Adopted Sections An agency may take final action on a section 30 days after a proposal has been published in the Texas Register. The section becomes effective 20 days after the agency files the correct document with the Texas Register, unless a later date is specified or unless a federal statute or regulation requires implementation of the action on shorter notice. If an agency adopts the section without any changes to the proposed text, only the preamble of the notice and statement of legal authority will be published. If an agency adopts the section with changes to the proposed text, the proposal will be republished with the changes. TITLE 19. EDUCATION Part II. Texas Education Agency Chapter 75. Curriculum Subchapter H. Promotional and Alternative to Social Promotion 19 TAC sec.75.191 The Texas Education Agency adopts an amendment new sec.75.191, concerning grading and reporting requirements, without changes to the proposed text as published in the January 31, 1992, issue of the Texas Register (17 TexReg 783). Senate Bill 1, 71st Legislature, requires the State Board of Education (SBOE) to reconsider all rules affected by this provision so that any rules adopted on these matters occur under the new rulemaking relationship between the SBOE and the Legislative Education Board. The review of the rules is to be conducted over a three-year period. All sections of Chapter 133, Pupil-School Relations have been reviewed by the SBOE and are being repealed in a separate submission. A new Chapter 133 is being proposed in a separate submission. However, former sec.133.41, Prohibited Withholding, is being readopted as an amendment to Chapter 75 to more approximately locate the section with rules relating to grading and reporting requirements. Justification of the amendment will be to group similar rules in the same chapter. The amendment will function by making the rules more accessible. No comments were received regarding adoption of the amendment. The amendment is adopted under Senate Bill 1, sec.2.25, passed by the 71st Legislature, Sixth Called Session, which provides the SBOE with the authority to review all rules, other than portions of this title, Chapter 75 relating to public education. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on March 19, 1992. TRD-9204194 Criss Cloudt Coordinator, Policy Planning and Evaluation Texas Education Agency Effective date: April 14, 1992 Proposal publication date: January 31, 1992 For further information, please call: (512) 463-9701 Subchapter K. Extracurricular Activities 19 TAC sec.75.411, sec.75.412 The Texas Education Agency adopts new sec.75.411 and sec.75.412, concerning extracurricular activities for students, without changes to the proposed text as published in the January 31, 1992, issue of the Texas Register (17 TexReg 784). Senate Bill 1, 71st Legislature, requires the State Board of Education (SBOE) to reconsider all rules affected by this provision so that any rules adopted on these matters occur under the new rulemaking relationship between the SBOE and the Legislative Education Board. The review of the rules is to be conducted over a three-year period. Section 97.113 and sec.97.115 in Chapter 97, Planning and Accreditation, have been reviewed by the SBOE and are being repealed in a separate submission. The sections are being readopted in Chapter 75 to more appropriately locate them with rules relating to grading and reporting requirements. The remaining sections of Chapter 97 are being reviewed by the SBOE and are being readopted in a separate submission. Justification of the new section will be to group similar rules in the same chapter. The sections will function by making the rules more accessible. No comments were received regarding adoption of the new sections. The new sections are adopted under Senate Bill 1, sec.2.25, passed by the 71st Legislature, Sixth Called Session, which provides the SBOE with the authority to review all rules, other than portions of this title, Chapter 75 relating to public education. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on March 19, 1992. TRD-9204192 Criss Cloudt Coordinator, Policy Planning and Evaluation Texas Education Agency Effective date: April 14, 1992 Proposal publication date: January 31, 1992 For further information, please call: (512) 463-9701 Chapter 97. Planning and Accreditation Subchapter D. Additional Accreditation Regulations 19 TAC sec.97.113, sec.97.115 The Texas Education Agency adopts the repeals of sec.97.113 and sec.97.115, concerning planning and accreditation, without changes to the proposed text as published in the January 31, 1992, issue of the Texas Register (17 TexReg 785). Senate Bill 1, 71st Legislature, requires the State Board of Education (SBOE) to reconsider all rules affected by this provision so