reglab/statecodes huggingface dataset:
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60K — Insurance Producers › Section 60K.40 — Individuals Licensed In Another State; Exemption From Examination.

60K.40 INDIVIDUALS LICENSED IN ANOTHER STATE; EXEMPTION FROM EXAMINATION.
Subdivision 1.
Availability.
An individual who applies for an insurance producer license in this state who was previously licensed for the same lines of authority in another state is not required to complete any prelicensing education or examination. This exemption is only available if the person is currently licensed in that state or if the application is received within 90 days of the cancellation of the applicant's previous license and if the prior state issues a certification that, at the time of cancellation, the applicant was in good standing in that state or the state's Producer Database records, maintained by the National Association of Insurance Commissioners, its affiliates, or subsidiaries, indicate that the producer is or was licensed in good standing for the line of authority requested.
Subd. 2.
Required application.
If a person licensed as an insurance producer in another state who moves to this state makes application within 90 days of establishing legal residence to become a resident licensee under section 60K.37, no prelicensing education or examination is required of that person to obtain any line of authority previously held in the prior state.
History:
2001 c 117 art 1 s 11
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60K — Insurance Producers › Section 60K.41 — Assumed Names.

60K.41 ASSUMED NAMES.
An insurance producer doing business under any name other than the producer's legal name shall provide the commissioner with documentation that the assumed name has been properly filed with the secretary of state before using the assumed name.
History:
2001 c 117 art 1 s 12
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60K — Insurance Producers › Section 60K.42 — Temporary Licensing.

60K.42 TEMPORARY LICENSING.
Subdivision 1.
Commissioner's authority to grant.
The commissioner may issue a temporary insurance producer license for a period not to exceed 180 days without requiring an examination if the commissioner considers the temporary license necessary for the servicing of an insurance business in the following cases:
(1) to the surviving spouse or court-appointed personal representative of a licensed insurance producer who dies or becomes mentally or physically disabled to allow adequate time for the sale of the insurance business owned by the producer or for the recovery or return of the producer to the business or to provide for the training and licensing of new personnel to operate the producer's business;
(2) to a member or employee of a business entity licensed as an insurance producer, upon the death or disability of an individual designated in the business entity application or the license;
(3) to the designee of a licensed insurance producer entering active service in the armed forces of the United States of America; or
(4) in any other circumstance where the commissioner considers that the public interest will best be served by the issuance of this license.
Subd. 2.
Limitations.
The commissioner may by order limit the authority of any temporary licensee in any way considered necessary to protect insureds and the public. The commissioner may require the temporary licensee to have a suitable sponsor who is a licensed producer or insurer and who assumes responsibility for all acts of the temporary licensee and may impose other similar requirements designed to protect insureds and the public. The commissioner may by order revoke a temporary license if the interests of insureds or the public are endangered. A temporary license may not continue after the owner or the personal representative disposes of the business.
History:
2001 c 117 art 1 s 13
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60K — Insurance Producers › Section 60K.44 — Tax Clearance Certificate.

60K.44 TAX CLEARANCE CERTIFICATE.
Subdivision 1.
Requirement for issuance or renewal of license.
In addition to the provisions of section 60K.43, the commissioner may not issue or renew a license if the commissioner of revenue notifies the commissioner and the licensee or applicant for a license that the licensee or applicant owes the state delinquent taxes in the amount of $500 or more. The commissioner may issue or renew the license only if:
(1) the commissioner of revenue issues a tax clearance certificate; and
(2) the commissioner of revenue or the licensee or applicant forwards a copy of the clearance certificate to the commissioner.
The commissioner of revenue may issue a clearance certificate only if the licensee or applicant does not owe the state any uncontested delinquent taxes.
Subd. 2.
Definitions.
For purposes of this section, the following terms have the meanings given them:
(1) "taxes" are all taxes payable to the commissioner of revenue, including penalties and interest due on those taxes; and
(2) "delinquent taxes" do not include a tax liability if (i) an administrative or court action that contests the amount or validity of the liability has been filed or served, (ii) the appeal period to contest the tax liability has not expired, or (iii) the licensee or applicant has entered into a payment agreement to pay the liability and is current with the payments.
Subd. 3.
Contested case hearing.
In lieu of the notice and hearing requirements of section 60K.43, when a licensee or applicant is required to obtain a clearance certificate under this section, a contested case hearing must be held if the licensee or applicant requests a hearing in writing to the commissioner of revenue within 30 days of the date of the notice provided in subdivision 1. The hearing must be held within 45 days of the date the commissioner of revenue refers the case to the Office of Administrative Hearings. Notwithstanding any law to the contrary, the licensee or applicant must be served with 20 days' notice in writing specifying the time and place of the hearing and the allegations against the licensee or applicant. The notice may be served personally or by mail.
Subd. 4.
Identification required.
The commissioner shall require all licensees or applicants to provide their Social Security number and Minnesota business identification number on all license applications. Upon request of the commissioner of revenue, the commissioner must provide to the commissioner of revenue a list of all licensees and applicants, including the name and address, Social Security number, and business identification number. The commissioner of revenue may request a list of the licensees and applicants no more than once each calendar year.
History:
2001 c 117 art 1 s 15
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60K — Insurance Producers › Section 60K.45 — Surrender Of License.

