Texas Insurance Code 846.206 – Renewability of Coverage; Cancellation
(a) Except as provided by § 846.207, a multiple employer welfare arrangement shall renew the health benefit plan, at the employer’s option, unless:
(1) a contribution has not been paid as required by the terms of the plan;
(2) the employer has committed fraud or has intentionally misrepresented a material fact;
(3) the employer has not complied with the terms of the health benefit plan document;
(4) the health benefit plan is ceasing to offer any coverage in a geographic area; or
(5) there has been a failure to meet the terms of an applicable collective bargaining agreement or other agreement requiring or authorizing contributions to the health benefit plan, including a failure to renew the agreement or to employ employees covered by the agreement.
(b) A multiple employer welfare arrangement may refuse to renew the coverage of a participating employee or dependent for fraud or intentional misrepresentation of a material fact by that person.
Terms Used In Texas Insurance Code 846.206
- Dependent: A person dependent for support upon another.
- Fraud: Intentional deception resulting in injury to another.
- Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
(c) A multiple employer welfare arrangement may not cancel a health benefit plan except for a reason specified for refusal to renew under Subsection (a). An arrangement may not cancel the coverage of a participating employee or dependent except for a reason specified for refusal to renew under Subsection (b).