Sec. 1501.354.  REQUIRED DISCLOSURES.  (a)  In connection with offering a small employer health benefit plan for sale, each small employer health benefit plan issuer and agent shall make a reasonable disclosure, as part of its solicitation and sales materials, of:
(1)  the extent to which premium rates for a specific small employer are established or adjusted based on the actual or expected variation in:
(A)  claim costs;  or
(B)  health status of the employer's employees and their dependents;
(2)  provisions concerning the issuer's right to change premium rates and factors other than claims experience that affect changes in premium rates;
(3)  provisions relating to renewability of policies and contracts;  and
(4)  any preexisting condition provisions.
(b)  On request by a small employer, each small employer health benefit plan issuer shall disclose the benefits and premiums available under all small employer coverage for which the employer is qualified.
(c)  A small employer health benefit plan issuer is not required to disclose information to a small employer that is proprietary or trade secret information under applicable law.
(d)  Information provided under this section to a small employer must be provided in a manner that is:
(1)  understandable by the average small employer;  and
(2)  sufficient to reasonably inform a small employer of its rights and obligations under a small employer health benefit plan.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 3, eff. April 1, 2005.