HB-6432, As Passed House, December 12, 2018
HB-6432, As Passed Senate, December 12, 2018
As Amended December 4, 2018
October 4, 2018, Introduced by Rep. Webber and referred to the Committee on Insurance.
A bill to amend 1986 PA 252, entitled
"The health benefit agent act,"
by amending sections 3 and 9 (MCL 550.1003 and 550.1009).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
3. (1) Health benefits shall may
only be sold on behalf
of
a health benefit corporation by either of the following:
(a)
A a health benefit agent.
(b)
An employee either of a health benefit corporation or an
affiliate
of the health benefit corporation, if the employee does
not
transact insurance during the tenure of his or her employment
with
the health benefit corporation or the affiliate.
(2) A health benefit agent may package health benefits with
such insurance as the agent is authorized to sell.
[If an application for
health benefits that is packaged with insurance is submitted by an agent to a health benefit corporation or to an affiliate of a health benefit corporation and the health benefit corporation or the affiliate of a health benefit corporation knows the agent of record for the group's current health benefits, the health benefit corporation or the affiliate of a health benefit corporation shall notify the agent of record of the application unless any of the following apply:
(a) The submitting agent is the agent of record.
(b) Both of the following apply:
(i) The group authorizes changing the agent of record to the submitting agent.
(ii) The agent of record is not employed by a health benefit corporation or an affiliate of a health benefit corporation.
(c) The group requests in writing that the agent of record not be notified.
(3) If the health benefit corporation or the affiliate of a health benefit corporation notifies the agent of record under subsection (2), the health benefit corporation or the affiliate of a health benefit corporation shall not process the application for 14 days after the NOTIFICATION is given unless either of the following applies:
(a) A shorter period of time is agreed to by the agent of record.
(b) The health benefit corporation or the affiliate of a health benefit corporation receives a written request from the group to proceed with consideration of the application.
(4)] A health benefit corporation shall pay to the
commissioner
House Bill No. 6432 as amended December 4, 2018
director of the department of insurance and financial services an
annual appointment fee of $5.00 for each health benefit agent who
is authorized to sell health benefits on behalf of the health
benefit corporation.
[(5) As used in this section, "agent of record" means a person that is a health benefit agent authorized to represent a subscriber to transact insurance, including the purchasing, servicing, and maintenance of health benefits and that is shown on the records of the health benefit corporation or the affiliate of a health benefit corporation as the agent to whom commission is to be paid.]
Sec.
9. (1) An affiliate of a health benefit corporation shall
must not be licensed as an insurance agent under chapter 12 of the
insurance
code of 1956, Act No. 218 of the Public Acts of 1956,
being
sections 1956 PA 218, MCL 500.1201 to 500.1244 of the
Michigan
Compiled Laws.500.1247.
(2)
An employee either of a health benefit corporation or an
affiliate
of a health benefit corporation who is licensed as an
insurance
agent under chapter 12 of the insurance code of 1956, Act
No.
218 of the Public Acts of 1956, shall not transact insurance
during
his or her employment with the health benefit corporation or
the
affiliate.