Minnesota Administrative Code

2700.3400 POLICIES AND CONTRACTS IN EFFECT MARCH 1969. Parts 2700.3100 to 2700.3400 do not affect the validity of any life insurance policy, annuity, or endowment contract in force on the effective date hereof. However, the previous approval by this division of any form of policy…

2705.0200 DEFINITIONS. Subpart 1. Scope. For the purposes of this chapter, the terms defined in this part have the meanings given them. Subp. 2. Classification plan; classification. "Classification plan" or "classification" means the same as it is defined in Minnesota Statutes, s…

2705.1000 APPLICATION INFORMATION. A data service organization shall apply to the commissioner for a license. An application to be a data service organization shall include all information required by Minnesota Statutes, section 79.62. In addition, the application shall include: …

2705.1100 MANUALS. A. The rating association or any other licensed data service organization must file and maintain the following manuals: (1) a basic manual containing a uniform classification system for risks and other general standards related to the identification and underwr…

2705.1150 AMENDMENTS TO APPLICATION. Subpart 1. Commissioner notified. A data service organization which has applied for a license must notify the commissioner of every change in the plan of operation on which its application was based. Any amendment to a document filed under thi…

2705.1200 GRANTING OF LICENSE. A. The commissioner shall issue a license if the commissioner finds that: (1) the applicant meets the requirements of Minnesota Statutes, section 79.62 and part 2705.1000; (2) the applicant demonstrates staff competence and technical qualifications …

2705.1600 DATA SERVICE ORGANIZATIONS RATEMAKING REPORTS. Subpart 1. [Repealed, 31 SR 323] Subp. 2. Outlines and draft. Licensed data service organizations must submit an outline of their annual ratemaking report to the commissioner for comment by July 1 of each year. A draft of t…

2705.1700 CONTENTS OF RATEMAKING REPORT. Subpart 1. Statutory and other data. A ratemaking report shall meet all requirements of Minnesota Statutes, sections 79.55, subdivision 8, and 79.61, subdivision 1, clause (c) and, in addition, may contain information useful to data servic…

2705.1800 USE OF RATEMAKING REPORT. A. After the ratemaking report has been filed with the commissioner, insurers may develop and use rates based upon the pure premium base rates contained in the report. Insurers may also develop and use rates based upon any reasonable factors wh…

2705.1900 REVIEW BY COMMISSIONER. Subpart 1. Nonconforming ratemaking report. If the commissioner finds upon review that the ratemaking report is not as prescribed, then the commissioner shall issue an order specifying in which respects it fails to meet the requirements of Minnes…

2705.2000 UNIFORM CLASSIFICATION AND STATISTICAL PLAN. Subpart 1. Commissioner approves. The commissioner shall approve a uniform classification system, a uniform statistical plan, and manual rules related to the classification system and the statistical plan. Every workers' comp…

2705.2100 AMENDMENTS TO UNIFORM CLASSIFICATION OR STATISTICAL PLANS. Any data service organization may file with the commissioner a petition to change the uniform classification system or the uniform statistical plan. Any change must be approved by the commissioner who shall also…

2705.2200 INSURER VARIATIONS. An insurer may develop variations of the uniform classification system upon which a rate may be made. A variation must be filed with the commissioner 60 days prior to its use. The commissioner shall disapprove variations if the insurer fails to demon…

2705.2500 RATING CRITERIA. Subpart 1. Determining compliance. In determining whether rates and rating plans comply with Minnesota Statutes, section 79.55 and part 2705.1800, the commissioner shall consider the criteria in subparts 2 to 4. Subp. 2. Loss experience and other rate f…

2705.2600 EXPERIENCE RATING PLANS. An insurer may use the experience rating plan developed by the data service organization of which it is a member. An insurer may also develop and use its own experience rating plan. Any experience rating plan is subject to the conditions in part…

2705.2800 LOSS INFORMATION. Each insurer or the data service organization to which it belongs must annually provide the following loss information to each insured eligible for experience rating: A. the insured's experience modification factor; B. the payrolls and incurred losses …

2705.2900 FORMS. The forms for providing this information may be developed by either the insurer or by the data service organization to which the insurer belongs. The forms must be filed as part of the experience rating plan. Statutory Authority: MS s 79.55 to 79.61 History: 8 SR…

