Title Minnesota Statutes, Minnesota Statutes

61A.39 COOPERATIVE LIFE AND CASUALTY COMPANIES. § Subdivision 1.Cooperative plan. Every corporation, society, or association which issues a certificate or policy or makes an agreement with its members by which, upon the decease of a member, any money is to be paid to, or benefit …

61A.40 QUALIFICATIONS FOR LICENSE; NUMBER OF MEMBERS. No corporation not now authorized to transact business in this state shall be licensed to transact the business of life or casualty insurance, or both, upon the cooperative or assessment plan, until at least 300 persons eligib…

61A.41 RESERVE FUND; RECIPROCAL PROVISIONS. Every domestic cooperative life or casualty corporation, society or association, except a fraternal benefit society, which issues a certificate or policy, or makes an agreement with its members, by which, upon the decease of a member, m…

61A.42 PAYMENTS; LIENS; ASSESSMENTS; POLICIES TO BE LABELED. No cooperative or assessment life insurance company shall hereafter issue any policy in this state which does not provide for the payment of a fixed minimum sum, which may be increased each year the insurance remains in…

61A.43 ACCUMULATIONS; AMENDMENT TO ARTICLES OR BYLAWS. Any insurance company transacting the business of life or casualty insurance upon the cooperative or assessment plan under any law of this state may, upon so providing in its articles or bylaws, elect to ascertain and apporti…

61A.44 LIMITATION ON EXPENSES; LIFE INSURANCE. Every corporation, as described in section 61A.39, now or hereafter organized or admitted to transact the business of life insurance in this state, shall set aside and appropriate exclusively to its mortuary or benefit funds, includi…

61A.45 LIMITATION ON EXPENSES; COMPANIES WITH RESERVE DEPOSITS. No company, as described in section 61A.39, transacting the business of casualty or health insurance in this state shall incur, lay out, or expend, in any one calendar year, as and for the expenses of conducting such…

61A.46 NET RATES; RESERVE FUND; LIMITATION OF EXPENSES. No corporation organized to transact the business of life insurance upon the cooperative or assessment plan, and no such corporation not already admitted to transact business in this state, shall be licensed to transact such…

61A.47 REINSURANCE OR CONSOLIDATION. Any corporation, association, or society organized or authorized to transact business under the provisions of sections 61A.39 to 61A.42 and 61A.44 to 61A.50 may, by contract of reinsurance, assume the risks of any other similar corporation, as…

61A.48 CHANGE TO LEGAL RESERVE OR LEVEL PREMIUM COMPANIES. Any corporation, association, or society, as described in section 61A.39, may, with the written consent of the commissioner, upon a majority vote of its governing body, amend its articles of incorporation and bylaws in su…

61A.50 APPLICATION. Section 60A.16, and all other laws and parts of laws, in so far as they may be inconsistent with sections 61A.39 to 61A.42 and 61A.44 to 61A.50, shall not apply to corporations transacting the business of life or casualty insurance solely upon the cooperative …

61A.51 INSOLVENCY. In case any cooperative or assessment life, endowment, or casualty insurance association or society is adjudged insolvent, the balance of its reserve fund, if any, after payment of claims and other indebtedness, shall be paid to the commissioner who shall pay i…

61A.52 RESERVE REQUIRED. No casualty company or association organized under the cooperative or assessment laws of this state not having a reserve of at least $25,000 on deposit with the commissioner shall issue policies or contracts providing for the payment of endowments of any …

61A.53 DEFINITIONS. § Subdivision 1.Applicability. For purposes of sections 61A.53 to 61A.60, the terms defined in this section have the meanings given. § Subd. 2.Replacement. "Replacement" means any transaction in which new life insurance or a new annuity is to be purchased, and…

61A.54 EXEMPTIONS. Unless otherwise specifically included, sections 61A.53 to 61A.60 do not apply to transactions involving: (1) credit life insurance; (2) group life insurance or group annuities; (3) an application to the existing insurer that issued the existing life insurance …

