reglab/statecodes huggingface dataset:
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60A — General Insurance Powers › Section 60A.9575 — Reporting Requirements And Privacy.

60A.9575 REPORTING REQUIREMENTS AND PRIVACY.
Subdivision 1.
Annual statement.
A viatical settlement provider shall file with the commissioner on or before March 1 of each year an annual statement containing the following information:
(1) for each policy viaticated, the date that the viatical settlement contract was entered into; the life expectancy of the viator at the time of the contract; the face amount of the policy; the amount paid by the viatical settlement provider to viaticate the policy; and if the viator has died, the date of death and the total insurance premiums paid by the viatical settlement provider to maintain the policy in force;
(2) a breakdown by disease category of applications received, accepted, and rejected;
(3) a breakdown of policies viaticated by issuer and policy type;
(4) the number of secondary market versus primary market transactions;
(5) the portfolio size; and
(6) the amount of outside borrowings.
The information shall be limited to only those transactions where the viator is a resident of this state. Individual transaction data regarding the business of viatical settlements or data that could compromise the privacy of personal, financial, and health information of the viator or insured shall be filed with the commissioner on a confidential basis.
Subd. 2.
Identity disclosure restrictions.
Except as otherwise allowed or required by law, a viatical settlement provider, viatical settlement broker, or viatical settlement investment agent, insurance company, insurance producer, information bureau, rating agency or company, or any other person with actual knowledge of an insured's identity, shall not disclose that identity as an insured, or the insured's financial or medical information to any other person unless the disclosure:
(1) is necessary to effect a viatical settlement between the viator and a viatical settlement provider and the viator and insured have provided prior written consent to the disclosure;
(2) is necessary to effect a viatical settlement purchase agreement between the viatical settlement purchaser and a viatical settlement provider and the viator and insured have provided prior written consent to the disclosure;
(3) is provided in response to an investigation or examination by the commissioner or any other governmental officer or agency or pursuant to section 45.027;
(4) is a term of or condition to the transfer of a policy by one viatical settlement provider to another viatical settlement provider;
(5) is necessary to permit a financing entity, related provider trust, or special purpose entity to finance the purchase of policies by a viatical settlement provider and the viator and insured have provided prior written consent to the disclosure;
(6) is necessary to allow a viatical settlement provider or viatical settlement broker or an authorized representative to make contacts for the purpose of determining health status; or
(7) is required to purchase stop-loss coverage or financial guaranty insurance.
History:
2009 c 62 s 6
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60A — General Insurance Powers › Section 60A.9581 — Prohibited Practices And Conflicts Of Interest.

60A.9581 PROHIBITED PRACTICES AND CONFLICTS OF INTEREST.
Subdivision 1.
Solicitations and sales to controlled person.
With respect to any viatical settlement contract or insurance policy, no viatical settlement broker knowingly shall solicit an offer from, effectuate a viatical settlement with, or make a sale to any viatical settlement provider, viatical settlement purchaser, viatical settlement investment agent, financing entity, or related provider trust that is controlling, controlled by, or under common control with the viatical settlement broker unless this relationship is disclosed to the viator.
Subd. 2.
Payment to controlled broker.
With respect to any viatical settlement contract or insurance policy, no viatical settlement provider knowingly may enter into a viatical settlement contract with a viator, if, in connection with a viatical settlement contract, anything of value will be paid to a viatical settlement broker that is controlling, controlled by, or under common control with the viatical settlement provider or the viatical settlement purchaser, viatical settlement investment agent, financing entity, or related provider trust that is involved in a viatical settlement contract unless this relationship is disclosed to the viator.
Subd. 3.
Fraudulent viatical settlement act.
A violation of subdivisions 1 and 2 is deemed a fraudulent viatical settlement act.
Subd. 4.
Advertising.
(a) No viatical settlement provider shall enter into a viatical settlement contract unless the viatical settlement promotional, advertising, and marketing materials, as may be prescribed by rule, have been filed with the commissioner. In no event shall any marketing materials expressly reference that the insurance is "free" for any period of time. The inclusion of any reference in the marketing materials that would cause a viator to reasonably believe that the insurance is free for any period of time shall be considered a violation of sections 60A.957 to 60A.9585.
(b) No life insurance producer, insurance company, viatical settlement broker, viatical settlement provider, or viatical settlement investment agent shall make any statement or representation to the applicant or policyholder in connection with the sale or financing of a life insurance policy to the effect that the insurance is free or without cost to the policyholder for any period of time unless provided in the policy.
History:
2009 c 62 s 9
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60A — General Insurance Powers › Section 60A.9585 — Unfair Trade Practice.

60A.9585 UNFAIR TRADE PRACTICE.
A violation of sections 60A.957 to 60A.9585, including the commission of a fraudulent viatical settlement act, shall be considered an unfair trade practice under section 72A.20.
History:
2009 c 62 s 12
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60A — General Insurance Powers › Section 60A.964 — Fees.