2705.3000 SCHEDULE RATING PLANS. The maximum debit which can be developed by schedule rating shall be determined by the commissioner and shall be no more than 25 percent of manual premium, after application of any experience modification. Statutory Authority: MS s 45.023; 79.51; …

2705.3200 POLICY FORMS. Workers' compensation insurance must be written using policy forms filed by the data service organization of which the insurer is a member except that if the insurer files a rating plan requiring a policy provision or endorsement for which the data service…

2711.0200 SCOPE. This chapter applies to all life insurance companies and fraternal benefit societies doing business in this state and to all life insurance companies and fraternal benefit societies that are authorized to reinsure life insurance, annuities, or accident and health…

2711.0210 DEFINITIONS. Subpart 1. Scope. For purposes of this chapter, the terms in this part have the meanings given them. Subp. 2. Actuarial opinion. "Actuarial opinion" means the opinion of an appointed actuary regarding the adequacy of the reserves and related actuarial items…

2711.0220 GENERAL REQUIREMENTS. Subpart 1. Submission of Statement of Actuarial Opinion. A. There is to be included on or attached to page 1 of the annual statement for each year the statement of an appointed actuary, entitled, "Statement of Actuarial Opinion," setting forth an o…

2711.0230 STATEMENT OF ACTUARIAL OPINION BASED ON AN ASSET ADEQUACY ANALYSIS. Subpart 1. General description. The Statement of Actuarial Opinion submitted in accordance with this part consists of: A. a paragraph identifying the appointed actuary and the actuary's qualifications; …

2711.0240 DESCRIPTION OF ACTUARIAL MEMORANDUM INCLUDING AN ASSET ADEQUACY ANALYSIS AND REGULATORY ASSET ADEQUACY ISSUES SUMMARY. Subpart 1. Generally. A. In accordance with Minnesota Statutes, section 61A.25, subdivision 2a, the appointed actuary shall prepare a memorandum to the…

2715.4100 DEFINITIONS. Subpart 1. Scope. When used herein, the terms defined in this part shall have the meanings given them. Subp. 2. Act. "Act" means Minnesota Statutes, section 60A.22, subdivision 2. Subp. 3. Class. "Class" means all securities of an insurer that are of substa…

2715.4200 SECURITIES HELD OF RECORD. Subpart 1. Identified owner. For the purpose of determining whether the equity securities of an insurer are held of record by 100 or more persons, securities shall be deemed to be "held of record" by each person who is identified as the owner …

2715.4300 EXEMPTED TRANSACTIONS. Any acquisition or disposition of any equity security by a director or officer of an insurer within six months prior to the date on which the act shall first become applicable with respect to the equity securities of such insurer shall not be subj…

2715.4400 FILING STATEMENTS. Subpart 1. Forms A and B. Initial statements of beneficial ownership of equity securities required by clause (1) of the act shall be filed on the form specified in form A, part 2715.6401. Statements of changes in such beneficial ownership required by …

2715.4500 EQUITY SECURITY OWNERSHIP OVER TEN PERCENT. Subpart 1. Class of security. In determining, for the purpose of clause (1) of the act, whether a person is the beneficial owner, directly or indirectly, of more than ten percent of any class of any equity security, such class…

2715.4600 DISCLAIMER OF BENEFICIAL OWNERSHIP. Any person filing a statement may expressly declare therein that the filing of such statement shall not be construed as an admission that such person is, for the purpose of the act, the beneficial owner of any equity securities covere…

2715.4700 EXEMPTIONS FROM CLAUSES (1) AND (2) OF THE ACT. Subpart 1. Twelve-month exemption. During the period of 12 months following their appointment and qualifications, securities held by the following persons shall be exempt from clauses (1) and (2) of the act: A. executors o…

2715.4800 EXEMPTION OF TRANSACTIONS BY ODD-LOT DEALERS. Securities purchased or sold by an odd-lot dealer in odd lots so far as reasonably necessary to carry on odd-lot transactions, or in round lots to offset odd-lot transactions previously or simultaneously executed or reasonab…