that any rules adopted on these matters occur under the new rulemaking relationship between the SBOE and the Legislative Education Board. The review of the rules is to be conducted over a three-year period. Section 97.113 and sec.97.115 have been repealed and readopted in Chapter 75 to more appropriately locate them with rules relating to grading and reporting requirements. The remaining sections of Chapter 97 are being reviewed by the SBOE and will be published in a separate submission. No comments were received regarding adoption of the repeals. The repeals are adopted under Senate Bill 1, sec.2.25, passed by the 71st Legislature, Sixth Called Session, which provides the SBOE with the authority to review all rules, other than portions of this title, Chapter 75 relating to public education. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on March 19, 1992. TRD-9204193 Criss Cloudt Coordinator, Policy Planning and Evaluation Texas Education Agency Effective date: April 14, 1992 Proposal publication date: January 31, 1992 For further information, please call: (512) 463-9701 TITLE 28. INSURANCE Part I. Texas Department of Insurance Chapter 3. Life, Accident, and Health Insurance and Annuities Subchapter T. Minimum Standards for Medicare Supplement Policies 28 TAC sec.sec.3.3301, 3.3303-3.3309, 3.3313, 3.3315, 3.3317-3.3325 The State Board of Insurance of the Texas Department of Insurance adopts amendments to sec.sec.3.3301, 3.3303-3.3309, 3.3313, 3.3315, and 3.3317-3.3321, and adopts new sec.sec.3.3322-3.3325, concerning minimum standards for Medicare supplement policies. Sections 3.3304, 3.3309, 3.3317, and 3.3319 are adopted with changes to the proposed text as published in the February 7, 1992 issue of the Texas Register (17 TexReg 1007). Sections 3.3301, 3.3303, 3.3305-3. 3308, 3.3313, 3.3315, 3.3318, and 3.3320-3.3325 are adopted without changes and will not be republished. The first change is deletion of the limitation on definition of mental or nervous disorders found in sec.3.3304(8). The change to sec.3.3304 is necessary to remove the definition limitation entirely from the regulation, since the amendments as proposed eliminate from sec.3.3305 the opportunity to exclude or limit coverage for mental or emotional disorders. The second change is a non- substantive editorial change to sec.3.3309 as published. The change to sec.3. 3309(a)(2), is necessary to eliminate duplicate use of the same subparagraph indicators. The third change is a nonsubstantive deletion in sec.3.3319(c), that deletes the reference to sec.3.3314. The fourth change is the restoration of language in sec.3.3317(c), to allow first-year commissions in replacement situations when the new policy provides benefits which are clearly and substantially greater than the benefits under the replaced policy. The amendments and new sections govern minimum standards for Medicare supplement insurance policies, pursuant to the Insurance Code, Article 3.74, and consistent with the federal requirements of the Omnibus Budget Reconciliation Act of 1990, Public Law 101-508, as codified at 42 United States Code, sec.1395ss. The amendments are necessary to assure orderly implementation, conversion, and effective disclosure of Medicare supplement insurance benefits and premiums by licensed insurers, companies subject to the Insurance Code, Chapter 20, and by health maintenance organizations. The amendment to sec.3.3301 deletes the reference to age and makes full disclosure a requirement for all sales of Medicare supplement policies. The amendment to sec.3.3303 adds definitions for the terms "applicant," "certificate, " "issuer," and "Medicare," and clarifies that individual or group evidences of coverage issued under the Federal Social Security Act, sec.1876 or sec.1833 are not Medicare supplement policies. The amendment to sec.3.3304, as adopted, adds a definition for "Medicare approved amounts," and states restrictions on "Convalescent Nursing Home," "Extended Care Facility," and "Skilled Nursing Facility;" in addition, the amendment to sec.3.3304 deletes the definition limitation for "mental or nervous disorders" in paragraph (8), and changes the numbering of the definitions which follow the definition limitation which has been deleted. The amendment to sec.3.3305 restates the prohibition against limitations or exclusions on coverage that are more restrictive than those of Medicare in instances where policies or certificates are advertised, solicited, or issued as Medicare supplement policies. The amendment to sec.3.3306 revises the benefit conversion requirements and the prohibition against preexisting conditions waiting periods, elimination periods, and probationary periods in replacement policies or certificates. It also provides for the suspension of benefits and premiums upon the request of the policyholder for any period not to exceed 24 months for which the policyholder is eligible for Medicaid benefits, as well as providing for reinstitution of such benefits. The amendment to sec.3. 