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SDPB Radio Coverage of the South Dakota Legislature. See all coverage and find links to audio and video streams live from the Capitol at www.sdpb.org/statehouse

Bill Protects Insurance Agents' Commissions

By Victoria Wicks

The Senate Commerce and Energy committee gave the nod Tuesday to a bill that sets guidelines for local insurance agents and the carriers who will offer health insurance through Affordable Care Act exchanges.

Jason Glogt lobbies for Independent Insurance Agents of South Dakota. He says Senate Bill 139 applies the current agent and carrier relationship to the new health insurance processes coming into effect next year.

He says the bill provides that carriers can’t offer lower commissions to agents for policies within the exchange.

“It’s going to be between the carrier and the health insurance agents to determine what the right compensation is, for example, just as they always have done. Agents have to prove their worth to the carrier and they have to enter into contractual agreements to determine what the compensation rate is,” Glogt says. “The market will drive the commission. This doesn’t change that. That free market, free enterprise system will remain in place.”

Glogt and Jerry Diamond, also with Independent Insurance Agents, say that people applying for insurance through the Affordable Care Act exchanges can go it on their own or find an insurance agent. Those who want to bypass the agent can find information online after the federal exchanges are set up.

South Dakota has opted not to set up its own exchange and instead is participating in the federal program.