reglab/statecodes huggingface dataset:
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60E — Risk Retention Groups › Section 60E.08 — Notice And Registration Requirements Of Purchasing Groups.

60E.08 NOTICE AND REGISTRATION REQUIREMENTS OF PURCHASING GROUPS.
Subdivision 1.
Notice to commissioner.
A purchasing group that intends to do business in this state shall, prior to doing business, furnish notice to the commissioner on forms prescribed by the NAIC which shall:
(1) identify the state in which the group is domiciled;
(2) identify all other states in which the group intends to do business;
(3) specify the lines and classifications of liability insurance which the purchasing group intends to purchase;
(4) identify the insurance company or companies from which the group intends to purchase its insurance and the domicile of the company;
(5) specify the method by which, and the person or persons, if any, through whom insurance will be offered to its members whose risks are resident or located in this state;
(6) identify the principal place of business of the group; and
(7) provide other information required by the commissioner to verify that the purchasing group is qualified under section 60E.02, subdivision 11.
Subd. 2.
Notice of change.
A purchasing group shall, within ten days, notify the commissioner of any changes in any items set forth in subdivision 1.
Subd. 3.
Service of process.
The purchasing group shall register with and designate the commissioner or other appropriate authority as its agent solely for the purpose of receiving service of legal documents or process for which a filing fee shall be determined by the commissioner. These requirements do not apply to a purchasing group that only purchases insurance that was authorized under the federal Product Liability Risk Retention Act of 1981, and that in any state of the United States:
(1) was domiciled before April 2, 1986, and is domiciled on and after October 27, 1986, in any state of the United States;
(2) before October 27, 1986, purchased insurance from an insurance carrier licensed in any state, and since October 27, 1986, purchased its insurance from an insurance carrier licensed in any state; and
(3) was a purchasing group under the requirements of the federal Product Liability Retention Act of 1981 before October 27, 1986.
Subd. 4.
Additional information.
Each purchasing group that is required to give notice pursuant to subdivision 1 shall also furnish information required by the commissioner to:
(1) verify that the entity qualifies as a purchasing group;
(2) determine where the purchasing group is located; and
(3) determine appropriate tax treatment.
History:
1987 c 192 s 8; 1993 c 299 s 25
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60E — Risk Retention Groups › Section 60E.09 — Restrictions On Insurance Purchased By Purchasing Groups.

60E.09 RESTRICTIONS ON INSURANCE PURCHASED BY PURCHASING GROUPS.
A purchasing group may not purchase insurance from a risk retention group that is not chartered in a state or from an insurer not admitted in the state in which the purchasing group is located, unless the purchase is effected through a licensed agent or broker acting pursuant to the surplus lines laws and regulations of the state.
A purchasing group which obtains liability insurance from an insurer not admitted in this state or a risk retention group shall inform each of the members of the group which have a risk resident or located in this state that the risk is not protected by an insurance insolvency guaranty fund in this state, and that the risk retention group or insurer may not be subject to all insurance laws and regulations of this state.
No purchasing group may purchase insurance providing for a deductible or self-insured retention applicable to the group as a whole, however, coverage may provide for a deductible or self-insured retention applicable to individual members.
Purchases of insurance by purchasing groups are subject to the same standards regarding aggregate limits which are applicable to all purchases of group insurance.
History:
1987 c 192 s 9; 1993 c 299 s 26
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60E — Risk Retention Groups › Section 60E.095 — Purchasing Group Taxation.

60E.095 PURCHASING GROUP TAXATION.
Premium taxes paid for coverage of risks resident or located in this state by a purchasing group or any members of the purchasing group must be paid to the commissioner of revenue as provided in chapter 297I.
History:
1993 c 299 s 27; 2000 c 394 art 2 s 11
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60E — Risk Retention Groups › Section 60E.10 — Administrative And Procedural Authority Regarding Risk Retention Groups And Purchasing Groups.

60E.10 ADMINISTRATIVE AND PROCEDURAL AUTHORITY REGARDING RISK RETENTION GROUPS AND PURCHASING GROUPS.
The commissioner of commerce may use any of the powers established under the insurance laws of this state to enforce the laws of this state not specifically preempted by the Product Liability Risk Retention Act of 1981, as amended by the Risk Retention Amendments of 1986. This includes, but is not limited to, the commissioner's administrative authority to investigate, issue subpoenas, conduct depositions and hearings, issue orders, impose penalties, and seek injunctive relief. With regard to an investigation, administrative proceedings, or litigation, the commissioner can rely on the procedural laws of the state. The injunctive authority of the commissioner in regard to risk retention groups is restricted by the requirement that an injunction be issued by a court of competent jurisdiction.
History:
1987 c 192 s 10; 1993 c 299 s 28
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60E — Risk Retention Groups › Section 60E.12 — Duty On Agents Or Brokers To Obtain License.