60K.45 SURRENDER OF LICENSE.
The commissioner shall promptly notify the licensee and all appointing insurers, where applicable, of any suspension, revocation, or termination of the licensee's producer license by the commissioner. Upon receipt of the notice of suspension or revocation of a license, the licensee shall immediately deliver it to the commissioner.
History:
2001 c 117 art 1 s 16
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60K — Insurance Producers › Section 60K.47 — Liability For Placing Insurance In Unauthorized Company.

60K.47 LIABILITY FOR PLACING INSURANCE IN UNAUTHORIZED COMPANY.
Any person, whether or not licensed as an insurance producer, who participates in any manner in the sale of any insurance policy or certificate, or any other contract providing benefits, for or on behalf of any company that is required to be, but that is not authorized to engage in the business of insurance in this state, other than pursuant to sections 60A.195 to 60A.209, is personally liable for all premiums, whether earned or unearned, paid by the insured, and the premiums may be recovered by the insured. In addition, that person is personally liable for any loss the insured has sustained or may sustain if the loss is one resulting from a risk or hazard covered in the issued policy, certificate, or contract, or which would have been covered if the policy, certificate, or contract had been issued to the purchaser of the insurance.
History:
2001 c 117 art 1 s 18
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60K — Insurance Producers › Section 60K.48 — Commissions.

60K.48 COMMISSIONS.
Subdivision 1.
Payment prohibited.
An insurance company or insurance producer shall not pay a commission, service fee, brokerage, or other valuable consideration to a person for selling, soliciting, or negotiating insurance in this state if that person is required to be licensed under sections 60K.30 to 60K.56 and is not so licensed.
Subd. 2.
Acceptance prohibited.
A person shall not accept a commission, service fee, brokerage, or other valuable consideration for selling, soliciting, or negotiating insurance in this state if that person is required to be licensed under sections 60K.30 to 60K.56 and is not so licensed.
Subd. 3.
Exceptions.
(a) Renewal or other deferred commissions may be paid to a person for selling, soliciting, or negotiating insurance in this state if the person was required to be licensed under sections 60K.30 to 60K.56 at the time of the sale, solicitation, or negotiation and was so licensed at that time.
(b) An insurer or insurance producer may pay or assign commissions, service fees, brokerages, or other valuable consideration to an insurance agency or to persons who do not sell, solicit, or negotiate insurance in this state, unless the payment would constitute an illegal rebate or otherwise violate section 72A.20, subdivision 10. A duly licensed producer may pay commissions or assign or direct that commissions be paid to a partnership of which the producer is a member, employee, or agent, or to a corporation of which the agent is an officer, employee, or agent.
Subd. 4.
Individual health plans.
(a) If a health carrier pays commissions or service fees to licensed producers who are appointed by the health carrier for sale of an individual health plan, then, within 30 days of receipt of the agent of record agreement, the health carrier must accommodate a policyholder or applicant for coverage by allowing a policyholder or applicant to select or change the agent of record, effective upon the next premium cycle.
(b) The health carrier's standard commission and service fees must be paid to the policyholder's agent of record or the agent's assignee if any premium rate for an individual health plan has been approved by the commissioner with costs associated with producer commissions included in the filed rate.
(c) A health carrier is prohibited from offering, renewing, or failing to renew individual health plans based solely on the commission-paying status of the health plan.
(d) Nothing in this subdivision requires a health carrier to pay any commission or service fee with respect to the sale of an individual health plan, unless the rate for the individual health plan has been approved by the commissioner with costs associated with producer commissions included in the filed rate.
History:
2001 c 117 art 1 s 19; 2002 c 379 art 1 s 24; 2015 c 58 s 3; 2017 c 23 s 2
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60K — Insurance Producers › Section 60K.49 — Appointments.

