1. (a) The purpose of this regulation is to:

   1. (1) permit, but not require, insurers to include a coordination of benefits (COB) provision in their plans;
   2. (2) establish an order in which plans pay their claims;
   3. (3) provide the authority for the orderly transfer of information needed to pay claims promptly;
   4. (4) reduce duplication of benefits by permitting a reduction of the benefits paid by a plan when the plan, pursuant to rules established by this regulation, does not have to pay its benefits first;
   5. (5) reduce claims payment delays; and
   6. (6) make all contracts that contain a coordination of benefits provision consistent with this regulation.
2. (b) This subchapter applies to group health coverage. It also applies to group-type health contracts described in §3.3506 of this title (relating to Use of the Terms "Plan," "Primary Plan," "Secondary Plan," and "This Plan" in Policies, Certificates, and Contracts).

Source Note:The provisions of this §3.3501 adopted to be effective June 3, 1994, 19 TexReg 3938.