3306 provides for uniform structure, language, designation, and format for Medicare supplement benefit plans and outlines of coverage. The amendment to sec.3.3307 changes the minimum loss ratio for individual policies to 65% of earned premiums, amends the requirements for the filing of rates and rating schedules, provides for collection and filing of data for refunds, and sets out requirements for refunds or credits. In sec.3.3307, the board proposes to adopt by reference a form for use in complying with the section. The board has filed with the Office of the Secretary of State, Texas Register Section, copies of the form proposed for adoption by reference. This form, entitled "Medicare Supplement Refund Calculation Form," is published by the Texas Department of Insurance and is available from the Publication Division, Mail Code 108-5A, Texas Department of Insurance, P.O. Box 149104, Austin, Texas 78714-9104. The amendment to sec.3.3308 brings the section into compliance with federal requirements for uniform disclosures in the outline of coverage for Medicare supplement policies. The amendment provides for a required notice to be provided to policyholders regarding changes to Medicare supplement coverage. In sec.3.3308, the board proposes to adopt by reference a form for use in complying with the section. The board has filed with the Office of the Secretary of State, Texas Register Section copies of the form entitled "Notice on Changes in Medicare and Your Medicare Supplement Insurance - 19__." This form is published by the Texas Department of Insurance and persons desiring copies of the form may obtain copies from the Publications Division, Mail Code 108-5A of the Texas Department of Insurance, P.O. Box 149104, Austin, Texas 78714-9104. The amendment to sec.3. 3309 changes the requirements for replacement of Medicare supplement policies and includes statements and questions to be included upon the taking of an application for Medicare supplement coverage. The amendment to sec.3.3313 removes a transitional requirement for a time period which already has elapsed. The amendment to sec.3.3315 sets out in detail the specific standards for claims payment as provided in the Omnibus Budget Reconciliation Act of 1987, Public Law 100-203. The amendment to sec.3.3318 sets out the effective date for this subchapter, as amended. The amendment to sec.3.3319 replaces existing paragraph (3) with a provision designed to assure that prospective insureds are aware of the existence and availability of the basic "core" benefit package, and to assure the fair and accurate comparison of policies. The amendment to sec.3.3320 strengthens the requirement that an agent recommending the purchase or replacement of a Medicare supplement policy determine the appropriateness of the purchase or replacement. The amendment to sec.3.3321 provides updated information about the division from which reporting forms are available. New sec.3.3322 provides for the filing and approval of Medicare supplement forms and sets out the requirements for discontinuance of particular policy or certificate forms. New sec.3.3323 sets out the process for filing and review of proposed premium rate increases with respect to Medicare supplement coverages. New sec.3.3324 sets out the requirements for availability and effectiveness of Medicare supplement coverage for all newly eligible beneficiaries under the Medicare program. New sec.3.3325 sets out essential provisions permitting issuers to provide Medicare supplement coverages through preferred provider, managed care arrangements. Comments from a total of 10 sources were received on the proposed amendments and new sections during the period for public comment. Those who submitted comments on the proposed amendments and new sections were American Life and Accident Insurance Company, United American Insurance Company, American Republic Insurance Company, Blue Cross and Blue Shield of Texas, Inc., Dallas General Life Insurance Company, the Office of Public Insurance Counsel, the Texas Legal Reserve Officials Association, and five individual commenters. Most commenters suggested changes to the sections as they were proposed and published; some expressed opposition to additional limits on permitted compensation. One commenter suggested deletion of the definition of mental and nervous disorders in sec.3.3304(8). The board responds by deleting the definition in sec.3. 