reglab/statecodes huggingface dataset:
2023 Minnesota Statutes › Chapters 46 - 59 — Banking › Chapter 58B — Student Loan Borrower Bill Of Rights › Section 58B.10 — Data Practices.

58B.10 DATA PRACTICES.
Subdivision 1.
Classification of data.
Data collected, created, received, maintained, or disseminated by the Department of Commerce under this chapter are governed by section 46.07.
Subd. 2.
Data sharing.
To the extent data collected, created, received, maintained, or disseminated under this chapter are not public data as defined by section 13.02, subdivision 8a, the data may, when necessary to accomplish the purpose of this chapter, be shared between:
(1) the United States Department of Education;
(2) the Office of Higher Education;
(3) the Department of Commerce;
(4) the Office of the Attorney General; and
(5) any other local, state, and federal law enforcement agencies.
History:
1Sp2021 c 4 art 6 s 11
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 59A — Insurance Premium Finance Companies › Section 59A.02 — Definitions.

59A.02 DEFINITIONS.
Subdivision 1.
Scope.
For the purposes of sections 59A.01 to 59A.15, the words, terms and phrases defined in this section have the meanings ascribed to them except where the context clearly indicates a different meaning.
Subd. 2.
Insurance premium finance agreement.
"Insurance premium finance agreement" means an agreement by which an insured or prospective insured promises to pay to a premium finance company or to its assignee the amount advanced or to be advanced under the agreement to an insurer or to an insurance agent or broker in payment of premiums on an insurance policy together with a service charge. Any agreement to finance premiums is a premium finance agreement if an insurance policy, other than a life or disability insurance policy, is made the security or collateral for the repayment of the debt incurred under the agreement. Provided, however, an agreement to finance premiums for insurance which is included in a retail installment transaction or purchased in connection with a real estate transaction, mortgage, deed of trust or other security agreement is not a premium finance agreement. Provided further, that an agreement by an insurance company to finance policies written by itself or by companies other than itself or its parent company, its subsidiaries or companies with which it shares a common parent company is not a premium finance agreement.
Subd. 3.
Licensee.
"Licensee" means a person licensed by the commissioner to engage in the business of insurance premium financing. The term does not include a person in the business of insurance premium financing exclusively financing premiums for business, agricultural, or corporate purposes.
Subd. 4.
Commissioner.
"Commissioner" means the commissioner of commerce.
History:
1974 c 353 s 2; 1983 c 289 s 114 subd 1; 1984 c 655 art 1 s 92; 1993 c 257 s 43
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 59A — Insurance Premium Finance Companies › Section 59A.03 — Licenses; Penalty.

59A.03 LICENSES; PENALTY.
Subdivision 1.
Requirement.
No person other than a savings association, bank, savings bank, trust company, regulated lender, industrial loan and thrift company, credit union or resident insurance agent who, within 15 days after entering into an insurance premium finance agreement, transfers such agreement to a licensee or to any of the organizations exempt under this subdivision may engage in the business of entering into, acquiring or holding insurance premium finance agreements unless licensed to do so by the commissioner. A violation of this subdivision is a misdemeanor.
Subd. 2.
Required fees.
The applicant at the time of making application, shall pay to the commissioner the sum of $250 as a fee for investigating the application, and the additional sum of $200 as an annual licensee fee for a period terminating on May 31 of each year. In addition to the annual license fee, every licensee shall pay to the commissioner the actual costs of each examination as may be required to be conducted under the terms of sections 59A.01 to 59A.15.
Subd. 3.
Commissioner's authority.
The person to whom the license or the renewal thereof may be issued shall file sworn answers to such interrogatories as the commissioner may require. The commissioner shall have authority, at any time, to require the applicant to fully disclose the identity of all stockholders, partners, officers and employees and may refuse to issue or issue a license in the name of any firm, partnership, or corporation if not satisfied that any officer, employee, stockholder or partner thereof, who may materially influence the applicant's conduct, meets the standards of sections 59A.01 to 59A.15.
Subd. 4.
Records and fees; maintenance and processing.
Section 58A.04, subdivisions 2 and 3, apply to this section.
History:
1974 c 353 s 3; 1976 c 2 s 34; 1976 c 111 s 1; 1986 c 444; 1994 c 382 s 13; 1995 c 202 art 1 s 25; 1999 c 151 s 37; 2020 c 80 art 1 s 13
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 59A — Insurance Premium Finance Companies › Section 59A.04 — Action By Commissioner On Application.

59A.04 ACTION BY COMMISSIONER ON APPLICATION.
Subdivision 1.
Investigation and hearing.
Upon the filing of an initial application and the payment of the license fee, the commissioner shall make an investigation of each applicant. If a license has not been issued within 30 days after receipt of the application the commissioner shall, at the request of the applicant, give the applicant a full hearing.
Subd. 2.
License issued.
The commissioner shall issue or renew a license when satisfied that the person to be licensed:
(a) is competent and trustworthy and intends to act in good faith in the financing of insurance premiums;
(b) has a good business reputation and has had experience, training or education so as to be qualified in financing insurance premiums; and
(c) if a corporation, is a corporation incorporated under the laws of this state or a foreign corporation authorized to transact business in this state.
History:
1974 c 353 s 4; 1986 c 444
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 59A — Insurance Premium Finance Companies › Section 59A.05 — Revocation And Suspension Of Licenses.