60A.964 FEES.
Subdivision 1.
Amount.
The licensing fee for a viatical settlement provider, viatical settlement broker, or viatical settlement investment agent license is $750 for initial licensure and $250 for each annual renewal. The fees must be limited to the cost of license administration and enforcement and must be deposited in the state treasury, credited to a special account, and appropriated to the commissioner.
Subd. 2.
Automatic revocation.
A license is automatically revoked for failure to pay the licensing fee within the terms prescribed by the commissioner.
History:
1995 c 151 s 5; 1999 c 250 art 3 s 6; 2009 c 62 s 13
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60A — General Insurance Powers › Section 60A.975 — Definitions.

60A.975 DEFINITIONS.
Subdivision 1.
Application.
For purposes of sections 60A.975 and 60A.976, the definitions in this section have the meanings given them.
Subd. 2.
Annuity issuer.
"Annuity issuer" means an insurer that issues an insurance contract used to fund periodic payments under a structured settlement agreement.
Subd. 3.
Structured settlement.
"Structured settlement" means an arrangement for periodic payment of damages entered on behalf of a minor or incompetent person for personal injuries established by settlement or judgment.
Subd. 4.
Structured settlement agreement.
"Structured settlement agreement" means the agreement, judgment, stipulation, or release embodying the terms of a structured settlement.
History:
2001 c 131 s 4
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60A — General Insurance Powers › Section 60A.976 — Annuity Issuers Financial Requirements.

60A.976 ANNUITY ISSUERS FINANCIAL REQUIREMENTS.
An annuity purchased to finance a structured settlement agreement may be purchased only from an annuity issuer with a financial rating equivalent to A.M. Best Company A+ Class 8 or better; or a Standard & Poor's AA or better.
History:
2001 c 131 s 5
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60A — General Insurance Powers › Section 60A.9852 — Investigation Of A Cybersecurity Event.

60A.9852 INVESTIGATION OF A CYBERSECURITY EVENT.
Subdivision 1.
Prompt investigation.
If the licensee learns that a cybersecurity event has or may have occurred, the licensee, or an outside vendor or service provider designated to act on behalf of the licensee, shall conduct a prompt investigation.
Subd. 2.
Investigation contents.
During the investigation, the licensee, or an outside vendor or service provider designated to act on behalf of the licensee, shall, at a minimum and to the extent possible:
(1) determine whether a cybersecurity event has occurred;
(2) assess the nature and scope of the cybersecurity event, if any;
(3) identify whether any nonpublic information was involved in the cybersecurity event and, if so, what nonpublic information was involved; and
(4) perform or oversee reasonable measures to restore the security of the information systems compromised in the cybersecurity event in order to prevent further unauthorized acquisition, release, or use of nonpublic information in the licensee's possession, custody, or control.
Subd. 3.
Third-party systems.
If the licensee learns that a cybersecurity event has or may have occurred in a system maintained by a third-party service provider, the licensee will complete the steps listed in subdivision 2 or confirm and document that the third-party service provider has completed those steps.
Subd. 4.
Records.
The licensee shall maintain records concerning all cybersecurity events for a period of at least five years from the date of the cybersecurity event and shall produce those records upon demand of the commissioner.
History:
1Sp2021 c 4 art 3 s 7
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60A — General Insurance Powers › Section 60A.9854 — Power Of Commissioner.

60A.9854 POWER OF COMMISSIONER.
(a) The commissioner of commerce or commissioner of health, whichever commissioner otherwise regulates the licensee, shall have power to examine and investigate into the affairs of any licensee to determine whether the licensee has been or is engaged in any conduct in violation of sections 60A.985 to 60A.9857. This power is in addition to the powers which the commissioner has under section 60A.031. Any such investigation or examination shall be conducted pursuant to section 60A.031.
(b) Whenever the commissioner of commerce or commissioner of health has reason to believe that a licensee has been or is engaged in conduct in this state which violates sections 60A.985 to 60A.9857, the commissioner of commerce or commissioner of health may take action that is necessary or appropriate to enforce those sections.
History:
1Sp2021 c 4 art 3 s 9
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60A — General Insurance Powers › Section 60A.9856 — Exceptions.

60A.9856 EXCEPTIONS.
Subdivision 1.
Generally.
The following exceptions shall apply to sections 60A.985 to 60A.9857:
(1) a licensee with fewer than 25 employees is exempt from sections 60A.9851 and 60A.9852;
(2) a licensee subject to and in compliance with the Health Insurance Portability and Accountability Act, Public Law 104-191, 110 Stat. 1936 (HIPAA), is considered to comply with sections 60A.9851, 60A.9852, and 60A.9853, subdivisions 3 to 5, provided the licensee submits a written statement certifying its compliance with HIPAA;
(3) a licensee affiliated with a depository institution that maintains an information security program in compliance with the interagency guidelines establishing standards for safeguarding customer information as set forth pursuant to United States Code, title 15, sections 6801 and 6805, shall be considered to meet the requirements of section 60A.9851 provided that the licensee produce, upon request, documentation satisfactory to the commission that independently validates the affiliated depository institution's adoption of an information security program that satisfies the interagency guidelines;
(4) an employee, agent, representative, or designee of a licensee, who is also a licensee, is exempt from sections 60A.9851 and 60A.9852 and need not develop its own information security program to the extent that the employee, agent, representative, or designee is covered by the information security program of the other licensee; and
(5) an employee, agent, representative, or designee of a producer licensee, as defined under section 60K.31, subdivision 6, who is also a licensee, is exempt from sections 60A.985 to 60A.9857.
Subd. 2.
Exemption lapse; compliance.
In the event that a licensee ceases to qualify for an exception, such licensee shall have 180 days to comply with sections 60A.985 to 60A.9858.
History:
1Sp2021 c 4 art 3 s 11
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60A — General Insurance Powers › Section 60A.9857 — Penalties.

