SF 1265

2nd Engrossment - 89th Legislature (2015 - 2016) Posted on 08/21/2015 04:19pm

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, effective upon the
next premium cycle.
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 six months after the
effective date of the qualified health plan, MNsure must permit a qualified health plan
policyholder, who has not designated a navigator or an insurance producer, to retroactively
appoint a navigator or insurance producer. MNsure must provide notice of the retroactive
appointment to the health carrier. The health carrier must retroactively pay commissions
to the insurance producer if the producer can demonstrate that they were certified by
MNsure at the time of the original enrollment, were appointed by the selected health
carrier at the time of the enrollment, and that an agent of record agreement was executed
prior to or at the time of the effective date of the policy. MNsure must adopt a standard
form of agent of record agreement for purposes of this section.
new text end

Sec. 5. new text begin 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, MNsure must permit a
policyholder, who has not yet designated a navigator or an insurance producer, to
retroactively appoint a navigator or insurance producer by August 1, 2015, for a qualified
health plan purchased by the policyholder through MNsure with a coverage effective date
of January 1, 2015, to July 31, 2015. MNsure must provide timely notice of the retroactive
appointment to the health carrier. The health carrier must retroactively pay commissions to
the insurance producer if the producer can demonstrate that they were certified by MNsure
at the time of the original enrollment, were appointed by the selected health carrier at the
time of the enrollment, and that the policyholder indicates that the insurance producer
advised them at the time of enrollment. This section shall sunset on August 1, 2015.
new text end

Sec. 6. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 3 and 5 are effective the day following final enactment. Section 4
is effective August 1, 2015, and applies with respect to qualified health plans with an
effective date on or after that date.
new text end