59A.05 REVOCATION AND SUSPENSION OF LICENSES.
The commissioner may after a hearing revoke, suspend, or refuse to renew the license of any licensee if it appears to the commissioner that:
(a) the license was obtained by fraud;
(b) there was any misrepresentation in the application for the license;
(c) the holder of the license is untrustworthy or incompetent to finance insurance premiums, or is involved in any fraudulent, dishonest or deceptive practice; or
(d) the licensee has violated any of the provisions of sections 59A.01 to 59A.15 or rules adopted pursuant to sections 59A.01 to 59A.15.
History:
1974 c 353 s 5; 1986 c 444
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 59A — Insurance Premium Finance Companies › Section 59A.06 — Books And Records.

59A.06 BOOKS AND RECORDS.
Subdivision 1.
Licensee duties.
Every licensee shall maintain records satisfactory to the commissioner of its premium finance transactions. The records shall be open to examination and investigation by the commissioner at any time during ordinary business hours. The commissioner may, at any time, require any licensee to bring these records to the commissioner's office for examination.
Subd. 2.
Retention requirements.
Every licensee shall preserve its records of premium finance transactions for at least three years after making the final entry in respect to any premium finance agreement. The records may be preserved in photographic form or in a form acceptable to the commissioner under section 46.04, subdivision 3.
Subd. 3.
Commissioner's examination authority; recovery of costs.
The commissioner may at any time make an examination of the affairs, business, office, and records of each licensee. Each licensee shall pay to the commissioner the actual costs of examination as well as amounts required under section 46.131, and the commissioner may maintain an action for the recovery of such costs in any court of competent jurisdiction.
Subd. 4.
Annual report.
Each licensee shall annually before March 15 file a report under oath with the commissioner, in the form prescribed, giving information as required concerning the business and operations of each licensed place of business during the preceding year. The commissioner shall make and publish annually an analysis and recapitulation of the reports.
History:
1974 c 353 s 6; 1976 c 26 s 1; 1986 c 444; 1987 c 349 art 2 s 2; 1995 c 202 art 2 s 24
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 59A — Insurance Premium Finance Companies › Section 59A.07 — Power To Make Rules.

59A.07 POWER TO MAKE RULES.
The commissioner shall promulgate any rules which may be necessary to the administration of sections 59A.01 to 59A.15.
History:
1974 c 353 s 7; 1985 c 248 s 70
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 59A — Insurance Premium Finance Companies › Section 59A.09 — Maximum Finance Charge.

59A.09 MAXIMUM FINANCE CHARGE.
Subdivision 1.
Grant of authority.
No person engaged in the business of financing insurance premiums may charge, contract for, receive or collect a finance charge plus flat service fee with respect to an insurance premium finance agreement other than as permitted by this section.
Subd. 2.
Balance determined.
The finance charge shall be computed on the balance of the premiums due, after subtracting the down payment made by the insured in accordance with the premium finance agreement, from the effective date of the insurance coverage, for which the premiums are being advanced, to and including the date when final installment of the premium finance agreement is payable.
Subd. 3.
How computed.
The finance charge must not exceed five percent in excess of the discount rate on 90-day commercial paper in effect at the Federal Reserve Bank located in the Ninth Federal Reserve District when an insurance premium finance agreement is made or when an additional or subsequent premium is added under an open end agreement. For expenses incurred in servicing the loan including any filing fees, application fee for the examination or investigation of the character of the borrower, comaker or security, and drawing any necessary papers in making the loan, an insurance premium finance company may contract for a flat rate service fee not exceeding the greater of one percent of the amount financed or $20 per premium finance agreement. The flat service fee need not be refunded upon prepayment in full before maturity.
Subd. 4.
When computed.
The finance charge shall be computed in advance on the principal balance of a premium finance agreement according to the actuarial method on terms payable in substantially equal successive monthly installments.
Subd. 5.
Prepayment.
Notwithstanding the provisions of any premium finance agreement, any insured may prepay the obligation in full at any time. In such event the insured shall receive a refund credit. The amount of such refund credit shall represent at least as great a proportion of the finance charge as the sum of the periodic balances after the month in which prepayment is made bears to the sum of all periodic balances under the schedule of installments in the agreement. Where the amount of the refund is less than $1, no refund need be made. If, in addition to the finance charge, an additional flat service fee was imposed, the flat service fee need not be refunded nor taken into consideration in computing the refund credit.
Subd. 6.
Limitation.
Subdivision 3 applies only to a premium finance agreement in which the related insurance contract is for personal, family, or household use. The rate charged under an agreement made to finance an insurance policy for business, agricultural, or corporate purposes shall be as agreed to by the parties to the agreement.
History:
1974 c 353 s 9; 1979 c 261 s 1; 1983 c 200 s 1-3; 1986 c 444
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 59A — Insurance Premium Finance Companies › Section 59A.10 — Default Charges.