61A.55 DUTIES OF AGENTS AND BROKERS. § Subdivision 1.Submission to insurer. Each agent or broker who initiates the application shall submit to the insurer to which an application for life insurance or annuity is presented, with or as part of each application: (1) a statement sign…

61A.56 DUTIES OF ALL INSURERS. Each insurer shall: (1) inform its field representatives or other personnel responsible for compliance with sections 61A.53 to 61A.60 of the requirements of those sections; and (2) require with or as a part of each completed application for life ins…

61A.57 DUTIES OF INSURERS THAT USE AGENTS OR BROKERS. Each insurer that uses an agent or broker in a life insurance or annuity sale shall: (a) Require with or as part of each completed application for life insurance or annuity, a statement signed by the agent or broker as to whet…

61A.58 DUTIES OF INSURERS WITH RESPECT TO DIRECT RESPONSE SALES. (a) If in the solicitation of a direct response sale, the insurer did not propose the replacement, and a replacement is involved, the insurer shall send to the applicant with the policy or contract a replacement not…

61A.59 ENFORCEMENT; EFFECT OF COMPLIANCE. (a) An agent, broker, or insurer shall not recommend the replacement or conservation of an existing policy or contract by use of a substantially inaccurate presentation or comparison of an existing policy's or contract's premiums and bene…

61A.60 REQUIRED REPLACEMENT NOTICE AND FORM. § Subdivision 1.Notice form; agent sales. The notice required where sections 61A.53 to 61A.60 refer to this subdivision is as follows: IMPORTANT NOTICE DEFINITION REPLACEMENT is any transaction where, in connection with the purchase of…

61A.70 APPLICABILITY AND SCOPE. Sections 61A.70 to 61A.745 apply to all group and individual life insurance policies and certificates except: (1) variable life insurance; (2) individual and group annuity contracts; (3) credit life insurance; or (4) life insurance policies with no…

61A.705 DEFINITIONS. For the purposes of sections 61A.70 to 61A.745: (a) "Actuarial Standards Board" means the board established by the American Academy of Actuaries to develop and promulgate standards of actuarial practice. (b) "Contract premium" means the gross premium that is …

61A.71 POLICIES TO BE ILLUSTRATED. (a) Each insurer marketing policies to which sections 61A.70 to 61A.745 are applicable shall notify the commissioner whether a policy form is to be marketed with or without an illustration. For all policy forms being actively marketed on January…

61A.715 GENERAL RULES AND PROHIBITIONS. (a) An illustration used in the sale of a life insurance policy must satisfy the applicable requirements of sections 61A.70 to 61A.745, be clearly labeled "life insurance illustration," and contain the following basic information: (1) name …

61A.72 STANDARDS FOR BASIC ILLUSTRATIONS. § Subdivision 1.Format. A basic illustration must conform with the following requirements: (1) the illustration must be labeled with the date on which it was prepared; (2) each page, including any explanatory notes or pages, must be numbe…

61A.725 STANDARDS FOR SUPPLEMENTAL ILLUSTRATIONS. (a) A supplemental illustration may be provided so long as: (1) it is appended to, accompanied by, or preceded by a basic illustration that complies with sections 61A.70 to 61A.745; (2) the nonguaranteed elements shown are not mor…

61A.73 DELIVERY OF ILLUSTRATION AND RECORD RETENTION. (a)(1) If a basic illustration is used by an insurance producer or other authorized representative of the insurer in the sale of a life insurance policy and the policy is applied for as illustrated, a copy of that illustration…

61A.735 ANNUAL REPORT; NOTICE TO POLICY OWNERS. (a) In the case of a policy designated as one for which illustrations will be used, the insurer shall provide each policy owner with an annual report on the status of the policy that must contain at least the information in this sec…

61A.74 ANNUAL CERTIFICATIONS. (a) The board of directors of each insurer shall appoint one or more illustration actuaries. (b) The illustration actuary shall certify that the disciplined current scale used in illustrations is in conformity with the Actuarial Standard of Practice …