60K.49 APPOINTMENTS.
Subdivision 1.
Agent of insurer.
A person performing acts requiring a producer license under this chapter is at all times the agent of the insurer and not the insured.
Subd. 2.
Requirements.
Except as described in subdivision 3, a licensed insurance producer shall not engage in the business of insurance with an insurer unless the producer either:
(1) has been appointed by that insurer; or
(2) has the permission of the insurer to transact business on its behalf and obtains an appointment from the insurer within 15 days after the first application is submitted to the insurer.
Subd. 3.
Exception.
A licensed insurance producer may, in response to the needs of a customer, procure insurance in a class of insurance for which the producer is licensed from an insurer by which the producer is not appointed, if the transaction is consummated through an appointed agent of the insurer.
Subd. 4.
Procedure.
To appoint a producer as its agent, the appointing insurer shall file, in a format approved by the commissioner, a notice of appointment within 15 days from the date the agency contract is executed or the first insurance application is submitted. An insurer may also elect to appoint a producer to all or some insurers within the insurer's holding company system or group by the filing of a single appointment request. No insurer shall appoint a producer until the producer obtains a license under this chapter.
Subd. 5.
Eligibility.
Upon receipt of the notice of appointment, the commissioner shall verify within a reasonable time not to exceed 30 days that the insurance producer is eligible for appointment. If the insurance producer is determined to be ineligible for appointment, the commissioner shall notify the insurer within five days of its determination.
Subd. 6.
Fees.
An insurer shall pay an appointment fee, in the amount and method of payment set forth in section 60A.14, subdivision 1, for each insurance producer appointed by the insurer.
Subd. 7.
Period of effectiveness.
Appointments shall remain in force until voluntarily terminated by the insurer or the producer, or until the license of the producer has been terminated for any reason. An insurer may terminate the appointment at any time by notifying the commissioner and the producer under section 60K.51. If the insurer does not specify an effective date, the termination is effective on the date the notice is received by the commissioner. Within 30 days after the insurer gives notice to the commissioner, the insurer shall furnish the producer with a current statement of the producer's commission account.
History:
2001 c 117 art 1 s 20
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60K — Insurance Producers › Section 60K.50 — Limitation On Appointments.

60K.50 LIMITATION ON APPOINTMENTS.
No insurer or representative of an insurer shall knowingly appoint a producer who is known to the insurer or representative to have engaged in any of the activities in section 60K.43 or to be otherwise unqualified or unfit. Upon discovery by the insurer or a representative of the insurer that an appointed producer has engaged in any of the activities in section 60K.43 or is otherwise unqualified or unfit, the insurer shall immediately terminate the appointment and notify the commissioner as set forth in section 60K.51. No insurer shall employ a producer whose license has been revoked.
History:
2001 c 117 art 1 s 21
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60K — Insurance Producers › Section 60K.52 — Use And Sharing Of Licensing And Investigative Data.

60K.52 USE AND SHARING OF LICENSING AND INVESTIGATIVE DATA.
Subdivision 1.
Commissioner's authority.
In order to assist in the performance of the commissioner's duties under sections 60K.30 to 60K.56, the commissioner:
(1) may share licensing data or any active or inactive investigative data with other state, federal, and international regulatory agencies, with the National Association of Insurance Commissioners, its affiliates or subsidiaries, and with state, federal, and international law enforcement authorities if the recipient agrees to maintain the data in a manner consistent with its data classification;
(2) may receive documents, materials, or information, including otherwise confidential and privileged documents, materials, or information, from the National Association of Insurance Commissioners, its affiliates or subsidiaries, and from regulatory and law enforcement officials of other foreign or domestic jurisdictions, and shall maintain as confidential or privileged any document, material, or information received with notice or the understanding that it is confidential or privileged under the laws of the jurisdiction that is the source of the document, material, or information; and
(3) may enter into agreements governing sharing and use of information consistent with this subdivision.
No waiver of any applicable privilege or claim of confidentiality in the documents, materials, or information occurs as a result of disclosure to the commissioner under this section or as a result of sharing as authorized in this subdivision.
Nothing in sections 60K.30 to 60K.56 prohibits the commissioner from releasing information concerning final, adjudicated actions, including for-cause terminations, to a database or other clearinghouse service maintained by the National Association of Insurance Commissioners, its affiliates, or subsidiaries of the National Association of Insurance Commissioners.
Subd. 2.
Penalties for failing to report.
An insurer, the authorized representative of the insurer, or a producer that fails to report as required under this section or that is found to have reported with actual malice by a court of competent jurisdiction may, after notice and hearing, have its license or certificate of authority suspended or revoked and may be fined in accordance with section 45.027.
History:
2001 c 117 art 1 s 23; 2002 c 379 art 1 s 26
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60K — Insurance Producers › Section 60K.53 — Reciprocity.

60K.53 RECIPROCITY.
Subdivision 1.
Nonresident license waiver.
The commissioner shall waive any requirements for a nonresident license applicant with a valid license from the applicant's home state, except the requirements imposed by section 60K.39, if the applicant's home state awards nonresident licenses to residents of this state on the same basis.
Subd. 2.
Continuing education requirements.
A nonresident producer's satisfaction of that person's home state's continuing education requirements for licensed insurance producers constitutes satisfaction of this state's continuing education requirements if the nonresident producer's home state recognizes the satisfaction of its continuing education requirements imposed upon producers from this state on the same basis.
History:
2001 c 117 art 1 s 24
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60K — Insurance Producers › Section 60K.54 — Reporting Of Actions.