60A.9857 PENALTIES.
In the case of a violation of sections 60A.985 to 60A.9856, a licensee may be penalized in accordance with section 60A.052.
History:
1Sp2021 c 4 art 3 s 12
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60A — General Insurance Powers › Section 60A.9858 — Exclusivity.

60A.9858 EXCLUSIVITY.
Notwithstanding any other provision of law, sections 60A.985 to 60A.9857 establish the exclusive state standards applicable to licensees for data security, the investigation of a cybersecurity event, and notification of a cybersecurity event.
History:
1Sp2021 c 4 art 3 s 13
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60A — General Insurance Powers › Section 60A.991 — Interstate Insurance Product Regulation Compact Opt Out Administration.

60A.991 INTERSTATE INSURANCE PRODUCT REGULATION COMPACT OPT OUT ADMINISTRATION.
Subdivision 1.
Access to courts.
The commissioner must opt out by regulation of any uniform standard that permits a product to deny a consumer's access to the courts to resolve a dispute related to the product. In addition to opting out, the commissioner must petition the commission for a stay of the effective date of the standard.
Subd. 2.
Deference by courts.
A decision by the commissioner to opt out by regulation shall be given deference by the courts.
History:
2006 c 255 s 4
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60B — Rehabilitation And Liquidation › Section 60B.01 — Title, Construction, And Purpose.

60B.01 TITLE, CONSTRUCTION, AND PURPOSE.
Subdivision 1.
Short title.
Sections 60B.01 to 60B.61 may be cited as the "Insurers Rehabilitation and Liquidation Act" and shall appear in the next edition of Minnesota Statutes as chapter 60B but subject to the provisions of section 3C.10, subdivision 1.
Subd. 2.
Construction; no limitation of powers.
Sections 60B.01 to 60B.61 shall not be interpreted to limit the powers granted the commissioner by other provisions of the law.
Subd. 3.
Liberal construction.
Sections 60B.01 to 60B.61 shall be liberally construed to effect the purpose stated in subdivision 4.
Subd. 4.
Purpose.
The purpose of sections 60B.01 to 60B.61 is the protection of the interests of insureds, creditors, and the public generally, with minimum interference with the normal prerogatives of proprietors, through:
(a) early detection of any potentially dangerous condition in an insurer, and prompt application of appropriate corrective measures, neither unduly harsh nor subject to the kind of publicity that would needlessly damage or destroy the insurer;
(b) improved methods for rehabilitating insurers, by enlisting the advice and management expertise of the insurance industry;
(c) enhanced efficiency and economy of liquidation, through clarification and specification of the law, to minimize legal uncertainty and litigation;
(d) equitable apportionment of any unavoidable loss;
(e) lessening the problems of interstate rehabilitation and liquidation by facilitating cooperation between states in the liquidation process, and by extension of the scope of personal jurisdiction over debtors of the insurer outside this state; and
(f) regulation of the insurance business by the impact of the law relating to delinquency procedures and substantive rules on the entire insurance business.
History:
1969 c 708 s 1; 1984 c 480 s 16; 1984 c 655 art 2 s 19 subd 4
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60B — Rehabilitation And Liquidation › Section 60B.02 — Persons Covered.

60B.02 PERSONS COVERED.
The proceedings authorized by sections 60B.01 to 60B.61 may be applied to:
(1) all insurers who are doing, or have done, an insurance business in this state, and against whom claims arising from that business may exist now or in the future;
(2) all insurers who purport to do an insurance business in this state;
(3) all insurers who have insureds resident in this state;
(4) all other persons organized or in the process of organizing with the intent to do an insurance business in this state; and
(5) all nonprofit service plan corporations incorporated or operating under the Nonprofit Health Service Plan Corporation Act, all health maintenance organizations operating under chapter 62D, any health plan incorporated under chapter 317A, all fraternal benefit societies operating under chapter 64B, except those associations enumerated in section 64B.38, all township mutual or other companies operating under chapter 67A, and all reciprocals or interinsurance exchanges operating under chapter 71A.
History:
1969 c 708 s 2; 1971 c 568 s 24; 1985 c 49 s 41; 1989 c 304 s 137; 1992 c 564 art 1 s 54; 1995 c 186 s 16; 1995 c 234 art 1 s 1; 1997 c 225 art 2 s 62; 2020 c 80 art 2 s 1
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60B — Rehabilitation And Liquidation › Section 60B.05 — Injunctions And Orders.

