HF 1268

1st Engrossment - 89th Legislature (2015 - 2016) Posted on 04/30/2015 09:44am

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; 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, who enters into an agreement with:
new text end

new text begin (1) a policyholder who has individual health insurance coverage from an insurance
company that the producer represents; or
new text end

new text begin (2) an applicant for individual health insurance coverage from an insurance company
the producer represents.
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 agreement. new text end

new text begin "Agent of record agreement" means an
agreement 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.
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, 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.
new text end

new text begin (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 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 (c) 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 (d) 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.

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, for up to 18 months after the
effective date of the qualified health plan, MNsure must permit a consumer, who has not
yet designated a navigator or an insurance producer, to retroactively appoint a navigator or
insurance producer.
new text end

Sec. 5. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 4 are effective the day following final enactment.
new text end