reglab/statecodes huggingface dataset:
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 64B — Fraternal Benefit Societies › Section 64B.34 — Unfair Methods Of Competition And Unfair And Deceptive Acts And Practices.

64B.34 UNFAIR METHODS OF COMPETITION AND UNFAIR AND DECEPTIVE ACTS AND PRACTICES.
Every society authorized to do business in this state shall be subject to the provisions of chapter 72A relating to prohibitions and penalties in general and the regulation of trade practices; provided, however, that nothing in those provisions shall be construed as applying to or affecting the right of any society to determine its eligibility requirements for membership, or be construed as applying to or affecting the offering of benefits exclusively to members or persons eligible for membership in the society by a subsidiary corporation or affiliated organization of the society.
History:
1985 c 49 s 34
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 64B — Fraternal Benefit Societies › Section 64B.35 — Service Of Process.

64B.35 SERVICE OF PROCESS.
Subdivision 1.
Appointment of commissioner as attorney.
Every society authorized to do business in this state shall appoint in writing the commissioner and each successor in office to be its true and lawful attorney upon whom all lawful process in any action or proceeding against it shall be served, and shall agree in writing that any lawful process against it which is served on the attorney shall be of the same legal force and validity as if served upon the society, and that the authority shall continue in force so long as any liability remains outstanding in this state. Copies of the appointment, certified by the commissioner, shall be deemed sufficient evidence thereof and shall be admitted in evidence with the same force and effect as the original thereof might be admitted.
Subd. 2.
Service.
Service under this section shall be made in compliance with section 45.028, subdivision 2. No service shall require a society to file its answer, pleading, or defense in less than 30 days from the date of mailing the copy of the service to a society. Legal process shall not be served upon a society except in the manner herein provided.
History:
1985 c 49 s 35; 1992 c 564 art 2 s 5
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 64B — Fraternal Benefit Societies › Section 64B.37 — Penalties.

64B.37 PENALTIES.
Subdivision 1.
Violations generally.
Any person violating the provisions of section 64B.14, subdivisions 2 and 3, shall be guilty of a felony; and, upon conviction, liable to a fine of not more than $10,000, or to imprisonment for not more than five years, or to both fine and imprisonment.
Subd. 2.
False or fraudulent statements or representations.
Any person, officer, member, or examining physician, who knowingly or willfully makes any false or fraudulent statement or representation in, or with reference to, any application for membership for the purpose of obtaining money from or benefit in any society transacting business under this chapter is guilty of a misdemeanor:
(1) any person who willfully makes a false statement of any material fact or thing in a sworn statement as to the death or disability of a certificate holder in any such society, for the purpose of procuring payment of a benefit named in the certificate of such holder, and any person who willfully makes any false statement and any verified report or declaration under oath, required or authorized under this chapter, is guilty of perjury and shall be proceeded against and punished as provided by the statutes of this state in relation to the crime of perjury;
(2) any person who solicits membership for, or in any manner assists in procuring membership in, any society not licensed to do business in this state, or who solicits membership for or in any manner assists in procuring membership in, any such society not authorized to do business in this state, is guilty of a misdemeanor;
(3) any society, or any officer, agent, or employee thereof, neglecting, refusing to comply with, or violating, any of the provisions of this chapter, the penalty for which neglect, refusal, or violation is not specified in this section, shall be fined not more than $1,000.
History:
1985 c 49 s 37; 1Sp1986 c 3 art 1 s 10; 1987 c 329 s 21; 2005 c 10 art 3 s 4
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 64B — Fraternal Benefit Societies › Section 64B.39 — Beneficiary Associations.

64B.39 BENEFICIARY ASSOCIATIONS.
Subdivision 1.
Definitions.
"Beneficiary association" means a corporation, society, or voluntary association heretofore organized and now existing and carried on for the sole benefit of its members and their families, relatives, or dependents, but not for profit, to insure the lives of its members only upon the whole life assessment plan, so-called, and in which organization admission to membership by a vote of the members or some governing body thereof, is a prerequisite to being entitled to such relief or policy of insurance, and which association sells neither endowments nor annuities.
Subd. 2.
Benefits.
Any beneficiary association may make provisions for the payment of benefits in case of sickness, or temporary or permanent physical disability, as a result of disease, accident, or age exceeding 70 years, and may also provide for the payment of funeral expenses of a member not exceeding $250; in any case, all of these benefits to be paid, subject to compliance by its members with its constitution and bylaws, out of funds derived from assessments and dues collected from its members.
Subd. 3.
Eligible beneficiaries.
Payments of death benefits shall be made only to the families, heirs, blood relatives, adopted children, fiance or fiancee of the member, or persons dependent upon the member, or, when the certificate of membership may so provide, the executor or administrator of the estate of the member in trust for the person or persons above mentioned as may be designated in the certificate. Any member who, by reason of old age, or other disability, is dependent for support, in whole or in part, upon another, whether or not such other stands in the above relationship to the member, may, with the consent of the association, and under regulations it prescribes, designate the person upon whom the member is so dependent as a beneficiary under the certificate; and, in that case, the death benefits shall be paid according to this designation.
Subd. 4.
Reserve; taxation.
Every association may create and maintain a reserve fund for that purpose and shall be held to be an institution of public charity, and shall be exempt from payment of any taxes for state, county, or municipal purposes, except that the real estate of the association shall be taxed as other real estate in the state.
Subd. 5.
Law applicable.
The beneficiary society or association shall be governed by the provisions of this chapter not inconsistent with this section and be excluded from all provisions of the insurance laws of this state to the same extent as fraternal benefit societies.
History:
1985 c 49 s 39; 1986 c 444; 1992 c 564 art 1 s 54
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 64B — Fraternal Benefit Societies › Section 64B.40 — Definitions.