60B.05 INJUNCTIONS AND ORDERS.
Subdivision 1.
Injunctions in this state.
Any receiver appointed in a proceeding under sections 60B.01 to 60B.61 may at any time apply for and any court of general jurisdiction in this state may grant, under the relevant sections of rules of Minnesota Rules of Civil Procedure, such restraining orders, temporary and permanent injunctions, and other orders as are deemed necessary and proper to prevent:
(a) the transaction of further business;
(b) the transfer of property;
(c) interference with the receiver or with the proceedings;
(d) waste of the insurer's assets;
(e) dissipation and transfer of bank accounts;
(f) the institution or further prosecution of any actions or proceedings;
(g) the obtaining of preferences, judgments, attachments, garnishments, or liens against the insurer or its assets;
(h) the levying of execution against the insurer or its assets;
(i) the making of any sale or deed for nonpayment of taxes or assessments that would lessen the value of the assets of the insurer;
(j) the withholding from the receiver of books, accounts, documents, or other records relating to the business of the insurer; or
(k) any other threatened or contemplated action that might lessen the value of the insurer's assets or prejudice the rights of policyholders, creditors, or shareholders or the administration of the proceeding.
Subd. 2.
Injunctions elsewhere.
The receiver may apply to any court outside of this state for the relief described in subdivision 1.
History:
1969 c 708 s 5
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60B — Rehabilitation And Liquidation › Section 60B.06 — Costs And Expenses Of Litigation.

60B.06 COSTS AND EXPENSES OF LITIGATION.
In any proceeding under sections 60B.01 to 60B.61, the court may award such costs and other expenses of litigation as justice requires, without regard to the limitations otherwise prescribed by law. If costs and expenses are taxed against the commissioner, they shall be paid from funds appropriated to the Department of Commerce.
History:
1969 c 708 s 6; 1983 c 289 s 114 subd 1; 1984 c 655 art 1 s 92
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60B — Rehabilitation And Liquidation › Section 60B.07 — Cooperation Of Officers And Employees.

60B.07 COOPERATION OF OFFICERS AND EMPLOYEES.
Subdivision 1.
Duty to cooperate.
Any officer, manager, trustee, agent or general agent of any insurer and any other person with executive authority over or in charge of any segment of the insurer's affairs having notice of the proceedings shall cooperate with the commissioner in any proceeding under sections 60B.01 to 60B.61 or any investigation preliminary or incidental to the proceeding. "To cooperate" includes, but is not limited to, the following:
(a) to reply promptly in writing to any inquiry from the commissioner requesting such a reply; and
(b) to make available and deliver to the commissioner any books, accounts, documents, or other records, or information or property of or pertaining to the insurer and in that person's possession, custody, or control.
Subd. 2.
Duty not to obstruct.
No person shall obstruct or interfere with the commissioner in the conduct of any delinquency proceeding or any investigation preliminary or incidental thereto.
Subd. 3.
Right to defend.
This section shall not render it illegal to resist by legal proceedings the petition for liquidation or other delinquency proceedings, other orders or the request or demand for cooperation under subdivision 1.
Subd. 4.
Sanction.
Any person included within subdivision 1 who fails to cooperate with the commissioner, or any person who obstructs or interferes with the commissioner in the conduct of any delinquency proceeding or any investigation preliminary or incidental thereto, may be fined not more than $10,000 or imprisoned in the county jail not more than 364 days or both.
History:
1969 c 708 s 7; 1984 c 628 art 3 s 11; 1986 c 444; 2023 c 52 art 6 s 16
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60B — Rehabilitation And Liquidation › Section 60B.09 — Commissioner's Reports.

60B.09 COMMISSIONER'S REPORTS.
Subdivision 1.
General report of proceedings.
The commissioner shall include in a biennial report:
(a) the names of the insurers proceeded against under sections 60B.15, 60B.20, 60B.52, 60B.53, and 60B.55, and such other facts as indicate in reasonable detail formal proceedings under sections 60B.01 to 60B.61; and
(b) such facts as generally indicate the utilization and effectiveness of proceedings under sections 60B.11, 60B.12, and 60B.13.
Subd. 2.
Special reports.
(a) The commissioner shall include in the biennial report, not later than the second biennial report following the initiation of any formal proceedings under sections 60B.01 to 60B.61, a detailed analysis of the basic causes and the contributing factors making the initiation of formal proceedings necessary, and shall make recommendations for remedial legislation if any. For this purpose the commissioner may appoint and determine the compensation of a special assistant who shall be in the unclassified service, qualified to conduct the study and prepare the analysis.
(b) The commissioner shall include in the biennial report, not later than the biennial report following discharge of the receiver, a detailed study of the delinquency proceeding for each insurer subjected to a formal proceeding, with an analysis of the problems faced and their solutions. The commissioner shall also suggest alternative solutions, as well as other material of interest, for the purpose of assisting and guiding liquidators or rehabilitators in the future.
Subd. 3.
Reports on insurers subject to proceedings.
The commissioner as receiver shall make and file annual reports and any other required reports for the companies proceeded against under sections 60B.15, 60B.20, 60B.52, 60B.53, and 60B.55 in the manner and form and within the time required by law of insurers authorized to do business in this state, and under the same penalties for failure to do so.
History:
1969 c 708 s 9; 1982 c 560 s 40; 1986 c 444; 1994 c 465 art 2 s 6,7
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60B — Rehabilitation And Liquidation › Section 60B.10 — Continuation Of Delinquency Proceedings.