60E.12 DUTY ON AGENTS OR BROKERS TO OBTAIN LICENSE.
Subdivision 1.
Risk retention groups.
No person, firm, association, or corporation shall act or aid in any manner in soliciting, negotiating, or procuring liability insurance in this state from a risk retention group unless the person, firm, association, or corporation is licensed as an insurance agent or broker in accordance with chapter 60K.
Subd. 2.
Purchasing groups.
(a) No person, firm, association, or corporation shall act or aid in any manner in soliciting, negotiating, or procuring liability insurance in this state for a purchasing group from an authorized insurer or a risk retention group chartered in a state unless the person, firm, association, or corporation is licensed as an insurance agent or broker in accordance with chapter 60K.
(b) No person, firm, association, or corporation shall act or aid in any manner in soliciting, negotiating, or procuring liability insurance coverage in this state for any member of a purchasing group under a purchasing group's policy unless the person, firm, association, or corporation is licensed as an insurance agent or broker in accordance with chapter 60K.
(c) No person, firm, association, or corporation shall act or aid in any manner in soliciting, negotiating, or procuring liability insurance from an insurer not authorized to do business in this state on behalf of a purchasing group located in this state unless the person, firm, association, or corporation is licensed as a surplus lines agent or excess line broker in accordance with sections 60A.195 to 60A.209.
Subd. 3.
Agent or broker residence requirement.
For purposes of acting as an agent or broker for a risk retention group or purchasing group pursuant to subdivisions 1 and 2, the requirement of residence in this state does not apply.
Subd. 4.
Notice to insureds.
Every person, firm, association, or corporation licensed pursuant to chapter 60A, on business placed with risk retention groups or written through a purchasing group, shall inform each prospective insured of the provisions of the notice required by section 60E.04, subdivision 8, in the case of a risk retention group and section 60E.09 in the case of a purchasing group.
History:
1987 c 192 s 12; 1993 c 299 s 29
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60E — Risk Retention Groups › Section 60E.13 — Binding Effect Of Orders Issued In United States District Court.

60E.13 BINDING EFFECT OF ORDERS ISSUED IN UNITED STATES DISTRICT COURT.
An order issued by any district court of the United States enjoining a risk retention group from soliciting or selling insurance, or operating, in a state, or in all states or in a territory or possession of the United States, upon a finding that the group is in a hazardous financial condition or financially impaired condition shall be enforceable in the courts of the state.
History:
1987 c 192 s 13; 1993 c 299 s 30
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60E — Risk Retention Groups › Section 60E.14 — Rules.

60E.14 RULES.
The commissioner may adopt rules relating to risk retention groups as may be necessary or desirable to carry out the provisions of sections 60E.01 to 60E.14.
History:
1987 c 192 s 14
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60F — Joint Self-insurance Plans › Section 60F.01 — Establishment.

60F.01 ESTABLISHMENT.
Any three or more employers, excluding the state and its political subdivisions as described in section 471.617, subdivision 1, who are authorized to transact business in Minnesota may jointly self-insure for any property and/or casualty or automobile liability. Joint plans must meet all conditions and terms of this chapter.
History:
1987 c 337 s 34
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60F — Joint Self-insurance Plans › Section 60F.02 — Excess Stop-loss Coverage.

60F.02 EXCESS STOP-LOSS COVERAGE.
A joint self-insurance plan must include aggregate excess stop-loss coverage and individual excess stop-loss coverage provided by an insurance company licensed by the state of Minnesota. Aggregate excess stop-loss coverage must include provisions to cover the excess claims of incurred, unpaid claim liability even in the event of plan termination. The joint plan must bear the risk of coverage for any member of the pool that becomes insolvent with outstanding contribution due by providing a surety bond from a Minnesota licensed surety in the amount of one year's contribution. In addition, the plan of self-insurance must have participants fund an amount at least equal to the point at which the excess or stop-loss insurer must assume 100 percent of the excess coverage limits of additional liability. A joint self-insurance plan must submit its proposed excess or stop-loss insurance contract to the commissioner of commerce at least 30 days prior to the proposed plan's effective date and at least 30 days subsequent to any renewal date. The commissioner shall review the contract to determine if it meets the standards established by this chapter and respond within a 30-day period. An excess or stop-loss insurance plan must be noncancelable for a minimum term of one year.
History:
1987 c 337 s 35
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60F — Joint Self-insurance Plans › Section 60F.03 — Limitation On Administrative Services.

60F.03 LIMITATION ON ADMINISTRATIVE SERVICES.
No joint self-insurance plan may offer marketing, risk management, or administrative services unless these services are provided by vendors duly licensed by the commissioner to provide these services. No vendor of these services may be a trustee of a joint self-insurance plan for which they provide marketing, risk management, or administrative services.
History:
1987 c 337 s 36
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60F — Joint Self-insurance Plans › Section 60F.04 — Applicability Of Provisions.

60F.04 APPLICABILITY OF PROVISIONS.
A joint self-insurance plan is subject to the requirements of the applicable parts of chapters 60A, 65A, 65B, 72B, and 72C, and section 72A.20, unless otherwise specifically exempt. A joint self-insurance plan must offer a plan which complies with all applicable rules and statutes.
History:
1987 c 337 s 37
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60F — Joint Self-insurance Plans › Section 60F.05 — Fund Management.

