RS H.B. 219 75(R) BILL ANALYSIS INSURANCE H.B. 219 By: Brimer 3-26-97 Committee Report (Unamended) 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. Article language is broadened by removing term "life insurance agent" to reflect agents of any type. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS This bill updates language to refer to the commissioner or Texas Department of Insurance instead of the State Board of Insurance. The bill also removes the term life insurance from throughout the article and adds references to health maintenance organizations. 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. Reconfigure 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, 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.