81R6386 PB-F
By: Ellis S.B. No. 964
A BILL TO BE ENTITLED
AN ACT
relating to requirements for insurers and insurance agents that
sell Medicare-related products.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle I, Title 8, Insurance Code, is amended
by adding Chapter 1654 to read as follows:
CHAPTER 1654. REQUIREMENTS RELATING TO SALE OF CERTAIN
MEDICARE-RELATED PRODUCTS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 1654.001. DEFINITIONS. In this chapter:
(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 supplement benefit 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.
(4) "Medicare supplement benefit plan" has the meaning
assigned by Section 1652.002. The term includes a Medigap policy.
Sec. 1654.002. APPLICABILITY. This chapter applies only to
insurers and insurance agents that solicit, negotiate, or sell
Medicare-related products.
Sec. 1654.003. RULES. The commissioner shall adopt rules
as necessary to implement this chapter.
[Sections 1654.004-1654.050 reserved for expansion]
SUBCHAPTER B. COMPENSATION RESTRICTIONS
Sec. 1654.051. COMPENSATION RESTRICTIONS. (a) An insurer
may not pay or offer to pay to an insurance agent, and an insurance
agent may not accept, a payment for Medicare-related products that
operates as an incentive for sales behavior that may violate
Chapter 541 or is otherwise false, deceptive, or misleading.
(b) The commissioner may order an insurer to change the
insurer's Medicare-related agent commission payment schedules if
the commissioner determines that the schedules operate as an
incentive for sales behavior that may violate Chapter 541 or is
otherwise false, deceptive, or misleading.
[Sections 1654.052-1654.100 reserved for expansion]
SUBCHAPTER C. AGENT REQUIREMENTS
Sec. 1654.101. AGENT EDUCATION REQUIREMENTS. (a) An
insurance agent that intends to sell, solicit, or negotiate a
contract for a Medicare-related product in this state or to
represent an insurer in relation to such a product must submit
evidence satisfactory to the department of completion of at least
eight hours of professional training relating to Medicare-related
products before selling, soliciting, or negotiating such a
contract.
(b) The requirement imposed under Subsection (a) is in
addition to any other education or training requirements imposed
under this code and rules adopted under this code for issuance of a
license.
Sec. 1654.102. CONTINUING EDUCATION. (a) In addition to
complying with the continuing education requirements established
under Subchapter B, Chapter 4004, each agent subject to this
chapter must complete eight hours of continuing education annually
that specifically relates to Medicare-related products.
(b) Subchapter C, Chapter 4004, applies to continuing
education programs used to satisfy the requirements of Subsection
(a). The commissioner by rule shall adopt criteria for those
programs.
SECTION 2. Section 4004.053(a), Insurance Code, is amended
to read as follows:
(a) An individual who holds a general life, accident, and
health license, a life agent license, a life and health insurance
counselor license, a general property and casualty license, or a
personal lines property and casualty license must complete 15 hours
of continuing education annually. Except as provided by Chapter
1654, if [If] the individual holds more than one license for which
continuing education is otherwise required, the individual is not
required to complete more than 15 continuing education hours
annually.
SECTION 3. The commissioner of insurance shall adopt rules
as required by Chapter 1654, Insurance Code, as added by this Act,
not later than December 1, 2009.
SECTION 4. Section 1654.102, Insurance Code, as added by
this Act, applies to requirements for an insurance agent license
issued or renewed on or after January 1, 2010.
SECTION 5. This Act takes effect September 1, 2009.