1.1 	A bill for an act
1.2 	relating to commerce; regulating various licenses, forms, coverages, marketing 
1.3 	practices, and records; classifying certain data; prescribing a criminal penalty; 
1.4 	amending Minnesota Statutes 2008, sections 13.716, by adding a subdivision; 
1.5 	45.011, subdivision 1; 45.0135, subdivision 7; 58.02, subdivision 17; 59B.01; 
1.6 	60A.08, by adding a subdivision; 60A.198, subdivisions 1, 3; 60A.205, 
1.7 	subdivision 1; 60A.2085, subdivisions 1, 3, 7, 8; 60A.23, subdivision 8; 
1.8 	60A.235; 60A.32; 62A.011, subdivision 3; 62A.136; 62A.315; 62A.316; 62L.02, 
1.9 	subdivision 26; 62M.05, subdivision 3a; 65A.27, subdivision 1; 67A.191, 
1.10 	subdivision 2; 72A.139, subdivision 2; 72A.20, subdivisions 15, 26; 79A.04, 
1.11 	subdivision 1, by adding a subdivision; 79A.06, by adding a subdivision; 
1.12 	79A.24, subdivision 1, by adding a subdivision; 82.31, subdivision 4; 82B.08, 
1.13 	by adding a subdivision; 82B.20, subdivision 2; proposing coding for new law 
1.14 	in Minnesota Statutes, chapters 62A; 72A; 82B; repealing Minnesota Statutes 
1.15 	2008, sections 70A.07; 79.56, subdivision 4; 325E.311; 325E.312; 325E.313; 
1.16 	325E.314; 325E.315; 325E.316.
1.17 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.18 	Section 1. Minnesota Statutes 2008, section 13.716, is amended by adding a 
1.19 	subdivision to read:
1.20 		Subd. 8.Insurance filings data. Insurance filings data received by the 
1.21 	commissioner of commerce are classified under section 60A.08, subdivision 15.

1.22 	Sec. 2. Minnesota Statutes 2008, section 45.011, subdivision 1, is amended to read:
1.23 		Subdivision 1.Scope. As used in chapters 45 to 83, 155A,  332, 332A, 345, and 359, 
1.24 	and sections 123A.21, subdivisions 7 and 23, 123A.25; 325D.30 to 325D.42,;326B.802
1.25 	to 326B.885, and;386.61 to 386.78,;471.617; and 471.982, unless the context indicates 
1.26 	otherwise, the terms defined in this section have the meanings given them. 

1.27 	Sec. 3. Minnesota Statutes 2008, section 45.0135, subdivision 7, is amended to read:
2.1 		Subd. 7.Assessment. Each insurer authorized to sell insurance in the state of 
2.2 	Minnesota, including surplus lines carriers, and having Minnesota earned premium the 
2.3 	previous calendar year shall remit an assessment to the commissioner for deposit in the 
2.4 	insurance fraud prevention account on or before June 1 of each year. The amount of the 
2.5 	assessment shall be based on the insurer's total assets and on the insurer's total written 
2.6 	Minnesota premium, for the preceding fiscal year, as reported pursuant to section 60A.13. 
2.7 	The assessment is calculated as follows to be an amount up to the following:

2.8		Total Assets
	Assessment
	
2.9		Less than $100,000,000
		$
	200
	
2.10		$100,000,000 to $1,000,000,000
		$
	750
	
2.11		Over $1,000,000,000
		$
	2,000

2.12		Minnesota Written Premium
	Assessment
	
2.13		Less than $10,000,000
		$
	200
	
2.14		$10,000,000 to $100,000,000
		$
	750
	
2.15		Over $100,000,000
		$
	2,000
	
2.16 	For purposes of this subdivision, the following entities are not considered to be 
2.17 	insurers authorized to sell insurance in the state of Minnesota: risk retention groups; or 
2.18 	township mutuals organized under chapter 67A.

2.19 	EFFECTIVE DATE. This section is effective January 1, 2010.

2.20 	Sec. 4. Minnesota Statutes 2008, section 58.02, subdivision 17, is amended to read:
2.21 		Subd. 17.Person in control. "Person in control" means any member of senior 
2.22 	management, including owners or officers, and other persons who possess, directly 
2.23 	or indirectly, the power to direct or cause the direction of the management policies of 
2.24 	an applicant or licensee under this chapter, regardless of whether the person has any 
2.25 	ownership interest in the applicant or licensee. Control is presumed to exist if a person, 
2.26 	directly or indirectly, owns, controls, or holds with power to vote ten percent or more of 
2.27 	the voting stock of an applicant or licensee or of a person who owns, controls, or holds 
2.28 	with power to vote ten percent or more of the voting stock of an applicant or licensee.

2.29 	Sec. 5. Minnesota Statutes 2008, section 59B.01, is amended to read:
2.30 	59B.01 SCOPE AND PURPOSE.
2.31 	(a) The purpose of this chapter is to create a legal framework within which service 
2.32 	contracts may be sold in this state.
2.33 	(b) The following are exempt from this chapter:
2.34 	(1) warranties;
3.1 	(2) maintenance agreements;
3.2 	(3) warranties, service contracts, or maintenance agreements offered by public 
3.3 	utilities, as defined in section 216B.02, subdivision 4, or an entity or operating unit owned 
3.4 	by or under common control with a public utility;
3.5 	(4) service contracts sold or offered for sale to persons other than consumers;
3.6 	(5) service contracts on tangible property where the tangible property for which the 
3.7 	service contract is sold has a purchase price of $250 or less, exclusive of sales tax;
3.8 	(6) service contracts for home security equipment installed by a licensed technology 
3.9 	systems contractor; and
3.10 	(7) motor club membership contracts that typically provide roadside assistance 
3.11 	services to motorists stranded for reasons that include, but are not limited to, mechanical 
3.12 	breakdown or adverse road conditions.
3.13 	(c) The types of agreements referred to in paragraph (b) are not subject to chapters 
3.14 	60A to 79A, except as otherwise specifically provided by law.
3.15 	(d) Service contracts issued by motor vehicle manufacturers covering private 
3.16 	passenger automobiles are only subject to sections 59B.03, subdivision 5, 59B.05, and 
3.17 	59B.07.
3.18 	(e) All warranty service contracts are deemed to be made in Minnesota for the 
3.19 	purpose of arbitration.

3.20 	Sec. 6. Minnesota Statutes 2008, section 60A.08, is amended by adding a subdivision 
3.21 	to read:
3.22 		Subd. 15.Classification of insurance filings data. (1) All forms, rates, and related 
3.23 	information filed with the commissioner under section 61A.02 shall be nonpublic until the 
3.24 	filing becomes effective.
3.25 	(2) All forms, rates, and related information filed with the commissioner under 
3.26 	section 62A.02 shall be nonpublic until the filing becomes effective.
3.27 	(3) All forms, rates, and related information filed with the commissioner under 
3.28 	section 62C.14, subdivision 10, shall be nonpublic until the filing becomes effective.
3.29 	(4) All forms, rates, and related information filed with the commissioner under 
3.30 	section 70A.06 shall be nonpublic until the filing becomes effective.
3.31 	(5) All forms, rates, and related information filed with the commissioner under 
3.32 	section 79.56 shall be nonpublic until the filing becomes effective.

3.33 	Sec. 7. Minnesota Statutes 2008, section 60A.198, subdivision 1, is amended to read:
4.1 		Subdivision 1.License required. A person, as defined in section 60A.02, 
4.2 	subdivision 7, shall not act in any other manner as an agent or broker in the transaction 
4.3 	of surplus lines insurance unless licensed under sections 60A.195 to 60A.209. A surplus 
4.4 	lines license is not required for a licensed resident agent who assists in the procurement
4.5 	placement of surplus lines insurance with a surplus lines licensee pursuant to sections 
4.6 	60A.195 to 60A.209.  

4.7 	Sec. 8. Minnesota Statutes 2008, section 60A.198, subdivision 3, is amended to read:
4.8 		Subd. 3.Procedure for obtaining license. A person licensed as an agent in this 
4.9 	state pursuant to other law may obtain a surplus lines license by doing the following:
4.10 	(a) filing an application in the form and with the information the commissioner 
4.11 	may reasonably require to determine the ability of the applicant to act in accordance 
4.12 	with sections 60A.195 to 60A.209;  
4.13 	(b) maintaining an agent's license in this state;
4.14 	(c) registering with the association created pursuant to section 60A.2085;
4.15 	(c)(d) agreeing to file with the commissioner of revenue all returns required by 
4.16 	chapter 297I and paying to the commissioner of revenue all amounts required under 
4.17 	chapter 297I; and
4.18 	(e) agreeing to file all documents required pursuant to section 60A.2086 and to pay 
4.19 	the stamping fee assessed pursuant to section 60A.2085, subdivision 7; and
4.20 	(d)(f) paying a fee as prescribed by section 60K.55.  

4.21 	Sec. 9. Minnesota Statutes 2008, section 60A.205, subdivision 1, is amended to read:
4.22 		Subdivision 1.Authorization. A surplus lines licensee may be compensated by 
4.23 	an eligible surplus lines insurer and the licensee may compensate a licensed resident
4.24 	agent in this state for obtaining surplus lines insurance business. A licensed resident
4.25 	agent authorized by the licensee may collect a premium on behalf of the licensee, and as 
4.26 	between the insured and the licensee, the licensee shall be considered to have received the 
4.27 	premium if the premium payment has been made to the agent.