2715.4900 TRANSACTIONS SUBJECT TO CLAUSE (1). Subpart 1. Changes in ownership. Changes in ownership: A. The granting, acquisition, or disposition of any presently exercisable put, call, option, or other right or obligation to buy securities from, or sell securities to, another pe…

2715.5000 OWNERSHIP OF SECURITIES HELD IN TRUST. Subpart 1. Inclusion. Beneficial ownership of a security for the purpose of clause (1) of the act shall include: A. the ownership of securities as a trustee where either the trustee or members of the trustee's immediate family have…

2715.5100 EXEMPTION FOR SMALL TRANSACTIONS. Subpart 1. Six-month period. Any acquisition of securities shall be exempt from clause (1) of the act where: A. the person effecting the acquisition does not within six months thereafter effect any disposition, otherwise than by way of …

2715.5200 EXEMPTION OF TRANSACTIONS THAT NEED NOT BE REPORTED UNDER CLAUSE (1). Any transaction that has been or shall be exempted from the requirements of clause (1) of the act shall, insofar as it is otherwise subject to the provisions of clause (2) of the act, be likewise exem…

2715.5300 DEFINITIONS. Subpart 1. Scope. Unless the context otherwise requires, all terms used in parts 2715.5300 and 2715.6000 shall have the same meaning as in the act and in parts 2715.4100 and 2715.4200. In addition, the following definitions apply. Subp. 2. Employee stock pu…

2715.5350 CERTAIN TRANSACTIONS EFFECTED IN CONNECTION WITH DISTRIBUTION. Subpart 1. One party's exemption. Any transaction of purchase and sale, or sale and purchase, of a security that is effected in connection with the distribution of a substantial block of securities shall be …

2715.5400 ACQUISITIONS UNDER CERTAIN STOCK BONUS, OPTION, OR SIMILAR PLANS. Subpart 1. Exempt acquisitions. Any acquisition of shares of stock (other than stock acquired upon the exercise of an option, warrant, or right) pursuant to a stock bonus, profit sharing, retirement, ince…

2715.5500 TRANSACTIONS IN WHICH SECURITIES ARE RECEIVED BY REDEEMING OTHER SECURITIES. Any acquisition of an equity security (other than a convertible security or right to purchase a security) by a director or officer of the insurer issuing such security shall be exempt from the …

2715.5600 LONG TERM PROFITS INCIDENT TO SALES WITHIN SIX MONTHS OF EXERCISE. Long term profits incident to sales within six months of exercise: A. To the extent specified in item B, the commissioner hereby exempts as not comprehended within the purposes of clause (2) of the act a…

2715.5700 ACQUISITIONS AND DISPOSITIONS OF SECURITIES PURSUANT TO MERGERS OR CONSOLIDATIONS. Subpart 1. Exempt. The following transactions shall be exempt from the provisions of clause (2) of the act as not comprehended within the purposes of said clause: A. the acquisition of a …

2715.5800 TRANSACTIONS INVOLVING DEPOSIT OR WITHDRAWAL OF EQUITY SECURITIES UNDER VOTING TRUST OR DEPOSIT AGREEMENT. Any acquisition or disposition of an equity security involved in the deposit of such security under, or the withdrawal of such security from, a voting trust or dep…

2715.5900 TRANSACTIONS INVOLVING CONVERSION OF EQUITY SECURITIES. Subpart 1. Exemption. Any acquisition or disposition of an equity security involved in the conversion of an equity security that, by its terms, or pursuant to the terms of the insurer's charter or other governing i…

2715.6000 TRANSACTIONS INVOLVING SALE OF SUBSCRIPTION RIGHTS. Transactions involving sale of subscription rights: A. Any sale of a subscription right to acquire any subject security of the same insurer shall be exempt from the provisions of clause (2) of the act, to the extent pr…

2715.6100 EXEMPTION OF CERTAIN SECURITIES. Any security shall be exempt from the operation of clause (3) of the act to the extent necessary to render lawful under such clause the execution by a broker of an order for an account in which the broker has no direct or indirect intere…

2715.6200 CERTAIN TRANSACTIONS EFFECTED IN CONNECTION WITH A DISTRIBUTION. Any security shall be exempt from the operation of clause (3) of the act to the extent necessary to render lawful under such clause any sale made by or on behalf of a dealer in connection with a distributi…