28 Tex. Admin. Code § 124.5 - Mode of Payment Made by Insurance Carriers
(a) The insurance carrier shall make all
medical benefit and burial payments by:
(1)
check or other readily negotiable instrument; or
(2) electronic transfer by mutual agreement
to an account designated in writing by the payee.
(b) Except as provided by §
126.2 of this title (relating to
Payment of Benefits to Minors), insurance carriers shall make all payments of
income or death benefits by:
(1) check or
other readily negotiable instrument to the order of the claimant; or
(2) electronic transfer if required to under
subsection (f) of this section or by mutual agreement between the insurance
carrier and the claimant including an access card under §
124.6 of this title (relating to
Electronic Transfer Payments Made Through an Access Card).
(c) An insurance carrier that routinely pays
benefits by check or other negotiable instrument to the claimant drawn on an
out-of-state financial institution shall accompany each instrument with written
information about the insurance carrier's office location and telephone number
where the claimant may call, at the insurance carrier's expense, to obtain help
with cashing the instrument, if necessary.
(d) A claimant may request that the insurance
carrier make benefit payments by electronic transfer to a personal bank account
by providing the insurance carrier in writing: the name and routing transit
number of the financial institution and the account number and type of account
that the claimant wants the benefits electronically transferred to. The
insurance carrier shall provide the claimant with a form to fill out the
information required by this subsection within seven days of receiving a
request for such a form from the claimant.
(e) Subsections (f) - (i) of this section
apply to income or death benefit payments due on or after September 1, 2000.
(f) Unless relieved by subsection
(g) of this section, the insurance carrier shall make income or death benefit
payments by electronic transfer if the claimant:
(1) requests in writing that payment be made
by electronic transfer;
(2)
provides the information required by subsection (d) of this section;
and
(3) is reasonably expected to
be entitled to receive income or death benefits for a period of eight weeks or
more from the point that paragraphs (1) and (2) of this subsection are
satisfied.
(4) This subsection does
not apply to electronic transfer payments made through an access card under §
124.6 of this title.
(g) An insurance carrier is
relieved of the responsibility to make payment of temporary income benefits,
impairment income benefits, and supplemental income benefits by electronic
transfer if the mode of payment has been switched at the request of the
claimant three times after initially changing to electronic payments.
(h) The insurance carrier shall initiate
payment by electronic transfer starting with the first income or death benefit
payment due on or after the 21st day after the requirements of subsection (f)
of this section are met but shall continue to timely make payments by check
until the insurance carrier initiates benefit delivery by electronic
transfer.
(i) If the claimant has
previously been receiving income or death benefit payments by electronic
transfer and wants to receive benefits by check, the insurance carrier shall
initiate income or death benefit delivery by check starting with the first
benefit payment due to the claimant on or after the 7th day after receiving a
written request.
(j) Effective
date. Unless otherwise specified, this section is effective for income or death
benefit payments due on or after June 1, 2015.
Notes
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