1. (a) Each group policy of accident and sickness insurance that is delivered, issued for delivery, or renewed in Texas on or after January 1, 1988, including a policy issued by a company subject to the Insurance Code, Chapter 20, must contain a benefit provision which states, "All benefits paid on behalf of the child or children under the policy must be paid to the Texas Department of Human Services" whenever:

   1. (1) the Texas Department of Human Services is paying benefits under the Human Resources Code, Chapter 31, or Chapter 32, i.e., financial and medical assistance service programs administered pursuant to the Human Resources Code; and
   2. (2) the parent who is covered by the group policy has possession or access to the child pursuant to a court order, or is not entitled to access or possession of the child and is required by the court to pay child support.
2. (b) The insurer or group nonprofit hospital service company must receive at its home office, written notice affixed to the insurance claim that when the claim is first submitted, and the notice must state that all benefits paid pursuant to this section must be paid directly to the Texas Department of Human Services.
3. (c) With respect to any policy forms approved by the State Board of Insurance prior to the effective date of this section, an insurer is authorized to achieve compliance with this section by the use of endorsements or riders, provided such endorsements or riders are approved by the State Board of Insurance as being in compliance with this section and the provisions of the Insurance Code.
4. (d) All policies issued or renewed on and after January 1, 1988, will be considered in compliance with this section if they contain the language prescribed within subsection (a) of this section.

Source Note:The provisions of this §3.408 adopted to be effective May 2, 1989, 14 TexReg 1870.