Texas Insurance Code - Not Codified - Article 3.51. Group Insurance For Employees Of State And Its Subdivisions And College And School Employees
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Art. 3.51. GROUP INSURANCE FOR EMPLOYEES OF STATE AND ITS
SUBDIVISIONS AND COLLEGE AND SCHOOL EMPLOYEES. Sec. 1. (a) The
State of Texas and each of its political, governmental and
administrative subdivisions, departments, agencies, associations
of public employees, and the governing boards and authorities of
each state university, colleges, common and independent school
districts or of any other agency or subdivision of the public school
system of the State of Texas are authorized to procure contracts
with any insurance company authorized to do business in this state
insuring their respective employees, or if an association of public
employees is the policyholder, insuring its respective members, or
any class or classes thereof under a policy or policies of group
health, accident, accidental death and dismemberment, disability
income replacement and hospital, surgical and/or medical expense
insurance or a group contract providing for annuities. The
dependents of any such employees or association members, as the
case may be, may be insured under group policies which provide
hospital, surgical and/or medical expense insurance. The insureds'
contributions to the premiums for such insurance or annuities
issued to the employer or to an association of public employees as
the policyholder may be deducted by the employer from the insureds'
salaries when authorized in writing by the respective employees so
to do. The premium for the policy or contract may be paid in whole
or in part from funds contributed by the employer or in whole or in
part from funds contributed by the insured employees. When an
association of public employees is the holder of such a policy of
insurance or contract, the premium for employees that are members
of such association may be paid in whole or in part by the State of
Texas or other agency authorized to procure contracts or policies
of insurance under this section, or in whole or in part from funds
contributed by the insured employees that are members of such
association; provided, however, that any monies or credits
received by or allowed to the policyholder or contract holder
pursuant to any participation agreement contained in or issued in
connection with the policy or contract shall be applied to the
payment of future premiums and to the pro rata abatement of the
insured employee's contribution therefor.
The term employees as used herein in addition to its usual
meaning shall include elective and appointive officials of the
state.
(b) Independent School Districts procuring policies
insuring their employees under this Section may pay all or any
portion of the premiums on such policies from the local funds of
such Independent School District, but in no event shall any part of
such premiums be paid from funds paid such districts by the State of
Texas.
Sec. 2. All group insurance contracts effected pursuant
hereto shall conform and be subject to all the provisions of any
existing or future laws concerning group insurance.
Sec. 3. (a) Notwithstanding any other provision of this
article, a common or independent school district or any other
agency or subdivision of the public school system of this state that
is participating in the uniform group coverage program established
under Article 3.50-7 of this code may not procure contracts under
this article for health insurance coverage and may not renew a
health insurance contract procured under this article after the
date on which the program of coverages provided under Article
3.50-7 of this code is implemented.
(b) This section does not preclude an entity described by
Subsection (a) of this section from procuring contracts under this
article for the provision of optional insurance coverages for the
employees of the entity.
Acts 1951, 52nd Leg., ch. 491. Amended by Acts 1961, 57th Leg., p.
840, ch. 376, Sec. 1; Acts 1967, 60th Leg., p. 239, ch. 126, Sec. 1,
eff. Aug. 28, 1967; Acts 1967, 60th Leg., p. 1007, ch. 437, Sec. 2,
eff. Aug. 28, 1967; Acts 1969, 61st Leg., p. 1371, ch. 414, Sec. 2,
eff. Sept. 1, 1969.
Sec. 3 added by Acts 2001, 77th Leg., ch. 1187, Sec. 3.16, eff.
Sept. 1, 2001.
Article: 3.40-1 3.41 3.41a 3.49-3 3.50-7A 3.50-7A 3.50-7B 3.51 3.51-1 3.51-2 3.51-4 3.51-5 3.51-7 3.56 3.70-3D
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Last modified: August 10, 2007
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