4.28 	Sec. 10. Minnesota Statutes 2008, section 60A.2085, subdivision 1, is amended to read:
4.29 		Subdivision 1.Association created; duties. There is hereby created a nonprofit 
4.30 	association to be known as the Surplus Lines Association of Minnesota. The association 
4.31 	is not a state agency for purposes of chapter 16A, 16B, 16C, or 43A. All surplus lines 
4.32 	licensees are members of this association. Section 60A.208, subdivision 5, does not apply 
4.33 	to the association created pursuant to the provisions of this section. The association shall 
5.1 	perform its functions under the plan of operation established under subdivision 3 and must 
5.2 	exercise its powers through a board of directors established under subdivision 2 as set 
5.3 	forth in the plan of operation. The association shall be authorized and have the duty to:
5.4 	(1) receive, record, and stamp all surplus lines insurance documents that surplus 
5.5 	lines licensees are required to file with the association;
5.6 	(2) prepare and deliver monthly to the commissioners of revenue and commerce a 
5.7 	report regarding surplus lines business. The report must include a list of all the business 
5.8 	procured during the preceding month, in the form the commissioners prescribe;
5.9 	(3) educate its members regarding the surplus lines law of this state including 
5.10 	insurance tax responsibilities and the rules and regulations of the commissioners of 
5.11 	revenue and commerce relative to surplus lines insurance;
5.12 	(4) communicate with organizations of agents, brokers, and admitted insurers with 
5.13 	respect to the proper use of the surplus lines market;
5.14 	(5) employ and retain persons necessary to carry out the duties of the association;
5.15 	(6) borrow money necessary to effect the purposes of the association and grant a 
5.16 	security interest or mortgage in its assets, including the stamping fees charged pursuant to 
5.17 	subdivision 7 in order to secure the repayment of any such borrowed money;
5.18 	(7) enter contracts necessary to effect the purposes of the association;
5.19 	(8) provide other services to its members that are incidental or related to the 
5.20 	purposes of the association; and
5.21 	(9) form and organize itself as a nonprofit corporation under chapter 317A, with the 
5.22 	powers set forth in section 317A.161 that are not otherwise limited by this section or in 
5.23 	its articles, bylaws, or plan of operation;
5.24 	(10) file such applications and take such other action as necessary to establish and 
5.25 	maintain the association as tax exempt pursuant to the federal income tax code;
5.26 	(11) recommend to the commissioner of commerce revisions to Minnesota law 
5.27 	relating to the regulation of surplus lines insurance in order to improve the efficiency 
5.28 	and effectiveness of that regulation; and
5.29 	(9)(12) take other actions reasonably required to implement the provisions of this 
5.30 	section.

5.31 	Sec. 11. Minnesota Statutes 2008, section 60A.2085, subdivision 3, is amended to read:
5.32 		Subd. 3.Plan of operation. (a) The plan of operation shall provide for the 
5.33 	formation, operation, and governance of the association as a nonprofit corporation 
5.34 	under chapter 317A. The plan of operation must provide for the election of a board of 
5.35 	directors by the members of the association. The board of directors shall elect officers as 
6.1 	provided for in the plan of operation. The plan of operation shall establish the manner of 
6.2 	voting and may weigh each member's vote to reflect the annual surplus lines insurance 
6.3 	premium written by the member. Members employed by the same or affiliated employers 
6.4 	may consolidate their premiums written and delegate an individual officer or partner 
6.5 	to represent the member in the exercise of association affairs, including service on the 
6.6 	board of directors.
6.7 	(b) The plan of operation shall provide for an independent audit once each year of all 
6.8 	the books and records of the association and a report of such independent audit shall be 
6.9 	made to the board of directors, the commissioner of revenue, and the commissioner of 
6.10 	commerce, with a copy made available to each member to review at the association office.
6.11 	(c) The plan of operation and any amendments to the plan of operation shall be 
6.12 	submitted to the commissioner and shall be effective upon approval in writing by the 
6.13 	commissioner. The association and all members shall comply with the plan of operation or 
6.14 	any amendments to it. Failure to comply with the plan of operation or any amendments 
6.15 	shall constitute a violation for which the commissioner may issue an order requiring 
6.16 	discontinuance of the violation.
6.17 	(d) If the interim board of directors fails to submit a suitable plan of operation 
6.18 	within 60 days following the creation of the interim board, or if at any time thereafter the 
6.19 	association fails to submit required amendments to the plan, the commissioner may submit 
6.20 	to the association a plan of operation or amendments to the plan, which the association 
6.21 	must follow. The plan of operation or amendments submitted by the commissioner shall 
6.22 	continue in force until amended by the commissioner or superseded by a plan of operation 
6.23 	or amendment submitted by the association and approved by the commissioner. A plan 
6.24 	of operation or an amendment submitted by the commissioner constitutes an order of 
6.25 	the commissioner.

6.26 	Sec. 12. Minnesota Statutes 2008, section 60A.2085, subdivision 7, is amended to read:
6.27 		Subd. 7.Stamping fee. The services performed by the association shall be 
6.28 	funded by a stamping fee assessed for each premium-bearing document submitted to 
6.29 	the association. The stamping fee shall be established by the board of directors of the 
6.30 	association from time to time. The stamping fee shall be paid by the insured to the surplus 
6.31 	lines licensee and remitted electronically to the association by the surplus lines licensee in 
6.32 	the manner established by the association.

6.33 	Sec. 13. Minnesota Statutes 2008, section 60A.2085, subdivision 8, is amended to read:
7.1 		Subd. 8.Data classification. Unless otherwise classified by statute, a temporary 
7.2 	classification under section 13.06, or federal law, information obtained by the 
7.3 	commissioner from the association is public, except that any data identifying insureds or 
7.4 	the Social Security number of a licensee or any information derived therefrom is private 
7.5 	data on individuals or nonpublic data as defined in section 13.02, subdivisions 9 and 12.

7.6 	Sec. 14. Minnesota Statutes 2008, section 60A.23, subdivision 8, is amended to read:
7.7 		Subd. 8.Self-insurance or insurance plan administrators who are vendors 
7.8 	of risk management services. (1) Scope. This subdivision applies to any vendor of 
7.9 	risk management services and to any entity which administers, for compensation, a 
7.10 	self-insurance or insurance plan. This subdivision does not apply (a) to an insurance 
7.11 	company authorized to transact insurance in this state, as defined by section 60A.06, 
7.12 	subdivision 1, clauses (4) and (5); (b) to a service plan corporation, as defined by section 
7.13 	62C.02, subdivision 6; (c) to a health maintenance organization, as defined by section 
7.14 	62D.02, subdivision 4; (d) to an employer directly operating a self-insurance plan for 
7.15 	its employees' benefits; (e) to an entity which administers a program of health benefits 
7.16 	established pursuant to a collective bargaining agreement between an employer, or group 
7.17 	or association of employers, and a union or unions; or (f) to an entity which administers a 
7.18 	self-insurance or insurance plan if a licensed Minnesota insurer is providing insurance 
7.19 	to the plan and if the licensed insurer has appointed the entity administering the plan as 
7.20 	one of its licensed agents within this state.
7.21 	(2) Definitions. For purposes of this subdivision the following terms have the 
7.22 	meanings given them.
7.23 	(a) "Administering a self-insurance or insurance plan" means (i) processing, 
7.24 	reviewing or paying claims, (ii) establishing or operating funds and accounts, or (iii) 
7.25 	otherwise providing necessary administrative services in connection with the operation of 
7.26 	a self-insurance or insurance plan.
7.27 	(b) "Employer" means an employer, as defined by section 62E.02, subdivision 2.
7.28 	(c) "Entity" means any association, corporation, partnership, sole proprietorship, 
7.29 	trust, or other business entity engaged in or transacting business in this state.
7.30 	(d) "Self-insurance or insurance plan" means a plan for the benefit of employees 
7.31 	or members of an association providing life, medical or hospital care, accident, sickness 
7.32 	or disability insurance for the benefit of employees or members of an association, or 
7.33 	pharmacy benefits, or a plan providing liability coverage for any other risk or hazard, 
7.34 	which is or is not directly insured or provided by a licensed insurer, service plan 
7.35 	corporation, or health maintenance organization.
8.1 	(e) "Vendor of risk management services" means an entity providing for 
8.2 	compensation actuarial, financial management, accounting, legal or other services for the 
8.3 	purpose of designing and establishing a self-insurance or insurance plan for an employer.
8.4 	(3) License. No vendor of risk management services or entity administering a 
8.5 	self-insurance or insurance plan may transact this business in this state unless it is licensed 
8.6 	to do so by the commissioner. An applicant for a license shall state in writing the type of 
8.7 	activities it seeks authorization to engage in and the type of services it seeks authorization 
8.8 	to provide. The license may be granted only when the commissioner is satisfied that the 
8.9 	entity possesses the necessary organization, background, expertise, and financial integrity 
8.10 	to supply the services sought to be offered. The commissioner may issue a license subject 
8.11 	to restrictions or limitations upon the authorization, including the type of services which 
8.12 	may be supplied or the activities which may be engaged in. The license fee is $1,500 
8.13 	for the initial application and $1,500 for each three-year renewal. All licenses are for 
8.14 	a period of three years.
8.15 	(4) Regulatory restrictions; powers of the commissioner. To assure that 
8.16 	self-insurance or insurance plans are financially solvent, are administered in a fair and 
8.17 	equitable fashion, and are processing claims and paying benefits in a prompt, fair, 
8.18 	and honest manner, vendors of risk management services and entities administering 
8.19 	insurance or self-insurance plans are subject to the supervision and examination by the 
8.20 	commissioner. Vendors of risk management services, entities administering insurance or 
8.21 	self-insurance plans, and insurance or self-insurance plans established or operated by 
8.22 	them are subject to the trade practice requirements of sections 72A.19 to 72A.30. In lieu 
8.23 	of an unlimited guarantee from a parent corporation for a vendor of risk management 
8.24 	services or an entity administering insurance or self-insurance plans, the commissioner 
8.25 	may accept a surety bond in a form satisfactory to the commissioner in an amount equal to 
8.26 	120 percent of the total amount of claims handled by the applicant in the prior year. If at 
8.27 	any time the total amount of claims handled during a year exceeds the amount upon which 
8.28 	the bond was calculated, the administrator shall immediately notify the commissioner. 
8.29 	The commissioner may require that the bond be increased accordingly.
8.30 	No contract entered into after July 1, 2001, between a licensed vendor of risk 
8.31 	management services and a group authorized to self-insure for workers' compensation 
8.32 	liabilities under section 79A.03, subdivision 6, may take effect until it has been filed 
8.33 	with the commissioner, and either (1) the commissioner has approved it or (2) 60 days 
8.34 	have elapsed and the commissioner has not disapproved it as misleading or violative of 
8.35 	public policy.
9.1 	(5) Rulemaking authority. To carry out the purposes of this subdivision, the 
9.2 	commissioner may adopt rules pursuant to sections 14.001 to 14.69. These rules may:
9.3 	(a) establish reporting requirements for administrators of insurance or self-insurance 
9.4 	plans;
9.5 	(b) establish standards and guidelines to assure the adequacy of financing, reinsuring, 
9.6 	and administration of insurance or self-insurance plans;
9.7 	(c) establish bonding requirements or other provisions assuring the financial integrity 
9.8 	of entities administering insurance or self-insurance plans; or
9.9 	(d) establish other reasonable requirements to further the purposes of this 
9.10 	subdivision.