60F.05 FUND MANAGEMENT.
Funds collected from the participants under joint self-insurance plans must be held in trust subject to the following requirements:
(a) A board of trustees elected by the participants shall serve as fund managers on behalf of participants. Trustees must be plan participants. No participants may be represented by more than one trustee. A minimum of three and a maximum of seven trustees may be elected. Trustees shall receive no remuneration, but they may be reimbursed for actual and reasonable expenses incurred in connection with duties as trustees.
(b) Trustees must be bonded in an amount not less than $100,000 nor more than $500,000 from a licensed bonding company.
(c) Investment of plan funds is subject to the same restrictions as are applicable to political subdivisions pursuant to section 118A.04. All investments must be managed by a bank or other investment organization licensed to operate in Minnesota.
(d) Trustees, on behalf of the fund, shall file annual reports with the commissioner of commerce within 30 days immediately following the end of each calendar year. The reports must summarize the financial condition of the fund, itemize collection from participants, and detail all fund expenditures.
History:
1987 c 337 s 38; 1996 c 399 art 2 s 12
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60F — Joint Self-insurance Plans › Section 60F.06 — Rules.

60F.06 RULES.
The commissioner of commerce shall adopt rules to ensure the solvency and operation of all self-insured plans subject to this chapter. The commissioner may examine the joint self-insurance plans pursuant to sections 60A.03 and 60A.031.
History:
1987 c 337 s 39; 1995 c 233 art 2 s 56
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60F — Joint Self-insurance Plans › Section 60F.07 — Revenue Fee.

60F.07 REVENUE FEE.
A joint self-insurance plan shall pay a two percent revenue fee. This revenue must be computed based on two percent of the paid claims level for the most recently completed calendar year. This revenue must be deposited in the general fund.
History:
1987 c 337 s 40
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60G — Administrative Supervision › Section 60G.01 — Definitions.

60G.01 DEFINITIONS.
Subdivision 1.
Application.
The definitions in this section apply to this chapter.
Subd. 2.
Commissioner.
"Commissioner" means the commissioner of commerce, except that "commissioner" means the commissioner of health for administrative supervision of health maintenance organizations.
Subd. 3.
Consent.
"Consent" means agreement to administrative supervision by the insurer.
Subd. 4.
Department.
"Department" means the Department of Commerce, except that "department" means the Department of Health for administrative supervision of health maintenance organizations.
Subd. 5.
Insurer.
"Insurer" means and includes every person engaged as indemnitor, surety, or contractor in the business of entering into contracts of insurance or of annuities as limited to:
(1) any insurer who is doing an insurer business, or has transacted insurance in this state, and against whom claims arising from that transaction may exist now or in the future;
(2) any fraternal benefit society which is subject to chapter 64B;
(3) nonprofit health service plan corporations subject to chapter 62C;
(4) cooperative life and casualty companies subject to sections 61A.39 to 61A.52; and
(5) health maintenance organizations regulated under chapter 62D.
History:
1991 c 325 art 2 s 1; 1992 c 464 art 1 s 9; 1995 c 234 art 1 s 3-5; 1997 c 225 art 2 s 62
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60G — Administrative Supervision › Section 60G.03 — Confidentiality Of Certain Proceedings And Records.

60G.03 CONFIDENTIALITY OF CERTAIN PROCEEDINGS AND RECORDS.
Subdivision 1.
Confidentiality.
Notwithstanding any other provision of law and except as provided in this section, proceedings, hearings, notices, correspondence, reports, records, and other information in the possession of the commissioner or the department relating to the supervision of any insurer are confidential.
Subd. 2.
Access.
The personnel of the department shall have access to these proceedings, hearings, notices, correspondence, reports, records, or information as permitted by the commissioner.
Subd. 3.
Open hearings; disclosure.
The commissioner may open the proceedings or hearings or disclose the notices, correspondence, reports, records, or information to a department, agency, or instrumentality of this or another state or the United States if the commissioner determines that the disclosure is necessary or proper for the enforcement of the laws of this or another state or the United States.
Subd. 4.
Public disclosure.
The commissioner may open the proceedings or hearings or make public the notices, correspondence, reports, records, or other information if the commissioner determines that it is in the best interest of the public or in the best interest of the insurer, its insureds, creditors, or the general public.
Subd. 5.
Exemption.
This section does not apply to hearings, notices, correspondence, reports, records, or other information obtained upon the appointment of a receiver for the insurer by a court of competent jurisdiction.
History:
1991 c 325 art 2 s 3
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60G — Administrative Supervision › Section 60G.04 — Prohibited Acts During Period Of Supervision.

