Texas Department of Insurance regulations provide that, generally, disability insurance policies offered, issued, renewed, or delivered on or after February 1, 2011, may not include a discretionary clause (28 TX Admin. Code Sec. 3.1201 et seq.). A "discretionary clause" is defined as a provision that:
• Purports or acts to bind a claimant to, or grants deference in subsequent proceedings to, adverse claim decisions or policy interpretations by the insurer;
• Specifies that a policyholder or other claimant may not contest or appeal a denial of a claim;
• Specifies that the insurer's interpretation of the terms of a policy or its decision to deny coverage or the amount of benefits is binding on a policyholder or other claimant;
• Specifies that in any appeal of the insurer's decision-making power as to the interpretation of the terms of a policy is binding; or
• Specifies a standard of review in any appeal process that gives deference to the original claim decision or provides standards of interpretation or review that are inconsistent with Texas law.