9.11 	Sec. 15. Minnesota Statutes 2008, section 60A.235, is amended to read:
9.12 	60A.235 STANDARDS FOR DETERMINING WHETHER CONTRACTS 
9.13 	ARE HEALTH PLAN CONTRACTS OR STOP LOSS CONTRACTS.
9.14 		Subdivision 1.Findings and purpose. The purpose of this section is to establish 
9.15 	a standard for the determination of whether an insurance policy or other evidence or 
9.16 	coverage should be treated as a policy of accident and sickness insurance or a stop loss 
9.17 	policy for the purpose of the regulation of the business of insurance. The laws regulating 
9.18 	the business of insurance in Minnesota impose distinctly different requirements upon 
9.19 	accident and sickness insurance policies and stop loss policies. In particular, the regulation 
9.20 	of accident and sickness insurance in Minnesota includes measures designed to reform the 
9.21 	health insurance market, to minimize or prohibit selective rating or rejection of employee 
9.22 	groups or individual group members based upon health conditions, and to provide access 
9.23 	to affordable health insurance coverage regardless of preexisting health conditions. The 
9.24 	health care reform provisions enacted in Minnesota will only be effective if they are 
9.25 	applied to all insurers and health carriers who in substance, regardless of purported form, 
9.26 	engage in the business of issuing health insurance coverage to employees of an employee 
9.27 	group. This section applies to insurance companies and health carriers and the policies or 
9.28 	other evidence of coverage that they issue. This section does not apply to employers or the 
9.29 	benefit plans they establish for their employees.
9.30 		Subd. 2.Definitions. For purposes of this section, the terms defined in this 
9.31 	subdivision have the meanings given.
9.32 	(a) "Attachment point" means the claims amount incurred by an insured group 
9.33 	beyond which the insurance company or health carrier incurs a liability for payment.
9.34 	(b) "Direct coverage" means coverage under which an insurance company or health 
9.35 	carrier assumes a direct obligation to an individual, under the policy or evidence of 
10.1 	coverage, with respect to health care expenses incurred by the individual or a member 
10.2 	of the individual's family.
10.3 	(c) "Expected claims" means the amount of claims that, in the absence of a stop loss 
10.4 	policy or other insurance or evidence of coverage, are projected to be incurred underby an 
10.5 	employer-sponsored plan covering health care expenses.
10.6 	(d) "Expected plan claims" means the expected claims less the projected claims in 
10.7 	excess of the specific attachment point, adjusted to be consistent with the employer's 
10.8 	aggregate contract period.
10.9 	(e) "Health plan" means a health plan as defined in section 62A.011 and includes 
10.10 	group coverage regardless of the size of the group.  
10.11 	(f) "Health carrier" means a health carrier as defined in section 62A.011.  
10.12 		Subd. 3.Health plan policies issued as stop loss coverage. (a) An insurance 
10.13 	company or health carrier issuing or renewing an insurance policy or other evidence of 
10.14 	coverage, that provides coverage to an employer for health care expenses incurred under 
10.15 	an employer-sponsored plan provided to the employer's employees, retired employees, 
10.16 	or their dependents, shall issue the policy or evidence of coverage as a health plan if the 
10.17 	policy or evidence of coverage:
10.18 	(1) has a specific attachment point for claims incurred per individual that is lower 
10.19 	than $10,000 $20,000; or
10.20 	(2) has an aggregate attachment point, for groups of 50 or fewer, that is lower than 
10.21 	the sumgreater of:
10.22 	(i) 140 percent of the first $50,000 of expected plan claims;
10.23 	(ii) 120 percent of the next $450,000 of expected plan claims; and
10.24 	(iii) 110 percent of the remaining expected plan claims.
10.25 	(i) $4,000 times the number of group members;
10.26 	(ii) 120 percent of expected claims; or
10.27 	(iii) $20,000; or
10.28 	(3) has an aggregate attachment point for groups of 51 or more that is lower than 
10.29 	110 percent of expected claims.
10.30 	(b) An insurer shall determine the number of persons in a group, for the purposes 
10.31 	of this section, on a consistent basis, at least annually. Where the insurance policy or 
10.32 	evidence of coverage applies to a contract period of more than one year, the dollar 
10.33 	amounts set forth in paragraph (a), clauses (1) and (2), must be multiplied by the length 
10.34 	of the contract period expressed in years.
10.35 	(c) The commissioner may adjust the constant dollar amounts provided in paragraph 
10.36 	(a), clauses (1) and,  (2), and (3), on January 1 of any year, based upon changes in 
11.1 	the medical component of the Consumer Price Index (CPI). Adjustments must be in 
11.2 	increments of $100 and must not be made unless at least that amount of adjustment is 
11.3 	required. The commissioner shall publish any change in these dollar amounts at least 
11.4 	threesix months before their effective date.
11.5 	(d) A policy or evidence of coverage issued by an insurance company or health 
11.6 	carrier that provides direct coverage of health care expenses of an individual including a 
11.7 	policy or evidence of coverage administered on a group basis is a health plan regardless of 
11.8 	whether the policy or evidence of coverage is denominated as stop loss coverage.
11.9 		Subd. 3a.Actuarial certification. An insurer shall file with the commissioner 
11.10 	annually on or before March 15, an actuarial certification certifying that the insurer is in 
11.11 	compliance with sections 60A.235 and 60A.236. The certification shall be in a form and 
11.12 	manner, and shall contain information, specified by the commissioner. A copy of the 
11.13 	certification shall be retained by the insurer at its principal place of business.
11.14 		Subd. 4.Compliance. (a) An insurance company or health carrier that is required to 
11.15 	issue a policy or evidence of coverage as a health plan under this section shall, even if the 
11.16 	policy or evidence of coverage is denominated as stop loss coverage, comply with all the 
11.17 	laws of this state that apply to the health plan, including, but not limited to, chapters 62A, 
11.18 	62C, 62D, 62E, 62L, and 62Q.
11.19 	(b) With respect to an employer who had been issued a policy or evidence of 
11.20 	coverage denominated as stop loss coverage before June 2, 1995 the effective date of this 
11.21 	section, compliance with this section is required as of the first renewal date occurring on 
11.22 	or after June 2, 1995 August 1, 2009, and applies to policies issued or renewed on or 
11.23 	after that date.

11.24 	Sec. 16. Minnesota Statutes 2008, section 60A.32, is amended to read:
11.25 	60A.32 RATE FILING FOR CROP HAIL INSURANCE.
11.26 		Subdivision 1.Authority. An insurer issuing policies of insurance against crop 
11.27 	damage by hail in this state shall file its insurance rates with the commissioner using the 
11.28 	expedited filing procedure under subdivision 2. The insurance rates must be filed before 
11.29 	February 1 of the year in which a policy is issued.
11.30 		Subd. 2.Compliance certifications. In addition to the proposed rates, an insurer 
11.31 	shall file with the Department of Commerce on a form prescribed by the commissioner a 
11.32 	written certification, signed by an officer of the insurer, that the rates comply with section 
11.33 	70A.04. Rates filed under this procedure are effective upon the date of receipt or on a 
11.34 	subsequent date requested by the insurer.
12.1 		Subd. 3.Fee. In order to be effective, the filing must be accompanied by payment of 
12.2 	the applicable filing fee.

12.3 	Sec. 17. Minnesota Statutes 2008, section 62A.011, subdivision 3, is amended to read:
12.4 		Subd. 3.Health plan. "Health plan" means a policy or certificate of accident and 
12.5 	sickness insurance as defined in section 62A.01 offered by an insurance company licensed 
12.6 	under chapter 60A; a subscriber contract or certificate offered by a nonprofit health 
12.7 	service plan corporation operating under chapter 62C; a health maintenance contract or 
12.8 	certificate offered by a health maintenance organization operating under chapter 62D; a 
12.9 	health benefit certificate offered by a fraternal benefit society operating under chapter 
12.10 	64B; or health coverage offered by a joint self-insurance employee health plan operating 
12.11 	under chapter 62H. Health plan means individual and group coverage, unless otherwise 
12.12 	specified. Health plan does not include coverage that is: 
12.13 	(1) limited to disability or income protection coverage;
12.14 	(2) automobile medical payment coverage;
12.15 	(3) supplemental to liability insurance;
12.16 	(4) designed solely to provide payments on a per diem, fixed indemnity, or 
12.17 	non-expense-incurred basis;
12.18 	(5) credit accident and health insurance as defined in section 62B.02; 
12.19 	(6) designed solely to provide hearing,  dental, or vision care;
12.20 	(7) blanket accident and sickness insurance as defined in section 62A.11; 
12.21 	(8) accident-only coverage;
12.22 	(9) a long-term care policy as defined in section 62A.46 or 62S.01; 
12.23 	(10) issued as a supplement to Medicare, as defined in sections 62A.3099 to 
12.24 	62A.44, or policies, contracts, or certificates that supplement Medicare issued by health 
12.25 	maintenance organizations or those policies, contracts, or certificates governed by section 
12.26 	1833 or 1876 of the federal Social Security Act, United States Code, title 42, section 
12.27 	1395, et seq., as amended; 
12.28 	(11) workers' compensation insurance; or
12.29 	(12) issued solely as a companion to a health maintenance contract as described in 
12.30 	section 62D.12, subdivision 1a, so long as the health maintenance contract meets the 
12.31 	definition of a health plan. 