60B.10 CONTINUATION OF DELINQUENCY PROCEEDINGS.
Every proceeding commenced before May 25, 1969 is deemed to have commenced under sections 60B.01 to 60B.61 for the purpose of conducting the proceeding thereafter, except that in the discretion of the commissioner the proceeding may be continued, in whole or in part, as it would have been continued had sections 60B.01 to 60B.61 not been enacted.
History:
1969 c 708 s 10
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60B — Rehabilitation And Liquidation › Section 60B.12 — Court's Seizure Order.

60B.12 COURT'S SEIZURE ORDER.
Subdivision 1.
Issuance.
Upon the filing by the commissioner in any district court in this state of a verified petition establishing to the satisfaction of the court that sufficient grounds exist for a formal delinquency proceeding against an insurer under sections 60B.01 to 60B.61 and that the interests of policyholders, creditors, or the public will be endangered by delay, and setting out the order deemed necessary by the commissioner, the court shall issue forthwith, ex parte and without a hearing, an order which may (a) authorize the commissioner to take possession and control of all or a part of the property, books, accounts, documents, and other records of an insurer and of the premises occupied by it for the transaction of its business, and (b) until further order of the court, enjoin the insurer and its officers, managers, agents, and employees from disposition of its property and from transaction of its business except with the written consent of the commissioner, and (c) provide such other terms as the court deems appropriate for the protection of the insurer, its policyholders, its creditors, and the public during the duration of the order. The order shall also direct the service of a copy of the order forthwith upon the insurer and all persons in possession of any property seized under the order.
Subd. 2.
Duration.
The court shall specify in the order what its duration shall be and order the insurer to appear at a specified time within the duration of the order and show cause why the order should not be continued in effect. The duration of the order may be such time as the court deems necessary for the commissioner to ascertain the condition of the insurer. On motion of either party or on its own motion, the court may hold such hearings as it deems desirable after such notice as it deems appropriate, and may set aside, extend, shorten, or modify the terms of the seizure order. The court shall vacate the seizure order if the commissioner fails to commence a formal proceeding under sections 60B.01 to 60B.61 after having had a reasonable opportunity to do so. The issuance of an order of the court pursuant to a formal proceeding under sections 60B.01 to 60B.61 vacates the seizure order.
Subd. 3.
Anticipatory breach.
Entry of a seizure order under this section shall not constitute an anticipatory breach of any contract of the insurer.
History:
1969 c 708 s 12
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60B — Rehabilitation And Liquidation › Section 60B.13 — Commissioner's Seizure Order.

60B.13 COMMISSIONER'S SEIZURE ORDER.
Subdivision 1.
Issuance.
If it appears to the commissioner that an emergency exists whereby the interests of the creditors, policyholders, or the public will be endangered by the delay incident to applying for a court seizure order, then on any ground that would justify a court seizure order under section 60B.12, without notice and without applying to the court, the commissioner may issue a seizure order which must contain a verified statement of the grounds of action. As directed by the seizure order, the commissioner or any representatives of the commissioner shall forthwith take possession and control of all or any part of the property, books, accounts, documents, and other records of the insurer, and of the premises occupied by the insurer for the transaction of its business. The commissioner shall retain possession and control until the order is vacated by the commissioner, is set aside by order of court, is replaced by an order of the court pursuant to a proceeding commenced under subdivision 2, a formal proceeding under sections 60B.01 to 60B.61, or until the expiration of ten days without a filing by the commissioner of a petition for a court order as required by subdivision 2.
Subd. 2.
Judicial review.
Within ten days after the issuance of a seizure order under subdivision 1, the commissioner shall file with a district court a petition under section 60B.12, subdivision 1, for a court order of seizure, with written or oral notice of such petition to the insurer to the extent feasible; otherwise, the commissioner shall state to the court in writing the efforts made to give notice or the reasons why notice is not feasible. Thereafter, the matter shall proceed as provided in section 60B.12, except that the commissioner's seizure order shall remain in effect as provided in subdivision 1.
Subd. 3.
Duty to assist commissioner.
Every law enforcement officer shall assist the commissioner in making and enforcing any such seizure, and every sheriff and police department shall furnish such deputies, patrol officers, or officers as are necessary to assist the commissioner.
Subd. 4.
Anticipatory breach.
Entry of a seizure order under this section shall not constitute an anticipatory breach of any contract of the insurer.
History:
1969 c 708 s 13; 1986 c 444
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60B — Rehabilitation And Liquidation › Section 60B.14 — Conduct Of Hearings In Summary Proceedings.