3304, since it is no longer needed; the amendments otherwise eliminate the opportunity to exclude or limit coverage for mental or nervous disorders. One commenter indicated that sec.3.3306 seemed to contain inconsistent requirements. The Board responds that sec.3.3306 permits inclusion of other provisions which exceed the general minimum standards, so long as they are consistent with the standards, thereby permitting such provisions and also permitting provisions for innovative benefits while still requiring specific standard benefits which cannot vary. The board therefore finds no inconsistency in the section. Another commenter suggested that sec.3.3306(1)(A) exceeds the statutory authority provided under the Insurance Code, Article 3.74, regarding waiver of preexisting condition waiting periods, elimination periods, and probationary periods in replacement policies when such time has been spent under another policy. The board responds that it has sufficient statutory authority to adopt such a requirement, which will provide an important benefit to consumers, and makes no change to the section. One commenter expressed concern about proposed sec.3. 3306(4), which requires that benefits be listed in a prescribed order. The board responds that the Insurance Code, Article 3.74, requires the rules to comply with federal law. Federal law requires that benefits be in the prescribed order set forth in sec.3.3306. One commenter asked that the double asterisks and footnote appearing in the outline of coverage charts in sec.3.3308 be deleted. The board responds that the double asterisks and footnote provide important additional disclosure for consumers by more fully informing them of expenses and charges not payable by Medicare and not payable under Medicare Supplement coverage. Two commenters suggested that the requirements for 12-point type in sec.3.3308 be changed to 10-point type. One commenter suggested changing requirements in sec.3.3308 to allow issuers to place premium information last in the outline of coverage. The board again notes that the Insurance Code, Article 3.74, requires state compliance with federal law. Outline-of-coverage format requirements in sec.3.3308 are necessary to comply with federal law. One commenter suggested that the requirements in sec.3.3309 improperly apply to direct response insurers. Another commenter stated that sec.3.3309 should not require consumers to evaluate their other coverages when applying for Medicare Supplement coverage. The board makes no change as a result of these comments and emphasizes once more that these are requirements of federal law. A commenter asked that the board clarify what constitutes duplication of coverage in sec.3. 3309. The board acknowledges that neither the amendments, nor the federal law from which they are derived, explicitly define duplication of coverage; the board cannot as part of this adoption provide the level or precision of clarification that is sought. A commenter stated that sec.3.3314 should be repealed. The board agrees and sec.3.3314 will be repealed in a separate action. Four commenters opposed sec.3.3317 amendments prohibiting first-year compensation Medicare Supplement coverage being replaced, arguing that statutory constraints in the Insurance Code, Article 3.74, precluded such a prohibition at this time. The board agrees and restores to sec.3.3317 language permitting first-year compensation in certain replacement situations. One commenter expressed concern that proposed sec.3.3322 does not include provisions to allow additional policy forms based the addition of either direct response or agent placed marketing methods, or upon the addition of either guaranteed issue or underwritten coverage. The board responds that proposed sec.3.3322 as published helps minimize confusion among consumers by significantly reducing the number of policy forms; it also serves to alleviate potential abuses that could occur during the open enrollment period. One commenter requested changes to sec.3.3323 so that a public hearing on rate increases could only be held if the minimum loss ratio is not achieved. The board notes that sec.3.3323 as published provides additional guidance regarding unacceptable rate increases and therefore serves both consumers and issuers; for this reason no change is made to sec.3.3323 as proposed. The amendments and new sections are adopted under the Insurance Code, Article 3.74, sec.sec.2(b), 2(c), 2(f), 4(d), 4(f), 5(b), 5(f), 9B, and 10, and Texas Civil Statutes, Article 6252-13a, sec.4 and sec.5. The Insurance Code, Article 3. 74, sec.2(b) provides that the board shall adopt a basic policy form providing only those benefits common to all Medicare supplement policies, and that it may also adopt additional policies whose combination of benefits conforms to one of the benefit packages authorized by 42 United States Code, sec.1395ss. Article 3. 