SF 1265
1st Unofficial Engrossment - 89th Legislature (2015 - 2016)
Posted on 05/06/2015 04:35 p.m.
KEY: stricken = removed, old language.
underscored = added, new language.
Line numbers
1.1A bill for an act
1.2relating to insurance; permitting individuals to contract with an insurance
1.3producer to advocate on the individual's behalf with respect to health coverage
1.4with an insurance company; regulating payment of commissions by issuers of
1.5qualified health plans; amending Minnesota Statutes 2014, sections 60K.31, by
1.6adding subdivisions; 60K.48, by adding a subdivision; proposing coding for new
1.7law in Minnesota Statutes, chapter 62V.
1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.9 Section 1. Minnesota Statutes 2014, section 60K.31, is amended by adding a
1.10subdivision to read:
1.11 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 new text end
1.12new text begin defined in subdivision 6, who enters into an agreement with:new text end
1.13new text begin (1) a policyholder who has individual health insurance coverage from an insurance
new text end
1.14new text begin company that the producer represents; ornew text end
1.15new text begin (2) an applicant for individual health insurance coverage from an insurance company
new text end
1.16new text begin the producer represents.new text end
1.17 Sec. 2. Minnesota Statutes 2014, section 60K.31, is amended by adding a subdivision
1.18to read:
1.19 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 new text end
1.20new text begin agreement documenting the agreement referenced in subdivision 1a, and that is signed
by new text end
1.21new text begin the agent of record and either a policyholder or applicant for individual health insurance
new text end
1.22new text begin coverage.new text end
2.1 Sec. 3. Minnesota Statutes 2014, section 60K.48, is amended by adding a subdivision
2.2to read:
2.3 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 new text end
2.4new text begin service fees to licensed producers who are appointed by the health carrier for sale
of a new text end
2.5new text begin qualified health plan, then, within 30 days of receipt of the agent of record agreement,
the new text end
2.6new text begin health carrier must accommodate a policyholder or applicant for coverage by allowing
a new text end
2.7new text begin policyholder or applicant to select or change the agent of record.new text end
2.8new text begin (b) The health carrier's standard commission and service fees must be paid to the
new text end
2.9new text begin policyholder's agent of record or the agent's assignee if any premium rate for a qualified
new text end
2.10new text begin health plan has been approved by the commissioner with costs associated with producer
new text end
2.11new text begin commissions included in the filed rate.new text end
2.12new text begin (c) A health carrier is prohibited from offering, renewing, or failing to renew new text end
2.13new text begin qualified health plans based solely on the commission-paying status of the health
plan.new text end
2.14new text begin (d) Nothing in this subdivision requires a health carrier to pay any commission new text end
2.15new text begin or service fee with respect to the sale of a qualified health plan, unless the rate
for the new text end
2.16new text begin qualified health plan has been approved by the commissioner with costs associated
with new text end
2.17new text begin producer commissions included in the filed rate.new text end
2.18 Sec. 4. new text begin [62V.051] MNSURE; POLICYHOLDER RETROACTIVE new text end
2.19new text begin APPOINTMENT OF A NAVIGATOR OR PRODUCER PERMITTED.new text end
2.20new text begin Notwithstanding any other law or rule to the contrary, MNsure must permit a new text end
2.21new text begin policyholder, who has not yet designated a navigator or an insurance producer, to
new text end
2.22new text begin retroactively appoint a navigator or insurance producer by August 1, 2015, for a qualified
new text end
2.23new text begin health plan purchased by the policyholder through MNsure with a coverage effective
new text end
2.24new text begin date of January 1, 2015, to June 30, 2015.new text end
2.25 Sec. 5. new text begin EFFECTIVE DATE.new text end
2.26new text begin Sections 1 to 4 are effective the day following final enactment.new text end