Bill Text: MS HB224 | 2010 | Regular Session | Enrolled
Bill Title: Health discount plans; extend repealer on requirements for.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2010-03-24 - Approved by Governor [HB224 Detail]
Download: Mississippi-2010-HB224-Enrolled.html
MISSISSIPPI LEGISLATURE
2010 Regular Session
To: Insurance
By: Representative Warren
House Bill 224
(As Sent to Governor)
AN ACT TO AMEND SECTION 83-64-1, MISSISSIPPI CODE OF 1972, TO EXTEND THE REPEALER ON THE REQUIREMENTS FOR HEALTH DISCOUNT PLANS TO JULY 1, 2013; TO AMEND SECTION 83-17-7, MISSISSIPPI CODE OF 1972, TO DELETE THE REPEALER ON THE PROVISION WHICH PROHIBITS INSURANCE COMPANIES AND AGENTS FROM PAYING COMMISSIONS TO ANY PERSON OR ENTITY THAT IS NOT LICENSED AS AN INSURANCE AGENT IN MISSISSIPPI; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 83-64-1, Mississippi Code of 1972, is amended as follows:
83-64-1. (1) "Health discount plan" means a card, program, device, arrangement, contract or mechanism that purports to offer discounts or access to discounts on health care services or supplies that is not insurance or that does not provide coverage for services or benefits regulated under Section 83-9-1 et seq.
(2) A person may not sell, market, promote, advertise or otherwise distribute a health discount plan unless:
(a) Each advertisement, policy, document, information, statement or other communication regarding the health discount plan and the plan itself contain a statement, in bold and prominent type, that the health discount plan is not insurance;
(b) The discounts offered under the health discount plan are specifically authorized by a contract with each provider of the services or supplies listed in conjunction with the plan;
(c) The health discount plan states the name, address and telephone number of the administrator of the plan;
(d) The person makes readily available to the consumer a complete, accurate and up-to-date list of providers participating in the plan that offers discounted health care services or supplies in the consumer's local area and the discounts offered by the providers;
(e) The person provides the consumer the right to cancel the health discount plan within thirty (30) days after purchase of the plan; and
(f) The person provides the consumer with a full refund of all payments made, except for a nominal processing fee, within thirty (30) days after notification of cancellation of the plan under paragraph (e) of this subsection.
(3) The Commissioner of Insurance may adopt regulations to implement this section and to establish additional requirements intended to prohibit unfair or deceptive practices relating to health discount plans.
(4) Rebates and discounts for health discount plans shall not apply to manufacturers of pharmaceuticals or supplies. This section shall not apply to the Division of Medicaid and shall not apply to pharmaceutical manufacturer discount cards.
(5) This section shall stand repealed on July 1, 2013.
SECTION 2. Section 83-17-7, Mississippi Code of 1972, is amended as follows:
83-17-7. It shall be unlawful for any insurance company or any insurance agent to pay, directly or indirectly, any commission, brokerage or other valuable consideration on account of any policy or policies written on risks in this state to any person, agent, firm or corporation not duly licensed as an insurance agent in this state, except that property and other risks of nonresident persons, and of foreign corporations not qualified in this state, may be insured by brokers or other agents duly licensed in other states.
It shall be lawful, however, for an insurance company or any insurance agent to pay, directly or indirectly, to the surviving spouse or heirs of a deceased licensed insurance agent in this state any commissions or other valuable consideration to which the deceased agent would be entitled, whether such surviving spouse or heir is or is not a licensed agent.
It shall be lawful for an insurance agent, agency or affiliate to pay a referral fee to any unlicensed employee of the agent, agency or affiliate when the employee refers a prospective insured to the licensed agent or agency. The referral fee shall be a one-time nominal fee of a fixed dollar amount for each referral customer. The payment of any referral fee shall not depend on whether the referral results in a sale of any insurance products. Furthermore, the referral fee shall not be based on a percentage of any premiums or commissions collected by the licensed agent. The referral fee shall not be paid, either directly or indirectly, to the prospective insured.
The Commissioner of Insurance may promulgate rules and regulations necessary to carry out the provisions of this section.
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SECTION 3. This act shall take effect and be in force from and after July 1, 2010.
