TDI Proposes Rule to Clarify WC Substitute Coverage
The Texas Department of Insurance has posted an informal draft rule on workers’ compensation substitutes. The proposed rule revises Title 28, Texas Administrative Code Section 5.6302, which regulates the sale of insurance products that could be misrepresented or misunderstood as substitutes for workers’ compensation insurance. Issuers offering those products are required to include disclaimer notices.
The notice requirement is not new. However, the applicability of the notice may change, and the language required in the notice is new language. Under the proposal, TDI proposes to clarify which insurance products require notices. The revised rule also will update the required protective disclosures for advertisements, applications, and policies or evidences of coverage for those products.
The Department will host a stakeholder meeting to discuss the draft from 1:30 p.m. to 3:30 p.m., Central time, on Friday May 11, 2018 at the Agency’s William P Hobby Building at 333 Guadalupe in Austin. The comment period will close at 5 p.m., Central time, Monday May 14, 2018.
The proposed rule is available for viewing here.
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