28 TAC §3.3806
The Commissioner of Insurance adopts new §3.3806 concerning
the initial and subsequent conditions of eligibility for individuals who may
become covered under a long-term care insurance policy and/or certificate.
This new section is adopted without changes to the proposed text as published
in the June 2, 2000, issue of the
Texas Register
(25 Tex Reg. 5126) and will not be republished.
This new section is necessary to implement legislation enacted by the 76th
Legislature in House Bill 1586, which amended Article 3.70-12, standards for
long-term care insurance. Section 3.3806 sets forth individuals eligible for
long-term care coverage, including the statutory language that clarified that
parents of the insured and parents of the insured's spouse are eligible for
coverage, and requires inclusion of a provision stating the conditions under
which the long-term care coverage will become effective for an individual
who becomes insured subsequent to the issuance of the policy and/or certificate.
This new section clarifies that an insurer could offer long-term care coverage
to a greater number of an individual's family members or other individuals.
It does not require an insurer to offer long-term care coverage to every individual
listed in the section. The new section also states the conditions under which
the long-term care coverage will become effective for an individual who becomes
insured subsequent to the issuance of the policy and/or certificate.
No comments were received.
Section 3.3806 is adopted under the Insurance Code Articles 3.70-12,
3.70-1 and §36.001. Articles 3.70-12 and 3.70-1 provide that the Commissioner
of Insurance by rule shall establish standards for long-term care policies
and/or certificates. Section 36.001 provides that the Commissioner of Insurance
may adopt rules to execute the duties and functions of the Texas Department
of Insurance only as authorized by statute.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on July 21, 2000.
TRD-200005020
Gene Jarmon
Assistant General Counsel
Texas Department of Insurance
Effective date: August 10, 2000
Proposal publication date: June 2, 2000
For further information, please call: (512) 463-6327