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Current as of January 01, 2024 | Updated by Findlaw Staff
(a) In this section, “noninsurance benefit” means a good or service provided or disclosed as part of a policy or certificate of insurance that is reasonably related to the type of policy or certificate being issued. Examples of noninsurance benefits include:
(1) discount cards for health care programs, vision care programs, dental care programs, prescriptions, physical fitness programs or facilities, or other similar programs;
(2) financial planning, will preparation, or similar services; and
(3) contributions for educational savings on behalf of a policyholder or certificate holder.
(b) An insurer may include a noninsurance benefit that is reasonably related to a policy or certificate as part of the policy or certificate form to be issued to an insured or certificate holder.
(c) A policy form filing that includes a noninsurance benefit shall include:
(1) a description of the noninsurance benefit;
(2) a notice that fully discloses the noninsurance benefit to the policyholder or certificate holder; and
(3) an explanation of any condition on which termination of the noninsurance benefit will occur.
(d) Section 541.061 applies to a noninsurance benefit provided as part of a policy or certificate.
(e) Section 1102.002 does not apply to a noninsurance benefit provided as part of a policy or certificate.
(f) The commissioner may adopt rules to implement this section, including rules to:
(1) determine which noninsurance benefits are reasonably related to the types of insurance subject to this chapter;
(2) ensure that noninsurance benefits included as part of a policy or certificate are not unfairly deceptive or do not otherwise constitute a prohibited inducement; and
(3) address application of other chapters of this code to noninsurance benefits provided as part of a policy or certificate, including Chapters 82-84, 222, 257, 463, 541-544, 1501, and 1506.
Cite this article: FindLaw.com - Texas Insurance Code - INS § 1701.061. Noninsurance Benefits - last updated January 01, 2024 | https://codes.findlaw.com/tx/insurance-code/ins-sect-1701-061/
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature before relying on it for your legal needs.
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