H.B. 342
         INSURANCE CODE AMENDMENTS

house floor Amendments

Amendment 4 February 12, 2008 10:09 am



Representative James A. Dunnigan proposes the following amendments:

1.    Page 12, Lines 351 through 354 :    

             351          [(c)] (b) "Eligible employee" does not include
{   [   } , unless eligible under Subsection

             352      (50)(b): (i)
{   ]   } an individual who works on a temporary or substitute basis for a small employer      {   [   } ;      {   ]   }      {   .   }

             353          
{   [   } (ii) an employer's spouse; or      {   ]   }

             354          
{   [   } (iii) a dependent of an employer.      {   ]   }


2.    Page 47, Line 1449 through Page 48, Line 1454 :    

             1449          
{   (2) A captive insurance company may not write a reimbursement policy for a service

             1450      contract provider that is subject to this chapter.  
}

             1451          
{   [   } (2)      {   ]   }      {   (3)   } (a) A service contract may not be issued, sold, or offered for sale unless [a true

             1452      and correct copy of the service contract and the provider's reimbursement insurance policy have
             1453      been filed with the commissioner. A copy of a contract and policy must be filed] the service
             1454      contract provider completes the registration process described in this Subsection
{   (3)   }        (2)       .


3.    Page 48, Lines 1462 through 1463 :    

             1462          (c) A service provider shall submit the information described in Subsection
{   (3)   }        (2)       (b) no

             1463      less than 30 days [prior to the issuance, sale offering for sale, or use of the] before the day on

4.    Page 48, Lines 1473 through 1481 :    

            
1473          
{   [   } (3)      {   ]   }      {   (4)   } (a) Premiums collected on a service [contracts] contract are not subject to

             1474      premium taxes.
             1475          (b) Premiums collected by [issuers] an issuer of a reimbursement insurance [policies]
             1476      policy are subject to premium taxes.
             1477          
{   [   } (4)      {   ]   }      {   (5)   } A person marketing, selling, or offering to sell a service [contracts] contract

             1478      for a service contract [providers] provider that complies with this chapter is exempt from the
             1479      licensing requirements of this title.


             1480          [(5) Service]
{   (6)   }        (5)       A service contract [providers] provider complying with this chapter

             1481      [are] is not required to comply with:

5.    Page 52, Lines 1582 through 1584
    House Committee Amendments
    2-4-2008 :
    

             1582          (4) H. [A] Except for a bank, savings and loan association, industrial bank, or credit
             1582a      union, a .H service contract provider
  , unless licensed by the department,       may not sell, or be the obligated party for:

             1583          (a) a guaranteed asset protection waiver; H. [or] .H
             1584          (b) a debt cancellation agreement H. [.] ; or

6.    Page 62, Lines 1891 through 1913 :    

             1891          (2) (a)
{   For   }        Except as provided in Subsection (4), for       the period beginning on the date of death and ending the day before the day

             1892      described in Subsection (3)(b), interest under Subsection (1) shall accrue at a rate no less than:
             1893          (i) the rate applicable to policy funds left on deposit; or
             1894          (ii) if there is no rate described in Subsection (2)(a)(i), at the Two Year Treasury
             1895      Constant Maturity Rate as published by the Federal Reserve.
             1896          (b) The rate described in Subsection (2)(a) is the rate in effect on the day on which the
             1897      death occurs.
             1898          (c) Interest is payable until the day on which the claim is paid.
             1899          (3) (a) Unless the claim is paid
  and except as provided in Subsection (4)       , beginning on the day described in Subsection (3)(b)

             1900      and ending the day on which the claim is paid, interest shall accrue at the rate in Subsection (2)
             1901      plus additional interest at the rate of 10% annually.
             1902          (b) Interest accrues under Subsection (3)(a) beginning with the day that is 31 days from
             1903      the latest of:
             1904          (i) the day on which the insurer receives proof of death;
             1905          (ii) the day on which the insurer receives sufficient information to determine:
             1906          (A) liability;
             1907          (B) the extent of the liability; and
             1908          (C) the appropriate payee legally entitled to the proceeds; and
             1909          (iii) the day on which:
             1910          (A) legal impediments to payment of proceeds that depend on the action of parties
             1911      other than the insurer are resolved; and
             1912          (B) the insurer receives sufficient evidence of the resolution of the legal impediments
             1913      described in Subsection (3)(b)(iii)(A).
  (4) A court of competent jurisdiction may require payment of interest from the date of death to the day

on which a claim is paid at a rate equal to the sum of:


(a) the rate specified in Subsection (2); and
(b) the legal rate identified in Subsection 15-1-1(2).  


7.    Page 65, Line 2004 through Page 66, Line 2021 :    

             2004          (e) in relation to cost-sharing features for prescription drugs:
             2005          (i) (A) a deductible
{   of   } not      {   less than $500   }        to exceed $1,000       per person; and

             2006          (B) for family coverage, not to exceed three times the per person deductible provided
             2007      in Subsection (4)(e)(i)(A); and
             2008          (ii) (A) a copayment of not less than:
             2009          (I) the lesser of the cost of the prescription drug or $15 for the lowest level of cost for
             2010      prescription drugs;
             2011          (II) the lesser of the cost of the prescription drug or
{   $30   }        $25       for the second level of cost for

             2012      prescription drugs; and
             2013          (III) the lesser of the cost of the prescription drug or
{   $60   }        $35       for the highest level of cost

             2014      for prescription drugs; or
             2015          (B) coinsurance of not less than:
             2016          (I) the lesser of the cost of the prescription drug or 25% for the lowest level of cost for
             2017      prescription drugs;
             2018          (II) the lesser of the cost of the prescription drug or 40% for the second level of cost for
             2019      prescription drugs; and
             2020          (III) the lesser of the cost of the prescription drug or 60% for the highest level of cost
             2021      for prescription drugs.


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