60G.04 PROHIBITED ACTS DURING PERIOD OF SUPERVISION.
During the period of supervision, the commissioner shall serve as the administrative supervisor. The commissioner may require that the insurer shall not do any of the following things during the period of supervision without the prior approval of the commissioner:
(1) dispose of, convey, or encumber its assets or its business in force;
(2) withdraw funds from its bank accounts;
(3) lend its funds;
(4) invest its funds;
(5) transfer its property;
(6) incur debt, obligation, or liability;
(7) merge or consolidate with another company;
(8) approve new premiums or renew policies;
(9) enter into a new reinsurance contract or treaty;
(10) terminate, surrender, forfeit, convert, or lapse an insurance policy, certificate, or contract, except for nonpayment of premiums due;
(11) release, pay, or refund premium deposits, accrued cash or loan values, unearned premiums, or other reserves on an insurance policy, certificate, or contract;
(12) make a material change in management; or
(13) increase salaries and benefits of officers or directors or make preferential payment of bonuses, dividends, or other payments determined preferential by the commissioner.
History:
1991 c 325 art 2 s 4
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60G — Administrative Supervision › Section 60G.05 — Review And Stay Of Action.

60G.05 REVIEW AND STAY OF ACTION.
During the period of supervision, the insurer may contest an action taken or proposed to be taken by the commissioner as provided under chapter 14. The insurer must show that the action being complained of is detrimental to the condition of the insurer.
History:
1991 c 325 art 2 s 5
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60G — Administrative Supervision › Section 60G.06 — Administrative Election Of Proceedings.

60G.06 ADMINISTRATIVE ELECTION OF PROCEEDINGS.
Nothing contained in this chapter precludes the commissioner from initiating judicial proceedings to place an insurer in rehabilitation or liquidation proceedings under the laws of this state, regardless of whether the commissioner has previously initiated administrative supervision proceedings under this chapter against the insurer.
History:
1991 c 325 art 2 s 6
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60G — Administrative Supervision › Section 60G.08 — Immunity.

60G.08 IMMUNITY.
There shall be no liability on the part of, and no cause of action may be brought against the commissioner or the department or its employees or agents for any action taken by them in the performance of their powers and duties under this chapter.
History:
1991 c 325 art 2 s 8
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60G — Administrative Supervision › Section 60G.09 — Application.

60G.09 APPLICATION.
Sections 60G.01 to 60G.08 apply to domestic insurers and any other insurer doing business in this state whose state of domicile has requested the commissioner of commerce to apply sections 60G.01 to 60G.08.
History:
1991 c 325 art 2 s 9
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60G — Administrative Supervision › Section 60G.21 — Commissioner's Order.

60G.21 COMMISSIONER'S ORDER.
Subdivision 1.
Authorization.
If the commissioner determines that the continued operation of the insurer licensed to transact business in this state may be hazardous to the policyholders or the general public, then the commissioner may, upon the commissioner's determination, issue an order requiring the insurer to:
(1) reduce the total amount of present and potential liability for policy benefits by reinsurance;
(2) reduce, suspend, or limit the volume of business being accepted or renewed;
(3) reduce general insurance and commission expenses by methods specified by the commissioner;
(4) increase the insurer's capital and surplus;
(5) suspend or limit the declaration and payment of dividend by an insurer to its stockholders or to its policyholders;
(6) file reports in a form acceptable to the commissioner concerning the market value of an insurer's assets;
(7) limit or withdraw from certain investments or discontinue certain investment practices to the extent the commissioner considers necessary;
(8) document the adequacy of premium rates in relation to the risks insured; or
(9) file, in addition to regular annual statements, interim financial reports on the form adopted by the National Association of Insurance Commissioners or in the format adopted by the commissioner.
Subd. 2.
Review.
An insurer subject to an order under subdivision 1 may request, within 30 days of issuance of the order, a hearing as provided under chapter 14 to review that order. All hearings conducted under this section are closed and private.
History:
1991 c 325 art 3 s 2
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60G — Administrative Supervision › Section 60G.22 — Judicial Review.

60G.22 JUDICIAL REVIEW.
Any order or decision of the commissioner is subject to review as provided under chapter 14 at the request of a party whose interests are substantially affected by the order or decision.
History:
1991 c 325 art 3 s 3
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60H — Managing General Agents › Section 60H.02 — Definitions.

60H.02 DEFINITIONS.
Subdivision 1.
Application.
The terms defined in this section apply to this chapter.
Subd. 2.
Actuary.
"Actuary" means a person who is a member in good standing of the American Academy of Actuaries.
Subd. 3.
Insurer.
"Insurer" means a person, firm, association, or corporation duly licensed in this state as an insurance company.
Subd. 4.
Managing general agent.
(a) "Managing general agent" means a person, firm, association or corporation who: (1) manages all or part of the insurance business of an insurer, including the management of a separate division, department, or underwriting office, and (2) acts as an agent for the insurer whether known as a managing general agent, manager, or other similar term, who, with or without the authority, either separately or together with affiliates, produces, directly or indirectly, and underwrites an amount of gross direct written premium equal to or more than five percent of the policyholder surplus as reported in the last annual statement of the insurer in any one quarter or year, together with one or more of the following activities related to the business produced: (i) adjusts or pays claims in excess of an amount determined by the commissioner, or (ii) negotiates reinsurance on behalf of the insurer.
(b) Notwithstanding paragraph (a), the following persons shall not be considered as managing general agents for the purposes of this chapter:
(1) an employee of the insurer;
(2) a United States manager of the United States branch of an alien insurer;
(3) an underwriting manager who, pursuant to contract, manages all or a part of the insurance or reinsurance operation of the insurer, is under common control with the insurer, subject to the Insurance Holding Company Act, chapter 60D, and whose compensation is not based on the volume of premiums written; or
(4) an attorney in fact authorized by and acting for the subscribers of a reciprocal insurer or interinsurance exchange under powers of attorney.
Subd. 5.
Underwrite.
"Underwrite" means the authority to accept or reject risk on behalf of the insurer.
History:
1991 c 325 art 4 s 2; 1995 c 214 s 12
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60H — Managing General Agents › Section 60H.03 — Licensure.