59A.10 DEFAULT CHARGES.
Subdivision 1.
Delinquencies.
A premium finance agreement may provide for payment by the insured of a delinquency charge. The delinquency charge may not exceed five percent of the delinquent installment. The delinquency charge may be imposed upon any installment which is in default for a period of ten days or more.
Subd. 2.
Cancellations and collections.
If the default results in the cancellation or subsequent reinstatement of any insurance contract listed in the agreement, the agreement may provide for payment by the insured of a cancellation charge of $10. A premium finance agreement may also provide for the payment of statutory attorneys fees and statutory court costs if the agreement is referred for collection to an attorney not a salaried employee of the insurance premium finance company.
History:
1974 c 353 s 10; 1991 c 283 s 1
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 59A — Insurance Premium Finance Companies › Section 59A.12 — Application Of Unearned Premiums.

59A.12 APPLICATION OF UNEARNED PREMIUMS.
Subdivision 1.
Pro rata return after cancellation.
Whenever a financed insurance contract is canceled, within 30 days of the effective date of cancellation, if the premium finance company has notified the insurer that the premiums are financed, the insurer shall return whatever gross unearned premiums, computed pro rata, are due under the insurance contract to the premium finance company for the account of the insured or insureds. This action by the insurer satisfies the insurer's obligations under the insurance contract which relate to the return of the unearned premiums.
Subd. 2.
Premium audit; determination of final premium amount.
In the event that a premium is subject to an audit to determine the final premium amount, the gross unearned premium will be calculated upon the deposit premium and the insurer shall return whatever gross unearned premiums are due based upon the deposit rather than the actual unearned premium to the finance company for the account of the insured or insureds.
Subd. 3.
Assigned risk policies.
Assigned risk policies shall be handled in conformance with section 59A.11 and subdivisions 1 and 2.
Subd. 4.
Refund to insured.
If the crediting of returned premiums to the account of the insured results in a surplus over the amount due from the insured, the premium finance company must refund the excess to the insured within 30 days after receipt of the returned premium; but no refund is required if it amounts to less than $1.
Subd. 5.
Return of unearned premium; notice to policyholder.
Whenever an insurer, after having been advised that an insurance policy has been financed by a premium finance agreement, returns an unearned premium on such a policy, the insurer shall deliver or mail to the policyholder a notice that includes the following information: the amount of premium paid, the term of the policy, the date coverage began and ceased, the amount of the unearned premium, the name of the party receiving the funds, and a statement of the obligation of the premium finance company to return within 30 days of receipt of the unearned premium any amount of the unearned premium in excess of the amount owed by the policyholder to the premium finance company.
History:
1974 c 353 s 12; 1983 c 200 s 4,5; 1992 c 564 art 1 s 12; 1994 c 485 s 3
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 59A — Insurance Premium Finance Companies › Section 59A.13 — Exemption From Filing.

59A.13 EXEMPTION FROM FILING.
No filing of the premium finance agreement or recording of a premium finance transaction shall be necessary to perfect the validity of the agreement as a secured transaction as against creditors, subsequent purchasers, pledgees, encumbrances, successors or assigns.
History:
1974 c 353 s 13
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 59A — Insurance Premium Finance Companies › Section 59A.15 — Applicability Of Chapter 14.

59A.15 APPLICABILITY OF CHAPTER 14.
The provisions of chapter 14 shall apply to sections 59A.01 to 59A.15.
History:
1974 c 353 s 15; 1982 c 424 s 130
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 59B — Regulation Of Service Contracts › Section 59B.01 — Scope And Purpose.

59B.01 SCOPE AND PURPOSE.
(a) The purpose of this chapter is to create a legal framework within which service contracts may be sold in this state.
(b) The following are exempt from this chapter:
(1) warranties;
(2) maintenance agreements;
(3) warranties, service contracts, or maintenance agreements offered by public utilities, as defined in section 216B.02, subdivision 4, or an entity or operating unit owned by or under common control with a public utility;
(4) service contracts sold or offered for sale to persons other than consumers;
(5) service contracts on tangible property where the tangible property for which the service contract is sold has a purchase price of $250 or less, exclusive of sales tax;
(6) service contracts for home security equipment installed by a licensed technology systems contractor; and
(7) motor club membership contracts that typically provide roadside assistance services to motorists stranded for reasons that include, but are not limited to, mechanical breakdown or adverse road conditions.
(c) The types of agreements referred to in paragraph (b) are not subject to chapters 60A to 79A, except as otherwise specifically provided by law.
(d) Service contracts issued by motor vehicle manufacturers covering private passenger automobiles are only subject to sections 59B.03, subdivision 5, 59B.05, and 59B.07.
(e) All warranty service contracts are deemed to be made in Minnesota for the purpose of arbitration.
History:
1Sp2005 c 1 art 5 s 1; 2008 c 344 s 2; 2009 c 178 art 1 s 4
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 59B — Regulation Of Service Contracts › Section 59B.04 — Required Disclosures; Reimbursement Insurance Policy.

