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A BILL TO BE ENTITLED
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AN ACT
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relating to requirements for insurers and insurance agents that |
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sell Medicare-related products. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle I, Title 8, Insurance Code, is amended |
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by adding Chapter 1654 to read as follows: |
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CHAPTER 1654. REQUIREMENTS RELATING TO SALE OF CERTAIN |
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MEDICARE-RELATED PRODUCTS |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 1654.001. DEFINITIONS. In this chapter: |
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(1) "Medicare advantage plan" means a health benefit |
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plan operated under the Medicare program as a managed care plan, |
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special needs plan, or private fee-for-service plan. |
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(2) "Medicare program" means the federal health |
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insurance program that is operated under the Health Insurance for |
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the Aged Act (42 U.S.C. Section 1395 et seq.). |
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(3) "Medicare-related product" means a Medicare |
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advantage plan, a Medicare supplement benefit plan, a Medicare |
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prescription drug plan, or another health plan operated under the |
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Medicare program, such as a Medicare cost plan or a Medicare |
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demonstration plan. |
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(4) "Medicare supplement benefit plan" has the meaning |
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assigned by Section 1652.002. The term includes a Medigap policy. |
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Sec. 1654.002. APPLICABILITY. This chapter applies only to |
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insurers and insurance agents that solicit, negotiate, or sell |
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Medicare-related products. |
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Sec. 1654.003. RULES. The commissioner shall adopt rules |
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as necessary to implement this chapter. |
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[Sections 1654.004-1654.050 reserved for expansion] |
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SUBCHAPTER B. COMPENSATION RESTRICTIONS |
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Sec. 1654.051. COMPENSATION RESTRICTIONS. (a) An insurer |
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may not pay or offer to pay to an insurance agent, and an insurance |
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agent may not accept, a payment for Medicare-related products that |
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operates as an incentive for sales behavior that may violate |
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Chapter 541 or is otherwise false, deceptive, or misleading. |
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(b) The commissioner may order an insurer to change the |
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insurer's Medicare-related agent commission payment schedules if |
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the commissioner determines that the schedules operate as an |
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incentive for sales behavior that may violate Chapter 541 or is |
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otherwise false, deceptive, or misleading. |
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[Sections 1654.052-1654.100 reserved for expansion] |
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SUBCHAPTER C. AGENT REQUIREMENTS |
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Sec. 1654.101. AGENT EDUCATION REQUIREMENTS. (a) An |
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insurance agent that intends to sell, solicit, or negotiate a |
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contract for a Medicare-related product in this state or to |
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represent an insurer in relation to such a product must submit |
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evidence satisfactory to the department of completion of at least |
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eight hours of professional training relating to Medicare-related |
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products before selling, soliciting, or negotiating such a |
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contract. |
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(b) The requirement imposed under Subsection (a) is in |
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addition to any other education or training requirements imposed |
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under this code and rules adopted under this code for issuance of a |
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license. |
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Sec. 1654.102. CONTINUING EDUCATION. (a) In addition to |
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complying with the continuing education requirements established |
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under Subchapter B, Chapter 4004, each agent subject to this |
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chapter must complete eight hours of continuing education annually |
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that specifically relates to Medicare-related products. |
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(b) Subchapter C, Chapter 4004, applies to continuing |
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education programs used to satisfy the requirements of Subsection |
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(a). The commissioner by rule shall adopt criteria for those |
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programs. |
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SECTION 2. Section 4004.053(a), Insurance Code, is amended |
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to read as follows: |
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(a) An individual who holds a general life, accident, and |
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health license, a life agent license, a life and health insurance |
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counselor license, a general property and casualty license, or a |
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personal lines property and casualty license must complete 15 hours |
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of continuing education annually. Except as provided by Chapter |
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1654, if [If] the individual holds more than one license for which |
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continuing education is otherwise required, the individual is not |
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required to complete more than 15 continuing education hours |
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annually. |
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SECTION 3. The commissioner of insurance shall adopt rules |
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as required by Chapter 1654, Insurance Code, as added by this Act, |
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not later than December 1, 2009. |
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SECTION 4. Section 1654.102, Insurance Code, as added by |
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this Act, applies to requirements for an insurance agent license |
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issued or renewed on or after January 1, 2010. |
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SECTION 5. This Act takes effect September 1, 2009. |