60B.14 CONDUCT OF HEARINGS IN SUMMARY PROCEEDINGS.
Subdivision 1.
Confidentiality of commissioner's hearings.
The commissioner shall hold all hearings in summary proceedings privately unless the insurer requests a public hearing, in which case the hearing shall be public.
Subd. 2.
Confidentiality of court hearings.
The court may hold all hearings in summary proceedings and judicial reviews thereof privately in chambers, and shall do so on request of the insurer proceeded against.
Subd. 3.
Records.
In all summary proceedings and judicial reviews thereof, all records of the company, other documents, and all Department of Commerce files and court records and papers, so far as they pertain to or are a part of the record of the summary proceedings, shall be and remain confidential except as is necessary to obtain compliance therewith, unless the court, after hearing arguments from the parties in chambers, shall order otherwise, or unless the insurer requests that the matter be made public. Until such court order, all papers filed with the court administrator shall be held in a confidential file.
Subd. 4.
Parties.
If at any time it appears to the court that any person whose interest is or will be substantially affected by an order did not appear at the hearing and has not been served, the court may order that notice be given and the proceedings be adjourned to give that person opportunity to appear on such terms as may be just.
Subd. 5.
Sanctions.
Any person having possession or custody of and refusing to deliver any of the property, books, accounts, documents, or other records of an insurer against which a seizure order or a summary order has been issued by the commissioner or by the court, may be fined not more than $20,000 or imprisoned in the county jail for not more than 364 days or both.
History:
1969 c 708 s 14; 1983 c 289 s 114 subd 1; 1984 c 628 art 3 s 11; 1984 c 655 art 1 s 92; 1986 c 444; 1Sp1986 c 3 art 1 s 82; 2023 c 52 art 6 s 16
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60B — Rehabilitation And Liquidation › Section 60B.16 — Rehabilitation Orders.

60B.16 REHABILITATION ORDERS.
Subdivision 1.
Appointment of rehabilitator.
An order to rehabilitate the business of a domestic insurer, or an alien insurer domiciled in this state, shall appoint the commissioner and successors in office rehabilitator and shall direct the rehabilitator forthwith to take possession of the assets of the insurer and to administer them under the orders of the court. The recording of the order with any county recorder in the state imparts the same notice as a deed, bill of sale, or other evidence of title duly recorded with that county recorder.
Subd. 2.
Anticipatory breach.
Entry of an order of rehabilitation shall not constitute an anticipatory breach of any contracts of the insurer.
History:
1969 c 708 s 16; 1976 c 181 s 2; 1986 c 444; 2005 c 4 s 6
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60B — Rehabilitation And Liquidation › Section 60B.171 — Use, Sale, Or Transfer Of Assets During Rehabilitation.

60B.171 USE, SALE, OR TRANSFER OF ASSETS DURING REHABILITATION.
Subdivision 1.
Rehabilitator authority to use, sell, or transfer assets.
In addition to the powers of the rehabilitator provided in this chapter, during rehabilitation of a health maintenance organization, the rehabilitator may use, sell, or transfer assets as provided in this section.
Subd. 2.
Ordinary course of business.
(a) The rehabilitator may use, sell, or transfer assets in which a person has a lien, which are not cash or cash equivalents, in the ordinary course of business without approval of the court, except that the rehabilitator must provide sufficient protection for that lien unless the lienholder consents.
(b) The rehabilitator may use, sell, or transfer cash or cash equivalents in which any person has a lien in the ordinary course of business only if:
(1) each person who has a lien in the assets consents; or
(2) after notice and a hearing, the court finds that the rehabilitator has or will provide the person who has a lien with sufficient protection for that lien.
Subd. 3.
Out of the ordinary course of business.
(a) The rehabilitator may use, sell, or transfer assets in which any person has a lien out of the ordinary course of business with court approval where:
(1) the person that has a lien consents; or
(2) the rehabilitator provides sufficient protection for that lien. Sufficient protection includes, but is not limited to, equivalent substitute collateral or payments in the amount approximately equal to decrease in value or amount of collateral.
(b) Any sale or transfer shall be free and clear of all lien interests if:
(1) all persons with liens in the assets to be sold or transferred consent to the sale or transfer;
(2) the consideration for the sale or transfer exceeds the total amount of all liens in the assets to be transferred;
(3) the rehabilitator provides sufficient protection for all lien claims in the assets; or
(4) other law permits a sale or transfer free and clear of any lien.
History:
1990 c 538 s 5
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60B — Rehabilitation And Liquidation › Section 60B.18 — Actions By And Against Rehabilitator.