74, sec.2(c) provides that the board shall issue such reasonable rules to establish specific standards for provisions of Medicare supplement policies, including requirements that are at least equal to those required by federal law. Article 3.74, sec.2(f) further provides that rules that are adopted by the board must include requirements that are at least equal to those required by federal law. Article 3.74. sec.4(d) provides that the board shall issue reasonable rules providing loss ratio standards applicable to rates charged for Medicare supplement policies to the extent necessary for the state to obtain or retain certification as a state with an approved regulatory program under 42 United States Code, sec.1395ss. Article 3.74, sec.4(f) provides that the board, by rule, shall provide a process for review and approval of proposed premium increases with respect to Medicare supplement policies or benefits, consistent with 42 United States Code, sec.1395ss. Article 3.74, sec.5(b) provides that the board, by rule, shall prescribe the format and content of the outline of coverage required by the statute, including provisions at least equal to those required by applicable federal law. Article 3.74, sec.5(f) further provides that any rules adopted by the board under Article 3.74, sec.5 must include requirements at least equal to those required by all applicable federal law. Article 3.74, sec.9B provides that the board shall adopt rules limiting the commission or other compensation to be paid to an agent for the sale of Medicare supplement coverage, including replacement coverage, and that such rules must conform to, but be no more restrictive than, requirements of federal law which must be met in order for the state to obtain or retain certification as a state with an approved regulatory program under 42 United States Code, sec.1395ss. Article 3.74, sec.10 provides that the board shall adopt any rules applicable to regulation of Medicare supplement coverage which are necessary for the state to obtain or retain certification as a state with an approved regulatory program under 42 United States Code, sec.1395ss. Texas Civil Statutes, Article 6252-13a, sec.4, authorize and require each state agency to adopt rules of practice setting forth the nature and requirement of available procedures; sec.5 prescribe the procedures for adoption of rules by a state administrative agency. sec.3.3304. Policy Definitions and Terms. No insurance policy, subscriber contract, certificate, or evidence of coverage may be advertised, solicited, or issued for delivery in this state as a Medicare supplement policy unless such policy, subscriber contract, certificate, or evidence of coverage contains definitions or terms which conform to the requirements of this section. (1) "Accident," or "Accidental Injury," or "Accidental Means" shall be defined to employ "result" language and shall not include words which establish an accidental means test or use words such as "external, violent, visible wounds, " or similar words of description or characterization. (A) The definition shall not be more restrictive than the following: "Injury or injuries for which benefits are provided means accidental bodily injury sustained by the insured person which is the direct result of an accident, independent of disease or bodily infirmity or any other cause, and occurs while insurance or health coverage is in force." (B) (No change.) (2) (No change.) (3) "Convalescent Nursing Home," "Extended Care Facility," or "Skilled Nursing Facility" shall be defined in relation to its status, facilities, and available services. In no event shall such terms be defined more restrictively than as defined in the Medicare program. (A)-(B) (No change.) (4) (No change.) (5) "Medicare" shall be defined in the policy, certificate, or evidence of coverage. Medicare may be substantially defined as "The Health Insurance for the Aged Act, Title XVIII of the Social Security Amendments of 1965 as Then Constituted or Later Amended" or "Title I, Part I of Public Law 89-97, as Enacted by the 89the Congress of the United States of America and popularly known as the Health Insurance for the Aged Act, as then constituted and any later amendments or substitutes thereof," or words of similar import. (6) "Medicare Approved Amounts" refer to the level of service or amount of health care reimbursement recognized and approved for a particular medical or health care service or procedure by Medicare. (7) "Medicare Eligible Expenses" are health care expenses of the kinds covered by Medicare, to the extent recognized as reasonable and medically necessary by Medicare. (8) "Nurses" may be defined so that the description of nurse is restricted to a type of nurse, such as registered graduate professional nurse (RN), a licensed practical nurse (LPN), or a licensed vocational nurse (LVN). If the