60K.54 REPORTING OF ACTIONS.
Subdivision 1.
Administrative actions.
A producer shall report to the commissioner any administrative action taken against the producer in another jurisdiction or by another governmental agency in this state within 30 days of the final disposition of the matter. This report must include a copy of the order, consent to order, or other relevant legal documents.
Subd. 2.
Criminal prosecutions.
Within 30 days of the date criminal prosecution begins, a producer shall report to the commissioner any criminal prosecution of the producer taken in any jurisdiction. The report must include a copy of the initial complaint filed, the order resulting from the hearing, and any other relevant legal documents. In addition, a producer shall report to the commissioner within ten days any conviction, guilty plea, or plea of nolo contendere to any felony or gross misdemeanor.
For purposes of this subdivision, the date the criminal prosecution begins is the date the indictment is returned or the date the criminal complaint is filed.
History:
2001 c 117 art 1 s 25; 2014 c 198 art 4 s 5
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60L — Investments Of Insurers › Section 60L.04 — Authorized Investments.

60L.04 AUTHORIZED INVESTMENTS.
Subdivision 1.
Authorization.
Subject to the provisions of sections 60L.01 to 60L.15, an insurer may loan or invest its funds, and may buy, sell, hold title to, possess, occupy, pledge, convey, manage, protect, insure, and deal with its investments, property, and other assets to the same extent as any other corporation or other person under the laws of this state or the United States.
Subd. 2.
Board of directors; duties.
With respect to all of the insurer's investments, the board of directors of an insurer shall exercise the judgment and care, under the circumstances then prevailing, that persons of reasonable prudence, discretion, and intelligence exercise in the management of a like enterprise, not in regard to speculating but in regard to the permanent disposition of their funds, considering the probable income as well as the probable safety of their capital. Investments must be of sufficient value, liquidity, and diversity to ensure the insurer's ability to meet its outstanding obligations based on reasonable assumptions as to new business production for current lines of business. As part of its exercise of judgment and care, the board of directors shall take into account the prudence evaluation criteria specified under section 60L.05.
Subd. 3.
Internal controls.
The insurer shall establish and implement internal controls and procedures to ensure compliance with investment policies and procedures to ensure that:
(1) the insurer's investment staff and any consultants used are reputable and capable;
(2) a periodic evaluation and monitoring process occurs for assessing the effectiveness of investment policy and strategies;
(3) management's performance is assessed in meeting the stated objectives within the investment policy; and
(4) appropriate analyses are undertaken of the degree to which asset cash flows are adequate to meet liability cash flows under different economic environments. The analyses must be conducted at least annually and make specific reference to economic conditions.
Subd. 4.
Compliance.
Compliance with sections 60L.01 to 60L.15 is determined in light of the facts and circumstances existing at the time of the insurer's decision or action and not by hindsight.
History:
1998 c 319 s 4
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60L — Investments Of Insurers › Section 60L.05 — Prudence Evaluation Criteria.

60L.05 PRUDENCE EVALUATION CRITERIA.
The factors in clauses (1) to (12) shall be evaluated by the insurer and considered along with its business in determining whether an investment portfolio or investment policy is prudent. The commissioner shall consider the factors in clauses (1) to (12) before making a determination that an insurer's investment portfolio or investment policy is not prudent:
(1) general economic conditions;
(2) the possible effect of inflation or deflation;
(3) the expected tax consequences of investment decisions or strategies;
(4) the fairness and reasonableness of the terms of an investment considering its probable risk and reward characteristics and relationship to the investment portfolio as a whole;
(5) the extent of the diversification of the insurer's investments among individual investments, classes of investments, industry concentrations, dates of maturity, and geographic areas;
(6) the quality and liquidity of investments in affiliates;
(7) the investment exposure to the following risks, quantified in a manner consistent with the insurer's acceptable risk level identified in section 60L.06, clause (8): liquidity; credit and default; systemic (market); interest rate; call, prepayment and extension; currency; and foreign sovereign;
(8) the amount of the insurer's assets, capital and surplus, premium writings, insurance in force, and other appropriate characteristics;
(9) the amount and adequacy of the insurer's reported liabilities;
(10) the relationship of the expected cash flows of the insurer's assets and liabilities, and the risk of adverse changes in the insurer's assets and liabilities;
(11) the adequacy of the insurer's capital and surplus to secure the risks and liabilities of the insurer; and
(12) any other factors relevant to whether an investment is prudent.
History:
1998 c 319 s 5
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60L — Investments Of Insurers › Section 60L.06 — Insurer Investment Policy.