60H.03 LICENSURE.
Subdivision 1.
Risks located in state.
A managing general agent representing an insurer licensed in this state with respect to risks located in this state must be licensed in this state.
Subd. 2.
Risks located outside of state.
A managing general agent representing an insurer domiciled in this state with respect to risks located outside this state must be licensed in this state as a managing general agent. The license may be a nonresident license.
Subd. 3.
Requirements.
The commissioner may require a bond in an amount acceptable for the protection of the insurer. The commissioner may require the managing general agent to maintain an errors and omissions policy.
Subd. 4.
Term and fees.
The term of a managing general agent license issued under this section and the license fees imposed are the same as those applicable to a licensed insurance agent under chapter 60K.
History:
1991 c 325 art 4 s 3; 2000 c 483 s 5; 2000 c 488 art 2 s 2
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60H — Managing General Agents › Section 60H.05 — Duties Of Insurers.

60H.05 DUTIES OF INSURERS.
Subdivision 1.
Independent financial examination.
The insurer shall have on file an independent financial examination, in a form acceptable to the commissioner, of each managing general agent with which it has done business.
Subd. 2.
On-site review.
The insurer shall periodically, at least semiannually, conduct an on-site review of the underwriting and claims processing operation of the managing general agent and maintain on its records the results of that review.
Subd. 3.
Officer of insurer.
Except as authorized under section 60H.04, paragraph (j), clause (1), binding authority for all reinsurance contracts or participation in insurance or reinsurance syndicates shall rest with an officer of the insurer not affiliated with the managing general agent.
Subd. 4.
Written notification.
Within 30 days of entering into or termination of a contract with a managing general agent, the insurer shall provide written notification of the appointment or termination to the commissioner. Notices of appointment of a managing general agent must include a statement of duties which the managing general agent is expected to perform on behalf of the insurer, the lines of insurance for which the managing general agent is to be authorized to act, and any other information the commissioner may request.
Subd. 5.
Review of books and records.
An insurer shall review its books and records each quarter to determine if a licensed agent has become a managing general agent as defined in section 60H.02, subdivision 4. If the insurer determines that an agent has become a managing general agent, the insurer shall promptly notify the agent and the commissioner of the determination and the insurer and agent must fully comply with this chapter within 30 days.
Subd. 6.
Prohibited appointments.
An insurer shall not appoint to its board of directors an officer, director, employee, subagent, or controlling shareholder of its managing general agents. This section does not apply to relationships governed by the Insurance Holding Company Act, chapter 60D, or, if applicable, the Business Transacted With Producer Controlled Insurer Act, chapter 60J.
History:
1991 c 325 art 4 s 5; 2000 c 260 s 13
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60H — Managing General Agents › Section 60H.07 — Acts Of Managing General Agent.

60H.07 ACTS OF MANAGING GENERAL AGENT.
The acts of the managing general agent are considered to be the acts of the insurer on whose behalf it is acting.
History:
1991 c 325 art 4 s 7
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60H — Managing General Agents › Section 60H.08 — Penalties And Liabilities.

60H.08 PENALTIES AND LIABILITIES.
Subdivision 1.
Commissioner's authority.
If the commissioner finds pursuant to the procedural requirements of section 45.027 that a person has violated a provision of this chapter, the commissioner may take any action authorized under that section.
Subd. 2.
Additional penalty.
In addition to authority granted by section 45.027 for each separate violation, the commissioner may impose a penalty of up to $10,000 for each day the violation continues and order the managing general agent to reimburse the insurer, rehabilitator, or liquidator of the insurer for any losses incurred by the insurer caused by a violation of this chapter committed by the managing general agent.
Subd. 3.
Civil remedies.
(a) If the commissioner finds that because of the violation that the insurer has suffered loss or damage, the commissioner may maintain a civil action for recovery of compensatory damages for the benefit of the insurer and its policyholders and creditors or other appropriate relief.
(b) If an order of rehabilitation or liquidation of the insurer has been entered pursuant to chapter 60B, and the receiver appointed under that order determines that the managing general agent or any other person has violated this chapter, or any rule or order adopted under this chapter, and the insurer suffered loss or damage, the receiver may maintain a civil action for recovery of damages or other appropriate sanctions for the benefit of the insurer.
Subd. 4.
Judicial review.
The decision, determination, or order of the commissioner under subdivision 1 is subject to judicial review as provided under chapter 14.
Subd. 5.
Imposition of other penalties.
Nothing contained in this section shall affect the right of the commissioner to impose any other penalties provided for by law.
Subd. 6.
Policyholder rights.
Nothing contained in this chapter is intended to or shall in any manner limit or restrict the rights of policyholders, claimants, and auditors.
History:
1991 c 325 art 4 s 8; 1995 c 214 s 13
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60J — Business Transacted With Producer Controlled Insurer › Section 60J.06 — Short Title.

