Tex.
Ins. Code Section 1501.354
Required Disclosures
(a)
In connection with offering a small employer health benefit plan for sale, each small employer health benefit plan issuer and agent shall make a reasonable disclosure, as part of its solicitation and sales materials, of:(1)
the extent to which premium rates for a specific small employer are established or adjusted based on the actual or expected variation in:(A)
claim costs; or(B)
health status of the employer’s employees and their dependents;(2)
provisions concerning the issuer’s right to change premium rates and factors other than claims experience that affect changes in premium rates;(3)
provisions relating to renewability of policies and contracts; and(4)
any preexisting condition provisions.(b)
On request by a small employer, each small employer health benefit plan issuer shall disclose the benefits and premiums available under all small employer coverage for which the employer is qualified.(c)
A small employer health benefit plan issuer is not required to disclose information to a small employer that is proprietary or trade secret information under applicable law.(d)
Information provided under this section to a small employer must be provided in a manner that is:(1)
understandable by the average small employer; and(2)
sufficient to reasonably inform a small employer of its rights and obligations under a small employer health benefit plan.
Source:
Section 1501.354 — Required Disclosures, https://statutes.capitol.texas.gov/Docs/IN/htm/IN.1501.htm#1501.354 (accessed Jun. 5, 2024).
