HOUSE OF REPRESENTATIVES: INSURANCE COMMITTEE UPDATE
House Bill 6444 –
Producer Appointments/Admitted Business through 3rd parties
Legislative Committee member Dave Walker joined bill sponsor Rep. Jason Wentworth to testify in support of HB 6444.
MAIA has led the charge to update the producer appointment language in statute to bring it into the 21st century. The code is outdated and does not reflect current marketplace conditions and practice. Currently, producers who place admitted insurance coverage through a third party are in violation of the insurance code. This issue has come up during DIFS reviews/audits of MAIA members. Your association convened a workgroup with DIFS to address the issue.
The bill was passed unanimously by the Insurance Committee and is expected to be voted on by the full House next week.
Insurance Committee Chair Rep. Theis sponsored HB 6491 to create an insurance data security law. MAIA worked with Rep. Theis and other industry stakeholders as the bill was crafted.
With assistance from IIABA, MAIA proposed amendments were included in the committee version. As introduced, the bill is a definite improvement of the model law proposed by the National Association of Insurance Commissioners. Amongst the more important changes is an expansion of the exemption from the model act for small licensees, which would cover a majority of MAIA members.
There are ongoing conversations amongst the stakeholders and DIFS on the legislation, so keep an eye out for a future NewsNow with updates.
MAIA supports the introduced legislation. The bill was passed by the Insurance Committee and it is possible a full vote on the bill could happen next week.
Rep. Mike Webber sponsored an update of the Health Benefit Agent Act (HBAA). Blue Cross Blue Shield of Michigan (BCBSM) is behind the bill, which allows an employee of a health benefit corporation or an affiliate to transact insurance and requires employees of a health benefit corporation who sell insurance to be licensed.
Currently, the HBAA allows employees of health benefit corporations and their affiliates to sell their company’s insurance products. However, it prohibits them from selling other insurance products – even if they are a licensed agent – such as disability insurance and other health-related coverage.
MAIA opposes the legislation, which would open the door wider for consumers to bypass an independent agent and work directly with BCBSM.
The bill was passed by the Insurance Committee based upon testimony given to the Committee that the understanding that the stakeholders (BCBSM, Health Underwriters - opposed) would work together to negotiate agreeable revisions. A vote by the full House is possible next week.
