Texas Statutes
Subchapter E. Underwriting and Rating of Small Employer Health Benefit Plans
Section 1501.203. Establishment of Classes of Business on Certain Bases Prohibited

Sec. 1501.203. ESTABLISHMENT OF CLASSES OF BUSINESS ON CERTAIN BASES PROHIBITED. (a) A small employer health benefit plan issuer may not establish a separate class of business based on:
(1) participation requirements; or
(2) whether the coverage provided to a small employer group is provided on a guaranteed issue basis or is subject to underwriting or proof of insurability.
(b) A small employer health benefit plan issuer may not directly or indirectly use as a criterion for establishing a separate class of business:
(1) the number of employees and dependents of a small employer; or
(2) except as provided by Section 1501.202(b)(3), the trade or occupation of the employees of a small employer or the industry or type of business of the small employer.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 3, eff. April 1, 2005.

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