Minnesota Legislature
SF 1265
Conference Committee Report - 89th Legislature (2015 - 2016) Posted on 05/15/2015 10:57am
KEY: stricken = removed, old language.
underscored = added, new language.
1.1CONFERENCE COMMITTEE REPORT ON S.F. No. 1265
1.3relating to insurance; permitting individuals to contract with an insurance
1.4producer to advocate on the individual's behalf with respect to health coverage
1.5with an insurance company; regulating payment of commissions by issuers of
1.6qualified health plans; amending Minnesota Statutes 2014, sections 60K.31, by
1.7adding subdivisions; 60K.48, by adding a subdivision; proposing coding for new
1.8law in Minnesota Statutes, chapter 62V.
1.9May 14, 2015
1.10The Honorable Sandra L. Pappas
1.11President of the Senate
1.12The Honorable Kurt L. Daudt
1.13Speaker of the House of Representatives
1.14We, the undersigned conferees for S.F. No. 1265 report that we have agreed upon
1.15the items in dispute and recommend as follows:
1.16That the House recede from its amendments and that S.F. No. 1265 be further
1.17amended as follows:
1.18Delete everything after the enacting clause and insert:
1.19 "Section 1. Minnesota Statutes 2014, section 60K.31, is amended by adding a
1.20subdivision to read:
1.21 Subd. 1a. Agent of record. "Agent of record" means an insurance producer, as
1.22defined in subdivision 6, who enters into an agreement with:
1.23(1) a policyholder who has individual health insurance coverage from an insurance
1.24company that the producer represents; or
1.25(2) an applicant for individual health insurance coverage from an insurance company
1.26the producer represents.
1.27 Sec. 2. Minnesota Statutes 2014, section 60K.31, is amended by adding a subdivision
1.28to read:
2.1 Subd. 1b. Agent of record agreement. "Agent of record agreement" means an
2.2agreement documenting the agreement referenced in subdivision 1a, and that is signed by
2.3the agent of record and either a policyholder or applicant for individual health insurance
2.4coverage.
2.5 Sec. 3. Minnesota Statutes 2014, section 60K.48, is amended by adding a subdivision
2.6to read:
2.7 Subd. 4. Qualified health plans. (a) If a health carrier pays commissions or
2.8service fees to licensed producers who are appointed by the health carrier for sale of a
2.9qualified health plan, then, within 30 days of receipt of the agent of record agreement, the
2.10health carrier must accommodate a policyholder or applicant for coverage by allowing
2.11a policyholder or applicant to select or change the agent of record, effective upon the
2.12next premium cycle.
2.13(b) The health carrier's standard commission and service fees must be paid to the
2.14policyholder's agent of record or the agent's assignee if any premium rate for a qualified
2.15health plan has been approved by the commissioner with costs associated with producer
2.16commissions included in the filed rate.
2.17(c) A health carrier is prohibited from offering, renewing, or failing to renew
2.18qualified health plans based solely on the commission-paying status of the health plan.
2.19(d) Nothing in this subdivision requires a health carrier to pay any commission
2.20or service fee with respect to the sale of a qualified health plan, unless the rate for the
2.21qualified health plan has been approved by the commissioner with costs associated with
2.22producer commissions included in the filed rate.
2.23 Sec. 4. [62V.051] MNSURE; CONSUMER RETROACTIVE APPOINTMENT
2.24OF A NAVIGATOR OR PRODUCER PERMITTED.
2.25Notwithstanding any other law or rule to the contrary, for up to six months after the
2.26effective date of the qualified health plan, MNsure must permit a qualified health plan
2.27policyholder, who has not designated a navigator or an insurance producer, to retroactively
2.28appoint a navigator or insurance producer. MNsure must provide notice of the retroactive
2.29appointment to the health carrier. The health carrier must retroactively pay commissions
2.30to the insurance producer if the producer can demonstrate that they were certified by
2.31MNsure at the time of the original enrollment, were appointed by the selected health
2.32carrier at the time of the enrollment, and that an agent of record agreement was executed
2.33prior to or at the time of the effective date of the policy. MNsure must adopt a standard
2.34form of agent of record agreement for purposes of this section.
3.1 Sec. 5. MNSURE; CONSUMER RETROACTIVE APPOINTMENT OF A
3.2NAVIGATOR OR PRODUCER PERMITTED.
3.3Notwithstanding any other law or rule to the contrary, MNsure must permit a
3.4policyholder, who has not yet designated a navigator or an insurance producer, to
3.5retroactively appoint a navigator or insurance producer by August 1, 2015, for a qualified
3.6health plan purchased by the policyholder through MNsure with a coverage effective date
3.7of January 1, 2015, to July 31, 2015. MNsure must provide timely notice of the retroactive
3.8appointment to the health carrier. The health carrier must retroactively pay commissions to
3.9the insurance producer if the producer can demonstrate that they were certified by MNsure
3.10at the time of the original enrollment, were appointed by the selected health carrier at the
3.11time of the enrollment, and that the policyholder indicates that the insurance producer
3.12advised them at the time of enrollment. This section shall sunset on August 1, 2015.
3.13 Sec. 6. EFFECTIVE DATE.
3.14Sections 1 to 3 and 5 are effective the day following final enactment. Section 4
3.15is effective August 1, 2015, and applies with respect to qualified health plans with an
3.16effective date on or after that date."
