Texas 2009 - 81st Regular

Texas Senate Bill SB964 Compare Versions

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1	1	81R6386 PB-F
2	2	By: Ellis S.B. No. 964
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to requirements for insurers and insurance agents that
8	8	sell Medicare-related products.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subtitle I, Title 8, Insurance Code, is amended
11	11	by adding Chapter 1654 to read as follows:
12	12	CHAPTER 1654. REQUIREMENTS RELATING TO SALE OF CERTAIN
13	13	MEDICARE-RELATED PRODUCTS
14	14	SUBCHAPTER A. GENERAL PROVISIONS
15	15	Sec. 1654.001. DEFINITIONS. In this chapter:
16	16	(1) "Medicare advantage plan" means a health benefit
17	17	plan operated under the Medicare program as a managed care plan,
18	18	special needs plan, or private fee-for-service plan.
19	19	(2) "Medicare program" means the federal health
20	20	insurance program that is operated under the Health Insurance for
21	21	the Aged Act (42 U.S.C. Section 1395 et seq.).
22	22	(3) "Medicare-related product" means a Medicare
23	23	advantage plan, a Medicare supplement benefit plan, a Medicare
24	24	prescription drug plan, or another health plan operated under the
25	25	Medicare program, such as a Medicare cost plan or a Medicare
26	26	demonstration plan.
27	27	(4) "Medicare supplement benefit plan" has the meaning
28	28	assigned by Section 1652.002. The term includes a Medigap policy.
29	29	Sec. 1654.002. APPLICABILITY. This chapter applies only to
30	30	insurers and insurance agents that solicit, negotiate, or sell
31	31	Medicare-related products.
32	32	Sec. 1654.003. RULES. The commissioner shall adopt rules
33	33	as necessary to implement this chapter.
34	34	[Sections 1654.004-1654.050 reserved for expansion]
35	35	SUBCHAPTER B. COMPENSATION RESTRICTIONS
36	36	Sec. 1654.051. COMPENSATION RESTRICTIONS. (a) An insurer
37	37	may not pay or offer to pay to an insurance agent, and an insurance
38	38	agent may not accept, a payment for Medicare-related products that
39	39	operates as an incentive for sales behavior that may violate
40	40	Chapter 541 or is otherwise false, deceptive, or misleading.
41	41	(b) The commissioner may order an insurer to change the
42	42	insurer's Medicare-related agent commission payment schedules if
43	43	the commissioner determines that the schedules operate as an
44	44	incentive for sales behavior that may violate Chapter 541 or is
45	45	otherwise false, deceptive, or misleading.
46	46	[Sections 1654.052-1654.100 reserved for expansion]
47	47	SUBCHAPTER C. AGENT REQUIREMENTS
48	48	Sec. 1654.101. AGENT EDUCATION REQUIREMENTS. (a) An
49	49	insurance agent that intends to sell, solicit, or negotiate a
50	50	contract for a Medicare-related product in this state or to
51	51	represent an insurer in relation to such a product must submit
52	52	evidence satisfactory to the department of completion of at least
53	53	eight hours of professional training relating to Medicare-related
54	54	products before selling, soliciting, or negotiating such a
55	55	contract.
56	56	(b) The requirement imposed under Subsection (a) is in
57	57	addition to any other education or training requirements imposed
58	58	under this code and rules adopted under this code for issuance of a
59	59	license.
60	60	Sec. 1654.102. CONTINUING EDUCATION. (a) In addition to
61	61	complying with the continuing education requirements established
62	62	under Subchapter B, Chapter 4004, each agent subject to this
63	63	chapter must complete eight hours of continuing education annually
64	64	that specifically relates to Medicare-related products.
65	65	(b) Subchapter C, Chapter 4004, applies to continuing
66	66	education programs used to satisfy the requirements of Subsection
67	67	(a). The commissioner by rule shall adopt criteria for those
68	68	programs.
69	69	SECTION 2. Section 4004.053(a), Insurance Code, is amended
70	70	to read as follows:
71	71	(a) An individual who holds a general life, accident, and
72	72	health license, a life agent license, a life and health insurance
73	73	counselor license, a general property and casualty license, or a
74	74	personal lines property and casualty license must complete 15 hours
75	75	of continuing education annually. Except as provided by Chapter
76	76	1654, if [If] the individual holds more than one license for which
77	77	continuing education is otherwise required, the individual is not
78	78	required to complete more than 15 continuing education hours
79	79	annually.
80	80	SECTION 3. The commissioner of insurance shall adopt rules
81	81	as required by Chapter 1654, Insurance Code, as added by this Act,
82	82	not later than December 1, 2009.
83	83	SECTION 4. Section 1654.102, Insurance Code, as added by
84	84	this Act, applies to requirements for an insurance agent license
85	85	issued or renewed on or after January 1, 2010.
86	86	SECTION 5. This Act takes effect September 1, 2009.