60J.06 SHORT TITLE.
Sections 60J.06 to 60J.11 may be cited as the "Business Transacted with Producer Controlled Insurer Act."
History:
1992 c 540 art 1 s 1
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60J — Business Transacted With Producer Controlled Insurer › Section 60J.07 — Definitions.

60J.07 DEFINITIONS.
Subdivision 1.
Application.
The definitions in this section apply to sections 60J.06 to 60J.11.
Subd. 2.
Accredited state.
"Accredited state" means a state in which the insurance department or regulatory agency has qualified as meeting the minimum financial regulatory standards promulgated and established from time to time by the National Association of Insurance Commissioners (NAIC).
Subd. 3.
Captive insurer.
"Captive insurer" means an insurance company owned by another organization whose exclusive purpose is to insure risks of the parent organization and affiliated companies or, in the case of groups and associations, an insurance organization owned by the insureds whose exclusive purpose is to insure risks to member organizations or group members and their affiliates.
Subd. 4.
Commissioner.
"Commissioner" means the commissioner of commerce.
Subd. 5.
Control.
"Control" or "controlled" has the meaning given in section 60D.15, subdivision 4.
Subd. 6.
Controlled insurer.
"Controlled insurer" means a licensed insurer which is controlled, directly or indirectly, by a producer.
Subd. 7.
Controlling producer.
"Controlling producer" means a producer who, directly or indirectly, controls an insurer.
Subd. 8.
Licensed insurer.
"Licensed insurer" or "insurer" means any person, firm, association, or corporation licensed to transact a property/casualty insurance business in this state. The following entities are not licensed insurers for the purposes of sections 60J.06 to 60J.11:
(1) all risk retention groups as defined in the Superfund Amendments Reauthorization Act of 1986, Public Law 99-499, 100 Stat. 1613; the Risk Retention Act, United States Code, title 15, section 3901, et seq.; and chapter 60;
(2) all residual market pools and joint underwriting authorities or associations; and
(3) all captive insurers.
Subd. 9.
Producer.
"Producer" means an insurance broker or any other person, firm, association, or corporation, when, for any compensation, commission or other thing of value, the person, firm, association, or corporation acts or aids in any manner in soliciting, negotiating, or procuring the making of any insurance contract on behalf of an insured other than the person, firm, association, or corporation.
History:
1992 c 540 art 1 s 2
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60J — Business Transacted With Producer Controlled Insurer › Section 60J.08 — Application.

60J.08 APPLICATION.
Sections 60J.06 to 60J.11 apply to licensed insurers, either domiciled in this state or domiciled in a state that is not an accredited state having in effect a substantially similar law. All provisions of chapter 60D, to the extent they are not superseded by sections 60J.06 to 60J.11, apply to all parties within holding company systems subject to sections 60J.06 to 60J.11.
History:
1992 c 540 art 1 s 3
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60J — Business Transacted With Producer Controlled Insurer › Section 60J.10 — Disclosure.

60J.10 DISCLOSURE.
The producer, prior to the effective date of the policy, shall deliver written notice to the prospective insured disclosing the relationship between the producer and the controlled insurer; except that, if the business is placed through a subproducer who is not a controlling producer, the controlling producer shall retain in the producer's records a signed commitment from the subproducer that the subproducer is aware of the relationship between the insurer and the producer and that the subproducer has or will notify the insured.
History:
1992 c 540 art 1 s 5
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60J — Business Transacted With Producer Controlled Insurer › Section 60J.11 — Penalties.

60J.11 PENALTIES.
Subdivision 1.
Cease and desist order.
If the commissioner believes that the controlling producer or any other person has not materially complied with sections 60J.06 to 60J.11 or any rule or order, after notice and opportunity to be heard, the commissioner may order the controlling producer to cease placing business with the controlled insurer.
Subd. 2.
Commissioner's authority.
If the commissioner finds pursuant to the procedural requirements of section 45.027, that a person has violated a provision of this chapter, the commissioner may take any action authorized under that section.
Subd. 3.
Civil action by commissioner.
The commissioner may maintain a civil action or intervene in an action brought by or on behalf of the insurer or policyholder for recovery of compensatory damages for the benefit of the insurer or policyholder or other appropriate relief.
Subd. 4.
Civil action by receiver.
If an order for liquidation or rehabilitation of the controlled insurer has been entered under chapter 60B and the receiver appointed under that order believes that the controlling producer or any other person has not materially complied with sections 60J.06 to 60J.11, or any rule or order, and the insurer suffered any loss or damage therefrom, the receiver may maintain a civil action for recovery of damages or other appropriate sanctions for the benefit of the insurer.
Subd. 5.
Additional penalties and rights.
Nothing contained in this section affects the right of the commissioner to impose any other penalties provided for in the insurance law. Nothing contained in this section is intended to or shall in any manner alter or affect the rights of policyholders, claimants, creditors, or other third parties.
History:
1992 c 540 art 1 s 6
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60K — Insurance Producers › Section 60K.30 — Purpose And Scope.

