H.B. No. 739
AN ACT
relating to certain continuing education requirements for
insurance agents who sell Medicare-related products.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 4004, Insurance Code, is amended by
adding Subchapter D to read as follows:
SUBCHAPTER D. ADDITIONAL CONTINUING EDUCATION REQUIREMENTS
FOR SALE OF MEDICARE-RELATED PRODUCTS
Sec. 4004.151. DEFINITIONS. In this subchapter:
(1) "Medicare advantage plan" means a health benefit
plan operated under the Medicare program as a managed care plan,
special needs plan, or private fee-for-service plan.
(2) "Medicare program" means the federal health
insurance program that is operated under the Health Insurance for
the Aged Act (42 U.S.C. Section 1395 et seq.).
(3) "Medicare-related product" means a Medicare
advantage plan, a Medicare prescription drug plan, or another
health plan operated under the Medicare program, such as a Medicare
cost plan or a Medicare demonstration plan. The term does not
include a Medicare supplement benefit plan regulated under Chapter
1652.
Sec. 4004.152. AGENT EDUCATION REQUIREMENTS. (a) Unless
an agent has completed eight hours of professional training related
to a Medicare-related product, an agent may not:
(1) sell, solicit, negotiate, or receive an
application or contract for the Medicare-related product in this
state; or
(2) represent an insurer in relation to the
Medicare-related product in this state.
(b) The training required under Subsection (a) may be used
to satisfy the continuing education requirements established under
Subchapter B.
Sec. 4004.153. REQUIRED CONTINUING EDUCATION REGARDING
MEDICARE PRODUCTS. (a) This section applies to an agent who:
(1) solicits, negotiates, procures, or collects a
premium on a Medicare-related product; or
(2) represents or purports to represent an insurer, a
health maintenance organization, or a preferred provider
organization in relation to such a Medicare-related product.
(b) Each agent described by Subsection (a) must complete
four hours of continuing education that specifically relates to
Medicare-related products during the agent's two-year licensing
period.
(c) Only training in a program that has been certified by
the department may be used to satisfy the requirements of
Subsection (b).
(d) The continuing education required under Subsection (b)
may be used to satisfy the continuing education requirements
established under Subchapter B.
Sec. 4004.154. PROGRAM CERTIFICATION REQUIREMENTS. (a)
Subchapter C, including the authorization to contract with an
independent contractor under Section 4004.104, applies to programs
used to satisfy the requirements of Sections 4004.152 and 4004.153.
For the purpose of administering this subchapter, professional
training courses shall be considered to be continuing education
courses under Subchapter C.
(b) The commissioner by rule shall adopt criteria for the
programs used to satisfy the requirements of Sections 4004.152 and
4004.153 that are designed to ensure that an agent has knowledge,
understanding, and professional competence concerning a
Medicare-related product. The rules adopted under this subsection
may incorporate by reference any requirements established by the
Centers for Medicare and Medicaid Services or any other appropriate
federal agency.
Sec. 4004.155. NONAPPLICATION OF CERTAIN EXEMPTIONS. The
continuing education exemptions for certain agents established
under Section 4004.052(b) and Section 9.02(e), Chapter 703 (S.B.
414), Acts of the 77th Legislature, Regular Session, 2001, do not
apply to requirements under this subchapter.
SECTION 2. The commissioner of insurance shall adopt rules
as required by Section 4004.154, Insurance Code, as added by this
Act, not later than December 1, 2009.
SECTION 3. Subchapter D, Chapter 4004, Insurance Code, as
added by this Act, applies to education requirements for insurance
agents for a license issued or renewed on or after April 1, 2010.
SECTION 4. This Act takes effect September 1, 2009.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 739 was passed by the House on May 5,
2009, by the following vote: Yeas 140, Nays 4, 1 present, not
voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 739 was passed by the Senate on May
21, 2009, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor