§ 22:1568 — Producer compensation for sales of health and welfare plans

§1568. Producer compensation for sales of health and welfare plans
A. A health insurance issuer shall establish one or more schedules of commission
for the sale of each health insurance product by an insurance producer. Such schedules of
commission shall be uniformly applied to all producers within the same schedule and shall
be payable to all insurance producers licensed and appointed to sell the health insurance
products of the issuer. The provisions of this Subsection shall not apply to any employee
welfare benefit plan exclusively regulated by the United States Department of Labor pursuant
to Section 514 of the Employee Retirement Income Security Act of 1974, 29 U.S.C. 1144,
or Section 4 of the same act, 29 U.S.C. 1003.
B. In addition to a commission for individual and group health insurance products,
a health insurance producer may negotiate a charge, fee, or any other form of compensation
directly with the insured, plan sponsor, or employer group as authorized by R.S. 22:855(B).
The producer shall also provide notification in a separate written document of sufficient size
and legibility that advises the insured that he may purchase the same health insurance policy
online or by contacting a health care navigator. The notice shall also inform the insured that
if he elects to purchase a health insurance policy with his current agent he may be charged
a fee and expenses that he would not incur if he purchases a policy online or through a health
care navigator. The form shall be signed by the named insured.
C. Each health insurance contract entered into prior to June 14, 2013, shall comply
with the provisions of this Section at the annual anniversary or renewal date following June
14, 2013. This Section shall apply to political subdivisions as defined by R.S. 42:1102,
except for any political subdivision that had a contract on June 14, 2013, with an insurance
producer or health insurance plan on a net of commission or stipulated fee basis for the
placement of group health insurance coverage.

Legislative History

Acts 2013, No. 283, §1, eff. June 14, 2013; Acts 2017, No. 63, §1.