64B.40 DEFINITIONS.
Subdivision 1.
Scope.
For the purposes of sections 64B.40 to 64B.48, the terms defined in this section have the meanings given them.
Subd. 2.
Adjusted risk-based capital report.
"Adjusted risk-based capital report" means a risk-based capital report that has been adjusted by the commissioner according to section 64B.41, subdivision 3.
Subd. 3.
Corrective order.
"Corrective order" means an order issued by the commissioner specifying corrective actions that the commissioner has determined are required.
Subd. 4.
NAIC.
"NAIC" means the National Association of Insurance Commissioners.
Subd. 5.
Negative trend.
"Negative trend" means, with respect to a society, negative trend over a period of time, as determined according to the "trend test calculation" included in the risk-based capital instructions.
Subd. 6.
Risk-based capital instructions.
"Risk-based capital instructions" means the risk-based capital report including risk-based capital instructions adopted by the NAIC, as those risk-based instructions may be amended by the NAIC from time to time according to the procedures adopted by the NAIC.
Subd. 7.
Risk-based capital level.
"Risk-based capital level" means a fraternal action level risk-based capital or fraternal authorized control level risk-based capital where:
(1) "fraternal action level risk-based capital" means the product of 2.0 and its authorized control level risk-based capital; and
(2) "fraternal authorized control level risk-based capital" means the number determined under the risk-based capital formula according to the risk-based capital instructions.
Subd. 8.
Risk-based capital plan.
"Risk-based capital plan" means a comprehensive financial plan containing the elements specified in section 64B.42. If the commissioner rejects the risk-based capital plan, and it is revised by the society, with or without the commissioner's recommendation, the plan must be called the "revised risk-based capital plan."
Subd. 9.
Risk-based capital report.
"Risk-based capital report" means the report required in section 64B.41.
Subd. 10.
Society.
"Society" means a fraternal benefit society that is admitted to do business in this state under this chapter.
Subd. 11.
Total adjusted capital.
"Total adjusted capital" means the sum of:
(1) a society's statutory capital and surplus as determined in accordance with statutory accounting applicable to the annual statement required to be filed under section 60A.13; and
(2) other items, if any, as the risk-based capital instructions may provide.
History:
2010 c 275 art 2 s 2
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 64B — Fraternal Benefit Societies › Section 64B.41 — Risk-based Capital Reports.

64B.41 RISK-BASED CAPITAL REPORTS.
Subdivision 1.
General requirements.
Every society shall, on or before each March 1, prepare and submit to the commissioner a report of its risk-based capital levels as of the end of the calendar year just ended, in a form and containing the information required by the risk-based capital instructions. In addition, every society shall file its risk-based capital report with the NAIC according to the risk-based capital instructions.
Subd. 2.
Specific requirements.
A society's risk-based capital must be determined according to the formula set forth in the risk-based capital instructions. The formula must take into account, and may adjust for the covariance between:
(1) the risk with respect to the society's assets;
(2) the risk of adverse insurance experience with respect to the society's liabilities and obligations;
(3) the interest rate risk with respect to the society's business; and
(4) all other business risks and other relevant risks set forth in the risk-based capital instructions;
determined in each case by applying the factors in the manner set forth in the risk-based capital instructions.
Subd. 3.
Adjusted risk-based capital report.
If a society files a risk-based capital report that in the judgment of the commissioner is inaccurate, then the commissioner shall adjust the risk-based capital report to correct the inaccuracy and shall notify the society of the adjustment. The notice must contain a statement of the reason for the adjustment. A risk-based capital report as so adjusted is referred to as an "adjusted risk-based capital report."
History:
2010 c 275 art 2 s 3
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 64B — Fraternal Benefit Societies › Section 64B.44 — Hearings.