12.32 	Sec. 18. Minnesota Statutes 2008, section 62A.136, is amended to read:
12.33 	62A.136 HEARING, DENTAL, AND VISION PLAN COVERAGE.
13.1 	The following provisions do not apply to health plans as defined in section 62A.011, 
13.2 	subdivision 3, clause (6), providing hearing, dental, or vision coverage only: sections 
13.3 	62A.041; 62A.0411; 62A.047; 62A.149; 62A.151; 62A.152; 62A.154; 62A.155; 62A.17, 
13.4 	subdivision 6; 62A.21, subdivision 2b; 62A.26; 62A.28; 62A.285; 62A.30; 62A.304; 
13.5 	62A.3093; and 62E.16.

13.6 	Sec. 19. Minnesota Statutes 2008, section 62A.315, is amended to read:
13.7 	62A.315 EXTENDED BASIC MEDICARE SUPPLEMENT PLAN; 
13.8 	COVERAGE.
13.9 	The extended basic Medicare supplement plan must have a level of coverage so that 
13.10 	it will be certified as a qualified plan pursuant to section 62E.07, and will provide:
13.11 	(1) coverage for all of the Medicare Part A inpatient hospital deductible and 
13.12 	coinsurance amounts, and 100 percent of all Medicare Part A eligible expenses for 
13.13 	hospitalization not covered by Medicare;
13.14 	(2) coverage for the daily co-payment amount of Medicare Part A eligible expenses 
13.15 	for the calendar year incurred for skilled nursing facility care;
13.16 	(3) coverage for the coinsurance amount or in the case of hospital outpatient 
13.17 	department services paid under a prospective payment system, the co-payment amount, of 
13.18 	Medicare eligible expenses under Medicare Part B regardless of hospital confinement, and 
13.19 	the Medicare Part B deductible amount;
13.20 	(4) 80 percent of the usual and customary hospital and medical expenses and 
13.21 	supplies described in section 62E.06, subdivision 1, not to exceed any charge limitation 
13.22 	established by the Medicare program or state law, the usual and customary hospital 
13.23 	and medical expenses and supplies, described in section 62E.06, subdivision 1, while 
13.24 	in a foreign country; and prescription drug expenses, not covered by Medicare. An 
13.25 	outpatient prescription drug benefit must not be included for sale or issuance in a Medicare 
13.26 	supplement policy or certificate issued on or after January 1, 2006;
13.27 	(5) coverage for the reasonable cost of the first three pints of blood, or equivalent 
13.28 	quantities of packed red blood cells as defined under federal regulations under Medicare 
13.29 	Parts A and B, unless replaced in accordance with federal regulations;
13.30 	(6) 100 percent of the cost of immunizations not otherwise covered under Part 
13.31 	D of the Medicare program and routine screening procedures for cancer, including 
13.32 	mammograms and pap smears;
13.33 	(7) preventive medical care benefit: coverage for the following preventive health 
13.34 	services not covered by Medicare:
14.1 	(i) an annual clinical preventive medical history and physical examination that may 
14.2 	include tests and services from clause (ii) and patient education to address preventive 
14.3 	health care measures;
14.4 	(ii) preventive screening tests or preventive services, the selection and frequency of 
14.5 	which is determined to be medically appropriate by the attending physician.
14.6 	Reimbursement shall be for the actual charges up to 100 percent of the 
14.7 	Medicare-approved amount for each service as if Medicare were to cover the service as 
14.8 	identified in American Medical Association current procedural terminology (AMA CPT) 
14.9 	codes to a maximum of $120 annually under this benefit. This benefit shall not include 
14.10 	payment for any procedure covered by Medicare;
14.11 	(8) at-home recovery benefit: coverage for services to provide short-term at-home 
14.12 	assistance with activities of daily living for those recovering from an illness, injury, or 
14.13 	surgery:
14.14 	(i) for purposes of this benefit, the following definitions shall apply:
14.15 	(A) "activities of daily living" include, but are not limited to, bathing, dressing, 
14.16 	personal hygiene, transferring, eating, ambulating, assistance with drugs that are normally 
14.17 	self-administered, and changing bandages or other dressings;
14.18 	(B) "care provider" means a duly qualified or licensed home health aide/homemaker, 
14.19 	personal care aide, or nurse provided through a licensed home health care agency or 
14.20 	referred by a licensed referral agency or licensed nurses registry;
14.21 	(C) "home" means a place used by the insured as a place of residence, provided 
14.22 	that the place would qualify as a residence for home health care services covered by 
14.23 	Medicare. A hospital or skilled nursing facility shall not be considered the insured's 
14.24 	place of residence;
14.25 	(D) "at-home recovery visit" means the period of a visit required to provide at-home 
14.26 	recovery care, without limit on the duration of the visit, except each consecutive four 
14.27 	hours in a 24-hour period of services provided by a care provider is one visit;
14.28 	(ii) coverage requirements and limitations:
14.29 	(A) at-home recovery services provided must be primarily services that assist in 
14.30 	activities of daily living;
14.31 	(B) the insured's attending physician must certify that the specific type and frequency 
14.32 	of at-home recovery services are necessary because of a condition for which a home care 
14.33 	plan of treatment was approved by Medicare;
14.34 	(C) coverage is limited to:
14.35 	(I) no more than the number and type of at-home recovery visits certified as 
14.36 	medically necessary by the insured's attending physician. The total number of at-home 
15.1 	recovery visits shall not exceed the number of Medicare-approved home health care visits 
15.2 	under a Medicare-approved home care plan of treatment;
15.3 	(II) the actual charges for each visit up to a maximum reimbursement of $100 per 
15.4 	visit;
15.5 	(III) $4,000 per calendar year;
15.6 	(IV) seven visits in any one week;
15.7 	(V) care furnished on a visiting basis in the insured's home;
15.8 	(VI) services provided by a care provider as defined in this section;
15.9 	(VII) at-home recovery visits while the insured is covered under the policy or 
15.10 	certificate and not otherwise excluded;
15.11 	(VIII) at-home recovery visits received during the period the insured is receiving 
15.12 	Medicare-approved home care services or no more than eight weeks after the service date 
15.13 	of the last Medicare-approved home health care visit;
15.14 	(iii) coverage is excluded for:
15.15 	(A) home care visits paid for by Medicare or other government programs; and
15.16 	(B) care provided by unpaid volunteers or providers who are not care providers.
15.17 	(8) coverage of cost sharing for all Medicare Part A eligible hospice care and respite 
15.18 	care expenses; and
15.19 	(9) coverage for cost sharing for Medicare Part A or B home health care services 
15.20 	and medical supplies.