59B.04 REQUIRED DISCLOSURES; REIMBURSEMENT INSURANCE POLICY.
Subdivision 1.
Right to payment or reimbursement.
Reimbursement insurance policies insuring service contracts issued, sold, or offered for sale in this state shall state that the insurer that issued the reimbursement insurance policy shall either reimburse or pay on behalf of the provider any covered sums the provider is legally obligated to pay or, in the event of the provider's nonperformance, shall provide the service which the provider is legally obligated to perform according to the provider's contractual obligations under the service contracts issued or sold by the provider.
Subd. 2.
Right to apply to company.
In the event covered service is not provided by the service contract provider within 60 days of proof of loss by the service contract holder, the contract holder is entitled to apply directly to the reimbursement insurance company.
History:
1Sp2005 c 1 art 5 s 4
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 59B — Regulation Of Service Contracts › Section 59B.06 — Additional Required Disclosure; Service Contracts.

59B.06 ADDITIONAL REQUIRED DISCLOSURE; SERVICE CONTRACTS.
Subdivision 1.
Insurance disclosure.
Service contracts insured under a reimbursement insurance policy pursuant to section 59B.03, subdivision 4, clause (1), must contain a statement in substantially the following form: "Obligations of the provider under this service contract are insured under a service contract reimbursement insurance policy." The service contract must also state the name and address of the insurer.
Subd. 2.
Disclosure of no insurance.
Service contracts not insured under a reimbursement insurance policy pursuant to section 59B.03, subdivision 4, clause (1), must contain a statement in substantially the following form: "Obligations of the provider under this service contract are backed by the full faith and credit of the provider."
History:
1Sp2005 c 1 art 5 s 6
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 59B — Regulation Of Service Contracts › Section 59B.07 — Prohibited Acts.

59B.07 PROHIBITED ACTS.
Subdivision 1.
Deceptive names.
A provider shall not use in its name the words insurance, casualty, surety, mutual, or any other words descriptive of the insurance, casualty, or surety business; or a name deceptively similar to the name or description of any insurance or surety corporation, or to the name of any other provider. The word "guaranty" or similar word may be used by a provider. This section does not apply to a company that was using any of the prohibited language in its name before January 1, 2006. However, a company using the prohibited language in its name shall include in its service contracts a statement in substantially the following form: "This agreement is not an insurance contract."
Subd. 2.
False or misleading statements.
A provider or its representative shall not in its service contracts, literature, or otherwise make, permit, or cause to be made any false or misleading statement or omit any material statement that would be considered misleading if omitted.
Subd. 3.
Required purchase.
A person, such as a bank, savings association, lending institution, manufacturer, or seller of any product shall not require the purchase of a service contract as a condition of a loan or a condition for the sale of any property.
History:
1Sp2005 c 1 art 5 s 7
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 59B — Regulation Of Service Contracts › Section 59B.08 — Record-keeping Requirements.

59B.08 RECORD-KEEPING REQUIREMENTS.
Subdivision 1.
Generally.
The provider shall keep accurate accounts, books, and records concerning transactions regulated under this chapter.
The provider's accounts, books, and records include the following:
(1) copies of each type of service contracts sold;
(2) the name and address of each service contract holder to the extent that the name and address have been furnished by the service contract holder;
(3) a list of the locations where service contracts are marketed, sold, or offered for sale; and
(4) written claims files which shall contain information regarding the services provided or claims payments for contracts that provide for payments or reimbursement, including at least the dates and description of claims related to the service contracts.
Subd. 2.
Retention.
(a) Except as provided in paragraph (b), the provider shall retain all records required to be maintained by this section for at least three years after the specified period of coverage has expired.
(b) A provider discontinuing business in this state shall maintain its records until it furnishes the commissioner satisfactory proof that it has discharged all obligations to contract holders in this state.
Subd. 3.
Medium.
The records required by this chapter may be, but are not required to be, maintained on a computer disk or other record-keeping technology. If the records are maintained in other than hard copy, the records must be capable of duplication to legible hard copy at the request of the commissioner.
History:
1Sp2005 c 1 art 5 s 8
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 59B — Regulation Of Service Contracts › Section 59B.09 — Termination Of Reimbursement Insurance Policy.

59B.09 TERMINATION OF REIMBURSEMENT INSURANCE POLICY.
An insurer that issued a reimbursement insurance policy may not terminate the policy unless the insurer mails or delivers written notice of the termination to the commissioner at least 30 days before the effective date of termination. The termination of a reimbursement insurance policy does not reduce the issuer's responsibility for service contracts issued by providers before the date of the termination.
History:
1Sp2005 c 1 art 5 s 9
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 59B — Regulation Of Service Contracts › Section 59B.10 — Obligation Of Reimbursement Insurance Policy Insurers.