64B.44 HEARINGS.
Upon notification to a society by the commissioner:
(1) that the risk-based capital report is being adjusted by the commissioner;
(2) that the society's risk-based capital plan or revised risk-based capital plan is unsatisfactory, and that the notification constitutes a fraternal action level event or fraternal authorized control level event with respect to the society;
(3) that the society has failed to adhere to its risk-based capital plan or revised risk-based capital plan and that the failure has substantial adverse effect on the ability of the society to eliminate the fraternal action level event with respect to the society according to its risk-based capital plan or revised risk-based capital plan; or
(4) that a corrective order will be issued with respect to the society;
the society has the right to a contested case hearing conducted in accordance with chapter 14, on a record, at which the society may challenge a determination or action by the commissioner. The society shall notify the commissioner of its request for a hearing within five days after the notification by the commissioner under clause (1), (2), (3), or (4). Upon receipt of the society's request for a hearing, the commissioner shall set a date for the hearing no less than ten nor more than 30 days after the date of the society's request.
History:
2010 c 275 art 2 s 6
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 64B — Fraternal Benefit Societies › Section 64B.45 — Prohibition On Announcements.

64B.45 PROHIBITION ON ANNOUNCEMENTS.
Except as otherwise required under sections 64B.40 to 64B.48, the making, publishing, dissemination, circulating, or placing before the public, or causing, directly or indirectly to be made, published, disseminated, circulated, or placed before the public, in a newspaper, magazine, or other publication, or in any other way, an advertisement, announcement, or statement containing an assertion, representation, or statement with regard to the risk-based capital levels of a society, or of any component derived in the calculation, by a society, agent, broker, or other person engaged in any manner in the insurance business would be misleading and is prohibited.
History:
2010 c 275 art 2 s 7
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 64B — Fraternal Benefit Societies › Section 64B.46 — Supplemental Provisions.

64B.46 SUPPLEMENTAL PROVISIONS.
Sections 64B.40 to 64B.48 are supplemental to other laws of this state and do not preclude or limit other powers or duties of the commissioner under those laws, including, but not limited to, chapters 60B and 60G.
History:
2010 c 275 art 2 s 8
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 64B — Fraternal Benefit Societies › Section 64B.47 — Immunity.

64B.47 IMMUNITY.
There is no liability on the part of, and no cause of action arises against, the commissioner or the Department of Commerce or its employees or agents for an action taken by them in the performance of their powers and duties under sections 64B.40 to 64B.48.
History:
2010 c 275 art 2 s 9
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 64B — Fraternal Benefit Societies › Section 64B.48 — Notices.

64B.48 NOTICES.
All notices by the commissioner to a society that may result in regulatory action under sections 64B.40 to 64B.48 are effective upon dispatch if transmitted by registered or certified mail, or, in the case of other transmission, are effective upon the society's receipt of the notice.
History:
2010 c 275 art 2 s 10
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 65A — Fire And Related Insurance › Section 65A.02 — Joint Policy.

65A.02 JOINT POLICY.
When two or more authorized companies unite in the issue of a joint policy, the heading thereof may show the severalty of the contract, and the policy shall show the proportion of premiums to be paid to each, and the proportion of liability which each assumes, and shall contain a provision to the effect that service of process, or any notice or proof of loss required by such policy, upon any of the insurers executing such policy, shall be deemed to be service upon all such insurers.
History:
1967 c 395 art 6 s 2
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 65A — Fire And Related Insurance › Section 65A.03 — Binders, Temporary Insurance.

65A.03 BINDERS, TEMPORARY INSURANCE.
Subdivision 1.
Generally.
Binders or other contracts for temporary insurance may be made orally or in writing, and shall be deemed to include all the terms of such standard fire insurance policy and all such applicable endorsements as may be designated in such contract of temporary insurance; except that the clause specifying the hour of the day at which the insurance shall commence, may be superseded by the express terms of such contract of temporary insurance.
Subd. 2.
Evidence for property purchase financing.
A duly authorized binder shall be acceptable as evidence of insurance coverage required as a condition of financing the purchase of real or personal property, provided that a mortgagee or lender shall not be required to accept renewal or extension thereof. This section does not require the approval of a binder by any person, firm, corporation, trustee, director, officer, agent, or employee, where there are reasonable grounds for believing that the insurance evidenced by the binder is unsatisfactory as to placement with an unauthorized insurer, the financial solvency of the insurer, adequacy of the coverage, adequacy of the insurer to assume the risk to be insured, the assessment feature to which the policy is subject, or other grounds which are not arbitrary, unreasonable, or discriminatory, nor does this section forbid the securing of insurance or a renewal thereof at the request of the borrower or because of the borrower's failure to furnish necessary insurance or renewal thereof.
Subd. 3.
Penalty.
If any person, firm, corporation, trustee, director, officer, agent, or employee, refuses to accept a duly authorized binder pursuant to subdivisions 1 and 2, the commissioner of commerce may issue an order requiring acceptance and impose a civil penalty of $500 per violation.
History:
1967 c 395 art 6 s 3; 1984 c 592 s 51; 1987 c 337 s 90
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 65A — Fire And Related Insurance › Section 65A.04 — Effect On Section 65a.08.

65A.04 EFFECT ON SECTION 65A.08.
Nothing in the preceding sections of this chapter shall be construed to limit the effect of or in any way modify or repeal section 65A.08.
History:
1967 c 395 art 6 s 4
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 65A — Fire And Related Insurance › Section 65A.05 — Nuclear Reaction, Radiation Or Radioactive Contamination; Endorsement.