60B.18 ACTIONS BY AND AGAINST REHABILITATOR.
Subdivision 1.
Stays in pending litigation.
On request of the rehabilitator, any court in this state before which any action or proceeding by or against an insurer is pending when a rehabilitation order against the insurer is entered shall stay the action or proceeding for such time as is necessary for the rehabilitator to obtain proper representation and prepare for further proceedings. The court that entered the rehabilitation order shall order the rehabilitator to take such action respecting the pending litigation as the court deems necessary in the interests of justice and for the protection of creditors, policyholders, and the public. The rehabilitator shall immediately consider all litigation pending outside this state and shall petition the courts having jurisdiction over that litigation for stays whenever necessary to protect the estate of the insurer.
Subd. 2.
Statute of limitations on claims by insurer.
The time between the filing of a petition for rehabilitation against an insurer and denial of the petition or an order of rehabilitation shall not be considered to be a part of the time within which any action may be commenced by the insurer. Any action by the insurer that might have been commenced when the petition was filed may be commenced for at least 60 days after the order of rehabilitation is entered.
Subd. 3.
Statute of limitations on claims against insurer.
The time between the filing of a petition for rehabilitation against an insurer and the denial of the petition or an order of rehabilitation shall not be considered to be a part of the time within which any action may be commenced against the insurer. Any action against the insurer that might have been commenced when the petition was filed may be commenced for at least 60 days after the order of rehabilitation is entered or the petition is denied.
History:
1969 c 708 s 18
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60B — Rehabilitation And Liquidation › Section 60B.181 — Notice Regarding Rehabilitation Or Liquidation Proceeding.

60B.181 NOTICE REGARDING REHABILITATION OR LIQUIDATION PROCEEDING.
In an insolvency proceeding against a health maintenance organization, at the time the rehabilitator or liquidator gives notice to creditors and enrollees according to section 60B.26, the rehabilitator or liquidator shall also give notice that any interested party may request in writing notice of subsequent actions or hearings in the proceeding. After the initial notice, the rehabilitator or liquidator may give notice only to those with a direct stake in any action or hearing and to those who have requested notice in writing. However, the rehabilitator or liquidator must give all claimants who timely file proofs of claims notice of any plan of rehabilitation or liquidation.
History:
1990 c 538 s 6
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60B — Rehabilitation And Liquidation › Section 60B.19 — Termination Of Rehabilitation.

60B.19 TERMINATION OF REHABILITATION.
Subdivision 1.
Transformation to liquidation.
Whenever the rehabilitator believes that further attempts to rehabilitate an insurer would substantially increase the risk of loss to creditors, policyholders, or the public, or would be futile, the rehabilitator may petition the court for an order of liquidation. A petition under this subdivision shall have the same effect as a petition under section 60B.20. The court shall permit the directors to defend against the petition and shall order payment from the estate of the insurer of such costs and other expenses of defense as justice requires.
Subd. 2.
Order to return to company.
The rehabilitator may at any time petition the court for an order terminating rehabilitation of an insurer. If the court finds that rehabilitation has been accomplished and that grounds for rehabilitation under section 60B.15 no longer exist, it shall order that the insurer be restored to possession of its property and the control of its business. The court may also make that finding and issue that order at any time upon its own motion.
History:
1969 c 708 s 19; 1986 c 444
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60B — Rehabilitation And Liquidation › Section 60B.191 — Claims Regarding Rehabilitation And Liquidation Of Health Maintenance Organizations.

60B.191 CLAIMS REGARDING REHABILITATION AND LIQUIDATION OF HEALTH MAINTENANCE ORGANIZATIONS.
Subdivision 1.
Priority of claims.
The rehabilitator or liquidator of a health maintenance organization shall, in lieu of the classification otherwise provided in this chapter, classify all approved claims into the following classes:
(1) claims for ordinary and necessary expenses of operating and administering the health maintenance organization during rehabilitation or liquidation proceeding. Administrative expenses of a rehabilitation proceeding shall constitute administrative expenses of the liquidation proceeding;
(2) claims of the United States government for unpaid taxes;
(3) claims by persons employed by the health maintenance organization for services rendered within the four months before the initiation of any insolvency proceeding, up to $1,000. Employee claimants shall not be entitled to any lien claim or other claim under chapter 514;
(4) claims by all providers for health care goods and services to the extent covered under a health maintenance contract between enrollees and the health maintenance organization, and claims by enrollees for coverage under a health maintenance contract with the health maintenance organization;
(5) claims which are not secured by any perfected lien or security interest in assets of the health maintenance organization and which are not otherwise classified; or
(6) claims subordinated under this chapter, chapter 62D, or by agreement with the health maintenance organization or the commissioner of health.
Subd. 2.
Claims for malpractice.
As to a health maintenance organization, a claim shall be classified as an unsecured claim if it is made by an enrollee, a parent or guardian of an enrollee, or a person seeking contribution based on injuries to an enrollee, for damages of any type related to death or bodily illness or injury based on improper provisions or failure to provide health care goods or services by a health maintenance organization and its employees, or a provider and its employees to an enrollee of the health maintenance organization. However, a claimant who has secured a judgment or settlement shall receive any insurance proceeds received by the health maintenance organization based on the claims or the medical care provided to the enrollee, other than reinsurance payable because the aggregate value of services to an enrollee exceeds a certain amount, less any expenses, including reasonable attorneys' fees the health maintenance organization incurred in defending the claim or prosecuting its claim against the insurer. This section does not expand the liability of health maintenance organizations on bodily injury to enrollees.
History:
1990 c 538 s 7
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60B — Rehabilitation And Liquidation › Section 60B.193 — Liability Of Enrollees.

