Texas § 1501.203 ESTABLISHMENT OF CLASSES OF BUSINESS ON CERTAIN BASES PROHIBITED.

Texas Statutes

§ 1501.203 — ESTABLISHMENT OF CLASSES OF BUSINESS ON CERTAIN BASES PROHIBITED.

Texas § 1501.203

Code INInsurance Code

This text of Texas § 1501.203 (ESTABLISHMENT OF CLASSES OF BUSINESS ON CERTAIN BASES PROHIBITED.) is published on Counsel Stack Legal Research, covering Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Tex. Insurance Code Code Ann. § 1501.203 (2026).

Text

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.

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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.