| (a) Each group policy of accident and sickness insurance
that is delivered, issued for delivery, or renewed in Texas on or
after January 1, 1988, including a policy issued by a company subject
to Insurance Code Chapter 842, must contain a benefit provision which
states, "All benefits paid on behalf of the child or children
under the policy must be paid to the Texas Health and Human Services
Commission" whenever:
(1) the Texas Health and Human Services Commission
is paying benefits under Human Resources Code Chapter 31 or Chapter
32, i.e., financial and medical assistance service programs administered
pursuant to the Human Resources Code; and
(2) the parent who is covered by the group policy has
possession or access to the child pursuant to a court order, or is
not entitled to access or possession of the child and is required
by the court to pay child support.
(b) The insurer or group nonprofit hospital service
company must receive at its home office, written notice affixed to
the insurance claim that when the claim is first submitted, and the
notice must state that all benefits paid pursuant to this section
must be paid directly to the Texas Health and Human Services Commission.
(c) With respect to any policy forms approved by the
Texas Department of Insurance prior to the effective date of this
section, an insurer is authorized to achieve compliance with this
section by the use of endorsements or riders, provided such endorsements
or riders are approved by the Texas Department of Insurance as being
in compliance with this section and the provisions of the Insurance
Code.
(d) All policies issued or renewed on and after January
1, 1988, will be considered in compliance with this section if they
contain the language prescribed within subsection (a) of this section.
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