60L.06 INSURER INVESTMENT POLICY.
In acquiring, investing, exchanging, holding, selling, and managing investments, an insurer shall establish and follow a written investment policy that must be reviewed and approved by the insurer's board of directors at least annually. The content and format of an insurer's investment policy are at the insurer's discretion, but must include written guidelines appropriate to the insurer's business as to the following:
(1) the general investment policy of the insurer containing policies, procedures, and controls covering all aspects of the investing function;
(2) quantified goals and objectives regarding the composition of classes of investments, including maximum internal limits;
(3) periodic evaluation of the investment portfolio as to its risk and reward characteristics. This clause does not preclude an insurer from the use of modern portfolio theory to manage its investments. For purposes of this section, "modern portfolio theory" means the collection of models and applications that prescribe the maximization of expected returns for a given level of aggregate risk as the primary objective of investment portfolio management;
(4) professional standards for the individuals making day-to-day investment decisions to ensure that investments are managed in an ethical and capable manner;
(5) the types of investments to be made and those to be avoided, based on their risk and reward characteristics and the insurer's level of experience with the investments;
(6) the relationship of classes of investments to the insurer's insurance products and liabilities;
(7) the manner in which the insurer intends to implement section 60L.05; and
(8) the level of risk, based on quantitative measures, appropriate for the insurer given the level of capitalization and expertise available to the insurer.
History:
1998 c 319 s 6
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60L — Investments Of Insurers › Section 60L.07 — Authorized Classes Of Investments.

60L.07 AUTHORIZED CLASSES OF INVESTMENTS.
The following classes of investments may be counted for the purposes specified in section 60L.11, whether they are made directly or as a participant in a partnership, joint venture, or limited liability company:
(1) cash in the direct possession of the insurer or on deposit with a financial institution regulated by any federal or state agency of the United States;
(2) bonds, debt-like preferred stock, and other evidences of indebtedness of governmental units in the United States or Canada, or the instrumentalities of the governmental units, or private business entities domiciled in the United States or Canada, including asset-backed securities and SVO listed mutual funds;
(3) loans secured by mortgages, trust deeds, or other security interests in real property located in the United States or Canada or secured by insurance against default issued by a government insurance corporation of the United States or Canada or by an insurer authorized to do business in this state;
(4) common stock or equity-like preferred stock or equity interests in any United States or Canadian business entity, or shares of mutual funds registered with the Securities and Exchange Commission of the United States under the Investment Company Act of 1940, other than SVO listed mutual funds;
(5) real property necessary for the convenient transaction of the insurer's business;
(6) real property and its fixtures, furniture, furnishings, and equipment in the United States or Canada, which produces or after suitable improvement can reasonably be expected to produce substantial income;
(7) loans, securities, or other investments of the types described in clauses (1) to (6) in countries other than the United States and Canada;
(8) bonds or other evidences of indebtedness of international development organizations of which the United States is a member;
(9) loans upon the security of the insurer's own policies in amounts that are adequately secured by the policies and that in no case exceed the surrender values of the policies;
(10) tangible personal property under contract of sale or lease under which contractual payments may reasonably be expected to return the principal of and provide earnings on the investment within its anticipated useful life;
(11) other investments authorized by the commissioner; and
(12) investments not otherwise permitted by this section, and not specifically prohibited by other law, to the extent of not more than five percent of the first $500,000,000 of the insurer's admitted assets plus ten percent of the insurer's admitted assets exceeding $500,000,000.
History:
1998 c 319 s 7
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60L — Investments Of Insurers › Section 60L.09 — Protection Against Currency Fluctuations.

60L.09 PROTECTION AGAINST CURRENCY FLUCTUATIONS.
An insurer doing business that requires it to make payments in different currencies shall have investments in securities in each of these currencies in an amount that independently of all other investments meets the requirements of sections 60L.01 to 60L.15 as applied separately to the insurer's obligations in each currency. The commissioner may by order exempt an insurer, or a class of insurers, from this requirement if the obligations in other currencies are small enough that no significant problem for financial solidity would be created by substantial fluctuations in relative currency values.
History:
1998 c 319 s 9
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60L — Investments Of Insurers › Section 60L.10 — Prohibited Investments.

60L.10 PROHIBITED INVESTMENTS.
Subdivision 1.
Prohibitions.
An insurer may not invest in investments that are prohibited for an insurer by law. The use of a derivative instrument for any purposes other than hedging, income generation, or replication is prohibited.
Subd. 2.
Disposal of prohibited asset.
A reasonable time, not to exceed five years, must be allowed for disposal of a prohibited investment in hardship cases if the investment is demonstrated by the insurer to have been legal when made, or the result of a mistake made in good faith, or if the commissioner determines that the sale of the asset would be contrary to the interests of insureds, creditors, or the general public.
History:
1998 c 319 s 10; 2001 c 131 s 10
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60L — Investments Of Insurers › Section 60L.11 — Effect Of Investment Restrictions.

