2002 Minnesota Statutes

     72A.12 Life insurance. 

    Subdivision 1.    Issue of prohibited life policies.  
 Every officer or agent of a life insurance company who shall 
 issue any policy in violation of any order or other prohibition 
 by the commissioner made pursuant to law, shall be guilty, for 
 the first offense, of a misdemeanor, and for each subsequent 
 offense, of a gross misdemeanor.  

    Subd. 2.    Misrepresentation by insurer or agent.  No 
 life insurance company doing business in this state, and no 
 officer, director or agent thereof, shall issue or circulate, or 
 cause or permit to be issued or circulated, any estimate, 
 illustration, circular or statement of any sort misrepresenting 
 the terms of any policy issued by it or the benefits or 
 advantages promised thereby, or the dividends or shares of 
 surplus to be received thereon, or shall use any name or title 
 of any policy or class of policies misrepresenting the true 
 nature thereof.  

    Any person violating the provisions of this subdivision 
 shall be guilty of a misdemeanor, and the license of any company 
 which shall authorize or permit a violation of this subdivision 
 shall be revoked.  

    Subd. 3.    Discrimination in accepting risks.  No life 
 insurance company or agent, all other conditions being equal, 
 shall make any discrimination in the acceptance of risks, in 
 rates, premiums, dividends, or benefits of any kind, or by way 
 of rebates, between persons of the same class, or on account of 
 race; and upon request of any person whose application has been 
 rejected, the company shall furnish the rejected applicant, in 
 writing, the reasons therefor, including a certificate of the 
 examining physician that such rejection was not for any racial 
 cause.  Every company violating either of the foregoing 
 provisions shall forfeit not less than $500, nor more than 
 $1,000, and every officer, agent, or solicitor violating the 
 same shall be guilty of a gross misdemeanor; and the 
 commissioner shall revoke the license of such company and its 
 agents, and grant no new license within one year thereafter.  

    Subd. 4.    Discrimination; rebates.  No life insurance 
 company doing business in this state shall make or permit any 
 distinction or discrimination in favor of individuals between 
 insurants of the same class and equal expectation of life in the 
 amount or payment of premiums or rates charged for policies of 
 life or endowment insurance, or in the dividends or other 
 benefits payable thereon, or in any other of the terms and 
 conditions of the contracts it makes; nor shall any such company 
 or agent thereof make any contract of insurance or agreement as 
 to such contract other than as plainly expressed in the policy 
 issued thereon; nor shall any such company or any officer, 
 agent, solicitor, or representative thereof pay, allow or give, 
 or offer to pay, allow or give, directly or indirectly, as 
 inducement to insurance, any rebate of premium payable on the 
 policy, or any special favor or advantage in the dividends or 
 other benefits to accrue thereon or any paid employment or 
 contract for services of any kind, or any valuable consideration 
 or inducement whatever not specified in the policy contract of 
 insurance.  

    Any violation of the provisions of this subdivision shall 
 be a misdemeanor and punishable as such.  

    Subd. 5.    Political contributions prohibited.  No 
 insurance company or association, including fraternal benefit 
 societies, doing business in this state, shall, directly or 
 indirectly, pay or use, or offer, consent or agree to pay or 
 use, any money or property for or in aid of any political party, 
 committee or organization, or for or in aid of any corporation, 
 joint stock or other association organized or maintained for 
 political purposes, or for or in aid of any candidate for 
 political office, or for nomination for the office, or for any 
 other political purpose, or for reimbursement or indemnification 
 of any person for money or property used for political 
 purposes.  Any officer, director, stockholder, attorney or agent 
 of any corporation or association which violates any of the 
 provisions of this section, who participates in, aids, abets, or 
 advises or consents to any violation, and any person who 
 solicits or knowingly receives any money or property in 
 violation of this section, is guilty of a gross misdemeanor.  
 Any officer aiding or abetting in any contribution made in 
 violation of this section is liable to the company or 
 association for the amount contributed.  No person shall be 
 excused from attending and testifying, or producing any books, 
 papers or other documents before any court, upon any 
 investigation, proceeding or trial, for a violation of any of 
 the provisions of this section, upon the ground, or for the 
 reason, that the testimony or evidence, documentary or 
 otherwise, required may tend to incriminate or degrade the 
 person.  No person shall be prosecuted or subjected to any 
 penalty or forfeiture for or on account of any transaction, 
 matter or thing concerning which the person may testify or 
 produce evidence, documentary or otherwise, and no testimony 
 given or produced shall be used against that person upon any 
 criminal investigation or proceeding.  

    HIST: 1967 c 395 art 12 s 12; 1983 c 359 s 1; 1986 c 444; 1992 
 c 564 art 1 s 54