(a) An insurer shall not cancel or refuse to renew coverage of a child entitled to enrollment or enrolled under this subchapter unless satisfactory written evidence is filed with the insurer by the parent or the employer demonstrating that:
  (1) the court order or administrative order that required the coverage is no longer in effect; or
  (2) the child is enrolled in comparable health coverage or will be enrolled in comparable coverage that will take effect not later than the effective date of the cancellation or nonrenewal.
(b) For purposes of this section, health coverage will be considered comparable coverage if it is similar coverage and does not result in any significant reduction or limitation in benefits.
(c) As used in this section, "a child entitled to enrollment or enrolled under this subchapter" does not include a child whose eligibility has terminated because the parent eligible for dependent health coverage is no longer eligible for such coverage, due to nonpayment of premium, or other reasons as permitted by law and the terms of the policy.

Source Note: The provisions of this §21.2005 adopted to be effective May 8, 1997, 22 TexReg 3799.