60L.11 EFFECT OF INVESTMENT RESTRICTIONS.
Subdivision 1.
Invested assets.
Invested assets may be counted toward satisfaction of the minimum asset requirement only so far as they are invested in compliance with sections 60L.01 to 60L.15 and orders issued by the commissioner. Assets other than invested assets may be counted toward satisfaction of the minimum asset requirement at admitted annual statement value.
Subd. 2.
Admitted asset.
An investment which is held as an admitted asset by an insurer on the date on which sections 60L.01 to 60L.15 begin to govern the insurer and which qualified as an admitted asset immediately before this date remain qualified as an admitted asset under sections 60L.01 to 60L.15.
Subd. 3.
Acquired assets.
Assets acquired in the bona fide enforcement of creditors' rights or in bona fide workouts or settlements of disputed claims may be counted for the purposes of subdivision 1 for five years after acquisition if real property and three years if not real property, even if they could not otherwise be counted under sections 60L.01 to 60L.15. The commissioner may allow reasonable extensions of these periods if replacement of the assets within the periods would not be possible without substantial loss.
Subd. 4.
Liquidation and rehabilitation.
If an insurer does not own, or is unable to apply toward compliance with sections 60L.01 to 60L.15, an amount of assets equal to its minimum asset requirement, the commissioner may consider it to be financially hazardous under section 60B.15; 60B.20; or 60G.20.
History:
1998 c 319 s 11
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60L — Investments Of Insurers › Section 60L.12 — Reports And Replies.

60L.12 REPORTS AND REPLIES.
Subdivision 1.
Requirements.
The commissioner may require any of the following from a person subject to regulation under sections 60L.01 to 60L.15:
(1) statements, reports, answers to questionnaires and other information, and evidence in whatever reasonable form the commissioner designates, and at reasonable intervals as the commissioner chooses;
(2) full explanation of the programming of any data storage or communication system in use; or
(3) that information from any books, records, electronic data processing systems, computers, or any other information storage system be made available to the commissioner at a reasonable time and in a reasonable manner.
Subd. 2.
Forms.
The commissioner may prescribe forms for the reports required under subdivision 1 and specify who shall execute or certify the reports. The forms for the reports required under subdivision 1 must be consistent, so far as practicable, with those prescribed by other jurisdictions.
Subd. 3.
Accounting.
The commissioner may prescribe reasonable minimum standards and techniques of accounting and data handling to ensure that timely and reliable information will exist and will be available to the commissioner.
Subd. 4.
Prompt reply.
Any officer, manager, or general agent of an insurer subject to sections 60L.01 to 60L.15, any person controlling or having a contract under which the person has a right to control the insurer, whether exclusively or otherwise, or a person with executive authority over or in charge of any segment of the insurer's affairs, shall reply promptly in writing or in other reasonably designated form, to a written inquiry from the commissioner requesting a reply.
Subd. 5.
Verified communication.
The commissioner may require that any communication made to the commissioner under this section be verified.
Subd. 6.
No action for damages.
A communication to the commissioner, or to an expert or consultant retained by the commissioner, required under sections 60L.01 to 60L.15, shall not subject the person making it to an action for damages for the communication in the absence of actual malice.
Subd. 7.
Information.
Notwithstanding subdivision 6, the commissioner may bring suit against any person providing information required under sections 60L.01 to 60L.15 that is not truthful and accurate.
History:
1998 c 319 s 12
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60L — Investments Of Insurers › Section 60L.13 — Retention Of Experts.

60L.13 RETENTION OF EXPERTS.
The commissioner may retain at the insurer's expense attorneys, actuaries, accountants, and other experts not otherwise a part of the commissioner's staff as may be reasonably necessary to assist in reviewing the insurer's investments. Persons so retained are under the direction and control of the commissioner and shall act in a purely advisory capacity.
History:
1998 c 319 s 13
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60L — Investments Of Insurers › Section 60L.14 — Commissioner's Orders.