61A.745 PENALTIES. In addition to any other penalties provided by the laws of this state, an insurer or producer that violates a requirement of sections 61A.70 to 61A.745 is guilty of a violation of section 72A.20. History: 2007 c 104 s 15

61B.18 CITATION. Sections 61B.18 to 61B.32 may be cited as the "Minnesota Life and Health Insurance Guaranty Association Act." History: 1993 c 319 s 3

61B.19 PURPOSE; SCOPE; LIMITATION OF COVERAGE; LIMITATION OF BENEFITS; CONSTRUCTION. § Subdivision 1.Purpose. (a) The purpose of sections 61B.18 to 61B.32 is to protect, subject to certain limitations, the persons specified in subdivision 2 against failure in the performance of c…

61B.20 DEFINITIONS. § Subdivision 1.Application. The definitions in this section apply to sections 61B.18 to 61B.32. § Subd. 2.Account. "Account" means either of the two accounts created under section 61B.21, subdivision 1. § Subd. 3.Annuity contracts. "Annuity contracts" means a…

61B.21 MINNESOTA LIFE AND HEALTH INSURANCE GUARANTY ASSOCIATION. § Subdivision 1.Functions. The Minnesota Life and Health Insurance Guaranty Association shall perform its functions under the plan of operation established and approved under section 61B.25, and shall exercise its p…

61B.22 BOARD OF DIRECTORS. § Subdivision 1.Members. The board of directors of the association consists of nine member insurers serving terms as established in the plan of operation under section 61B.25. The insurer board members must be elected by member insurers, subject to the …

61B.23 POWERS AND DUTIES OF ASSOCIATION. § Subdivision 1.Impaired domestic insurer. If a member insurer is an impaired domestic insurer, the association may, in its discretion, and subject to any conditions imposed by the association that do not impair the contractual obligations…

61B.24 ASSESSMENTS. § Subdivision 1.Purpose. For the purpose of providing the funds necessary to carry out the powers and duties of the association, the board of directors shall assess the member insurers, separately for each account or subaccount, at the times and for the amount…

61B.25 PLAN OF OPERATION. § Subdivision 1.Adoption and amendment. The purpose of the plan of operation is to assure the fair, reasonable, and equitable administration of the association under sections 61B.18 to 61B.32. Amendments to the plan of operation must be submitted to the …

61B.26 DUTIES AND POWERS OF COMMISSIONER. (a) In addition to other duties and powers in sections 61B.18 to 61B.32, the commissioner shall: (1) notify the board of directors of the existence of an impaired or insolvent insurer within three days after a determination of impairment …

61B.27 PREVENTION OF INSOLVENCIES. (a) To aid in the detection and prevention of member insurer insolvencies or impairments the commissioner shall notify the commissioners of insurance of all the other states, territories of the United States, and the District of Columbia when th…

61B.28 MISCELLANEOUS PROVISIONS. § Subdivision 1.Records. Records must be kept of all negotiations and meetings of the board of directors to discuss the activities of the association in carrying out its powers and duties under section 61B.23. Records of the association with respe…

61B.29 EXAMINATION; ANNUAL REPORT. The association is subject to examination and regulation by the commissioner. The board of directors shall submit to the commissioner before May 1 each year, a financial report in a form approved by the commissioner and a report of its activitie…

61B.30 TAX EXEMPTIONS. § Subdivision 1.State fees and taxes. The association is exempt from payment of all taxes imposed under chapter 297I and all fees and all other taxes levied by this state or its subdivisions, except taxes levied on real property. § Subd. 2.Federal and forei…

61B.31 INDEMNIFICATION. The association has authority to indemnify certain persons against certain expenses and liabilities as provided in section 302A.521, including the power to purchase and maintain insurance on behalf of these persons as provided by section 302A.521, subdivis…

61B.32 STAY OF PROCEEDINGS; REOPENING DEFAULT JUDGMENTS. All proceedings in which the insolvent insurer is a party in a court in this state must be stayed 60 days from the date an order of liquidation, rehabilitation, or conservation is final to permit proper legal action by the …