Minnesota Legislature
HF 4174
as introduced - 93rd Legislature (2023 - 2024) Posted on 02/22/2024 02:55pm
Bill Text Versions
| Engrossments | ||
|---|---|---|
| Introduction | Posted on 02/22/2024 |
Current Version - as introduced
1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 1.23 1.24 1.25 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24 2.25 2.26 2.27 2.28 2.29 2.30 2.31 2.32 2.33 2.34 2.35 2.36 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13
3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 3.31 3.32 3.33 4.1 4.2 4.3 4.4
A bill for an act
relating to insurance; increasing the number of counties in which a township mutual
fire insurance company may write business; permitting certain policies to avoid
automatic cancellation in connection with the merger of township mutual fire
insurance companies; amending Minnesota Statutes 2022, sections 67A.01,
subdivision 2; 67A.14, subdivision 1.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2022, section 67A.01, subdivision 2, is amended to read:
Subd. 2.
Authorized territory.
(a) A township mutual fire insurance company may be
authorized to write business in up to nine adjoining counties in the aggregate at the same
time. If policyholder surplus is at least $500,000 as reported in the company's last annual
financial statement filed with the commissioner, the company may, if approval has been
granted by the commissioner, be authorized to write business in ten or more counties in the
aggregate at the same time, subject to a maximum of deleted text begin 20deleted text end new text begin 40new text end adjoining counties, in accordance
with the following schedule:
| Number of Counties |
Surplus Requirement |
|
| 10 |
$500,000 |
|
| 11 |
600,000 |
|
| 12 |
700,000 |
|
| 13 |
800,000 |
|
| 14 |
900,000 |
|
| 15 |
1,000,000 |
|
| 16 |
1,100,000 |
|
| 17 |
1,200,000 |
|
| 18 |
1,300,000 |
|
| 19 |
1,400,000 |
|
| 20 |
1,500,000 |
|
|
new text begin
21 new text end |
new text begin
1,600,000 new text end |
|
|
new text begin
22 new text end |
new text begin
1,700,000 new text end |
|
|
new text begin
23 new text end |
new text begin
1,800,000 new text end |
|
|
new text begin
24 new text end |
new text begin
1,900,000 new text end |
|
|
new text begin
25 new text end |
new text begin
2,000,000 new text end |
|
|
new text begin
26 new text end |
new text begin
2,100,000 new text end |
|
|
new text begin
27 new text end |
new text begin
2,200,000 new text end |
|
|
new text begin
28 new text end |
new text begin
2,300,000 new text end |
|
|
new text begin
29 new text end |
new text begin
2,400,000 new text end |
|
|
new text begin
30 new text end |
new text begin
2,500,000 new text end |
|
|
new text begin
31 new text end |
new text begin
2,600,000 new text end |
|
|
new text begin
32 new text end |
new text begin
2,700,000 new text end |
|
|
new text begin
33 new text end |
new text begin
2,800,000 new text end |
|
|
new text begin
34 new text end |
new text begin
2,900,000 new text end |
|
|
new text begin
35 new text end |
new text begin
3,000,000 new text end |
|
|
new text begin
36 new text end |
new text begin
3,100,000 new text end |
|
|
new text begin
37 new text end |
new text begin
3,200,000 new text end |
|
|
new text begin
38 new text end |
new text begin
3,300,000 new text end |
|
|
new text begin
39 new text end |
new text begin
3,400,000 new text end |
|
|
new text begin
40 new text end |
new text begin
3,500,000 new text end |
(b) In the case of a merger of two or more companies having contiguous territories, the
surviving company in the merger may transact business in the entire territory of the merged
companies; however, the territory of the surviving company in the merger may not be larger
than deleted text begin 20deleted text end new text begin 40new text end counties.
new text begin
(c) Notwithstanding paragraph (b), a policy issued by a constituent company to the
merger may remain effective, without respect to the policy being issued in a county outside
the territory of the surviving company, until the policy: (1) expires or is terminated by the
policy's terms; or (2) is terminated or annulled and canceled in accordance with section
67A.18. The surviving company must not amend or renew a policy issued in a county outside
the surviving company's territory.
new text end
deleted text begin (c)deleted text end new text begin (d)new text end A township mutual fire insurance company may write new and renewal insurance
on property in cities within the company's authorized territory having a population less than
25,000. A township mutual fire insurance company may continue to write new and renewal
insurance once the population increases to 25,000 or greater provided that amended and
restated articles are filed with the commissioner along with a certification that such city's
population has increased to 25,000 or greater.
deleted text begin (d)deleted text end new text begin (e)new text end A township mutual fire insurance company may write new and renewal insurance
on property in cities within the company's authorized territory with a population of 25,000
or greater, but less than 150,000, if approval has been granted by the commissioner. No
township mutual fire insurance company shall insure any property in cities with a population
of 150,000 or greater.
deleted text begin (e)deleted text end new text begin (f)new text end If a township mutual fire insurance company provides evidence to the
commissioner that the company had insurance in force on December 31, 2007, in a city
within the company's authorized territory with a population of 25,000 or greater, but less
than 150,000, the company may write new and renewal insurance on property in that city
provided that the company files amended and restated articles by July 31, 2010, naming
that city.
Sec. 2.
Minnesota Statutes 2022, section 67A.14, subdivision 1, is amended to read:
Subdivision 1.
Kinds of property; property outside authorized territory.
(a) Township
mutual fire insurance companies may insure qualified property. Qualified property means
dwellings, household goods, appurtenant structures, farm buildings, farm personal property,
churches, church personal property, county fair buildings, community and township meeting
halls and their usual contents.
(b) Township mutual fire insurance companies may extend coverage to include an
insured's secondary property if the township mutual fire insurance company covers qualified
property belonging to the insured. Secondary property means any real or personal property
that is not considered qualified property for a township mutual fire insurance company to
cover under this chapter. The maximum amount of coverage that a township mutual fire
insurance company may write for secondary property is 25 percent of the total limit of
liability of the policy issued to an insured covering the qualified property.
(c) A township mutual fire insurance company may insure any real or personal property,
including qualified or secondary property, subject to the limitations in subdivision 1,
paragraph (b), located outside the limits of the territory in which the company is authorized
by its certificate or articles of incorporation to transact business, if the company is already
covering qualified property belonging to the insured, inside the limits of the company's
territory.new text begin For purposes of this paragraph, qualified property inside the limits of the company's
territory includes qualified property outside the territory of the surviving company to a
merger for the duration of the policy insuring the qualified property if the qualified property
was qualified property inside the territory of a constituent company to the merger.
new text end
(d) A township mutual fire insurance company may insure property temporarily outside
of the authorized territory of the township mutual fire insurance company.