60L.14 COMMISSIONER'S ORDERS.
Subdivision 1.
Necessary changes.
If the commissioner determines that an insurer's investment practices do not meet the requirements of sections 60L.01 to 60L.15, the commissioner may, after notification to the insurer of the commissioner's findings, order the insurer to make changes necessary to comply with the requirements of sections 60L.01 to 60L.15.
Subd. 2.
Additional restrictions.
If the commissioner determines that by reason of the financial condition, current investment practice, or current investment plan of an insurer, the interests of insureds, creditors, or the general public are or may be endangered, the commissioner may impose reasonable additional restrictions upon the admissibility or valuation of investments or may impose restrictions on the investment practices of an insurer, including prohibition, divestment, or requiring investments by insurers to be governed by section 60A.11 in the case of insurers other than life insurers, and sections 61A.28; 61A.282, subdivision 2; 61A.283; 61A.29; 61A.31; and 61A.315 in the case of life insurers.
Subd. 3.
Additional assets.
The commissioner may count toward satisfaction of the minimum asset requirement any assets in which an insurer is required to invest under the laws of a country other than the United States as a condition for doing business in that country if the commissioner finds that counting them does not endanger the interests of insureds, creditors, or the general public.
Subd. 4.
Adjustments.
If the commissioner is satisfied by evidence of the solidity of an insurer and the competence of management and its investment advisors, the commissioner, after a hearing, may by order adjust the class limitations under section 60L.08, for that insurer, to the extent that the commissioner is satisfied that the interests of insureds, creditors, and the public are sufficiently protected in other ways. Adjustments to the class limitations granted under section 60L.08, in aggregate, are limited to an amount equal to ten percent of the insurer's liabilities.
History:
1998 c 319 s 14
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60L — Investments Of Insurers › Section 60L.15 — Administrative Hearings.

60L.15 ADMINISTRATIVE HEARINGS.
Subdivision 1.
Authorization.
An insurer aggrieved by an order or any other act or failure to act of the commissioner regarding compliance with sections 60L.01 to 60L.15, may request a hearing by following the procedures of chapter 14.
Subd. 2.
Private hearing.
The commissioner shall hold hearings under this section privately unless the insurer requests a public hearing, in which case the hearing is public.
History:
1998 c 319 s 15
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 61A — Life Insurance › Section 61A.01 — Life Insurance Company Defined.

61A.01 LIFE INSURANCE COMPANY DEFINED.
Every corporation or association, domestic or foreign, operating upon any plan involving payment of money or other thing of value to policy or certificate holders, or members, or families, or representatives of either, conditioned upon the continuance or cessation of human life, or for the payment of endowments or annuities (except benevolent, fraternal, cooperative or secret societies of orders for the sole purpose of mutual welfare, protection and relief of their members and the payment of stipulated amounts, or the proceeds of assessments, to the families of deceased members), shall be deemed a life insurance company, and wherever used in this chapter, the terms "company," "life company," "corporation" or "association" shall be construed to mean life insurance company unless the context clearly indicates otherwise.
History:
1967 c 395 art 2 s 1
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 61A — Life Insurance › Section 61A.021 — Sale Of Life Insurance And Annuity As Single Policy Prohibited.

61A.021 SALE OF LIFE INSURANCE AND ANNUITY AS SINGLE POLICY PROHIBITED.
Subdivision 1.
Sale as single policy prohibited.
The sale of a life insurance product and an annuity as a single policy, whether in the form of a life insurance policy with an annuity rider or otherwise, is prohibited in this state. This subdivision does not prohibit the simultaneous sale of these products, but the sale must involve two separate and distinct policies.
Subd. 2.
Tying prohibited.
The tying of the sale of a life insurance product and an annuity is expressly prohibited. The sale of one policy cannot be conditioned upon the sale of a second policy. A violation of subdivision 1 is an unfair and deceptive trade practice under chapter 72A.
Subd. 3.
Exemption.
The commissioner may exempt by order such a product from this section if it is in the public interest.
Subd. 4.
Implementation.
This section applies to all sales where applications are completed on or after July 1, 1985.
History:
1Sp1985 c 10 s 56
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 61A — Life Insurance › Section 61A.031 — Suicide Provisions.

61A.031 SUICIDE PROVISIONS.
(a) The sanity or insanity of a person shall not be a factor in determining whether a person committed suicide within the terms of an individual or group life insurance policy regulating the payment of benefits in the event of the insured's suicide. This paragraph shall not be construed to alter present law but is intended to clarify present law.
(b) A life insurance policy or certificate issued or delivered in this state may exclude or restrict liability for any death benefit in the event the insured dies as a result of suicide within one year from the date of the issue of the policy or certificate. Any exclusion or restriction shall be clearly stated in the policy or certificate. Any life insurance policy or certificate which contains any exclusion or restriction under this paragraph shall also provide that in the event any death benefit is denied because the insured dies as a result of suicide within one year from the date of issue of the policy or certificate, the insurer shall refund all premiums paid for coverage providing the denied death benefit on the insured.
History:
1981 c 286 s 1; 2023 c 57 art 2 s 4
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 61A — Life Insurance › Section 61A.04 — Spendthrift Provisions.

