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HF 212

as introduced - 90th Legislature (2017 - 2018) Posted on 02/20/2018 12:18pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to insurance producers; regulating payment of commissions by issuers of
individual health plans; amending Minnesota Statutes 2016, sections 60K.31, by
adding a subdivision; 60K.48, subdivision 4.

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

Section 1.

Minnesota Statutes 2016, section 60K.31, is amended by adding a subdivision
to read:


new text begin Subd. 4a. new text end

new text begin Individual health plan. new text end

new text begin "Individual health plan" means a health plan as defined
in section 62A.011, subdivision 4.
new text end

Sec. 2.

Minnesota Statutes 2016, section 60K.48, subdivision 4, is amended to read:


Subd. 4.

deleted text begin Qualifieddeleted text end new text begin Individualnew text end health plans.

(a) If a health carrier pays commissions
or service fees to licensed producers who are appointed by the health carrier for sale of deleted text begin a
qualified
deleted text end new text begin an individualnew text end health plan, then, within 30 days of receipt of the agent of record
agreement, 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, effective
upon the next premium cycle.

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

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

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

Sec. 3. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 and 2 are effective January 1, 2017.
new text end