| (a) A policy subject to this subchapter must include
termination provisions that specify as to each eligible family member,
as set out in §3.3051 of this title (relating to Initial and
Subsequent Conditions of Eligibility Provision), the age, or event,
if any, upon which coverage under the policy will terminate.
(b) In regard to individual hospital, medical or surgical
coverage, a policy may only contain the following bases for termination
of coverage:
(1) the bases for nonrenewal contained in §3.3038
of this title (relating to Mandatory Guaranteed Renewability Provisions
for Individual Hospital, Medical or Surgical Coverage; Exceptions);
(2) in regard to policies covering a spouse of the
primary insured or dependents:
(A) Coverage of the spouse may terminate upon the dissolution
of the marriage through divorce or other lawful means, subject to
this section, §21.407 of this title (relating to Continuance
of Coverage) and other applicable law; and
(B) Coverage of a dependent may terminate upon the
dependent's attainment of a limiting age, subject to Insurance Code §1201.059,
this section, and other applicable law.
(c) A policy containing noncancellable, guaranteed
renewable or limited guarantee of renewability provisions may not
provide for termination of coverage of the spouse solely because of
the occurrence of an event specified for termination of coverage of
the insured, other than nonpayment of premium. The provision must
stipulate that in the event of the insured's death the spouse of the
insured, if covered under the policy, will become the insured.
(d) The provision must stipulate that if the insurer
accepts premium for coverage extending beyond the date, age, or event
specified for termination as to an insured family member, then coverage
as to such person will continue during the period for which an identifiable
premium was accepted, except where such acceptance was predicated
on a misstatement of age outlined in Insurance Code §1201.011.
(e) In the event of cancellation by the insurer or
refusal to renew by the insurer of a policy providing pregnancy benefits,
the provision must provide for an extension of benefits as to pregnancy
commencing while the policy is in force and for which benefits would
have been payable had the policy continued in force.
(f) The provision must stipulate that termination of
the policy by the insurer will be without prejudice to any continuous
loss which commenced while the policy was in force, but the extension
of benefits beyond the period the policy was in force may be predicated
upon the continuous total disability of the insured person limited
to the duration of the policy benefit period, payment of the maximum
benefits or to a time period of not less than three months.
(g) The provision may provide for the termination or
suspension of family members who become eligible for coverage provided
by the federal government.
(h) A policy may not provide for termination of coverage
of a dependent child on attainment of the limiting age for dependent
children specified in the policy while the child is:
(1) incapable of self-sustaining employment due to
mental retardation or physical handicap; and
(2) chiefly dependent upon the insured for support
and maintenance. Proof of the incapacity and dependency must be furnished
to the insurer by the insured within 31 days of the child's attainment
of the limiting age and subsequently as may be required but not more
frequently than annually after the two-year period following the child's
attainment of the limiting age. Upon the attainment of the limiting
age, the applicable adult premium may be charged.
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| Source Note: The provisions of this §3.3052 adopted to be effective January 26, 1977, 2 TexReg 159; amended to be effective December 22, 1997, 22 TexReg 12503; amended to be effective May 11, 2022, 47 TexReg 2758 |