65A.05 NUCLEAR REACTION, RADIATION OR RADIOACTIVE CONTAMINATION; ENDORSEMENT.
Loss or damage caused by nuclear reaction, nuclear radiation or radioactive contamination, all whether directly or indirectly resulting from an insured peril under the standard policy issued pursuant to sections 65A.01, 65A.02, 65A.03, and 65A.04, may be insured under said policy only by a written endorsement providing such insurance, with such endorsement affixed to said standard policy.
History:
1967 c 395 art 6 s 5
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 65A — Fire And Related Insurance › Section 65A.06 — Motor Vehicle, Ocean And Inland Marine Policies.

65A.06 MOTOR VEHICLE, OCEAN AND INLAND MARINE POLICIES.
Insurance on automobiles, motorcycles, other motor vehicles, or on property insured by ocean marine, and inland marine policies as defined by section 70A.03, clause (3), against loss or damage by fire, when combined in one policy with insurance against one or more of the other hazards mentioned in section 60A.06, subdivision 1, clause (1), need not be in accordance with section 65A.01, but in no event shall this section be applicable to insurance on buildings or structures.
History:
1967 c 395 art 6 s 6; 1971 c 24 s 10
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 65A — Fire And Related Insurance › Section 65A.061 — Creditors Limited To Existing Insurance.

65A.061 CREDITORS LIMITED TO EXISTING INSURANCE.
When a creditor requires a debtor to provide insurance on real or personal property security against reasonable risks of loss, damage, or destruction, no insurance shall be sold or placed by or through the creditor if the debtor provides the creditor with a loss payable through existing policies of insurance that the debtor owns or controls. This section does not apply if the existing insurance is in an amount less than the amount of indebtedness to be secured on the real or personal property.
This section does not prevent the disapproval of the insurer or a policy of insurance where there are reasonable grounds for believing that the insurer is insolvent or that the insurance is unsatisfactory as to placement with an unauthorized insurer, adequacy of the coverage, adequacy of the insurer to assume the risk to be insured, the assessment features to which the policy is subject, or other grounds that are based on the nature of the coverage and that are not arbitrary, unreasonable, or discriminatory. This section does not prevent a mortgage lender or mortgage servicer from requiring that a policy of insurance or renewal of the policy be in conformance with standards of the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation, nor does this section forbid the securing of a policy of insurance or a renewal of the policy at the request of the borrower or because of the borrower's failure to furnish the necessary insurance or renewal.
This section supersedes any inconsistent provision of law to the contrary.
History:
1989 c 330 s 25
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 65A — Fire And Related Insurance › Section 65A.07 — Cancellation Of Fire Policy.

65A.07 CANCELLATION OF FIRE POLICY.
Any fire insurance company which has not collected the premium on its policy at the time of the delivery thereof may print or endorse, or attach by rider, on its policy the following clause:
"If the insured hereunder shall not have actually paid the premium hereon, or any part thereof, within 60 days from the date of this policy, then this policy may be canceled by the insurer by giving five days' written notice to the insured and to the mortgagee, or other person to whom the policy is made payable, if any, without tendering any part or portion of such premium, anything to the contrary in the policy contract notwithstanding."
History:
1967 c 395 art 6 s 7
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 65A — Fire And Related Insurance › Section 65A.08 — Special Provisions.

65A.08 SPECIAL PROVISIONS.
Subdivision 1.
[Repealed, 1979 c 175 s 1]
Subd. 2.
Amount collectible.
(a) In the absence of any change increasing the risk, without the consent of the insurer, of which the burden of proof shall be upon it, and in the absence of intentional fraud on the part of the insured, the insurer shall pay the whole amount mentioned in the policy or renewal upon which it receives a premium, in case of total loss, and in case of partial loss, the full amount thereof.
(b) Notwithstanding paragraph (a), on a policy issued by the Minnesota FAIR plan under section 65A.36, the Minnesota FAIR plan may contest the whole amount set forth in the policy in the case of a total loss. If the Minnesota FAIR plan takes the position that the value of the property was less than the whole amount set forth in the policy, the Minnesota FAIR plan has the burden of proving by clear and convincing evidence that the value was less than that set forth in the policy. If the Minnesota FAIR plan pays less than the whole amount mentioned in the policy for a total loss, pursuant to this paragraph, the Minnesota FAIR plan shall refund to the insured the premium paid attributable to the difference between the whole amount mentioned in the policy and the amount paid for the total loss.
Subd. 3.
Agreement on amount of loss.
Policies on farm buildings or other structures may, in consideration of a reduction in the premium by the company, include a provision determining the amount of loss in connection with repair or replacement of the insured property.
Subd. 4.
Prorating provided.
If there are two or more policies upon the property, each shall contribute to the payment of the whole or partial loss in proportion to the amount specified.
Subd. 5.
Coinsurance provision.
Any policy may contain a coinsurance clause, if the insured requests the same, in writing, of which fact such writing shall be the only evidence, and if, in consideration thereof, a reduction in the rate of premium is made by the company. When so demanded and attached to the policy, this agreement shall be binding upon both the insured and the company, and, in case of loss, the actual cash value of the property so insured at the time of the loss, including the buildings, shall be the basis for determining the proper amount of the coinsurance, and the amount of loss, notwithstanding any previous valuation of the building.
Subd. 6.
Term of policies.
No company shall knowingly issue any policy upon property in this state for a longer term than five years.
History:
1967 c 395 art 6 s 8; 2005 c 66 s 1; 1Sp2005 c 7 s 1
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 65A — Fire And Related Insurance › Section 65A.09 — Insurance In Excess Of Replacement Cost.

