By Averitt, Kitchen, et al. H.B. No. 471 77R3277 PB-F A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to insurance agent commissions paid by small employer 1-3 carriers. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Article 26.73, Insurance Code, is amended by 1-6 adding Subsections (c) and (d) to read as follows: 1-7 (c) A small employer carrier may not implement, directly or 1-8 indirectly, agent commission schedules that vary the level of agent 1-9 commissions based on the size of the group, or otherwise reduce 1-10 access to small employer health benefit plans. 1-11 (d) Notwithstanding Subsection (c) of this article, a small 1-12 employer carrier may: 1-13 (1) vary agent commission amounts or percentages 1-14 based on group size if the variation in the commission amounts or 1-15 percentages are inversely related to the size of the group; 1-16 (2) vary agent commission amounts or percentages based 1-17 on the cumulative premium paid by a single small employer over a 1-18 specific period if the variation in the commission amounts or 1-19 percentages are inversely related to the cumulative premium paid 1-20 during the period; or 1-21 (3) pay agent commissions as a percentage of premium 1-22 charged to a small employer if the commission percentage is based 1-23 on all premium paid by the small employer. 1-24 SECTION 2. Article 26.73, Insurance Code, as amended by this 2-1 Act, applies only to a small employer health benefit plan that is 2-2 delivered or issued for delivery on or after January 1, 2002. A 2-3 health benefit plan delivered or issued for delivery before January 2-4 1, 2002, is governed by the law as it existed immediately before 2-5 the effective date of this Act, and that law is continued in effect 2-6 for that purpose. 2-7 SECTION 3. This Act takes effect September 1, 2001.