words "nurse," "trained nurse," or "registered nurse" are used without specific instruction, then the use of such terms requires the issuer to recognize the services of any individual who qualifies under such terminology in accordance with the applicable statutes or administrative rules of the licensing or registry board of Texas. (9) "Physician" may be defined by including words such as "duly qualified physician" or "duly licensed physician," but shall not be defined more restrictively than as defined in the Medicare program. The use of such terms requires an issuer to recognize and to accept, to the extent of its obligation under the contract, all providers of medical care and treatment when such services are within the scope of the provider's licensed authority and are provided pursuant to applicable laws. (10) "Sickness" shall not be defined to be more restrictive than the following: "Sickness means illness or disease of a covered person which first manifests itself after the effective date of insurance or health coverage and while the insurance or health coverage is in force." The definition shall not be construed to limit sec.3.3306(1) of this title (relating to Minimum Benefit Standards). The definition may be further modified to exclude sicknesses or diseases for which benefits are provided under any workers' compensation, occupational disease, employer's liability, or similar law. sec.3.3309. Requirements for Application Forms and Replacement Coverage. (a) Application forms shall include the following information, statements, and questions designed to elicit information as to whether, as of the date of the application, the applicant has another Medicare supplement or other health insurance policy or certificate in force or whether a Medicare supplement policy or certificate is intended to replace any other accident and sickness policy or certificate presently in force. A supplementary application or other form to be signed by the applicant and agent, except where the coverage is sold without an agent, containing such questions may be used. (1) The information shall be provided to prospective covered persons in statement form conforming to subparagraphs (A)-(D) of this paragraph. (A) You do not need more than one Medicare supplement policy. (B) If you are 65 or older, you may be eligible for benefits under Medicaid and may not need a Medicare supplement policy. (C) The benefits and premiums under your Medicare supplement policy will be suspended during your entitlement to benefits under Medicaid for 24 months. You must request this suspension within 90 days of becoming eligible for Medicaid. If you are no longer entitled to Medicaid, your policy will be reinstituted if requested within 90 days of losing Medicaid eligibility. (D) Counseling services may be available in your state to provide advice concerning your purchase of Medicare supplement insurance and concerning Medicaid. (2) Information shall be elicited from prospective covered persons by asking the questions as provided in subparagraphs (A)-(D) of this paragraph. (A) Do you to the best of your knowledge have another Medicare supplement insurance policy, certificate or coverage in force (including health care service contract or health maintenance organization contract)? If so, with which company? (B) Do you to the best of your knowledge have any other health insurance policies or coverages that provide benefits which this Medicare supplement policy would duplicate? (i) If so, with which company? (ii) What kind of policy? (C) Are you covered by Medicaid? (D) If your answer to question 1 or 2 is "yes", do you intend to replace these medical or health insurance policies or coverages with this policy (certificate)? (b) Agents shall list the following: (1) any other health insurance policies or coverages sold to the applicant which are still in force; and (2) any other health insurance policies or coverages sold to the applicant in the past five years which are no longer in force. (c) In the case of a direct response issuer, a copy of the application or supplemental form, signed by the applicant, and acknowledged by the issuer, shall be returned to the applicant by the issuer upon delivery of the policy. (d) Upon determining that a sale will involve replacement of Medicare supplement coverage, any issuer, other than a direct response issuer, or its agent, shall furnish the applicant, prior to issuance or delivery of the Medicare supplement policy or certificate, a notice regarding replacement of Medicare supplement coverage. One copy of such notice signed by the applicant and the agent, except where the coverage is sold without an agent, shall be provided to the applicant and an additional signed copy shall be retained by the issuer. A direct response issuer shall deliver