65A.09 INSURANCE IN EXCESS OF REPLACEMENT COST.
Subdivision 1.
Insurance limited.
No company shall knowingly issue any policy upon property in this state for an amount which, together with any existing insurance thereon, exceeds the replacement cost of the buildings and any other covered improvements on the property. Any company willfully insuring property for more than that amount shall forfeit to the state, for the benefit of the school fund, double the premium collected on the policy.
Subd. 2.
Lenders; excess insurance.
No mortgage company, bank, savings association, finance company, or other mortgage lender of any kind may require insurance coverage in violation of section 72A.31, subdivision 1, clause (4). Any lender that willfully violates this subdivision is subject to penalties available under chapter 45.
History:
1967 c 395 art 6 s 9; 2002 c 295 s 1
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 65A — Fire And Related Insurance › Section 65A.10 — Limitation.

65A.10 LIMITATION.
Subdivision 1.
Buildings.
Nothing contained in sections 65A.08 and 65A.09 shall be construed to preclude insurance against the cost, in excess of actual cash value at the time any loss or damage occurs, of actually repairing, rebuilding or replacing the insured property. Subject to any applicable policy limits, where an insurer offers replacement cost insurance: (i) the insurance must cover the cost of replacing, rebuilding, or repairing any loss or damaged property in accordance with the minimum code as required by state or local authorities; and (ii) the insurance coverage may not be conditioned on replacing or rebuilding the damaged property at its original location on the owner's property if the structure must be relocated because of zoning or land use regulations of state or local government. In the case of a partial loss, unless more extensive coverage is otherwise specified in the policy, this coverage applies only to the damaged portion of the property.
Subd. 2.
Personal property.
Subject to applicable policy limits, replacement cost insurance coverage for personal property must cover the cost of replacing or repairing any loss or damaged property. In the case of a partial loss, unless more extensive coverage is otherwise specified in the policy, this coverage applies only to the damaged portion of the property. If a homeowner's policy does not provide replacement cost coverage for personal property, the declarations page of the policy shall so indicate by containing the term "nonreplacement cost."
History:
1967 c 395 art 6 s 10; 1987 c 337 s 91; 1991 c 244 s 1; 1996 c 446 art 1 s 54
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 65A — Fire And Related Insurance › Section 65A.11 — Payment To Mortgagee.

65A.11 PAYMENT TO MORTGAGEE.
When the whole, or any part, of the loss is payable, in terms or otherwise, to or for one or more mortgagees, upon proof before payment of the rights of the parties, the company shall pay the same in the order of priority to the extent of its liability and every such payment to such extent shall be payment and satisfaction of its liability under the policy.
History:
1967 c 395 art 6 s 11
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 65A — Fire And Related Insurance › Section 65A.12 — Waiver Of Right To Appraisal.

65A.12 WAIVER OF RIGHT TO APPRAISAL.
Subdivision 1.
Right to appraisal.
Any person who shall not, within 20 days after written request, appoint a qualified appraiser, as provided in the policy, shall at the election of the other party be deemed to have waived the right to appraisal, and, if it be the insurer, shall be liable to suit.
Subd. 2.
Appraiser.
No person shall be a qualified appraiser who is not disinterested and willing to act.
History:
1967 c 395 art 6 s 12; 2011 c 52 s 2
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 65A — Fire And Related Insurance › Section 65A.13 — Liability Of Company.

65A.13 LIABILITY OF COMPANY.
Notwithstanding any penalty prescribed for the making, issuing, or delivery of any policy in violation of any provision of law, every such policy shall be binding upon the company issuing the same.
History:
1967 c 395 art 6 s 13
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 65A — Fire And Related Insurance › Section 65A.14 — Person Who Procures An Application Agent Of Issuing Company.

65A.14 PERSON WHO PROCURES AN APPLICATION AGENT OF ISSUING COMPANY.
Every person who solicits insurance and procures an application therefor shall be held to be the agent of the party afterward issuing insurance thereon or a renewal thereof.
History:
1967 c 395 art 6 s 14
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 65A — Fire And Related Insurance › Section 65A.15 — Violation.