59B.10 OBLIGATION OF REIMBURSEMENT INSURANCE POLICY INSURERS.
Insurers issuing reimbursement insurance to providers are deemed to have received the premiums for the insurance upon the payment of provider fees by consumers for service contracts issued by the insured providers.
Nothing in this chapter prevents or limits the right of an insurer that issued a reimbursement insurance policy to seek indemnification or subrogation against a provider if the issuer pays or is obligated to pay the service contract holder sums that the provider was obligated to pay pursuant to the provisions of the service contract.
History:
1Sp2005 c 1 art 5 s 10
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 59B — Regulation Of Service Contracts › Section 59B.11 — Severability Provision.

59B.11 SEVERABILITY PROVISION.
If any provision of this chapter or the application of the provision to any person or circumstances are held invalid, the remainder of this chapter and the application of the provision to person or circumstances other than those as to which it is held invalid, must not be affected.
History:
1Sp2005 c 1 art 5 s 11
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 59C — Vehicle Protection Products › Section 59C.03 — Scope And Exemptions.

59C.03 SCOPE AND EXEMPTIONS.
(a) No vehicle protection product may be sold or offered for sale in this state unless the seller, warrantor, and administrator, if any, comply with the provisions of this chapter.
(b) Vehicle protection product warrantors and related vehicle protection product sellers and warranty administrators complying with this chapter are not required to comply with and are not subject to any other provision of chapters 59B to 72A, except that section 72A.20, subdivision 38, shall apply to vehicle protection product warranties in the same manner it applies to service contracts.
(c) Service contract providers who do not sell vehicle protection products are not subject to the requirements of this chapter and sales of vehicle protection products are exempt from the requirements of chapter 59B.
(d) Warranties, indemnity agreements, and guarantees that are not provided as a part of a vehicle protection product are not subject to the provisions of this chapter.
History:
2007 c 57 art 3 s 23
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 59C — Vehicle Protection Products › Section 59C.04 — Registration And Filing Requirements Of Warrantors.

59C.04 REGISTRATION AND FILING REQUIREMENTS OF WARRANTORS.
Subdivision 1.
General requirement.
A person may not operate as a warrantor or represent to the public that the person is a warrantor unless the person is registered with the department on a form prescribed by the commissioner.
Subd. 2.
Registration records.
A registrant shall file a warrantor registration record annually and shall update it within 30 days of any change. A registration record must contain the following information:
(1) the warrantor's name, any fictitious names under which the warrantor does business in the state, principal office address, and telephone number;
(2) the name and address of the warrantor's agent for service of process in the state if other than the warrantor;
(3) the names of the warrantor's executive officer or officers directly responsible for the warrantor's vehicle protection product business;
(4) the name, address, and telephone number of any administrators designated by the warrantor to be responsible for the administration of vehicle protection product warranties in this state;
(5) a copy of the warranty reimbursement insurance policy or policies or other financial information required by section 59C.05;
(6) a copy of each warranty the warrantor proposes to use in this state; and
(7) a statement indicating under which provision of section 59C.05 the warrantor qualifies to do business in this state as a warrantor.
Subd. 3.
Registration fee.
The commissioner may charge each registrant a reasonable fee to offset the cost of processing the registration and maintaining the records in an amount of $250 annually. The information in subdivision 2, clauses (1) and (2), must be made available to the public.
Subd. 4.
Renewal.
The registrant will have 30 days to complete the renewal of the registration before the commissioner suspends the registration.
Subd. 5.
Exception.
An administrator or person who sells or solicits a sale of a vehicle protection product but who is not a warrantor shall not be required to register as a warrantor or be licensed under the insurance laws of this state to sell vehicle protection products.
History:
2007 c 57 art 3 s 24
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 59C — Vehicle Protection Products › Section 59C.05 — Financial Responsibility.

59C.05 FINANCIAL RESPONSIBILITY.
Subdivision 1.
General requirements.
No vehicle protection product may be sold, or offered for sale in this state unless the warrantor meets either the requirements of subdivision 2 or 3 in order to ensure adequate performance under the warranty. No other financial security requirements or financial standards for warrantors is required.
Subd. 2.
Warranty reimbursement insurance policy.
The vehicle protection product warrantor shall be insured under a warranty reimbursement insurance policy issued by an insurer authorized to do business in this state which provides that:
(1) the insurer will pay to, or on behalf of the warrantor, 100 percent of all sums that the warrantor is legally obligated to pay according to the warrantor's contractual obligations under the warrantor's vehicle protection product warranty;
(2) a true and correct copy of the warranty reimbursement insurance policy has been filed with the commissioner by the warrantor; and
(3) the policy contains the provision required in section 59C.06.
Subd. 3.
Network or stockholder's equity.
(1) The vehicle protection product warrantor, or its parent company in accordance with clause (2), shall maintain a net worth or stockholders' equity of $50,000,000; and
(2) the warrantor shall provide the commissioner with a copy of the warrantor's or the warrantor's parent company's most recent Form 10-K or Form 20-F filed with the Securities and Exchange Commission within the last calendar year or, if the warrantor does not file with the Securities and Exchange Commission, a copy of the warrantor or the warrantor's parent company's audited financial statements that shows a net worth of the warrantor or its parent company of at least $50,000,000. If the warrantor's parent company's Form 10-K, Form 20-F, or audited financial statements are filed to meet the warrantor's financial stability requirement, then the parent company shall agree to guarantee the obligations of the warrantor relating to warranties issued by the warrantor in this state. The financial information provided to the commissioner under this clause is trade secret information for purposes of section 13.37.
History:
2007 c 57 art 3 s 25
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 59C — Vehicle Protection Products › Section 59C.06 — Warranty Reimbursement Policy Requirements.

