Texas Register, Volume 32, Number 39, Pages 6689-6904, September 28, 2007 Page: 6,736
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as a defined term, both of which would be generally applica-
ble to all advertising. Additionally, the proposed amendments
harmonize these proposed definitions with the new definition of
institutional advertisement derived from HB 2251. There is no
additional cost to insurers required to comply with these amend-
ments because the amendments are consistent with statutory
provisions with which insurers must already comply. The antic-
ipated public benefit resulting from the proposed amendments
would be to clarify the general application of invitation to in-
quire and invitation to contract advertisements which would al-
low the Department to conduct a more efficient and thorough
review of such advertisements. The proposed amendment to
21.103(c) implements the provision of HB 2251, codified as In-
surance Code 541.082(c), which allows the Commissioner of
Insurance to permit specified disclosures required in Internet ad-
vertising to be made through links to web pages containing the
required disclosures. Those changes mandated by HB 2251 and
implemented through the proposed amendments to 21.103(c)
establish new requirements for insurers when advertising on the
Internet. There is no additional cost to insurers required to com-
ply with this amendment because the amendment is the result
of the legislative enactment of HB 2251, and any cost to com-
ply results directly from the enactment of HB 2251. The antici-
pated public benefit resulting from the proposed amendment is
that it will standardize the requirements insurers must comply
with when advertising on the Internet enabling the Department
to conduct more efficient and thorough regulation of these ad-
vertising practices. The proposed amendment to 21.104(a) im-
poses new requirements on agents and revises the requirements
on insurers concerning the content that is required and proce-
dures that must be followed for agents and insurers to properly
identify themselves in advertising materials that they dissemi-
nate. There is no additional cost to insurers required to comply
with this amendment because the amendment is consistent with
current statutory provisions with which the insurer must already
comply. Any additional cost to agents should be negligible be-
cause the additional disclosure, when required, is capable of be-
ing presented briefly and should not result in increased produc-
tion costs for the affected advertisement. The anticipated pub-
lic benefit resulting from the proposed amendment is that it will
increase the efficiency of the enforcement of statutory and rule
requirements. The proposed amendments to 21.104(d) clarify
that the requirements for identification of the products advertised
shall include viatical and life settlement contracts, permit prod-
uct identification requirements to be satisfied through a filing with
the Department, and permit preferred provider benefit plans to
be identified as PPO plans in accordance with provisions of HB
2251, codified as Insurance Code 541.085.
There are no costs required as a result of these amendments be-
cause no new requirements or duties are imposed on insurers
or viatical or life settlement providers. In addition, because the
amendment relating to the use of the term PPO plan is the re-
sult of the legislative enactment of HB 2251, any cost to comply
results directly from the enactment of HB 2251. The anticipated
public benefit resulting from the proposed amendments will be
the ability of the Department to conduct a more efficient and thor-
ough review of product identification requirements, and it will al-
low insurers to use the generally understood acronym PPO in
their advertisements. The proposed addition of 21.104(i) con-
cerns advertisements that promote multiple insurers' products
and the new provision specifies new disclosure requirements re-
garding the business arrangements and financial responsibility
of the multiple insurers represented in the advertisement. There
are no costs required as a result of this amendment becausethe sale of multiple insurers' products is voluntary; thus insurers
may choose whether or not to promote multiple insurers' prod-
ucts in the same advertisement and whether they want to incur
any necessary expenses to market these products. If an insurer
chooses to promote multiple insurers' products in the same ad-
vertisement, any additional cost should be negligible because
the required disclosure is brief and can be included in the ad-
vertisement with little or no increased production costs. The an-
ticipated public benefit resulting from the proposed amendments
will be that consumers will be more fully informed about the prod-
ucts that are under consideration and about the business rela-
tionship of the insurers who are advertising and will be able to
make informed decisions regarding the purchase of such prod-
ucts. The proposed amendments to 21.106 amends subsec-
tion (c) to require that optional benefits which are only available
at an additional cost must disclose that such additional cost is re-
quired and adds new subsection (d) which requires that invitation
to contract advertisements, which provide premiums and adver-
tise an optional benefit, must separately disclose the additional
premium required for any optional benefit advertised. There is
no additional cost to insurers required to comply with this amend-
ment because the amendment is consistent with current statu-
tory provisions with which the insurer must already comply. The
anticipated public benefit resulting from the proposed amend-
ment will be that consumers will be more fully informed about
the additional cost of optional benefits that might be under con-
sideration and will be able to make more informed decisions re-
garding the purchase of optional benefits. Additionally, the pro-
posed amendments to 21.106 adds new subsection (e) which
requires that advertisements dealing with the availability of credit
card billing must disclose that such billing is optional and new
subsection (f) which requires that if invitation to contract adver-
tisements provide a premium or range of premiums which are
subject to change, the advertisement must disclose the possibil-
ity of such rate change. There are no costs required as a result
of this amendment because the additional disclosure, when re-
quired, is capable of being stated briefly and should not result in
increased production costs for the affected advertisement. The
anticipated public benefit resulting from these proposed amend-
ments will be that consumers will be more fully informed about
billing options and possible premium changes which will enable
them to make more informed decisions regarding the purchase
of insurance.
The proposed amendments to 21.107(a) add a definition of
spokesperson as a person or entity that has certain proprietary
or other financial relationships with an insurer or agent, or is
compensated for making a testimonial, recommendation or en-
dorsement. There are no costs to insurers required to comply
with these amendments because they do not impose any new
requirements or duties on insurers. The anticipated public ben-
efit resulting from the proposed amendments is that it will clarify
the definition of a spokesperson, thus enabling the Department
to conduct more efficient and thorough regulation of advertising
practices involving a spokesperson. The proposed amendments
to 21.107(d), in part, conform the advertising rules to require-
ments of HB 2251, codified as Insurance Code 541.083, and
permit an insurer or agent to advertise to the general public the
availability of policies available only to members of associations.
There is no additional cost to insurers required to comply with this
amendment because the amendment is the result of the legisla-
tive enactment of HB 2251, and any cost to comply result directly
from the enactment of HB 2251. The anticipated public bene-
fit will be to remove restrictions on insurers advertising policies
to the general public that have previously only been available32 TexReg 6736 September 28, 2007 Texas Register
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Texas. Secretary of State. Texas Register, Volume 32, Number 39, Pages 6689-6904, September 28, 2007, periodical, September 28, 2007; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth97416/m1/46/: accessed July 17, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting UNT Libraries Government Documents Department.