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SF 1106

as introduced - 90th Legislature (2017 - 2018) Posted on 05/14/2018 05:46pm

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


Subd. 4a.

Individual health plan.

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

Sec. 2.

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


Subd. 4.

Qualified Individual 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 a
qualified an individual 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 a qualified an
individual 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 qualified
individual 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 a qualified an individual health plan, unless the rate for the
qualified individual health plan has been approved by the commissioner with costs associated
with producer commissions included in the filed rate.

Sec. 3. EFFECTIVE DATE.

Sections 1 and 2 are effective January 1, 2017.