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COMMISSIONER'S BULLETIN # B-0034-97
August 25, 1997
TO: ALL LIFE, HEALTH AND ACCIDENT INSURERS, HEALTH MAINTENANCE ORGANIZATIONS, GROUP I AND HMO AGENTS
RE: HOUSE BILL 219
The Texas Legislature, through HB 219, amended Insurance Code, Article 21.07-1 (Act) to change the definition of a Legal Reserve Life Insurance Agent and to require that agents representing health maintenance organizations (HMO), including those which offer single service plans, in the solicitation, negotiation, procurement, or effectuation of HMO memberships be licensed under the Act. This bill combines the separate licenses for a Group I and an HMO license into one Group I license. No HMO license will be issued or renewed after December 31, 1997.
Under the new Act, existing Group I agents (01-01, 01-03) will be able to represent HMOs by filing with the Commissioner an appointment from an HMO in which the HMO certifies that the agent is qualified to represent the organization.
Agents who already hold a Group I license and an HMO license will have their licenses combined to reflect the change in designation. The HMO license type will be eliminated.
Agents who possess only an HMO license will be converted ( by the first renewal after 12/31/97) to the 01-03 Accident & Health & HMO designation without having to take an examination; or they can elect to take the Group I Life exam to qualify as an 01-01 Life, Accident, Health and HMO agent.
New Group I (01-01, 01-03) licenses issued after September 1, 1997 will allow Group I agents to offer all the products authorized by the Act. The examination for the Group I licenses will be amended to include HMO questions, beginning September 1, 1997.
This Act is effective September 1, 1997.
For additional information, contact the Licensing Group of the Department's Regulation and Safety Division at 512-322-3503 or fax number 512-475-1819.
WILLIAM B. ELKJER
DEPUTY COMMISSIONER LICENSING GROUP
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