28 Tex. Admin. Code § 3.3100 - Policy Readability Generally
(a) In
order to increase policyholder understanding of individual accident and
sickness policies, insurers are encouraged to draft individual accident and
sickness policies in a readable manner. To maintain the value of the policy as
a legal document, the utmost care and caution must be used in its preparation.
Insurance Code Chapter 1201, Subchapter E, concerning Required Policy
Provisions, requires the use of certain policy provisions in particular
language or provisions that are as favorable to the insured or beneficiary as
those set forth in that subchapter. Even with these requirements of law,
insurers are encouraged to experiment with new language in these
areas.
(b) The standards for plain
language and readability set forth in Subchapter A of this title (relating to
Submission Requirements for Filings and Departmental Actions Related to Such
Filings) apply to forms filed under this subchapter.
Notes
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(a) In order to increase policyholder understanding of individual accident and sickness policies, insurers are encouraged to draft individual accident and sickness policies in a readable manner. In order not to devalue the policy as a legal document the utmost care and caution must be used in its preparation. Insurance Code Chapter 1201, Subchapter E, requires the use of certain policy provisions in particular language or provisions not less favorable to the insured or beneficiary than those set forth in said subchapter. The same is true with respect to optional policy provisions as provided in Insurance Code §§ 1201.219 - 1201.226. Notwithstanding these requirements of law, insurers are urged to experiment with new language in these areas.