to the applicant at the time of the issuance of the policy the notice regarding replacement of Medicare supplement coverage. (e) The notice required by subsection (c) of this section for an issuer shall be provided in substantially the following form. NOTICE TO APPLICANT REGARDING REPLACEMENT OF MEDICARE SUPPLEMENT INSURANCE (Issuer's name and address) SAVE THIS NOTICE! IT MAY BE IMPORTANT TO YOU IN THE FUTURE According to (your application) (information you have furnished), you intend to terminate existing Medicare supplement coverage and replace it with a policy to be issued by (Issuer's Name). Your new policy will provide 30 days within which you may decide without cost whether you desire to keep the policy. For your own information and protection, you should be aware of and seriously consider certain factors which may affect the insurance protection available to you under the new policy. You should review this new coverage carefully. Compare it with all accident and sickness coverage you now have. Terminate your present policy only if, after due consideration and acceptance by the replacing issuer, you find that purchase of this Medicare supplement coverage is a wise decision. STATEMENT TO APPLICANT BY ISSUER, (OR OTHER REPRESENTATIVE): I have reviewed your current medical or health coverage. The replacement of coverage resulting from this transaction does not duplicate coverage, to the best of my knowledge. The replacement policy is being purchased for the following reasons: Additional benefits, Same benefits but lower premiums, Fewer benefits and lower premiums Other (specify)___________________________________________ ______________________________________________________________ ______________________________________________________________. I call to your attention the following items for your consideration: (1) Health conditions which you may presently have (preexisting conditions) may not be immediately or fully covered under the new policy. This could result in denial or delay of a claim for benefits under the new policy, whereas a similar claim might have been payable under your present policy. (2) (No change.) (3) If you still wish to terminate your present policy and replace it with new coverage, be certain to truthfully and completely answer all questions on the application concerning your medical and health history. Failure to include all material medical information on an application may provide a basis for the issuer to deny any future claims and to refund your premium as though the policy had never been in force. After the application has been completed and before you sign it, read and review it carefully to be certain that all information has been properly recorded. (4) Do not cancel your present policy until you have received your new policy and are sure that you want to keep it. ____________________________________ Signature of Agent or other Representative _________________________________ Typed Name and Address of Issuer or Agent ________________________________ (Applicant's Signature) ________________________________ (Date) (f) Subsection (e)(1) and 2 this section (applicable to pre-existing conditions) may be deleted by an issuer if the replacement does not involve application of a new preexisting condition limitation. sec.3.3317. Permitted Compensation Arrangements. (a) An issuer or other entity designated in the Insurance Code, Article 3. 74, sec.1(a), may provide commission or other compensation to an agent for the sale of a Medicare supplement policy or certificate only if the first-year commission or other first-year compensation is no more than 200% of the commission or other compensation paid for selling or servicing the policy or certificate in the first renewal year, or the first 12-month service period immediately following the initial 12-month service period of the policy in instances where premium payment is other than on an annual basis. (b) (No change.) (c) No issuer shall provide compensation to its agents and no agent shall receive compensation greater than the renewal compensation payable by the replacing issuer on renewal policies or certificates if an existing policy or certificate is replaced unless benefits of the new policy or certificate are clearly and substantially greater than the benefits under the replaced policy. (d) (No change.) sec.3.3319. Standards for Marketing. (a) Every issuer marketing Medicare supplement coverage in this state, directly or through its agents, shall establish marketing procedures to ensure that: (1)-(2) (No change.) (3) all prospective policyholders are advised prior to the time an application is taken, that the basic "core" benefit package is available, including the contents of such basic "core" benefit package; (4) (No change.) (5) auditable