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:
Minnesota Statutes 2014, section 60K.31, is amended by adding a
subdivision to read:
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"Agent of record" means an insurance producer, as
defined in subdivision 6, who enters into an agreement with:
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(1) a policyholder who has individual health insurance coverage from an insurance
company that the producer represents; or
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(2) an applicant for individual health insurance coverage from an insurance company
the producer represents.
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Minnesota Statutes 2014, section 60K.31, is amended by adding a subdivision
to read:
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"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.
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Minnesota Statutes 2014, section 60K.48, is amended by adding a subdivision
to read:
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(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.
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(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.
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(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.
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(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.
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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.
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Sections 1 to 4 are effective the day following final enactment.
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