15.21 	Sec. 20. Minnesota Statutes 2008, section 62A.316, is amended to read:
15.22 	62A.316 BASIC MEDICARE SUPPLEMENT PLAN; COVERAGE.
15.23 	(a) The basic Medicare supplement plan must have a level of coverage that will 
15.24 	provide:
15.25 	(1) coverage for all of the Medicare Part A inpatient hospital coinsurance amounts, 
15.26 	and 100 percent of all Medicare part A eligible expenses for hospitalization not covered 
15.27 	by Medicare, after satisfying the Medicare Part A deductible;
15.28 	(2) coverage for the daily co-payment amount of Medicare Part A eligible expenses 
15.29 	for the calendar year incurred for skilled nursing facility care;
15.30 	(3) coverage for the coinsurance amount, or in the case of outpatient department 
15.31 	services paid under a prospective payment system, the co-payment amount, of Medicare 
15.32 	eligible expenses under Medicare Part B regardless of hospital confinement, subject to 
15.33 	the Medicare Part B deductible amount;
15.34 	(4) 80 percent of the hospital and medical expenses and supplies incurred during 
15.35 	travel outside the United States as a result of a medical emergency;
16.1 	(5) coverage for the reasonable cost of the first three pints of blood, or equivalent 
16.2 	quantities of packed red blood cells as defined under federal regulations under Medicare 
16.3 	Parts A and B, unless replaced in accordance with federal regulations;
16.4 	(6) 100 percent of the cost of immunizations not otherwise covered under Part D of 
16.5 	the Medicare program and routine screening procedures for cancer screening including 
16.6 	mammograms and pap smears; and
16.7 	(7) 80 percent of coverage for all physician prescribed medically appropriate and 
16.8 	necessary equipment and supplies used in the management and treatment of diabetes 
16.9 	not otherwise covered under Part D of the Medicare program. Coverage must include 
16.10 	persons with gestational, type I, or type II diabetes. Coverage under this clause is subject 
16.11 	to section 62A.3093, subdivision 2.;
16.12 	(8) coverage of cost sharing for all Medicare Part A eligible hospice care and respite 
16.13 	care expenses; and
16.14 	(9) coverage for cost sharing for Medicare Part A or B home health care services and 
16.15 	medical supplies subject to the Medicare Part B deductible amount.
16.16 	(b) Only The following optional benefit riders may be added tomust be offered 
16.17 	with this plan:
16.18 	(1) coverage for all of the Medicare Part A inpatient hospital deductible amount;
16.19 	(2) a minimum of 80 percent of eligible medical expenses and supplies not covered 
16.20 	by Medicare Part B 100 percent of the Medicare Part B excess charges coverage for 
16.21 	all of the difference between the actual Medicare Part B charges as billed, not to 
16.22 	exceed any charge limitation established by the Medicare program or state law, and the 
16.23 	Medicare-approved Part B charge;
16.24 	(3) coverage for all of the Medicare Part B annual deductible; and
16.25 	(4) coverage for at least 50 percent, or the equivalent of 50 percent, of usual and 
16.26 	customary prescription drug expenses. An outpatient prescription drug benefit must not 
16.27 	be included for sale or issuance in a Medicare policy or certificate issued on or after 
16.28 	January 1, 2006;
16.29 	(5)(4) preventive medical care benefit coverage for the following preventative 
16.30 	health services not covered by Medicare:
16.31 	(i) an annual clinical preventive medical history and physical examination that may 
16.32 	include tests and services from clause (ii) and patient education to address preventive 
16.33 	health care measures;
16.34 	(ii) preventive screening tests or preventive services, the selection and frequency of 
16.35 	which is determined to be medically appropriate by the attending physician.
17.1 	Reimbursement shall be for the actual charges up to 100 percent of the 
17.2 	Medicare-approved amount for each service, as if Medicare were to cover the service as 
17.3 	identified in American Medical Association current procedural terminology (AMA CPT) 
17.4 	codes, to a maximum of $120 annually under this benefit. This benefit shall not include 
17.5 	payment for a procedure covered by Medicare;.
17.6 	(6) coverage for services to provide short-term at-home assistance with activities of 
17.7 	daily living for those recovering from an illness, injury, or surgery:
17.8 	(i) For purposes of this benefit, the following definitions apply:
17.9 	(A) "activities of daily living" include, but are not limited to, bathing, dressing, 
17.10 	personal hygiene, transferring, eating, ambulating, assistance with drugs that are normally 
17.11 	self-administered, and changing bandages or other dressings;
17.12 	(B) "care provider" means a duly qualified or licensed home health aide/homemaker, 
17.13 	personal care aid, or nurse provided through a licensed home health care agency or 
17.14 	referred by a licensed referral agency or licensed nurses registry;
17.15 	(C) "home" means a place used by the insured as a place of residence, provided 
17.16 	that the place would qualify as a residence for home health care services covered by 
17.17 	Medicare. A hospital or skilled nursing facility shall not be considered the insured's 
17.18 	place of residence;
17.19 	(D) "at-home recovery visit" means the period of a visit required to provide at-home 
17.20 	recovery care, without limit on the duration of the visit, except each consecutive four 
17.21 	hours in a 24-hour period of services provided by a care provider is one visit;
17.22 	(ii) Coverage requirements and limitations:
17.23 	(A) at-home recovery services provided must be primarily services that assist in 
17.24 	activities of daily living;
17.25 	(B) the insured's attending physician must certify that the specific type and frequency 
17.26 	of at-home recovery services are necessary because of a condition for which a home care 
17.27 	plan of treatment was approved by Medicare;
17.28 	(C) coverage is limited to:
17.29 	(I) no more than the number and type of at-home recovery visits certified as 
17.30 	necessary by the insured's attending physician. The total number of at-home recovery 
17.31 	visits shall not exceed the number of Medicare-approved home care visits under a 
17.32 	Medicare-approved home care plan of treatment;
17.33 	(II) the actual charges for each visit up to a maximum reimbursement of $40 per visit;
17.34 	(III) $1,600 per calendar year;
17.35 	(IV) seven visits in any one week;
17.36 	(V) care furnished on a visiting basis in the insured's home;
18.1 	(VI) services provided by a care provider as defined in this section;
18.2 	(VII) at-home recovery visits while the insured is covered under the policy or 
18.3 	certificate and not otherwise excluded;
18.4 	(VIII) at-home recovery visits received during the period the insured is receiving 
18.5 	Medicare-approved home care services or no more than eight weeks after the service date 
18.6 	of the last Medicare-approved home health care visit;
18.7 	(iii) Coverage is excluded for:
18.8 	(A) home care visits paid for by Medicare or other government programs; and
18.9 	(B) care provided by family members, unpaid volunteers, or providers who are 
18.10 	not care providers;
18.11 	(7) coverage for at least 50 percent, or the equivalent of 50 percent, of usual and 
18.12 	customary prescription drug expenses to a maximum of $1,200 paid by the issuer annually 
18.13 	under this benefit. An issuer of Medicare supplement insurance policies that elects to 
18.14 	offer this benefit rider shall also make available coverage that contains the rider specified 
18.15 	in clause (4). An outpatient prescription drug benefit must not be included for sale or 
18.16 	issuance in a Medicare policy or certificate issued on or after January 1, 2006.

18.17 	Sec. 21. [62A.3163] MEDICARE SUPPLEMENT PLAN WITH 50 PERCENT 
18.18 	PART A DEDUCTIBLE COVERAGE.
18.19 	The Medicare supplement plan with 50 percent Part A deductible coverage must 
18.20 	have a level of coverage that will provide:
18.21 	(1) 100 percent of Medicare Part A hospitalization coinsurance plus coverage for 
18.22 	365 days after Medicare benefits end;
18.23 	(2) coverage for 50 percent of the Medicare Part A inpatient hospital deductible 
18.24 	amount per benefit period;
18.25 	(3) coverage for the coinsurance amount for each day used from the 21st through 
18.26 	the 100th day in a Medicare benefit period for post-hospital skilled nursing care eligible 
18.27 	under Medicare Part A;
18.28 	(4) coverage for cost sharing for all Medicare Part A eligible hospice and respite 
18.29 	care expenses;
18.30 	(5) coverage under Medicare Part A or B for the reasonable cost of the first three 
18.31 	pints of blood, or equivalent quantities of packed red blood cells, as defined under federal 
18.32 	regulations;
18.33 	(6) coverage for 100 percent of the cost sharing otherwise applicable under Medicare 
18.34 	Part B, after the policyholder pays the Medicare Part B deductible;
19.1 	(7) coverage of 100 percent of the cost sharing for Medicare Part B preventive 
19.2 	services and diagnostic procedures for cancer screening described in section 62A.30 after 
19.3 	the policyholder pays the Medicare Part B deductible;
19.4 	(8) coverage of 80 percent of the hospital and medical expenses and supplies 
19.5 	incurred during travel outside of the United States as a result of a medical emergency; and
19.6 	(9) coverage for 100 percent of the Medicare Part A or B home health care services 
19.7 	and medical supplies after the policyholder pays the Medicare Part B deductible.

19.8 	Sec. 22. [62A.3164] MEDICARE SUPPLEMENT PLAN WITH $20 AND $50 
19.9 	CO-PAYMENT MEDICARE PART B COVERAGE.
19.10 	The Medicare supplement plan with $20 and $50 co-payment Medicare Part B 
19.11 	coverage must have a level of coverage that will provide:
19.12 	(1) 100 percent of Medicare Part A hospitalization coinsurance plus coverage for 
19.13 	365 days after Medicare benefits end;
19.14 	(2) coverage for the Medicare Part A inpatient hospital deductible amount per 
19.15 	benefit period;
19.16 	(3) coverage for the coinsurance amount for each day used from the 21st through 
19.17 	the 100th day in a Medicare benefit period for post-hospital skilled nursing care eligible 
19.18 	under Medicare Part A;
19.19 	(4) coverage for the cost sharing for all Medicare Part A eligible hospice and respite 
19.20 	care expenses;
19.21 	(5) coverage for Medicare Part A or B of the reasonable cost of the first three pints 
19.22 	of blood, or equivalent quantities of packed red blood cells, as defined under federal 
19.23 	regulations, unless replaced according to federal regulations;
19.24 	(6) coverage for 100 percent of the cost sharing otherwise applicable under Medicare 
19.25 	Part B except for the lesser of $20 or the Medicare Part B coinsurance or co-payment 
19.26 	for each covered health care provider office visit and the lesser of $50 or the Medicare 
19.27 	Part B coinsurance or co-payment for each covered emergency room visit; however, this 
19.28 	co-payment shall be waived if the insured is admitted to any hospital and the emergency 
19.29 	visit is subsequently covered as a Medicare Part A expense;
19.30 	(7) coverage of 100 percent of the cost sharing for Medicare Part B preventive 
19.31 	services and diagnostic procedures for cancer screening described in section 62A.30 after 
19.32 	the policyholder pays the Medicare Part B deductible;
19.33 	(8) coverage of 80 percent of the hospital and medical expenses and supplies 
19.34 	incurred during travel outside of the United States as a result of a medical emergency; and
20.1 	(9) coverage for Medicare Part A or B home health care services and medical 
20.2 	supplies after the policyholder pays the Medicare Part B deductible.

20.3 	Sec. 23. [62A.3165] MEDICARE SUPPLEMENT PLAN WITH HIGH 
20.4 	DEDUCTIBLE COVERAGE.
20.5 	The Medicare supplement plan will pay 100 percent coverage upon payment of the 
20.6 	annual high deductible. The annual deductible shall consist of out-of-pocket expenses, 
20.7 	other than premiums, for services covered. This plan must have a level of coverage that 
20.8 	will provide:
20.9 	(1) 100 percent of Medicare Part A hospitalization coinsurance plus coverage for 
20.10 	365 days after Medicare benefits end;
20.11 	(2) coverage for 100 percent of the Medicare Part A inpatient hospital deductible 
20.12 	amount per benefit period;
20.13 	(3) coverage for 100 percent of the coinsurance amount for each day used from the 
20.14 	21st through the 100th day in a Medicare benefit period for post-hospital skilled nursing 
20.15 	care eligible under Medicare Part A;
20.16 	(4) coverage for 100 percent of cost sharing for all Medicare Part A eligible 
20.17 	expenses and respite care;
20.18 	(5) coverage for 100 percent, under Medicare Part A or B, of the reasonable cost of 
20.19 	the first three pints of blood, or equivalent quantities of packed red blood cells, as defined 
20.20 	under federal regulations, unless replaced according to federal regulations;
20.21 	(6) except for coverage provided in this clause, coverage for 100 percent of the cost 
20.22 	sharing otherwise applicable under Medicare Part B;
20.23 	(7) coverage of 100 percent of the cost sharing for Medicare Part B preventive 
20.24 	services and diagnostic procedures for cancer screening described in section 62A.30 after 
20.25 	the policyholder pays the Medicare Part B deductible;
20.26 	(8) coverage of 100 percent of the hospital and medical expenses and supplies 
20.27 	incurred during travel outside of the United States as a result of a medical emergency;
20.28 	(9) coverage for 100 percent of Medicare Part A and B home health care services 
20.29 	and medical supplies; and
20.30 	(10) the basis for the deductible shall be $1,860 and shall be adjusted annually from 
20.31 	2010 by the secretary of the United States Department of Health and Human Services to 
20.32 	reflect the change in the Consumer Price Index for all urban consumers for the 12-month 
20.33 	period ending with August of the preceding year, and rounded to the nearest multiple of 
20.34 	$10.

