BILL ANALYSIS


Insurance Committee
H.B. 222
3-1-95
Committee Report (Amended)


BACKGROUND


     Currently, to be both a Class I agent and an HMO agent, a
person must take two separate tests and be granted two separate
licenses.  This is both a troublesome bureaucracy, and quite a bit
of paperwork for both the applicant and the agency involved.


PURPOSE

     To redefine agent licensing to include agents who represent
health maintenance organizations and address requirements.


RULEMAKING AUTHORITY

     It is the committee's opinion that this bill does not grant
any additional rulemaking authority to a state officer,
institution, or agency.


SECTION BY SECTION ANALYSIS

Section 1
Amends Article 21.07-1, Insurance Code, and redefines agent to
include those representing health maintenance organizations.

Section 2
Amends Article 21.07-1, Insurance Code, by deleting "life
insurance."  Establishes necessity of licensing for agents as
defined in Section 1.

Section 3
Amends Article 21.07-1, Insurance Code, by deleting references to
"life insurance" and adding references to "health maintenance
organization'" as defined in Section 1, for the purpose of the
application process and the issuances of licenses.  Adds
requirements for agent sponsorship to include principles of health
maintenance regulation and membership.

Section 4
Amends Article 21.07-1, Insurance Code, by deleting references to
"life insurance" regarding an agent's death.

Section 5
Amends Article 21.07-1, Insurance Code, by deleting "life
insurance" in examination process.  Reconfigured Advisory Board
membership to include a member employed by a health maintenance
organization with operations familiarity.

Section 6
Amends Article 21.07-1, Insurance Code, by adding health
maintenance organization to the issuance or denial of the license
process.






Section 7
Amends Article 21.07-1, Insurance Code, by deleting "life
insurance" to address license reciprocity process with other
states.

Section 8
Amends Article 21.07-1, Insurance Code, by adding health
maintenance organizations to the appointment process for agents.

Section 9
Amends Article 21.07-1, Insurance Code, by deleting "life
insurance" regarding license expiration.

Section 10
Amends Article 21.07-1, Insurance Code, by deleting "life
insurance" and adding "health maintenance organization" for
temporary license issuance.  Adds health maintenance organization
principles to training requirements.

Section 11
Amends Article 21.07-1, Insurance Code, by deleting "life
insurance" and adding "health maintenance organization" for
appointment termination.

Section 12
Amends Article 21.07-1, Insurance Code, by adding "health
maintenance organization" for license holder disciplinary
procedures.

Section 13
Amends Article 21.07-1, Insurance Code, by adding "health
maintenance organization" to penalty for violations of licensure
requirements.

Section 14
Amends Article 21.07-1, Insurance Code, by adding "health
maintenance organization" to definition of accident and health
agent.  Adds that the definition does not include those contracted
to provide administrative, management, or health care services to
a health maintenance organization.

Section 15
Amends Article 20A.15, Insurance Code by expanding the definition
of an health maintenance organization agent to include a valid
agent's license or health and accident agent's license.

Section 16
Amends Article 20A.15, Insurance Code, by addressing agent
licensing requirements for a single service health maintenance
organization.

Section 17
Effective date for repeal of Articles 20A.15 and 20A.15A, Insurance
Code.  Effective date for TDI issuance or renewal of HMO agent
license.

Section 18
Effective Date (other than Section 17).

Section 19
Emergency Clause







EXPLANATION OF THE AMENDMENT

     Prior to an applicant sitting for a written examination in
Section 5 of this Act, the applicant shall complete an educational
program that shall include  principles relating to the Small
Employer Health Insurance Availability Act (Chapter 26, Insurance
Code).


SUMMARY OF COMMITTEE ACTION

     In accordance with House rules, H.B. 222 was heard in a Public
Hearing on March 1, 1995.  The Chair recognized the following
person who testified in support of H.B. 222, E. Kenneth Tooley, TX
Association of Life Underwriters.  The Chair recognized the
following persons in support of H.B. 222 but did not wish to
testify, Steve Montgomery, Harris Methodist Health System; Jeff
Kloster, PCA Health Plans of Texas; Mazie M. Jamison, Kaiser
Foundation Health Plan of Texas; Geoffrey Wurzel, Texas HMO
Association; Bob Huxel, Texas Association of Insurance Agents.  No
one testified in opposition to H.B. 222.  Representative Driver
offered an amendment to H.B. 222.  Representative Counts moved the
Committee adopt the amendment.  Representative Driver seconded the
motion.  The Chair heard no objections and the amendment was
adopted.

     Representative Counts moved the Committee report H.B. 222 as
amended favorably to the full House as amended with the
recommendation that it do pass and be printed.  Representative
Shields seconded the motion and the motion prevailed by the
following vote:
AYES (8), NAYS (0), ABSENT (0), PNV (1).