60K.30 PURPOSE AND SCOPE.
(a) Sections 60K.30 to 60K.56 govern the qualifications and procedures for the licensing of insurance producers.
(b) Except as to the underlying requirement that a surplus lines agent or broker obtain an insurance producer license, this chapter does not apply to surplus lines agents or brokers licensed under sections 60A.195 to 60A.209, except as provided in sections 60K.39 and 60K.53, subdivision 2.
History:
2001 c 117 art 1 s 1
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60K — Insurance Producers › Section 60K.32 — License Required.

60K.32 LICENSE REQUIRED.
A person shall not sell, solicit, or negotiate insurance in this state for any class or classes of insurance unless the person is licensed for that line of authority under sections 60K.30 to 60K.56. The license itself does not create any authority, actual, apparent, or inherent, in the holder to represent or commit an insurance carrier.
History:
2001 c 117 art 1 s 3; 2002 c 379 art 1 s 20
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60K — Insurance Producers › Section 60K.35 — Fraternal Benefit Society Representatives.

60K.35 FRATERNAL BENEFIT SOCIETY REPRESENTATIVES.
Representatives of fraternal benefit societies who solicit and negotiate insurance contracts are considered to be insurance producers and are subject to the licensing requirements of this chapter, provided that no insurance producer's license is required of:
(1) any officer, employee, or secretary of a fraternal benefit society or of any subordinate lodge or branch who devotes substantially all of that person's time to activities other than the solicitation or negotiation of insurance contracts and who receives no commission or other compensation directly dependent upon the number or amount of contracts solicited or negotiated; or
(2) any agent or representative of a fraternal benefit society who devotes, or intends to devote, less than 50 percent of that person's time to the solicitation and procurement of insurance contracts for that society. Any person who in the preceding calendar year has solicited and procured life insurance in excess of $50,000 face amount, or, in the case of any other kinds of insurance that the society may write, on the persons of more than 25 individuals, and who has received or will receive a commission or other compensation in the total amount of $1,000 or more, is presumed to be devoting, or intending to devote, 50 percent of that person's time to the solicitation or procurement of insurance contracts for that society.
History:
2001 c 117 art 1 s 6
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60K — Insurance Producers › Section 60K.361 — Insurance Education.

60K.361 INSURANCE EDUCATION.
(a) Prelicense education must consist of 20 hours of education per line of authority.
(b) The course must include an introduction to insurance and insurance-related concepts covering all of the major lines of authority except variable life and variable annuities. The course must consist of the following:
(1) rules, regulations, and law;
(2) basic fundamentals of insurance;
(3) property:
(i) types of policies;
(ii) policy provisions;
(iii) perils, exclusions, deductibles, and liability; and
(iv) evaluating needs;
(4) casualty:
(i) types of policies;
(ii) policy provisions;
(iii) perils, exclusions, deductibles, and liability; and
(iv) evaluating needs;
(5) life:
(i) types of policies;
(ii) policy provisions; and
(iii) group insurance; and
(6) accident and health:
(i) types of policies;
(ii) policy provisions; and
(iii) group insurance.
(c) Courses that cover a specific major line of authority must include the following:
(1) life:
(i) types of life insurance policies; and
(ii) Minnesota laws, rules, and regulations pertinent to life insurance;
(2) accident and health:
(i) types of health insurance policies; and
(ii) Minnesota laws, rules, and regulations pertinent to accident and health insurance;
(3) property:
(i) personal lines;
(ii) commercial lines; and
(iii) Minnesota laws, rules, and regulations pertinent to property insurance;
(4) casualty:
(i) personal lines;
(ii) commercial lines; and
(iii) Minnesota laws, rules, and regulations pertinent to casualty insurance; and
(5) personal lines:
(i) types of property/casualty personal lines insurance policies; and
(ii) Minnesota laws, rules, and regulations pertinent to property/casualty personal lines insurance.
History:
2009 c 63 s 28,78; 2010 c 384 s 13
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60K — Insurance Producers › Section 60K.365 — Producer Training Requirements For Long-term Care Insurance Products.

