product relating to Medicare
coverage unless the advertisement includes the prominently dis-
played language "Not connected with or endorsed by the United
States government or the federal Medicare program" or similar
language. Section 541.085 allows the term "PPO plan" to be
used in advertisements when referring to a preferred provider
benefit plan. Section 541.086 requires that an advertisement for
a guaranteed renewable accident and health insurance policy
must include in a prominent place a statement indicating that the
rates may change if the advertisement implies that the rates will
not change and the statement must generally identify the man-
ner in which the rates may change. Section 541.087 provides
that an advertisement subject to the Department's filing require-
ments that is the "same as or substantially similar" to an adver-
tisement previously reviewed and accepted by the Department
is not required to be filed for review. Section 541.401 provides
that the Commissioner of Insurance may adopt and enforce rea-
sonable rules the Commissioner determines necessary to ac-
complish the purposes of Chapter 541. Section 36.001 providesthat the Commissioner of Insurance may adopt any rules neces-
sary and appropriate to implement the powers and duties of the
Texas Department of Insurance under the Insurance Code and
other laws of this state.
CROSS REFERENCE TO STATUTE
The following statutes are affected by this proposal: 541.053,
541.058, 541.082, 541.083, 541.084, 541.085, 541.086,
541.087, 541.401.
21.102. Scope.
For the purpose of these sections:
(1) "Advertisement" includes, but is not limited to:
(A) - (E) (No change.)
(F) lead heard ] solicitations which are [hereby] defined
as communications distributed to the public which, regardless of form,
content, or stated purpose, are intended to result in the compilation or
qualification of a list containing names or other personal information
regarding persons who have expressed a specific interest in a product
or coverage and which are intended to be used to solicit residents of
this state for the purchase of a policy, as defined in paragraph (3) [sub-
section (e)] of this section; and
(G) (No change.)
(2) (No change.)
(3) "Policy" includes any policy, plan, certificate, contract,
evidence of coverage, agreement, statement of coverage, cover note,
certificate of policy, rider or endorsement which provides, limits, or
controls insurance for any kind of loss or expense or because of the
continuation, impairment, or discontinuance of human life or annuity
benefits issued by an insurer, viatical or life settlement contracts, pre-
mium finance agreements, or any other product offered by an insurer
and regulated by the Department.
(4) "Insurer" includes any individual, partnership, corpora-
tion, organization, or person issuing evidence of coverage or insurance,
or any other entity acting as an insurer to which these sections can be
made legally applicable including, as applicable, Health Maintenance
Organizations and Nonprofit Legal Services Corporations, and all in-
surance companies doing the business of insurance in this state such as
capital stock companies, mutual companies, title insurance companies,
fraternal benefits societies, local mutual aid associations, local mutual
burial associations, statewide mutual assessment companies, county
mutual and farm mutual insurance companies, Lloyds' plan companies,
reciprocal or interinsurance exchanges, stipulated premium insurance
companies, and group hospital service companies and, as can be made
appropriate, premium finance companies, and viatical and life settle-
ment providers.
(5) "Agent" includes each agent, solicitor, counselor, and
soliciting representative of an insurer and, as can be made appropriate,
viatical and life settlement brokers and provider representatives.
(6) "Institutional advertisement" is an advertisement hav-
ing as its sole purpose the promotion of the reader's or viewer's interest
in the concept of insurance, or the promotion of the insurer or agent.
Correspondence and materials used by an insurer only for the purpose
of explaining Legislative or Texas Department [State Board] of Insur-
ance mandated changes, amendments, additions, or innovations rela-
tive to forms, rules, or rates which are subject to the Insurance Code[,
Chapter 5-] shall be considered institutional advertising for the purpose
of 21.104(b) of this title (relating to Requirement of Identification of
Policy or Insurer). Web pages on an Internet website that do not refer
to a specific insurance policy, certificate of coverage, or evidence of32 TexReg 6740 September 28, 2007 Texas Register
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Texas. Secretary of State. Texas Register, Volume 32, Number 39, Pages 6689-6904, September 28, 2007, periodical, September 28, 2007; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth97416/m1/50/: accessed July 17, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.