65A.15 VIOLATION.
Every company and every agent who shall willfully make, issue, or deliver a policy in violation of sections 65A.01, 65A.02, and 65A.03 shall be guilty of a gross misdemeanor; but every stipulation of the policy in favor of the insured shall, nevertheless, be binding upon the company issuing the same.
History:
1967 c 395 art 6 s 15
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 65A — Fire And Related Insurance › Section 65A.16 — Guaranty Surplus And Special Reserve Fund.

65A.16 GUARANTY SURPLUS AND SPECIAL RESERVE FUND.
Any insurance company organized under the laws of this state authorized to transact a fire insurance business may create the funds herein provided for, to be known and designated as the guaranty surplus fund and the special reserve fund, and may avail itself of the provisions of sections 65A.16 to 65A.24, upon complying with the requirements thereof.
History:
1967 c 395 art 6 s 16; 1997 c 7 art 1 s 19
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 65A — Fire And Related Insurance › Section 65A.17 — Action Of Stockholders Filed With Commissioner.

65A.17 ACTION OF STOCKHOLDERS FILED WITH COMMISSIONER.
Any such insurance company, desiring to create such funds, may do so if such action is authorized by its stockholders, upon the adoption of a resolution to that effect by its board of directors at a regular meeting of the board, or at any special meeting called for that purpose, and filing with the commissioner a copy thereof, declaring the intention of the company to create these funds and to do business under the provisions of sections 65A.16 to 65A.24; and, as soon after the filing of a copy of the resolution as convenient, the commissioner shall make, or cause to be made, an examination of the company, and shall make a certificate of the result thereof, which shall particularly set forth the amount of surplus funds held by the company at the date of the examination, the whole or any part of which, under the provisions of sections 65A.16 to 65A.24, may be equally divided between and set apart to constitute guaranty surplus and special reserve funds, which certificate shall be recorded in the Department of Commerce.
History:
1967 c 395 art 6 s 17; 1983 c 289 s 114 subd 1; 1984 c 655 art 1 s 92; 1986 c 444; 1997 c 7 art 1 s 19
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 65A — Fire And Related Insurance › Section 65A.18 — Dividends Declared Out Of Surplus Profits.

65A.18 DIVIDENDS DECLARED OUT OF SURPLUS PROFITS.
After the date of filing any such resolution with the commissioner, the company shall not make or declare or pay in any form any dividend upon its capital stock, exceeding eight percent per annum thereupon and six percent per annum upon the surplus funds to be formed hereunder, until after its guaranty surplus fund and its special reserve fund shall have together accumulated to an amount equal to its capital stock or to the sum of $2,000,000; and any part of the surplus profits of the company above this annual dividend may be equally divided between and set apart to constitute the guaranty surplus fund and the special reserve fund, which funds shall be held and used as hereinafter provided, and not otherwise. Any company doing business under sections 65A.16 to 65A.24, whose guaranty surplus fund and special reserve fund shall have together accumulated to an amount equal to its capital stock or to the sum of $2,000,000, may, from time to time, declare dividends out of its surplus profits in such amounts as its board of directors may prescribe, subject only to the limitation that the payment of these dividends shall not deplete its capital, nor reduce the aggregate amount of the guaranty surplus and special reserve funds to an amount less than the amount of its capital stock, or if its capital stock exceeds $2,000,000, to an amount less than $2,000,000; and, subject to the further limitation that no dividends exceeding ten percent upon the capital stock shall be declared in any year if the payment thereof would reduce the aggregate amount of all surplus funds, including guaranty surplus and special reserve funds, below an amount equal to 30 percent of its unearned premiums. Any company doing business under sections 65A.16 to 65A.24, which shall declare or pay any dividend contrary to the provisions herein contained, shall be liable to be proceeded against under chapter 60B for its dissolution.
History:
1967 c 395 art 6 s 18; 1969 c 708 s 63; 1997 c 7 art 1 s 19
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 65A — Fire And Related Insurance › Section 65A.19 — Examination.

65A.19 EXAMINATION.
When the company shall notify the commissioner that it has fulfilled the requirements already expressed in sections 65A.16 to 65A.24, and that its guaranty surplus fund and its special reserve fund, taken together, equal its capital stock or amount to the sum of $2,000,000, the commissioner shall make an examination of the company and make a certificate of the result thereof, and file the same in the commissioner's office and, if the commissioner shall find that the combined funds shall equal the capital stock of the company or amount to the sum of $2,000,000, thereafter the company may continue, out of any subsequent profits of its business, to add to these funds; provided, that when any addition is made to the special reserve fund, an equal sum shall be carried to the guaranty surplus fund.
History:
1967 c 395 art 6 s 19; 1986 c 444; 1997 c 7 art 1 s 19
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 65A — Fire And Related Insurance › Section 65A.20 — Items Considered In Estimating Profit.

