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HF 1268

as introduced - 89th Legislature (2015 - 2016) Posted on 02/26/2015 01:20pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to insurance; permitting individuals to contract with an insurance
producer to advocate on the individual's behalf with respect to health coverage
with an insurance company; regulating payment of commissions by issuers of
qualified health plans; amending Minnesota Statutes 2014, sections 60K.31, by
adding subdivisions; 60K.48, by adding a subdivision; 60K.49, subdivision 1;
proposing coding for new law in Minnesota Statutes, chapter 62V.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2014, section 60K.31, is amended by adding a
subdivision to read:


new text begin Subd. 1a. new text end

new text begin Agent of record. new text end

new text begin "Agent of record" means an insurance producer, as
defined in subdivision 6, licensed in this state to sell, solicit, or negotiate health insurance,
who enters into an agreement with (1) a policyholder who has individual health insurance
coverage from an insurance company that the producer represents, to advise and advocate
on behalf of the policyholder with the policyholder's insurance company, or (2) an
applicant for individual health insurance coverage from an insurance company the producer
represents, to advise and advocate on behalf of the applicant with the insurance company.
new text end

Sec. 2.

Minnesota Statutes 2014, section 60K.31, is amended by adding a subdivision
to read:


new text begin Subd. 1b. new text end

new text begin Agent of record letter. new text end

new text begin "Agent of record letter" means a letter
documenting the agreement referenced in subdivision 1a, and that is signed by the agent
of record and either a policyholder or applicant for individual health insurance coverage,
as the case may be.
new text end

Sec. 3.

Minnesota Statutes 2014, section 60K.48, is amended by adding a subdivision
to read:


new text begin Subd. 4. new text end

new text begin Qualified health plans. new text end

new text begin (a) If a health carrier pays commissions or
service fees to licensed producers who are appointed by the health carrier for sale of a
qualified health plan, then:
new text end

new text begin (1) the health carrier must accommodate a policyholder or applicant for coverage by
allowing a policyholder or applicant to select or change the agent of record on the first of any
month following receipt of an agent of record letter from the policyholder or applicant; and
new text end

new text begin (2) the health carrier's standard commission and service fees must be paid to the
policyholder's or applicant's agent of record or the agent's assignee if any rate for a
qualified health plan has been approved by the commissioner with costs associated with
producer commissions included in the filed rate.
new text end

new text begin (b) A health carrier is prohibited from offering, renewing, or failing to renew
qualified health plans based solely on the commission paying status of the health plan.
new text end

new text begin (c) Nothing in this subdivision requires a health carrier to pay any commission
or service fee with respect to the sale of a qualified health plan, unless the rate for the
qualified health plan has been approved by the commissioner with costs associated with
producer commissions included in the filed rate.
new text end

Sec. 4.

Minnesota Statutes 2014, section 60K.49, subdivision 1, is amended to read:


Subdivision 1.

Agent of insurer.

A person performing acts requiring a producer
license under this chapter is at all times the agent of the insurer and not the insurednew text begin , except
as provided for an agent of record under section 60K.31, subdivisions 1a and 1b
new text end .

Sec. 5.

new text begin [62V.051] MNSURE; CONSUMER RETROACTIVE APPOINTMENT
OF A NAVIGATOR OR PRODUCER PERMITTED.
new text end

new text begin Notwithstanding any other law or rule to the contrary, MNsure must permit a
consumer to retroactively appoint a navigator or insurance producer to represent, advise,
and advocate on behalf of the consumer.
new text end

Sec. 6. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 5 are effective the day following final enactment.
new text end