procedures for verifying compliance with provisions of this section are in place and utilized. (b) Every issuer marketing Medicare supplement coverage in this state, directly or through its agents, shall ensure that the following notice is prominently displayed by type, stamp, or other appropriate means on the first page of the policy: "Notice to buyer: This policy may not cover all of your medical expenses." (c) (No change.) This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on March 25, 1992. TRD-9204215 Linda von Quintus Dorn Chief Clerk Texas Department of Insurance Effective date: April 15, 1992 Proposal publication date: February 7, 1992 For further information, please call: (512) 463-6327 TITLE 31. NATURAL RESOURCES AND CONSERVATION Part I. General Land Office Chapter 25. Beach Cleaning and Maintenance Assistance Program 31 TAC sec.sec.25.1-25.22 The General Land Office adopts new sec.sec.25.1-25.22, concerning the Beach Cleaning and Maintenance Assistance Program. Section 25.6 is adopted with changes to the proposed text as published in the December 17, 1991, issue of the Texas Register (16 TexReg 7310). Sections 25.1-25.5 and 25.7-25.22 are adopted without changes and will not be republished. The new chapter brings the agency into compliance with the Act of May 8, 1991, Chapter 114, 1991 Texas Session Law Service 691 (Vernon), relating to the transfer of administration of beach cleaning funds from the Texas Parks and Wildlife Department to the Texas General Land Office. These sections replace Texas Parks and Wildlife rules sec. sec.61.41-61.67, relating to the beach cleaning and maintenance assistance program which were administratively repealed in the December 17, 1991 issue of the Texas Register (16 TexReg 7359). No comments were received regarding adoption of the new sections. The new section are adopted under the Act of May 8, 1991, Chapter 114, 1991 Texas Session Law Service 691 (Vernon), which authorizes the land commissioner to promulgate rules reasonably necessary to perform the duties imposed by the Act. sec.25.6. Application for Funds Assistance. (a) Any city or county which borders on the seaward shoreline of the Gulf of Mexico may apply for state assistance for beach cleaning and maintenance on an application form approved and supplied by the agency. (b) Each state fiscal year the agency will announce by mail to all qualified cities and counties an application period not less than 30 days in length during which applications may be filed. (c) Applications received after the announced application period will be considered invalid. (d) The agency reserves the right, in its sole discretion, to waive any procedural defect in the application process. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on March 23, 1992. TRD-9204166 Garry Mauro Commissioner General Land Office Effective date: April 14, 1992 Proposal publication date: December 17, 1991 For further information, please call: (512) 463-5394 TITLE 34. PUBLIC FINANCE Part III. Teacher Retirement System of Texas Chapter 29. Benefits Service Retirement 34 TAC sec.29.11 The Teacher Retirement System of Texas (TRS) adopts an amendment to sec.29. 11, concerning actuarial tables adopted by reference and used for disability retirement options, without changes to the proposed text as published in the February 14, 1992, issue of the Texas Register (17 TexReg 1272). The changes in the section are necessary to adopt by reference the actuarial tables needed to implement recent statutory changes to disability retirement benefits offered by TRS. The amendment will provide TRS with actuarial tables for calculating disability retirement benefits that include benefit options required by law. The table provide factors for reducing the standard disability retirement annuity if the disability retiree selects an option that may continue a benefit payment after the retiree's death. No comments were received regarding adoption of the amendment. The amendment is adopted under the Texas Government Code, sec.825.102, which provides the board of trustees of the Teacher Retirement System with the authority to adopt rules for membership eligibility, administer the funds of the retirement system, and conduct its business; sec.825.105, which authorizes the board to adopt actuarial tables for benefit calculations; and sec.824.308(f), which authorizes the board to adopt separate tables to be used to reduce an optional disability retirement annuity to the actuarial equivalent of the standard retirement annuity. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on March 24, 1992. TRD-9204185 Wayne Blevins Executive Director Teacher Retirement System of Texas Effective date: September 1, 1992 Proposal publication date: February 14, 1992 For further information, please call: (512) 370-0524