Sec. 1203.002. CERTAIN COORDINATION OF BENEFITS PROVISIONS PROHIBITED. (a) An accident and health insurance policy or evidence of coverage may not be delivered, issued for delivery, or renewed in this state if: (1) a provision of the policy or evidence of coverage excludes or reduces the payment of benefits to or on behalf of an insured or enrollee; (2) the reason for the exclusion or reduction is that benefits are also payable or have been paid to or on behalf of the insured or enrollee under a supplemental policy of accident and health insurance; and (3) the supplemental policy is individually underwritten and individually issued as a plan of coverage for: (A) hospital confinement indemnity; (B) a specified disease; or (C) a limited benefit. (b) Application of Subsection (a) to a provision of an accident and health insurance policy or evidence of coverage is not affected by: (1) the mode or channel by which the premium for a supplemental policy of accident and health insurance is paid to the insurer; or (2) a reduction in the premium for a supplemental policy of accident and health insurance because of the insured's membership in an organization or status as an employee.
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