65A.20 ITEMS CONSIDERED IN ESTIMATING PROFIT.
In estimating the profit of any such company for the purpose of making a division thereof between the guaranty surplus fund and the special reserve fund, until these funds shall together amount to a sum equal to the capital stock of the company or amount to the sum of $2,000,000, there shall be deducted from the gross assets of the company, including for this purpose the amount of the special reserve fund, the sum of the following items:
(1) the amount of all outstanding claims;
(2) an amount sufficient to meet the liability of the company for the unearned premiums upon its unexpired policies, which amount shall at least equal one-half the premiums received on policies having one year or less to run from the date of policy, and a pro rata proportion of the premiums received on the policies having more than one year to run from the date of policy, and shall be known as the reinsurance liability;
(3) the amount of its guaranty surplus fund and of its special reserve fund;
(4) the amount of the capital of the company; and
(5) interest at the rate of eight percent per annum upon the amount of capital, and six percent per annum upon the amount of the said funds for whatever time shall have elapsed since the last preceding cash dividend. The balance shall constitute the net surplus of the company, any portion of which is subject to an equal division between these funds, as herein provided.
History:
1967 c 395 art 6 s 20
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 65A — Fire And Related Insurance › Section 65A.21 — Investment Of Guaranty Surplus.

65A.21 INVESTMENT OF GUARANTY SURPLUS.
The guaranty surplus shall be held and be invested by the company in the same manner as its capital stock and surplus accumulation may be held and be invested, and shall be liable and applicable in the same manner as the capital stock to the payment generally of the losses of the company.
History:
1967 c 395 art 6 s 21
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 65A — Fire And Related Insurance › Section 65A.22 — Investment Of Special Reserve Fund.

65A.22 INVESTMENT OF SPECIAL RESERVE FUND.
The special reserve fund shall be invested according to existing laws relating to investments of capital by fire insurance companies and shall be deposited, from time to time, as the same shall accumulate and be invested, with the commissioner in accordance with section 60A.10, subdivision 4, who shall permit the company depositing the same to change these deposits by substituting for those withdrawn others of equal amount and value, and to collect and receive the interest or dividends upon these securities as the same may accrue; and this fund shall not be regarded as any part of the assets in possession of the company, so as to be or render the same liable for any claim for loss by fire, or otherwise, except as provided in sections 65A.16 to 65A.24.
History:
1967 c 395 art 6 s 22; 1974 c 425 s 7; 1997 c 7 art 1 s 19
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 65A — Fire And Related Insurance › Section 65A.24 — Stockholders To Make Up Impairment.

65A.24 STOCKHOLDERS TO MAKE UP IMPAIRMENT.
If, at any time after the special reserve fund shall have been accumulated by any company, the directors of the company shall present evidence satisfactory to the commissioner that the capital of the company has become impaired, the commissioner shall order the directors to call upon the stockholders to make up this impairment, and the board of directors may thereupon require the necessary payment by the stockholders to make good the whole of the impairment, or they may apply for that purpose the whole or any part of the special reserve fund and require of the stockholders payment of such amount as may be necessary to make up the balance of the impairment not made up out of the special reserve fund. The stock of every stockholder shall be pledged and liable for the amount assessed to make up the impairment, either in whole or in part, and in case any stockholder refuses to pay the assessment, the stock standing in that person's name may be sold at public auction, after 30 days' notice, in such manner as the directors may provide. If the board of directors elect to make good the impairment, or any part thereof, out of the special reserve fund, the commissioner shall, upon request of the board, transfer to the company so much of the special reserve fund as is necessary for the purpose. No company doing business under sections 65A.16 to 65A.24 shall insure any larger amount upon any single risk than is permitted by law to a company possessing the same amount of capital, irrespective of the fund provided for in sections 65A.16 to 65A.24.
History:
1967 c 395 art 6 s 24; 1986 c 444; 1997 c 7 art 1 s 19
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 65A — Fire And Related Insurance › Section 65A.26 — Hail Insurance, Policies, Loss Adjustment.

65A.26 HAIL INSURANCE, POLICIES, LOSS ADJUSTMENT.
Every policy of insurance against damage by hail issued by any company, however organized, must provide as follows: "In case of loss under this policy, and failure of the parties to agree as to the amount of the loss, it is mutually agreed that, on written demand of either party, the company and the insured each shall select a competent appraiser and notify the other of the appraiser selected within ten days of the demand. The appraisers shall first select a competent and disinterested umpire; and, failing for ten days to agree upon the umpire, then, on request of either appraiser, the umpire shall be selected by a judge of a court of record in the state in which the property covered is located. By mutual agreement the two appraisers may agree to have the umpire selected by a judge of a court of record and waive the ten-day provision.
The appraisers and the umpire shall then appraise the loss. A written award of any two of these persons determines the amount of loss. The written award of a majority of these referees is final and conclusive upon the parties as to amount of loss, and this selection, unless waived by the parties, is a condition precedent to any right of action to recover for a loss. No suit for the recovery of any claim by virtue of this policy may be sustained unless commenced within one year after the loss occurred." The policy must also provide the form, manner, and length of notice to be given to the company by the insured of any loss sustained.
History:
1967 c 395 art 6 s 26; 1973 c 363 s 1; 1974 c 161 s 4; 1983 c 208 s 2
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 65A — Fire And Related Insurance › Section 65A.27 — Definitions.