21.1 	Sec. 24. Minnesota Statutes 2008, section 62L.02, subdivision 26, is amended to read:
21.2 		Subd. 26.Small employer. (a) "Small employer" means, with respect to a calendar 
21.3 	year and a plan year, a person, firm, corporation, partnership, association, or other entity 
21.4 	actively engaged in business in Minnesota, including a political subdivision of the state, 
21.5 	that employed an average of no fewer than two nor more than 50 current employees on 
21.6 	business days during the preceding calendar year and that employs at least two current 
21.7 	employees on the first day of the plan year. If an employer has only one eligible employee 
21.8 	who has not waived coverage, the sale of a health plan to or for that eligible employee 
21.9 	is not a sale to a small employer and is not subject to this chapter and may be treated as 
21.10 	the sale of an individual health plan. A small employer plan may be offered through a 
21.11 	domiciled association to self-employed individuals and small employers who are members 
21.12 	of the association, even if the self-employed individual or small employer has fewer than 
21.13 	two current employees. Entities that are treated as a single employer under subsection (b), 
21.14 	(c), (m), or (o) of section 414 of the federal Internal Revenue Code are considered a single 
21.15 	employer for purposes of determining the number of current employees. Small employer 
21.16 	status must be determined on an annual basis as of the renewal date of the health benefit 
21.17 	plan. The provisions of this chapter continue to apply to an employer who no longer meets 
21.18 	the requirements of this definition until the annual renewal date of the employer's health 
21.19 	benefit plan. If an employer was not in existence throughout the preceding calendar year, 
21.20 	the determination of whether the employer is a small employer is based upon the average 
21.21 	number of current employees that it is reasonably expected that the employer will employ 
21.22 	on business days in the current calendar year. For purposes of this definition, the term 
21.23 	employer includes any predecessor of the employer. An employer that has more than 50 
21.24 	current employees but has 50 or fewer employees, as "employee" is defined under United 
21.25 	States Code, title 29, section 1002(6), is a small employer under this subdivision.
21.26 	(b) Where an association, as defined in section 62L.045, comprised of employers 
21.27 	contracts with a health carrier to provide coverage to its members who are small employers, 
21.28 	the association and health benefit plans it provides to small employers, are subject to 
21.29 	section 62L.045, with respect to small employers in the association, even though the 
21.30 	association also provides coverage to its members that do not qualify as small employers. 
21.31 	(c) If an employer has employees covered under a trust specified in a collective 
21.32 	bargaining agreement under the federal Labor-Management Relations Act of 1947, 
21.33 	United States Code, title 29, section 141, et seq., as amended, or employees whose health 
21.34 	coverage is determined by a collective bargaining agreement and, as a result of the 
21.35 	collective bargaining agreement, is purchased separately from the health plan provided 
21.36 	to other employees, those employees are excluded in determining whether the employer 
22.1 	qualifies as a small employer. Those employees are considered to be a separate small 
22.2 	employer if they constitute a group that would qualify as a small employer in the absence 
22.3 	of the employees who are not subject to the collective bargaining agreement.

22.4 	Sec. 25. Minnesota Statutes 2008, section 62M.05, subdivision 3a, is amended to read:
22.5 		Subd. 3a.Standard review determination. (a) Notwithstanding subdivision 3b, an 
22.6 	initial determination on all requests for utilization review must be communicated to the 
22.7 	provider and enrollee in accordance with this subdivision within ten business days of the 
22.8 	request, provided that all information reasonably necessary to make a determination on the 
22.9 	request has been made available to the utilization review organization.
22.10 	(b) When an initial determination is made to certify, notification must be provided 
22.11 	promptly by telephone to the provider. The utilization review organization shall send 
22.12 	written notification to the provider or shall maintain an audit trail of the determination 
22.13 	and telephone notification. For purposes of this subdivision, "audit trail" includes 
22.14 	documentation of the telephone notification, including the date; the name of the person 
22.15 	spoken to; the enrollee; the service, procedure, or admission certified; and the date of 
22.16 	the service, procedure, or admission. If the utilization review organization indicates 
22.17 	certification by use of a number, the number must be called the "certification number."
22.18 	For purposes of this subdivision, notification may also be made by facsimile to a verified 
22.19 	number or by electronic mail to a secure electronic mailbox. These electronic forms of 
22.20 	notification satisfy the "audit trail" requirement of this paragraph.
22.21 	(c) When an initial determination is made not to certify, notification must be 
22.22 	provided by telephone, by facsimile to a verified number, or by electronic mail to a 
22.23 	secure electronic mailbox  within one working day after making the determination to 
22.24 	the attending health care professional and hospital and a writtenas applicable. Written 
22.25 	notification must also be sent to the hospital, as applicable and attending health care 
22.26 	professional, and enrollee if notification occurred by telephone. For purposes of this 
22.27 	subdivision, notification may be made by facsimile to a verified number or by electronic 
22.28 	mail to a secure electronic mailbox. Written notification must be sent to the enrollee and 
22.29 	may be sent by United States mail, facsimile to a verified number, or by electronic mail to 
22.30 	a secure mailbox. The written notification must include the principal reason or reasons 
22.31 	for the determination and the process for initiating an appeal of the determination. Upon 
22.32 	request, the utilization review organization shall provide the provider or enrollee with the 
22.33 	criteria used to determine the necessity, appropriateness, and efficacy of the health care 
22.34 	service and identify the database, professional treatment parameter, or other basis for the 
22.35 	criteria. Reasons for a determination not to certify may include, among other things, 
23.1 	the lack of adequate information to certify after a reasonable attempt has been made to 
23.2 	contact the provider or enrollee.
23.3 	(d) When an initial determination is made not to certify, the written notification must 
23.4 	inform the enrollee and the attending health care professional of the right to submit an 
23.5 	appeal to the internal appeal process described in section 62M.06 and the procedure 
23.6 	for initiating the internal appeal.  

23.7 	Sec. 26. Minnesota Statutes 2008, section 65A.27, subdivision 1, is amended to read:
23.8 		Subdivision 1.Scope. For purposes of sections 65A.27 to 65A.3065A.302, the 
23.9 	following terms have the meanings given.  

23.10 	Sec. 27. Minnesota Statutes 2008, section 67A.191, subdivision 2, is amended to read:
23.11 		Subd. 2.Homeowner's risks. A township mutual fire insurance company may issue 
23.12 	policies known as "homeowner's insurance" as defined in section 65A.27, subdivision 
23.13 	4, only in combination with a policy issued by an insurer authorized to sell property 
23.14 	and casualty insurance in this state. All portions of the combination policy providing 
23.15 	homeowner's insurance, including those issued by a township mutual insurance company, 
23.16 	shall be are subject to the provisions of chapter 65A and sections 72A.20 and 72A.201.  

23.17 	Sec. 28. Minnesota Statutes 2008, section 72A.139, subdivision 2, is amended to read:
23.18 		Subd. 2.Definitions. (a) As used in this section, "commissioner" means the 
23.19 	commissioner of commerce for health plan companies and other insurers regulated by 
23.20 	that commissioner and the commissioner of health for health plan companies regulated by 
23.21 	that commissioner.
23.22 	(b) As used in this section, a "genetic test" means a presymptomatic test of a person's 
23.23 	genes, gene products, or chromosomes for the purpose of determining the presence or 
23.24 	absence of a gene or genes that exhibit abnormalities, defects, or deficiencies, including 
23.25 	carrier status, that are known to be the cause of a disease or disorder, or are determined to 
23.26 	be associated with a statistically increased risk of development of a disease or disorder. 
23.27 	"Genetic test" does not include a cholesterol test or other test not conducted for the 
23.28 	purpose of determining the presence or absence of a person's gene or genes.
23.29 	(c) As used in this section, "health plan" has the meaning given in section 62Q.01, 
23.30 	subdivision 3, and includes a plan providing the coverage described in section 62A.011, 
23.31 	subdivision 3, clause (10).  
23.32 	(d) As used in this section, "health plan company" has the meaning given in section 
23.33 	62Q.01, subdivision 4.  
24.1 	(e) As used in this section, "individual" means an applicant for coverage or a person 
24.2 	already covered by the health plan company or other insurer.

24.3 	Sec. 29. Minnesota Statutes 2008, section 72A.20, subdivision 15, is amended to read:
24.4 		Subd. 15.Practices not held to be discrimination or rebates. Nothing in 
24.5 	subdivision 8, 9, or 10, or in section 72A.12, subdivisions 3 and 4, shall be construed as 
24.6 	including within the definition of discrimination or rebates any of the following practices: 
24.7 	(1) in the case of any contract of life insurance or annuity, paying bonuses to 
24.8 	policyholders or otherwise abating their premiums in whole or in part out of surplus 
24.9 	accumulated from nonparticipating insurance, provided that any bonuses or abatement 
24.10 	of premiums shall be fair and equitable to policyholders and for the best interests of the 
24.11 	company and its policyholders;
24.12 	(2) in the case of life insurance policies issued on the industrial debit plan, making 
24.13 	allowance, to policyholders who have continuously for a specified period made premium 
24.14 	payments directly to an office of the insurer, in an amount which fairly represents the 
24.15 	saving in collection expense;
24.16 	(3) readjustment of the rate of premium for a group insurance policy based on the 
24.17 	loss or expense experienced thereunder, at the end of the first or any subsequent policy 
24.18 	year of insurance thereunder, which may be made retroactive only for such policy year;
24.19 	(4) in the case of an individual or group health insurance policy, the payment of 
24.20 	differing amounts of reimbursement to insureds who elect to receive health care goods 
24.21 	or services from providers designated by the insurer, provided that each insurer shall on 
24.22 	or before August 1 of each year file with the commissioner summary data regarding the 
24.23 	financial reimbursement offered to providers so designated.
24.24 	Any insurer which proposes to offer an arrangement authorized under this clause 
24.25 	shall disclose prior to its initial offering and on or before August 1 of each year thereafter 
24.26 	as a supplement to its annual statement submitted to the commissioner pursuant to section 
24.27 	60A.13, subdivision 1, the following information: 
24.28 	(a) the name which the arrangement intends to use and its business address;
24.29 	(b) the name, address, and nature of any separate organization which administers the 
24.30 	arrangement on the behalf of the insurers; and
24.31 	(c) the names and addresses of all providers designated by the insurer under this 
24.32 	clause and the terms of the agreements with designated health care providers.
24.33 	The commissioner shall maintain a record of arrangements proposed under this 
24.34 	clause, including a record of any complaints submitted relative to the arrangements.
25.1 	If the commissioner requests copies of contracts with a provider under this clause 
25.2 	and the provider requests a determination, all information contained in the contracts that 
25.3 	the commissioner determines may place the provider or health care plan at a competitive 
25.4 	disadvantage is nonpublic data.

