Texas General Lines — Life, Accident, Health and HMOTexas Statutes and Rules Common to Life, Accident, Health and HMOMedium
An insurance company operating in Texas wants to use a new electronic application form for its individual health insurance products. Before the company can begin using this new form, what action must it take regarding the Texas Department of Insurance (TDI)?
- ANotify the TDI of its intent to use the form within 30 days of first use.
- BObtain a waiver from the TDI for electronic form usage.
- CSubmit the form to the TDI for approval prior to use.
- DFile the form with the TDI for informational purposes only.
Show answer & explanationAnswer & explanation
Correct answer: C. Submit the form to the TDI for approval prior to use.
All insurance policy forms, including applications, must be submitted to and approved by the TDI before they can be used. This ensures compliance with state laws and consumer protection.
Why the other options are wrong
- A. Notification after first use is not permitted; prior approval is mandatory.
- B. A waiver is not the standard procedure for new form usage; approval is required.
- D. Informational filing is insufficient; prior approval is required for forms.
Policy Form Approval
All insurance policy forms, including applications, endorsements, and riders, must be submitted to and approved by the TDI before they can be used in Texas.
- Applies to all types of insurance policy forms.
- Ensures compliance with state laws and regulations.
- Required before any use with policyholders.
Memory trick: No form flies, 'til TDI approves its guise.