CHAPTER 1578. PURCHASE OF INSURANCE BY ASSOCIATION OF TEACHERS AND SCHOOL ADMINISTRATORS
INSURANCE CODE
TITLE 8. HEALTH INSURANCE AND OTHER HEALTH COVERAGES
SUBTITLE H. HEALTH BENEFITS AND OTHER COVERAGES FOR GOVERNMENTAL
EMPLOYEES
CHAPTER 1578. PURCHASE OF INSURANCE BY ASSOCIATION OF TEACHERS
AND SCHOOL ADMINISTRATORS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 1578.001. APPLICABILITY OF CHAPTER. This chapter applies
only to a voluntary association that is:
(1) composed of teachers or school administrators of public or
private primary or secondary schools, colleges, or universities;
and
(2) incorporated under federal law or a law of this state on a
nonprofit membership basis.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
Sec. 1578.002. AUTHORITY TO ISSUE. Notwithstanding any other
law, an insurance company authorized to engage in the business of
insurance in this state may issue a group policy to a voluntary
association in accordance with this chapter.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
SUBCHAPTER B. PURCHASE OF INSURANCE
Sec. 1578.051. AUTHORITY TO OBTAIN INSURANCE. (a) A voluntary
association may obtain for any class of the association's
membership and for the class's dependents a group policy of:
(1) life insurance;
(2) health insurance;
(3) accident insurance;
(4) accidental death or dismemberment insurance; or
(5) hospital, surgical, or medical expense insurance.
(b) The association may obtain a separate policy for each type
of insurance listed under Subsection (a).
(c) The association is the policyholder.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
Sec. 1578.052. PAYMENT OF PREMIUM. A voluntary association that
obtains a group policy under this chapter shall pay the premium
for the policy wholly or partly from money:
(1) contributed by the association; or
(2) contributed by the insured association members for that
purpose.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
Sec. 1578.053. MINIMUM REQUIREMENTS TO OBTAIN POLICY. (a) A
voluntary association may obtain a group policy under this
chapter only if the policy will cover at least 25 association
members on the date of issue.
(b) If the premium for the group policy is paid wholly or partly
from money contributed by association members for that purpose,
the policy on the date of issue must cover at least the lesser of
75 percent of the eligible members or 400 members, excluding any
member whose evidence of individual insurability is not
satisfactory to the insurer, who elect to make the required
contributions and to be insured under the policy.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
Sec. 1578.054. AMOUNT OF INSURANCE. The amount of insurance
under a policy issued under this chapter must be based on a plan
that precludes individual selection by the voluntary association
or an insured association member.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.