25.5 	Sec. 30. Minnesota Statutes 2008, section 72A.20, subdivision 26, is amended to read:
25.6 		Subd. 26.Loss experience. An insurer shall without cost to the insured provide an 
25.7 	insured with the loss or claims experience of that insured for the current policy period and 
25.8 	for the two policy periods preceding the current one for which the insurer has provided 
25.9 	coverage, within 30 days of a request for the information by the policyholder. Whenever 
25.10 	reporting loss experience data, actual claims paid on behalf of the insured must be reported 
25.11 	separately from claims incurred but not paid, pooling charges for catastrophic claim 
25.12 	protection, and any other administrative fees or charges that may be charged as an incurred 
25.13 	claim expense. Claims experience data must be provided to the insured in accordance with 
25.14 	state and federal requirements regarding the confidentiality of medical data. The insurer 
25.15 	shall not be responsible for providing information without cost more often than once in 
25.16 	a 12-month period. The insurer is not required to provide the information if the policy 
25.17 	covers the employee of more than one employer and the information is not maintained 
25.18 	separately for each employer and not all employers request the data.
25.19 	An insurer, health maintenance organization, or a third-party administrator may not 
25.20 	request more than three years of loss or claims experience as a condition of submitting an 
25.21 	application or providing coverage.
25.22 	This subdivision only applies to group life policies and group health policies.

25.23 	Sec. 31. [72A.204] PROHIBITED USES OF SENIOR-SPECIFIC 
25.24 	CERTIFICATIONS AND PROFESSIONAL DESIGNATIONS.
25.25 		Subdivision 1.Purpose and scope. The purpose of this section is to set forth 
25.26 	standards to protect consumers from misleading and fraudulent marketing practices with 
25.27 	respect to the use of senior-specific certifications and professional designations in:
25.28 	(1) the solicitation, sale, or purchase of a life insurance or annuity product; or
25.29 	(2) the provision of advice in connection with the solicitation, sale, or purchase of a 
25.30 	life insurance or annuity product.
25.31 		Subd. 2.Insurance producer. For purposes of this section, "insurance producer" 
25.32 	means a person required to be licensed under the laws of this state to sell, solicit, or 
25.33 	negotiate insurance, including annuities.
26.1 		Subd. 3.Prohibited uses of senior-specific certifications and professional 
26.2 	designations. (a) It is an unfair and deceptive act or practice in the business of insurance 
26.3 	for an insurance producer to use a senior-specific certification or professional designation 
26.4 	that indicates or implies in such a way as to mislead a client or prospective client that the 
26.5 	insurance producer has special certification or training in advising or servicing seniors in 
26.6 	connection with the solicitation, sale, or purchase of a life insurance or annuity product or 
26.7 	in the provision of advice as to the value of or the advisability of purchasing or selling a 
26.8 	life insurance or annuity product, either directly or indirectly, including the provision of 
26.9 	advice through publications or writings or by issuing or promulgating analyses or reports 
26.10 	related to a life insurance or annuity product.
26.11 	(b) The prohibited use of senior-specific certifications or professional designations 
26.12 	includes, but is not limited to, the following:
26.13 	(1) use of a certification or professional designation by an insurance producer who 
26.14 	has not actually earned or is otherwise ineligible to use such certification or designation;
26.15 	(2) use of a nonexistent or self-conferred certification or professional designation;
26.16 	(3) use of a certification or professional designation that indicates or implies a level 
26.17 	of occupational qualifications obtained through education, training, or experience that the 
26.18 	insurance producer using the certification or designation does not have; and
26.19 	(4) use of a certification or professional designation that was obtained from a 
26.20 	certifying or designating organization that:
26.21 	(i) is primarily engaged in the business of instruction in sales or marketing;
26.22 	(ii) does not have reasonable standards or procedures for ensuring the competency of 
26.23 	its certificants or designees;
26.24 	(iii) does not have reasonable standards or procedures for monitoring and 
26.25 	disciplining its certificants or designees for improper or unethical conduct; or
26.26 	(iv) does not have reasonable continuing education requirements for its certificants 
26.27 	or designees in order to maintain the certificate or designation.
26.28 	(c) There is a rebuttable presumption that a certifying or designating organization is 
26.29 	not disqualified solely for the purposes of paragraph (b), clause (4), when the certification 
26.30 	or designation issued from the organization does not primarily apply to sales or marketing 
26.31 	and when the organization or the certification or designation in question has been 
26.32 	accredited by:
26.33 	(1) the American National Standards Institute (ANSI);
26.34 	(2) the National Commission for Certifying Agencies; or
26.35 	(3) any organization that is on the United States Department of Education list 
26.36 	entitled "Accrediting Agencies Recognized for Title IV Purposes."
27.1 	(d) In determining whether a combination of words or an acronym standing for a 
27.2 	combination of words constitutes a certification or professional designation indicating or 
27.3 	implying that a person has special certification or training in advising or servicing seniors, 
27.4 	factors to be considered must include:
27.5 	(1) use of one or more words such as "senior," "retirement," "elder," or like words 
27.6 	combined with one or more words such as "certified," "registered," "chartered," "adviser," 
27.7 	"specialist," "consultant," "planner," or like words, in the name of the certification or 
27.8 	professional designation; and
27.9 	(2) the manner in which those words are combined.
27.10 	(e) For purposes of this section, a job title within an organization that is licensed or 
27.11 	registered by a state or federal financial services regulatory agency is not a certification or 
27.12 	professional designation, unless it is used in a manner that would confuse or mislead a 
27.13 	reasonable consumer, when the job title:
27.14 	(1) indicates seniority or standing within the organization; or
27.15 	(2) specifies an individual's area of specialization within the organization.
27.16 	(f) For purposes of paragraph (e), "financial services regulatory agency" includes, 
27.17 	but is not limited to, an agency that regulates insurers, insurance producers, broker-dealers, 
27.18 	investment advisers, or investment companies as defined under the Investment Company 
27.19 	Act of 1940.

27.20 	Sec. 32. Minnesota Statutes 2008, section 79A.04, subdivision 1, is amended to read:
27.21 		Subdivision 1.Annual securing of liability. Each year every private self-insuring 
27.22 	employer shall secure incurred liabilities for the payment of compensation and the 
27.23 	performance of its obligations and the obligations of all self-insuring employers imposed 
27.24 	under chapter 176 by renewing the prior year's security deposit or by making a new 
27.25 	deposit of security. If a new deposit is made, it must be posted within 60 days of the filing 
27.26 	of the self-insured employer's annual report with the commissioner, but in no event later 
27.27 	than July 1 in the following manner: within 60 days of the filing of the annual report, the 
27.28 	security posting for all prior years plus one-third of the posting for the current year; by 
27.29 	July 31, one-third of the posting for the current year; by October 31, the final one-third of 
27.30 	the posting for the current year.

27.31 	Sec. 33. Minnesota Statutes 2008, section 79A.04, is amended by adding a subdivision 
27.32 	to read:
27.33 		Subd. 2a.Exceptions. Notwithstanding the requirements of subdivisions 1 
27.34 	and 2, the commissioner may, until the next annual securing of liability, adjust this 
28.1 	required security deposit for the portion attributable to the current year only, if in the 
28.2 	commissioner's judgment, the self-insurer will be able to meet its obligations under this 
28.3 	chapter until the next annual securing of liability.

28.4 	Sec. 34. Minnesota Statutes 2008, section 79A.06, is amended by adding a subdivision 
28.5 	to read:
28.6 		Subd. 7.Insolvency of a self-insurance group insurer. In the event of the 
28.7 	insolvency of the insurer of a self-insurance group issued a policy under section 79A.06, 
28.8 	subdivision 5, including a policy covering only a portion of the period of self-insurance, 
28.9 	eligibility for chapter 60C coverage under the policy shall be determined by applying the 
28.10 	requirements of section 60C.09, subdivision 2, clause (3), to each self-insurance group 
28.11 	member, rather than to the net worth of the self-insurance group entity or the aggregate net 
28.12 	worth of all members of the self-insurance group entity.

28.13 	Sec. 35. Minnesota Statutes 2008, section 79A.24, subdivision 1, is amended to read:
28.14 		Subdivision 1.Annual securing of liability. Each year every commercial 
28.15 	self-insurance group shall secure its estimated future liability for the payment of 
28.16 	compensation and the performance of the obligations of its membership imposed under 
28.17 	chapter 176. A new deposit must be posted within 30 days of the filing of the commercial 
28.18 	self-insurance group's annual actuarial report with the commissioner in the following 
28.19 	manner: within 30 days of the filing of the annual report, the security posting for all prior 
28.20 	years plus one-third of the posting for the current year; by July 31, one-third of the posting 
28.21 	for the current year; by October 31, the final one-third of the posting for the current year.

28.22 	Sec. 36. Minnesota Statutes 2008, section 79A.24, is amended by adding a subdivision 
28.23 	to read:
28.24 		Subd. 2a.Exceptions. Notwithstanding the requirements of subdivisions 1 
28.25 	and 2, the commissioner may, until the next annual securing of liability, adjust this 
28.26 	required security deposit for the portion attributable to the current year only, if in the 
28.27 	commissioner's judgment, the self-insurer will be able to meet its obligations under this 
28.28 	chapter until the next annual securing of liability.

