1. (a) Form COB TX incorporated by reference in these rules contains a prototype form of coordination of benefits provision for use in group or group-type contracts. The use of this prototype and its provisions is subject to the provisions of subsections (b)-(d) of this section and the provisions of §3.3508 of this title (relating to Rules for Coordination of Benefits and the Order of Benefits).
2. (b) A group or group-type contract's COB provision does not have to use the words and format shown in the prototype Form No. COB TX. Changes may be made to fit the language and style of the rest of the group or group-type contract or to reflect the difference among plans which provide services, which pay benefits for expenses incurred, and which indemnify. No other substantive changes are allowed.

3. (c) A group or group-type contract may not reduce benefits on the basis that:

   1. (1) another plan exists;
   2. (2) a person is or could have been covered under another plan; or
   3. (3) a person has elected an option under another plan providing a lower level of benefits than another option which could have been elected.
4. (d) No contract may contain a provision that its benefits are "excess" or "always secondary" to any plan as defined in this regulation, except in accord with the rules permitted by this regulation.

Source Note:The provisions of this §3.3507 adopted to be effective June 3, 1994, 19 TexReg 3938.