59C.06 WARRANTY REIMBURSEMENT POLICY REQUIREMENTS.
No warranty reimbursement insurance policy may be issued, sold, or offered for sale in this state unless the policy meets the following conditions:
(1) the policy states that the issuer of the policy will reimburse, or pay on behalf of the vehicle protection product warrantor, all covered sums that the warrantor is legally obligated to pay, or will provide all service that the warrantor is legally obligated to perform according to the warrantor's contractual obligations under the provisions of the insured warranties sold by the warrantor;
(2) the policy states that in the event payment due under the terms of the warranty is not provided by the warrantor within 60 days after proof of loss has been filed according to the terms of the warranty by the warranty holder, the warranty holder may file directly with the warranty reimbursement insurance company for reimbursement;
(3) the policy provides that a warranty reimbursement insurance company that insures a warranty is deemed to have received payment of the premium if the warranty holder paid for the vehicle protection product and the insurer's liability under the policy shall not be reduced or relieved by a failure of the warrantor, for any reason, to report the issuance of a warranty to the insurer; and
(4) the policy has the following provisions regarding cancellation of the policy:
(i) the issuer of a reimbursement insurance policy shall not cancel the policy until a notice of cancellation in writing has been mailed or delivered to the commissioner and each insured warrantor;
(ii) the cancellation of a reimbursement insurance policy shall not reduce the issuer's responsibility for vehicle protection products sold prior to the date of cancellation; and
(iii) in the event an insurer cancels a policy that a warrantor has filed with the commissioner, the warrantor shall do either of the following:
(A) file a copy of a new policy with the commissioner, before the termination of the prior policy, providing no lapse in coverage following the termination of the prior policy; or
(B) discontinue offering warranties as of the termination date of the policy until a new policy becomes effective and is accepted by the commissioner.
History:
2007 c 57 art 3 s 26
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 59C — Vehicle Protection Products › Section 59C.07 — Disclosure To Warranty Holder.

59C.07 DISCLOSURE TO WARRANTY HOLDER.
A vehicle protection product warranty must not be sold or offered for sale in this state unless the warranty:
(1) states, "The obligations of the warrantor to the warranty holder are guaranteed under a warranty reimbursement insurance policy" if the warrantor elects to meet its financial responsibility obligations under section 59C.05, subdivision 2, or states "The obligations of the warrantor under this warranty are backed by the full faith and credit of the warrantor" if the warrantor elects to meet its financial responsibility obligations under section 59C.05, subdivision 3;
(2) states that in the event a warranty holder must make a claim against a party other than the warranty reimbursement insurance policy issuer, the warranty holder is entitled to make a direct claim against the insurer upon the failure of the warrantor to pay any claim or meet any obligation under the terms of the warranty within 60 days after proof of loss has been filed with the warrantor, if the warrantor elects to meet its financial responsibility obligations under section 59C.05, subdivision 2;
(3) states the name and address of the issuer of the warranty reimbursement insurance policy, and this information need not be preprinted on the warranty form, but may be added to or stamped on the warranty, if the warrantor elects to meet its financial responsibility obligations under section 59C.05, subdivision 2;
(4) identifies the warrantor, the seller, and the warranty holder;
(5) sets forth the total purchase price and the terms under which it is to be paid, however, the purchase price is not required to be preprinted on the vehicle protection product warranty and may be negotiated with the consumer at the time of sale;
(6) sets forth the procedure for making a claim, including a telephone number;
(7) specifies the payments or performance to be provided under the warranty including payments for incidental costs expressed as either a fixed amount specified in the warranty or sales agreement or by the use of a formula itemizing specific incidental costs incurred by the warranty holder, the manner of calculation or determination of payments or performance, and any limitations, exceptions, or exclusions;
(8) sets forth all of the obligations and duties of the warranty holder such as the duty to protect against any further damage to the vehicle, the obligation to notify the warrantor in advance of any repair, or other similar requirements, if any;
(9) sets forth any terms, restrictions, or conditions governing transferability and cancellation of the warranty, if any; and
(10) contains a disclosure that reads substantially as follows: "This agreement is a product warranty and is not insurance."
History:
2007 c 57 art 3 s 27
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 59C — Vehicle Protection Products › Section 59C.08 — Prohibited Acts.

