Texas Bill Would Require Disclosure on ‘Occupational Insurance’ Policies

Texas legislation requiring an occupational insurance policy to include a specified disclosure statement clarifying the policy is not a workers’ compensation policy has passed the state House of Representatives.

House Bill 3769 by Rep. John Smithee, District 86, “amends the Insurance Code to require an occupational insurance policy to include a specified disclosure statement regarding the fact that the policy is not a workers’ compensation policy on the first page of the policy and on the first page of all materials used in advertising or marketing the occupational policy to an employer that elects not to maintain workers’ compensation insurance coverage,” the legislative analysis of the bill states.

It applies to alternative worker injury protection policies, as well as employer liability protection policies, for employers who choose not to participate in the workers’ compensation system in Texas.

According to the legislative analysis, under the bill, an occupational policy is:

• an individual or group accident or health insurance policy that explicitly provides coverage or benefits for an employer or the employer’s employees for an employee’s occupational bodily injury, disease, or death;
• an employer’s insurance policy that explicitly provides liability coverage to an employer that elects not to maintain workers’ compensation insurance coverage for an employee’s occupational bodily injury, disease, or death in one of the following types of policies:

1. 1. a general liability insurance policy;
   2. a commercial multiple peril insurance policy; or
   3. any other type of insurance policy designated by the Texas Department of Insurance as intended to provide such liability coverage;

• an accident, health, or liability insurance policy that does not expressly include coverage for occupational injuries, disease, or death, but is marketed or sold to or through an employer as an alternative to coverage for benefits or liability provided by a workers’ compensation insurance policy; and
• a policy that includes occupational accident and health and liability coverage in the same policy.

The bill applies only to an occupational insurance policy delivered, issued for delivery, or renewed on or after Jan. 1, 2022.

It has been sent to the Senate for consideration.

If passed and signed by the governor, or allowed to become law, it would be effective Sept. 1, 2021.

Topics Texas Liability