61A.04 SPENDTHRIFT PROVISIONS.
In addition to the provisions now required by law to be in the standard form of life insurance policies issued or delivered in this state, there shall be, when such policy provides for the payment to the beneficiary the proceeds thereof, in either monthly, quarterly, semiannual or annual installments, to continue during the lifetime of the beneficiary, or for a stipulated number of years, whenever requested by the insured under the policy, the following provisions:
All rights of the beneficiary to commute, change time of payment or amount of installments, surrender for cash, borrow against or assign for any purpose, are hereby withdrawn and those parts of this policy giving the beneficiary such rights are hereby declared inoperative and void; it being the intent hereof that the beneficiary shall have no right under this contract except to receive the installments at such times and in such amounts as stated in this policy, and all the provisions of this policy in conflict herewith are hereby declared to be inoperative.
This provision may be attached to any policy in the form of a rider thereon, and, when so attached, shall become a part of and form a part of the contract of insurance, evidenced by the policy to all intents and purposes as if set forth at length therein.
History:
1967 c 395 art 2 s 4
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 61A — Life Insurance › Section 61A.05 — Life Policies To Contain Entire Contract.

61A.05 LIFE POLICIES TO CONTAIN ENTIRE CONTRACT.
Every policy of insurance issued or delivered within this state on or after the first day of January, 1908, by any life insurance corporation doing business within the state, shall contain the entire contract between the parties.
Every policy which contains a reference to the application, either as a part of the policy or as having any bearing thereon, shall have a copy of such application attached thereto or set out therein.
History:
1967 c 395 art 2 s 5
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 61A — Life Insurance › Section 61A.06 — Aviation And War Risk Exclusion Permitted.

61A.06 AVIATION AND WAR RISK EXCLUSION PERMITTED.
Policies of life insurance may be delivered or issued for delivery in this state which limit the amount to be paid in the event of death occurring as a result of travel or flight in, or descent from or with, any kind of aircraft if the insured (1) is a pilot, officer or member of the crew of such aircraft, or is participating in aeronautic or aviation training during such flight, or (2) is in the military, naval or air forces of any country and is being transported in a military, naval or air force aircraft. Such amount shall not be less than the reserve on the policy plus any dividends standing to the credit of the policy and the reserve for any paid-up additions, less any indebtedness to the company on the policy. Such limitation may be made by a provision in the policy or by a rider made a part thereof provided, that no such limitation shall be effective unless and until the insured or applicant shall agree in writing thereto; and provided, further, that except in case of policies issued on the lives of persons who have received aeronautic or aviation training or whose occupation entails duty aboard aircraft in flight, such limitation shall apply only in event death occurs within five years after date of issue of the policy. This section shall not affect the validity of provisions which limit the amount to be paid in the event of death of the insured while in the military, naval or air forces of any country at war, or of provisions relative to benefits in the event of total and permanent disability, or of provisions which grant additional insurance specifically against death by accident. Policies issued by life insurance companies organized under the laws of this state for delivery in any other state, territory, district, or country may contain any provisions limiting the amount to be paid in the event of death which are permitted by the laws of such other state, territory, district, or country.
History:
1967 c 395 art 2 s 6
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 61A — Life Insurance › Section 61A.07 — Prohibited Provisions.

61A.07 PROHIBITED PROVISIONS.
No policy of life insurance shall be issued or delivered in this state, or be issued by a life insurance company organized under the laws of this state, if it contains a provision:
(1) for forfeiture of the policy for failure to repay any loan on the policy or to pay interest on such loan while the total indebtedness on the policy is less than the loan value thereof; or for forfeiture for failure to repay any such loan or to pay interest thereon, unless such provision contain a stipulation that no such forfeiture shall occur until at least one month after notice shall have been mailed by the company to the last known address of the insured and of the assignee, if any, notice of whose address and contract of the assignment has been filed with the company, at its home office; or
(2) in a life policy or annuity contract, limiting the time within which any action at law or in equity may be commenced to less than five years after the cause of action shall accrue; or
(3) by which the policy shall purport to be issued or to take effect more than six months before the original application for the insurance was made; or
(4) for any mode of settlement at maturity of less value than the amount insured on the face of the policy plus any dividend additions, less any indebtedness to the company on the policy, and less any premium that may be deducted by the terms of the policy.
History:
1967 c 395 art 2 s 7; 1994 c 485 s 17
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 61A — Life Insurance › Section 61A.071 — Applications.

61A.071 APPLICATIONS.
No individual life insurance policy shall be issued or delivered in this state to a person age 65 or older unless a signed and completed copy of the application for insurance is left with the applicant at the time application is made. This requirement will not apply to life insurers who mail a copy of the signed, completed application to the applicant within 24 hours of receiving the application. However, where an individual life policy is marketed on a direct response basis, a copy of any application signed by the applicant shall be delivered to the insured along with, or as part of, the policy.
History:
1983 c 263 s 7; 1994 c 485 s 18; 1995 c 258 s 16