Michigan Laws 550.1003 – Persons authorized to sell health benefits; packaging health benefits with insurance; notify agent of record; annual appointment fee; “agent of record” defined
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Terms Used In Michigan Laws 550.1003
- Affiliate: means that term as defined in section 1301 of the insurance code of 1956, Act No. See Michigan Laws 550.1002
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Health benefit: means any benefit or service lawfully provided by a health benefit corporation. See Michigan Laws 550.1002
- Health benefit agent: means a person who meets all of the following criteria:
(i) Is a licensed accident and health insurance agent under chapter 12 of the insurance code of 1956, Act No. See Michigan Laws 550.1002Health benefit corporation: means :
(i) A health care corporation organized under Act No. See Michigan Laws 550.1002in writing: shall be construed to include printing, engraving, and lithographing; except that if the written signature of a person is required by law, the signature shall be the proper handwriting of the person or, if the person is unable to write, the person's proper mark, which may be, unless otherwise expressly prohibited by law, a clear and classifiable fingerprint of the person made with ink or another substance. See Michigan Laws 8.3q Package: means to sell health benefits simultaneously or in conjunction with the sale of insurance. See Michigan Laws 550.1002 person: may extend and be applied to bodies politic and corporate, as well as to individuals. See Michigan Laws 8.3l Subscriber: means a person who enters into a contract, or on whose behalf a contract is entered into, with a health benefit corporation for the provision of health benefits. See Michigan Laws 550.1002
(1) Health benefits may only be sold on behalf of a health benefit corporation by a health benefit agent.
(2) A health benefit agent may package health benefits with insurance the agent is authorized to sell. If an application for health benefits that is packaged with insurance is submitted by an agent to a health benefit corporation or to an affiliate of a health benefit corporation and the health benefit corporation or the affiliate of a health benefit corporation knows the agent of record for the group’s current health benefits, the health benefit corporation or the affiliate of a health benefit corporation shall notify the agent of record of the application unless any of the following apply:
(a) The submitting agent is the agent of record.
(b) Both of the following apply:
(i) The group authorizes changing the agent of record to the submitting agent.
(ii) The agent of record is not employed by a health benefit corporation or an affiliate of a health benefit corporation.
(c) The group requests in writing that the agent of record not be notified.
(3) If the health benefit corporation or the affiliate of a health benefit corporation notifies the agent of record under subsection (2), the health benefit corporation or the affiliate of a health benefit corporation shall not process the application for 14 days after the notification is given unless either of the following applies:
(a) A shorter period of time is agreed to by the agent of record.
(b) The health benefit corporation or the affiliate of a health benefit corporation receives a written request from the group to proceed with consideration of the application.
(4) A health benefit corporation shall pay to the director of the department of insurance and financial services an annual appointment fee of $5.00 for each health benefit agent who is authorized to sell health benefits on behalf of the health benefit corporation.
(5) As used in this section, “agent of record” means a person that is a health benefit agent authorized to represent a subscriber to transact insurance, including the purchasing, servicing, and maintenance of health benefits and that is shown on the records of the health benefit corporation or the affiliate of a health benefit corporation as the agent to whom commission is to be paid.