60B.193 LIABILITY OF ENROLLEES.
Upon any Minnesota state district court's order of rehabilitation or liquidation of a health maintenance organization under this chapter, all providers of health care goods or services to enrollees of the health maintenance organization, regardless of whether they have a written contract with the health maintenance organization, are prohibited from attempting to collect or collecting payment for authorized referrals from any enrollee of the health maintenance organization for goods or services to the extent the health maintenance organization is obligated to cover the goods and services under a health maintenance contract with the enrollee. A provider's only recourse is to file a claim against the health maintenance organization in the insolvency proceeding and to receive payment in the proceeding.
History:
1990 c 538 s 8
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60B — Rehabilitation And Liquidation › Section 60B.21 — Liquidation Orders.

60B.21 LIQUIDATION ORDERS.
Subdivision 1.
Order to liquidate.
An order to liquidate the business of a domestic insurer shall appoint the commissioner and successors in office liquidator and shall direct the liquidator forthwith to take possession of the assets of the insurer and to administer them under the orders of the court. The liquidator shall be vested by operation of law with the title to all of the property, contracts, and rights of action and all of the books and records of the insurer ordered liquidated, wherever located, as of the date of the filing of the petition for liquidation. The commissioner may recover and reduce the same to possession except that ancillary receivers in reciprocal states shall have, as to assets located in their respective states, the rights and powers which are prescribed in section 60B.55, subdivision 3, for ancillary receivers appointed in this state as to assets located in this state. The recording of the order with any county recorder in this state imparts the same notice as a deed, bill of sale, or other evidence of title duly recorded with that county recorder.
Subd. 2.
Fixing of rights.
Upon issuance of the order, the rights and liabilities of any such insurer and of its creditors, policyholders, shareholders, members, and all other persons interested in its estate are fixed as of the date of filing of the petition for liquidation, except as provided in sections 60B.22, 60B.25, clause (22), and 60B.39.
Subd. 3.
Alien insurer.
An order to liquidate the business of an alien insurer domiciled in this state shall be in the same terms and have the same legal effect as an order to liquidate a domestic insurer, except that the assets and the business in the United States shall be the only assets and business included under the order.
Subd. 4.
Declaration of insolvency.
At the time of petitioning for an order of liquidation, or at any time thereafter, the commissioner may petition the court to declare the insurer insolvent, and after such notice and hearing as it deems proper, the court may make the declaration.
History:
1969 c 708 s 21; 1976 c 181 s 2; 1986 c 444; 1999 c 177 s 18; 2005 c 4 s 7
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60B — Rehabilitation And Liquidation › Section 60B.22 — Continuance Of Coverage.

60B.22 CONTINUANCE OF COVERAGE.
Subdivision 1.
Length of continued coverage.
All insurance policies or similar contracts of coverage issued by the insurer shall continue in force:
(a) for a period of 30 days from the date of entry of the liquidation order;
(b) until the normal expiration of the policy or contract coverage;
(c) until the insured has replaced the coverage with equivalent coverage in another insurer; or
(d) until the liquidator has effected a transfer of the policy or contract obligation pursuant to section 60B.25, clause (8), whichever time is less.
Subd. 2.
Legal status of continued coverage.
If the coverage continued under this section is replaced by coverage that is not equivalent, the coverage continued under this section shall be excess coverage over the replacement coverage to the extent of the deficiency. Claims arising during the continuation of coverage shall be treated as if they arose immediately before the petition for liquidation. Coverage under this subdivision shall not satisfy any legal obligation of the insured to carry insurance protection or other coverage, whether the obligation is created by law or by contract.
History:
1969 c 708 s 22; 1993 c 299 s 7
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60B — Rehabilitation And Liquidation › Section 60B.23 — Dissolution Of Insurer.

60B.23 DISSOLUTION OF INSURER.
The commissioner may petition for an order dissolving the corporate existence of a domestic insurer or the United States branch of an alien insurer domiciled in this state at the time the commissioner applies for a liquidation order. If the court issues a liquidation order, it also shall order dissolution if the commissioner has petitioned for it. The court shall order dissolution of the corporation upon petition by the commissioner at any time after a liquidation order has been granted. If the dissolution has not previously occurred, it shall be effected by operation of law upon the discharge of the liquidator. The commissioner shall file a dissolution with the secretary of state pursuant to section 302A.711, subdivision 2, paragraphs (a), clauses (1), (2), and (5), and (b); and subdivisions 3 and 4.
History:
1969 c 708 s 23; 1986 c 444; 2005 c 69 art 2 s 9