59C.08 PROHIBITED ACTS.
(a) Unless licensed as an insurance company, a vehicle protection product warrantor shall not use in its name, contracts, or literature, any of the words "insurance," "casualty," "surety," "mutual," or any other words descriptive of the insurance, casualty, or surety business or deceptively similar to the name or description of any insurance or surety corporation, or any other vehicle protection product warrantor. A warrantor may use the term "guaranty" or similar word in the warrantor's name.
(b) A vehicle protection product seller or warrantor may not require as a condition of financing that a retail purchaser of a motor vehicle purchase a vehicle protection product.
History:
2007 c 57 art 3 s 28
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 59C — Vehicle Protection Products › Section 59C.09 — Record Keeping.

59C.09 RECORD KEEPING.
(a) All vehicle protection product warrantors shall keep accurate accounts, books, and records concerning transactions regulated under this chapter.
(b) A vehicle protection product warrantor's accounts, books, and records must include:
(1) copies of all vehicle protection product warranties;
(2) the name and address of each warranty holder; and
(3) the dates, amounts, and descriptions of all receipts, claims, and expenditures.
(c) A vehicle protection product warrantor shall retain all required accounts, books, and records pertaining to each warranty holder for at least two years after the specified period of coverage has expired. A warrantor discontinuing business in this state shall maintain its records until it furnishes the commissioner satisfactory proof that it has discharged all obligations to warranty holders in this state.
History:
2007 c 57 art 3 s 29
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 59C — Vehicle Protection Products › Section 59C.10 — Commissioner's Powers And Duties.

59C.10 COMMISSIONER'S POWERS AND DUTIES.
Subdivision 1.
Examination and compliance powers.
The commissioner may conduct examinations of warrantors, administrators, or other persons to enforce this chapter and protect warranty holders in this state. Upon request of the commissioner, a warrantor shall make available to the commissioner all accounts, books, and records concerning vehicle protection products sold by the warrantor and transactions regulated under this chapter that are necessary to enable the commissioner to reasonably determine compliance or noncompliance with this chapter.
Subd. 2.
Enforcement authority.
The commissioner has the enforcement authority in chapter 45 available to enforce the provisions of the chapter and the rules adopted pursuant to it.
History:
2007 c 57 art 3 s 30; 2014 c 222 art 1 s 10
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 59C — Vehicle Protection Products › Section 59C.12 — Applicability.

59C.12 APPLICABILITY.
This chapter applies to all vehicle protection products sold or offered for sale on or after January 1, 2008. The failure of any person to comply with this chapter before January 1, 2008, is not admissible in any court proceeding, administrative proceeding, arbitration, or alternative dispute resolution proceeding and may not otherwise be used to prove that the action of any person or the affected vehicle protection product was unlawful or otherwise improper. The adoption of this chapter does not imply that a vehicle protection product warranty was insurance before January 1, 2008. Nothing in this section may be construed to require the application of the penalty provisions where this section is not applicable.
History:
2007 c 57 art 3 s 31
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 59D — Guaranteed Asset Protection Waivers › Section 59D.01 — Application.

59D.01 APPLICATION.
(a) This chapter does not apply to:
(1) a policy of insurance offered in compliance with chapters 60A to 79A;
(2) a debt cancellation or debt suspension contract, including a guaranteed asset protection waiver, being offered by a banking institution or credit union in compliance with chapter 48 or 52; and
(3) a debt cancellation or debt suspension contract being offered in compliance with Code of Federal Regulations, title 12, parts 37, 721, or other federal law.
(b) Guaranteed asset protection waivers regulated under this chapter are not insurance and are not subject to chapters 60A to 79A. Persons selling, soliciting, or negotiating guaranteed asset protection waivers to borrowers in compliance with this chapter are exempt from chapter 60K.
(c) The commissioner of commerce has the full investigatory authority of chapter 45 to enforce the terms of this chapter.
History:
1Sp2015 c 1 art 3 s 3
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 59D — Guaranteed Asset Protection Waivers › Section 59D.02 — Definitions.

59D.02 DEFINITIONS.
Subdivision 1.
Terms.
For purposes of this chapter, the terms defined in subdivisions 2 to 10 have the meanings given them.
Subd. 2.
Administrator.
"Administrator" means a person, other than an insurer or creditor who performs administrative or operational functions pursuant to guaranteed asset protection waiver programs.
Subd. 3.
Borrower.
"Borrower" means a debtor, retail buyer, or lessee under a finance agreement.
Subd. 4.
Creditor.
"Creditor" means:
(1) the lender in a loan or credit transaction;
(2) the lessor in a lease transaction;
(3) a dealer or seller of motor vehicles that provides credit to purchasers of the motor vehicles provided that the entities comply with this section;
(4) the seller in commercial retail installment transactions; or
(5) the assignees of any of the forgoing to whom the credit obligation is payable.
Subd. 5.
Finance agreement.
"Finance agreement" means a loan, lease, or retail installment sales contract for the purchase or lease of a motor vehicle.
Subd. 6.
Free-look period.
"Free-look period" means the period of time from the effective date of the GAP waiver until the date the borrower may cancel the contract without penalty, fees, or costs to the borrower. This period of time must not be shorter than 30 days.
Subd. 7.
Guaranteed asset protection waiver.
"Guaranteed asset protection waiver" or "GAP waiver" means a contractual agreement wherein a creditor agrees for a separate charge to cancel or waive all or part of amounts due on a borrower's finance agreement in the event of a total physical damage loss or unrecovered theft of the motor vehicle.
Subd. 8.
Insurer.
"Insurer" means an insurance company licensed, registered, or otherwise authorized to do business under Minnesota law.
Subd. 9.
Motor vehicle.
"Motor vehicle" means self-propelled or towed vehicles designed for personal or commercial use, including, but not limited to, automobiles; trucks; motorcycles; recreational vehicles; all-terrain vehicles; snowmobiles; campers; boats; personal watercraft; and motorcycle, boat, camper, and personal watercraft trailers. A creditor is prohibited from selling a GAP waiver in conjunction with the sale or lease of any used motor vehicle that is an automobile or truck that is valued at less than $5,000.
Subd. 10.
Person.
"Person" includes an individual, company, association, organization, partnership, business trust, corporation, and every form of legal entity.
History:
1Sp2015 c 1 art 3 s 4
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 59D — Guaranteed Asset Protection Waivers › Section 59D.03 — Commercial Transactions Exempted.

