HF 4245

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/14/2022 03:09pm

A bill for an act
relating to insurance; providing exemptions to certain insurance company
requirements; amending Minnesota Statutes 2020, sections 60A.205, subdivision
2; 60K.49, by adding a subdivision; 72A.03.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2020, section 60A.205, subdivision 2, is amended to read:

Subd. 2.

Consequences of receipt.

new text begin (a) new text end If an eligible surplus lines insurer has assumed
a risk, and if the premium for that risk has been received by the broker who placed the
insurance, then as between the insurer and the insured, the insurer shall be considered to
have received the premium due to it for the coverage and shall be liable to the insured for
any loss covered by the insurance and for the unearned premium upon cancellation of the
insurance, regardless of whether the broker is indebted to the insurer.

new text begin (b) An eligible surplus lines insurer has not assumed a risk if: (1) the premium for the
risk has never been transmitted to the surplus lines insurer; and (2) the agent's or broker's
sale, solicitation, or negotiation of insurance is facilitated in any way by an illegal act.
new text end

Sec. 2.

Minnesota Statutes 2020, section 60K.49, is amended by adding a subdivision to
read:

new text begin Subd. 8. new text end

new text begin Application. new text end

new text begin As provided under section 60K.30, paragraph (b), this section
does not apply to surplus lines insurers or surplus lines producers.
new text end

Sec. 3.

Minnesota Statutes 2020, section 72A.03, is amended to read:

72A.03 AGENT OF INSURER; PROCURING PREMIUMS BY FRAUD.

Every insurance agent who acts for another in negotiating a contract of insurance by an new text begin
admitted new text end insurance company shall be held to be the company's agent for the purpose of
collecting or securing the premiums therefor, whatever conditions or stipulations may be
contained in the contract or policy. Any such agent who by fraudulent representations
procures payment, or an obligation for the payment, of an insurance premium shall be guilty,
for the first offense, of a misdemeanor, and for each subsequent offense, of a gross
misdemeanor.