HF 2825

Introduction - 82nd Legislature (2001 - 2002)

Posted on 12/15/2009 12:00 a.m.

  1.1                          A bill for an act 
  1.2             relating to crimes; authorizing the attorney general 
  1.3             to prosecute certain commercial crimes; amending 
  1.4             Minnesota Statutes 2000, section 609.611, subdivision 
  1.5             4, by adding a subdivision. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2000, section 609.611, is 
  1.8   amended by adding a subdivision to read: 
  1.9      Subd. 3a.  [COMMERCIAL CRIMES; ATTORNEY GENERAL AUTHORITY 
  1.10  TO PROSECUTE.] The attorney general may prosecute any person, 
  1.11  firm, or corporation engaged in fraud, theft, deceptive 
  1.12  practice, or any other act prohibited by sections 609.611, 
  1.13  subdivision 1; 609.52, subdivision 2; or 609.86, subdivision 2, 
  1.14  committed against an insurer or by an insurer, its officers, or 
  1.15  employees. 
  1.16     Sec. 2.  Minnesota Statutes 2000, section 609.611, 
  1.17  subdivision 4, is amended to read: 
  1.18     Subd. 4.  [DEFINITIONS.] (a) "Insurance policy" means the 
  1.19  written instrument in which are set forth the terms of any 
  1.20  certificate of insurance, binder of coverage, or contract of 
  1.21  insurance (including a certificate, binder, or contract issued 
  1.22  by a state-assigned risk plan); benefit plan; nonprofit hospital 
  1.23  service plan; motor club service plan; or surety bond, cash 
  1.24  bond, or any other alternative to insurance authorized by a 
  1.25  state's Financial Responsibility Act. 
  2.1      (b) "Insurance professional" means sales agents, agencies, 
  2.2   managing general agents, brokers, producers, claims 
  2.3   representatives, adjusters, and third-party administrators. 
  2.4      (c) "Insurance transaction" means a transaction by, 
  2.5   between, or among:  (1) an insurer or a person who acts on 
  2.6   behalf of an insurer; and (2) an insured, claimant, applicant 
  2.7   for insurance, public adjuster, insurance professional, 
  2.8   practitioner, or any person who acts on behalf of any of the 
  2.9   foregoing, for the purpose of obtaining insurance or 
  2.10  reinsurance, calculating insurance premiums, submitting a claim, 
  2.11  negotiating or adjusting a claim, or otherwise obtaining 
  2.12  insurance, self-insurance, or reinsurance or obtaining the 
  2.13  benefits thereof or therefrom. 
  2.14     (d) "Insurer" means a person purporting to engage in the 
  2.15  business of insurance or authorized to do business in the state 
  2.16  or subject to regulation by the state, who undertakes to 
  2.17  indemnify another against loss, damage, or liability arising 
  2.18  from a contingent or unknown event.  Insurer includes, but is 
  2.19  not limited to, an insurance company; self-insurer; reinsurer; 
  2.20  reciprocal exchange; interinsurer; risk retention group; Lloyd's 
  2.21  insurer; fraternal benefit society; surety; medical service, 
  2.22  dental, optometric, or any other similar health service 
  2.23  plan; health maintenance organization; and any other legal 
  2.24  entity engaged or purportedly engaged in the business of 
  2.25  insurance, including any person or entity that falls within the 
  2.26  definition of insurer found within section 60A.951, subdivision 
  2.27  5. 
  2.28     (e) "Premium" means consideration paid or payable for 
  2.29  coverage under an insurance policy.  Premium includes any 
  2.30  payment, whether due within the insurance policy term or 
  2.31  otherwise, and any deductible payment, whether advanced by the 
  2.32  insurer or insurance professional and subject to reimbursement 
  2.33  by the insured or otherwise, any self-insured retention or 
  2.34  payment, whether advanced by the insurer or insurance 
  2.35  professional and subject to reimbursement by the insured or 
  2.36  otherwise, and any collateral or security to be provided to 
  3.1   collateralize obligations to pay any of the above. 
  3.2      (f) "Premium finance company" means a person engaged or 
  3.3   purporting to engage in the business of advancing money, 
  3.4   directly or indirectly, to an insurer or producer at the request 
  3.5   of an insured under the terms of a premium finance agreement, 
  3.6   including but not limited to, loan contracts, notes, agreements 
  3.7   or obligations, wherein the insured has assigned the unearned 
  3.8   premiums, accrued dividends, or loss payments as security for 
  3.9   such advancement in payment of premiums on insurance policies 
  3.10  only, but does not include the financing of insurance premiums 
  3.11  purchased in connection with the financing of goods or services. 
  3.12     (g) "Premium finance transaction" means a transaction by, 
  3.13  between, or among an insured, a producer or other party claiming 
  3.14  to act on behalf of an insured and a third-party premium finance 
  3.15  company, for the purposes of purportedly or actually advancing 
  3.16  money directly or indirectly to an insurer or producer at the 
  3.17  request of an insured under the terms of a premium finance 
  3.18  agreement, wherein the insured has assigned the unearned 
  3.19  premiums, accrued dividends, or loan payments as security for 
  3.20  such advancement in payment of premiums on insurance policies 
  3.21  only, but does not include the financing of insurance premiums 
  3.22  purchased in connection with the financing of goods or services. 
  3.23     Sec. 3.  [EFFECTIVE DATE.] 
  3.24     Sections 1 and 2 are effective August 1, 2002, and apply to 
  3.25  crimes committed on or after that date.