60K.365 PRODUCER TRAINING REQUIREMENTS FOR LONG-TERM CARE INSURANCE PRODUCTS.
(a) An individual may not sell, solicit, or negotiate long-term care insurance unless the individual is licensed as an insurance producer for accident and health or sickness insurance or life insurance and has completed an initial training course and ongoing training every 24 months thereafter. The training must meet the requirements of paragraph (b).
(b) The initial training course required by this section must be no less than eight hours, and the ongoing training courses required by this section must be no less than four hours every 24 months. The courses must be approved by the commissioner and may be approved as continuing education courses under section 60K.56. The courses must consist of topics related to long-term care insurance, long-term care services, and qualified state long-term care insurance partnership programs, including, but not limited to:
(1) state and federal regulations and requirements and the relationship between qualified state long-term care insurance partnership programs and other public and private coverage of long-term care services, including Medicaid/Minnesota medical assistance;
(2) available long-term care services and providers;
(3) changes or improvements in long-term care services or providers;
(4) alternatives to the purchase of private long-term care insurance;
(5) the effect of inflation on benefits and the importance of inflation protection; and
(6) consumer suitability standards and guidelines.
The training required by this section must not include training that is insurer or company product specific or that includes any sales or marketing information, materials, or training, other than those required by state or federal law.
(c) Insurers shall obtain verification that a producer has received the training required by this section before a producer is permitted to sell, solicit, or negotiate the insurer's long-term care insurance products. Insurers shall maintain records verifying that the producer has received the training contained in this section and make that verification available to the commissioner upon request.
(d) The satisfaction of these initial training requirements in any state shall be deemed to satisfy the initial training requirements of this section.
(e) Nonresident producers selling partnership policies shall be expected to demonstrate knowledge about unique aspects of the Minnesota medical assistance system. An insurer offering partnership products in Minnesota shall maintain records verifying that its nonresident producers have attained the required training and make that verification available to the commissioner upon request.
History:
2007 c 57 art 3 s 32
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60K — Insurance Producers › Section 60K.366 — Producer Training Requirements For Flood Insurance Products.

60K.366 PRODUCER TRAINING REQUIREMENTS FOR FLOOD INSURANCE PRODUCTS.
An individual may not sell, solicit, or negotiate flood insurance through the National Flood Insurance Program (NFIP) unless the individual is licensed as an insurance producer for one or more lines of authority under section 60K.38, subdivision 1, paragraph (b), clauses (3), (4), and (6), and has in addition to the training otherwise required by this chapter satisfied the minimum training and education requirements established by the Federal Emergency Management Agency (FEMA) for all insurance producers who sell insurance through the NFIP and published at 70 Federal Register 52, 117.
Upon request of the commissioner, an issuer must demonstrate to the commissioner that its appointed producers who sell flood insurance through the NFIP have complied with the minimum training and education requirements established by FEMA.
History:
2013 c 135 art 1 s 1
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60K — Insurance Producers › Section 60K.39 — Nonresident Licensing.

60K.39 NONRESIDENT LICENSING.
Subdivision 1.
Issuance.
Unless denied a license under section 60K.43, a nonresident person shall receive a nonresident producer license if:
(1) the person is currently licensed as a resident and in good standing in the person's home state;
(2) the person has submitted the proper request for licensure and has paid the fees required by section 60K.55;
(3) the person has submitted or transmitted to the commissioner the application for licensure that the person submitted to the person's home state, or in lieu of the same, a completed Uniform Application; and
(4) the person's home state awards nonresident producer licenses to residents of this state on the same basis.
Subd. 2.
Verification of licensing status.
The commissioner may verify the producer's licensing status through the producer database maintained by the National Association of Insurance Commissioners, its affiliates, or subsidiaries.
Subd. 3.
Change of address.
A nonresident producer who moves from one state to another state shall file a change of address and provide certification from the new resident state within ten days of the change of legal residence. No fee or license application is required.
Subd. 4.
Termination; resident license.
A nonresident producer license terminates automatically when the person's resident license is terminated for any reason.
Subd. 5.
Surplus lines producers.
(a) Notwithstanding any other provision of sections 60K.30 to 60K.56, a person licensed as a surplus lines producer in the person's home state shall receive a nonresident surplus lines producer license under subdivision 1. Except as to subdivision 1, nothing in this section otherwise amends or supersedes any provision of sections 60A.195 to 60A.209.
(b) No surplus lines agent or broker licensed under sections 60A.195 to 60A.209 may do business in this state unless the agent or broker has complied with the requirements set forth in section 60A.198, subdivision 3, paragraphs (b) to (d).
Subd. 6.
Limited lines producer.
Notwithstanding any other provision of sections 60K.30 to 60K.56, a person licensed as a limited line credit insurance or other type of limited lines producer in the person's home state shall receive a nonresident limited lines producer license, under subdivision 1, granting the same scope of authority as granted under the license issued by the producer's home state. For the purposes of this subdivision, limited line insurance is any authority granted by the home state that restricts the authority of the license to less than the total authority prescribed in the associated major lines pursuant to section 60K.38, subdivision 1, clauses (1) to (6).
History:
2001 c 117 art 1 s 10; 2002 c 379 art 1 s 22,23; 2003 c 2 art 1 s 6; 2005 c 100 s 6