1.3relating to insurance; permitting individuals to contract with an insurance
1.4producer to advocate on the individual's behalf with respect to health coverage
1.5with an insurance company; regulating payment of commissions by issuers of
1.6qualified health plans; amending Minnesota Statutes 2014, sections 60K.31, by
1.7adding subdivisions; 60K.48, by adding a subdivision; proposing coding for new
1.8law in Minnesota Statutes, chapter 62V.
1.9May 14, 2015
1.10The Honorable Sandra L. Pappas
1.11President of the Senate
1.12The Honorable Kurt L. Daudt
1.13Speaker of the House of Representatives
1.14We, the undersigned conferees for S.F. No. 1265 report that we have agreed upon
1.15the items in dispute and recommend as follows:
1.16That the House recede from its amendments and that S.F. No. 1265 be further
1.17amended as follows:
1.18Delete everything after the enacting clause and insert:
1.19 "Section 1. Minnesota Statutes 2014, section 60K.31, is amended by adding a
1.20subdivision to read:
1.21 Subd. 1a. Agent of record. "Agent of record" means an insurance producer, as
1.22defined in subdivision 6, who enters into an agreement with:
1.23(1) a policyholder who has individual health insurance coverage from an insurance
1.24company that the producer represents; or
1.25(2) an applicant for individual health insurance coverage from an insurance company
1.26the producer represents.
1.27 Sec. 2. Minnesota Statutes 2014, section 60K.31, is amended by adding a subdivision
1.28to read:
2.1 Subd. 1b. Agent of record agreement. "Agent of record agreement" means an
2.2agreement documenting the agreement referenced in subdivision 1a, and that is signed by
2.3the agent of record and either a policyholder or applicant for individual health insurance
2.4coverage.
2.5 Sec. 3. Minnesota Statutes 2014, section 60K.48, is amended by adding a subdivision
2.6to read:
2.7 Subd. 4. Qualified health plans. (a) If a health carrier pays commissions or
2.8service fees to licensed producers who are appointed by the health carrier for sale of a
2.9qualified health plan, then, within 30 days of receipt of the agent of record agreement, the
2.10health carrier must accommodate a policyholder or applicant for coverage by allowing
2.11a policyholder or applicant to select or change the agent of record, effective upon the
2.12next premium cycle.
2.13(b) The health carrier's standard commission and service fees must be paid to the
2.14policyholder's agent of record or the agent's assignee if any premium rate for a qualified
2.15health plan has been approved by the commissioner with costs associated with producer
2.16commissions included in the filed rate.
2.17(c) A health carrier is prohibited from offering, renewing, or failing to renew
2.18qualified health plans based solely on the commission-paying status of the health plan.
2.19(d) Nothing in this subdivision requires a health carrier to pay any commission
2.20or service fee with respect to the sale of a qualified health plan, unless the rate for the
2.21qualified health plan has been approved by the commissioner with costs associated with
2.22producer commissions included in the filed rate.
2.23 Sec. 4. [62V.051] MNSURE; CONSUMER RETROACTIVE APPOINTMENT
2.24OF A NAVIGATOR OR PRODUCER PERMITTED.
2.25Notwithstanding any other law or rule to the contrary, for up to six months after the
2.26effective date of the qualified health plan, MNsure must permit a qualified health plan
2.27policyholder, who has not designated a navigator or an insurance producer, to retroactively
2.28appoint a navigator or insurance producer. MNsure must provide notice of the retroactive
2.29appointment to the health carrier. The health carrier must retroactively pay commissions
2.30to the insurance producer if the producer can demonstrate that they were certified by
2.31MNsure at the time of the original enrollment, were appointed by the selected health
2.32carrier at the time of the enrollment, and that an agent of record agreement was executed
2.33prior to or at the time of the effective date of the policy. MNsure must adopt a standard
2.34form of agent of record agreement for purposes of this section.
3.1 Sec. 5. MNSURE; CONSUMER RETROACTIVE APPOINTMENT OF A
3.2NAVIGATOR OR PRODUCER PERMITTED.
3.3Notwithstanding any other law or rule to the contrary, MNsure must permit a
3.4policyholder, who has not yet designated a navigator or an insurance producer, to
3.5retroactively appoint a navigator or insurance producer by August 1, 2015, for a qualified
3.6health plan purchased by the policyholder through MNsure with a coverage effective date
3.7of January 1, 2015, to July 31, 2015. MNsure must provide timely notice of the retroactive
3.8appointment to the health carrier. The health carrier must retroactively pay commissions to
3.9the insurance producer if the producer can demonstrate that they were certified by MNsure
3.10at the time of the original enrollment, were appointed by the selected health carrier at the
3.11time of the enrollment, and that the policyholder indicates that the insurance producer
3.12advised them at the time of enrollment. This section shall sunset on August 1, 2015.
3.13 Sec. 6. EFFECTIVE DATE.
3.14Sections 1 to 3 and 5 are effective the day following final enactment. Section 4
3.15is effective August 1, 2015, and applies with respect to qualified health plans with an
3.16effective date on or after that date."
| We request the adoption of this report and repassage of the bill. | |||
| Senate Conferees: | |||
| ..... | ..... | ||
| Vicki Jensen | James P. Metzen | ||
| ..... | |||
| Paul E. Gazelka | |||
| House Conferees: | |||
| ..... | ..... | ||
| Greg Davids | Joe Hoppe | ||
| ..... | |||
| Paul Rosenthal | |||