65A.27 DEFINITIONS.
Subdivision 1.
Scope.
For purposes of sections 65A.27 to 65A.302, the following terms have the meanings given.
Subd. 2.
Commissioner.
"Commissioner" means the commissioner of commerce.
Subd. 3.
Decline or declination.
"Decline" or "declination" means an agent's refusal to accept an application for homeowner's insurance or an insurer's refusal to issue a policy of homeowner's insurance to a person who has submitted a written application.
Subd. 4.
Homeowner's insurance.
"Homeowner's insurance" means insurance coverage, as provided in section 60A.06, subdivision 1, clause (1)(c), normally written by the insurer as a standard homeowner's package policy or as a standard residential renter's package policy. This definition includes, but is not limited to, policies that are generally described as homeowner's policies, mobile/manufactured homeowner's policies, dwelling owner policies, condominium owner policies, and tenant policies.
Subd. 5.
Insurer.
"Insurer" means any insurer licensed to write insurance, as defined in section 60A.06, subdivision 1, clause (1), and writing homeowner's insurance in this state.
Subd. 6.
Metropolitan area.
"Metropolitan area" means the area defined in section 473.121, subdivision 2.
Subd. 7.
Nonpayment of premium.
"Nonpayment of premium" means a failure of the named insured to pay the premium when due on a policy of homeowner's insurance or any installment of the premium, whether the premium is payable directly to the insurer or its agent or indirectly under a premium finance plan or an extension of credit.
Subd. 8.
Renewal or renew.
"Renewal" or "renew" means an insurer's issuance and delivery to the insured of a new insurance policy at the end of the policy period of an existing policy written by the insurer or an insurer's issuance and delivery of a certificate or notice extending the term of a policy beyond its policy period or term.
History:
1979 c 207 s 2; 1983 c 289 s 114 subd 1; 1984 c 655 art 1 s 92; 1996 c 326 s 1; 1999 c 177 s 64; 2009 c 178 art 1 s 33
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 65A — Fire And Related Insurance › Section 65A.28 — Disclosure And Filing Requirements.

65A.28 DISCLOSURE AND FILING REQUIREMENTS.
Subdivision 1.
Annual report.
Each insurer writing homeowner's insurance for property located in the metropolitan area or a statutory or home rule charter city of the first class shall compile and file annually with the commissioner on or before May 1 a report for the preceding calendar year. This report shall contain the following information reported by postal zip code areas for each zip code area located in a city of the first class which contains property for which the insurer wrote, declined to write, or canceled homeowner's insurance:
(a) the number of policies written;
(b) the number of policies canceled;
(c) the number of policies nonrenewed; and
(d) the number of applications for homeowner's insurance declined.
If the commissioner determines that additional information is necessary to effectuate the purposes of sections 65A.27 to 65A.29 and 72A.20, subdivision 13, the commissioner may require, by rule:
(i) that the required information be reported for additional areas of the state, or
(ii) that additional types of information, including premium and claims data, be reported for some or all of the areas subject to the reporting requirements.
If the commissioner has reason to believe that an insurance company or insurance agent has violated section 72A.20, subdivision 13 or 14, the commissioner may issue an order requiring the company or agent to compile and submit within a reasonable time information on its homeowner's insurance marketing, underwriting, or rating practices for a specific geographic area or areas. This information may be in addition to the types and categories of information required to be reported by this section or rules promulgated under subdivision 4.
Subd. 2.
Reports available for public inspection.
The commissioner shall make the reports filed pursuant to subdivision 1 available for public inspection.
Subd. 3.
Failure to report; penalty.
Any insurer required to report under this section which fails to file a report, containing the data and within the time prescribed by this section or rules promulgated under subdivision 4, shall be subject to a penalty of $10 for each day in default. Any penalty imposed under this section may be recovered in a civil action brought by and in the name of the state.
Subd. 4.
Rules.
The commissioner may prescribe rules necessary to carry out the purposes of this section. The rules may provide for classifications, differentiations, adjustments or exceptions, as in the judgment of the commissioner are necessary and proper to effectuate the purposes of, prevent circumvention or evasion of, or to facilitate compliance with this section.
History:
1979 c 207 s 3; 1986 c 444
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 65A — Fire And Related Insurance › Section 65A.285 — Surcharge Prohibition.

65A.285 SURCHARGE PROHIBITION.
Subdivision 1.
Surcharge prohibition.
An insurer may not impose a surcharge on homeowners insurance solely as a result of a consumer inquiry.
Subd. 2.
Definitions.
For purposes of this section:
(1) "consumer inquiry" means a telephone call or other communication made to an insurer that does not result in a paid claim and that is in regard to the general terms or conditions of or coverage offered under an insurance policy. The term includes a question concerning the process for filing a claim and whether a policy will cover a loss; and
(2) "surcharge" means an increase in premium for a policy, including the removal of a claim-free discount.
History:
2014 c 198 art 4 s 7