SECTION 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. 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.

(b) Insurers are encouraged to follow the principles set forth in §3.3101 of this title (relating to Organization of Policy Format for Readability) and §3.3102 of this title (relating to Language Readability) when preparing individual accident and sickness policies.

Source Note: The provisions of this §3.3100 adopted to be effective January 26, 1977, 2 TexReg 159; amended to be effective May 11, 2022, 47 Texreg 2758