59D.03 COMMERCIAL TRANSACTIONS EXEMPTED.
Sections 59D.04, subdivision 3, and 59D.06 do not apply to a guaranteed asset protection waiver offered in connection with a lease or retail installment sale associated with any transaction not for personal, family, or household purposes.
History:
1Sp2015 c 1 art 3 s 5
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 59D — Guaranteed Asset Protection Waivers › Section 59D.04 — Guaranteed Asset Protection Waiver Requirements.

59D.04 GUARANTEED ASSET PROTECTION WAIVER REQUIREMENTS.
Subdivision 1.
Authorization.
GAP waivers may be offered, sold, or provided to borrowers in Minnesota in compliance with this chapter.
Subd. 2.
Payment options.
GAP waivers may, at the option of the creditor, be sold for a single payment or may be offered with a monthly or periodic payment option.
Subd. 3.
Certain costs not considered finance charge or interest.
Notwithstanding any other provision of law, any cost to the borrower for a guaranteed asset protection waiver entered into in compliance with United States Code, title 15, sections 1601 to 1667F, and its implementing regulations under Code of Federal Regulations, title 12, part 226, as they may be amended from time to time, must be separately stated and is not to be considered a finance charge or interest.
Subd. 4.
Insurance.
A retail seller must insure its GAP waiver obligations under a contractual liability or other insurance policy issued by an insurer. A creditor, other than a retail seller, may insure its GAP waiver obligations under a contractual liability policy or other such policy issued by an insurer. The insurance policy may be directly obtained by a creditor or retail seller, or may be procured by an administrator to cover a creditor's or retail seller's obligations. Retail sellers that are lessors on motor vehicles are not required to insure obligations related to GAP waivers on leased vehicles.
Subd. 5.
Financing agreement.
The GAP waiver must be part of, or a separate addendum to, the finance agreement and must remain a part of the finance agreement upon the assignment, sale, or transfer of the finance agreement by the creditor.
Subd. 6.
Purchase restriction.
The extension of credit, the terms of the credit, or the terms and conditions of the related motor vehicle sale or lease must not be conditioned upon the purchase of a GAP waiver.
Subd. 7.
Reporting.
A creditor that offers a GAP waiver must report the sale of, and forward funds received on, all such waivers to the designated party, if any, as prescribed in any applicable administrative services agreement, contractual liability policy, other insurance policy, or other specified program documents.
Subd. 8.
Fiduciary responsibilities.
Funds received or held by a creditor or administrator and belonging to an insurer, creditor, or administrator, pursuant to the terms of a written agreement, must be held by the creditor or administrator in a fiduciary capacity.
Subd. 9.
Defined terms.
The terms defined in section 59D.02 are not intended to provide actual terms that are required in guaranteed asset protection waivers.
History:
1Sp2015 c 1 art 3 s 6
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 59D — Guaranteed Asset Protection Waivers › Section 59D.05 — Contractual Liability Or Other Insurance Policies.

59D.05 CONTRACTUAL LIABILITY OR OTHER INSURANCE POLICIES.
Subdivision 1.
Reimbursement or payment statement.
Contractual liability or other insurance policies insuring GAP waivers must state the obligation of the insurer to reimburse or pay to the creditor any sums the creditor is legally obligated to waive under the GAP waivers issued by the creditor and purchased or held by the borrower.
Subd. 2.
Coverage of assignee.
Coverage under a contractual liability or other insurance policy insuring a GAP waiver must also cover a subsequent assignee upon the assignment, sale, or transfer of the finance agreement.
Subd. 3.
Term.
Coverage under a contractual liability or other insurance policy insuring a GAP waiver must remain in effect unless canceled or terminated in compliance with applicable laws.
Subd. 4.
Effect of cancellation or termination.
The cancellation or termination of a contractual liability or other insurance policy must not reduce the insurer's responsibility for GAP waivers issued by the creditor before the date of cancellation or termination and for which a premium has been received by the insurer.
History:
1Sp2015 c 1 art 3 s 7