28.29 	Sec. 37. Minnesota Statutes 2008, section 82.31, subdivision 4, is amended to read:
28.30 		Subd. 4.Corporate and partnership licenses. (a) A corporation applying for 
28.31 	a license shall have at least one officer individually licensed to act as broker for the 
28.32 	corporation. The corporation broker's license shall extend no authority to act as broker 
29.1 	to any person other than the corporate entity. Each officer who intends to act as a broker 
29.2 	shall obtain a license.
29.3 	(b) A partnership applying for a license shall have at least one partner individually 
29.4 	licensed to act as broker for the partnership. Each partner who intends to act as a broker 
29.5 	shall obtain a license.
29.6 	(c) Applications for a license made by a corporation shall be verified by the president 
29.7 	and one other officer. Applications made by a partnership shall be verified by at least 
29.8 	two partners.
29.9 	(d) Any partner or officer who ceases to act as broker for a partnership or corporation 
29.10 	shall notify the commissioner upon said termination. The individual licenses of all 
29.11 	salespersons acting on behalf of a corporation or partnership, are automatically ineffective 
29.12 	upon the revocation or suspension of the license of the partnership or corporation. 
29.13 	The commissioner may suspend or revoke the license of an officer or partner without 
29.14 	suspending or revoking the license of the corporation or partnership.
29.15 	(e) The application of all officers of a corporation or partners in a partnership who 
29.16 	intend to act as a broker on behalf of a corporation or partnership shall accompany the 
29.17 	initial license application of the corporation or partnership. Officers or partners intending 
29.18 	to act as brokers subsequent to the licensing of the corporation or partnership shall procure 
29.19 	an individual real estate broker's license prior to acting in the capacity of a broker. No 
29.20 	corporate officer, or partner, who maintains a salesperson's license may exercise any 
29.21 	authority over any trust account administered by the broker nor may they be vested with 
29.22 	any supervisory authority over the broker.
29.23 	(f) The corporation or partnership applicant shall make available upon request, such 
29.24 	records and data required by the commissioner for enforcement of this chapter.
29.25 	(g) The commissioner may require further information, as the commissioner deems 
29.26 	appropriate, to administer the provisions and further the purposes of this chapter.

29.27 	Sec. 38. [82B.071] RECORDS.
29.28 		Subdivision 1.Examination of records. The commissioner may make examinations 
29.29 	within or without this state of each real estate appraiser's records at such reasonable time 
29.30 	and in such scope as is necessary to enforce the provisions of this chapter.
29.31 		Subd. 2.Retention. Licensees shall keep a separate work file for each appraisal 
29.32 	assignment, which is to include copies of all contracts engaging his or her services for 
29.33 	the real estate appraisal, appraisal reports, and all data, information, and documentation 
29.34 	assembled and formulated by the appraiser to support the appraiser's opinions and 
29.35 	conclusions and to show compliance with USPAP, for a period of five years after 
30.1 	preparation, or at least two years after final disposition of any judicial proceedings in 
30.2 	which the appraiser provided testimony or was the subject of litigation related to the 
30.3 	assignment, whichever period expires last. Appropriate work file access and retrieval 
30.4 	arrangements must be made between any trainee and supervising appraiser if only one 
30.5 	party maintains custody of the work file.

30.6 	Sec. 39. Minnesota Statutes 2008, section 82B.08, is amended by adding a subdivision 
30.7 	to read:
30.8 		Subd. 3a.Initial application. The initial application for licensing of a trainee 
30.9 	real property appraiser must identify the name and address of the supervisory appraiser 
30.10 	or appraisers. Trainee real property appraisers licensed prior to the effective date of this 
30.11 	provision must identify the name and address of their supervisory appraiser or appraisers 
30.12 	at the time of license renewal. A trainee must notify the commissioner in writing within 
30.13 	ten days of terminating or changing their relationship with any supervisory appraiser.
30.14 	The initial application for licensing of a certified residential real property appraiser 
30.15 	and certified general real property appraiser who intends to act in the capacity of a 
30.16 	supervisory appraiser must identify the name and address of the trainee real property 
30.17 	appraiser or appraisers they intend to supervise. A certified residential real property 
30.18 	appraiser and certified general real property appraiser licensed and acting in the capacity 
30.19 	of a supervisory appraiser prior to the effective date of this provision must, at the time of 
30.20 	license renewal, identify the name and address of any trainee real property appraiser or 
30.21 	appraisers under their supervision.

30.22 	Sec. 40. [82B.093] TRAINEE REAL PROPERTY APPRAISER.
30.23 	(a) A trainee real property appraiser shall be subject to direct supervision by a 
30.24 	certified residential real property appraiser or certified general real property appraiser in 
30.25 	good standing.
30.26 	(b) A trainee real property appraiser is permitted to have more than one supervising 
30.27 	appraiser.
30.28 	(c) The scope of practice for the trainee real property appraiser classification is the 
30.29 	appraisal of those properties which the supervising appraiser is permitted by his or her 
30.30 	current credential and that the supervising appraiser is qualified and competent to appraise.
30.31 	(d) A trainee real property appraiser must have a supervisor signature on each 
30.32 	appraisal that he or she signs, or must be named in the appraisal as providing significant 
30.33 	real property appraisal assistance to receive credit for experience hours on his or her 
30.34 	experience log.
31.1 	(e) The trainee real property appraiser must maintain copies of appraisal reports he 
31.2 	or she signed or copies of appraisal reports where he or she was named as providing 
31.3 	significant real property appraisal assistance.
31.4 	(f) The trainee real property appraiser must maintain copies of work files relating to 
31.5 	appraisal reports he or she signed.
31.6 	(g) Separate appraisal logs must be maintained for each supervising appraiser.

31.7 	Sec. 41. [82B.094] SUPERVISION OF TRAINEE REAL PROPERTY 
31.8 	APPRAISERS.
31.9 	(a) A certified residential real property appraiser or a certified general real property 
31.10 	appraiser, in good standing, may engage a trainee real property appraiser to assist in the 
31.11 	performance of real estate appraisals, provided that the certified residential real property 
31.12 	appraiser or a certified general real property appraiser:
31.13 	(1) has not been the subject of any license or certificate suspension or revocation or 
31.14 	has not been prohibited from supervising activities in this state or any other state within 
31.15 	the previous two years;
31.16 	(2) has no more than three trainee real property appraisers working under supervision 
31.17 	at any one time;
31.18 	(3) actively and personally supervises the trainee real property appraiser, which 
31.19 	includes ensuring that research of general and specific data has been adequately conducted 
31.20 	and properly reported, application of appraisal principles and methodologies has been 
31.21 	properly applied, that the analysis is sound and adequately reported, and that any analyses, 
31.22 	opinions, or conclusions are adequately developed and reported so that the appraisal 
31.23 	report is not misleading;
31.24 	(4) discusses with the trainee real property appraiser any necessary and appropriate 
31.25 	changes that are made to a report, involving any trainee appraiser, before it is transmitted 
31.26 	to the client. Changes not discussed with the trainee real property appraiser that are made 
31.27 	by the supervising appraiser must be provided in writing to the trainee real property 
31.28 	appraiser upon completion of the appraisal report;
31.29 	(5) accompanies the trainee real property appraiser on the inspections of the subject 
31.30 	properties and drive-by inspections of the comparable sales on all appraisal assignments 
31.31 	for which the trainee will perform work until the trainee appraiser is determined to be 
31.32 	competent, in accordance with the competency rule of USPAP for the property type;
31.33 	(6) accepts full responsibility for the appraisal report by signing and certifying 
31.34 	that the report complies with USPAP; and
32.1 	(7) reviews and signs the trainee real property appraiser's appraisal report or reports 
32.2 	or if the trainee appraiser is not signing the report, states in the appraisal the name of the 
32.3 	trainee and scope of the trainee's significant contribution to the report.
32.4 	(b) The supervising appraiser must review and sign the applicable experience log 
32.5 	required to be kept by the trainee real property appraiser.
32.6 	(c) The supervising appraiser must notify the commissioner within ten days when 
32.7 	the supervision of a trainee real property appraiser has terminated or when the trainee 
32.8 	appraiser is no longer under the supervision of the supervising appraiser.
32.9 	(d) The supervising appraiser must maintain a separate work file for each appraisal 
32.10 	assignment.
32.11 	(e) The supervising appraiser must verify that any trainee real property appraiser that 
32.12 	is subject to supervision is properly licensed and in good standing with the commissioner.

32.13 	Sec. 42. Minnesota Statutes 2008, section 82B.20, subdivision 2, is amended to read:
32.14 		Subd. 2.Conduct prohibited. No person may:
32.15 	(1) obtain or try to obtain a license under this chapter by knowingly making a 
32.16 	false statement, submitting false information, refusing to provide complete information 
32.17 	in response to a question in an application for license, or through any form of fraud or 
32.18 	misrepresentation;
32.19 	(2) fail to meet the minimum qualifications established by this chapter;
32.20 	(3) be convicted, including a conviction based upon a plea of guilty or nolo 
32.21 	contendere, of a crime that is substantially related to the qualifications, functions, and 
32.22 	duties of a person developing real estate appraisals and communicating real estate 
32.23 	appraisals to others;
32.24 	(4) engage in an act or omission involving dishonesty, fraud, or misrepresentation 
32.25 	with the intent to substantially benefit the license holder or another person or with the 
32.26 	intent to substantially injure another person;
32.27 	(5) engage in a violation of any of the standards for the development or 
32.28 	communication of real estate appraisals as provided in this chapter;
32.29 	(6) fail or refuse without good cause to exercise reasonable diligence in developing 
32.30 	an appraisal, preparing an appraisal report, or communicating an appraisal;
32.31 	(7) engage in negligence or incompetence in developing an appraisal, in preparing 
32.32 	an appraisal report, or in communicating an appraisal;
32.33 	(8) willfully disregard or violate any of the provisions of this chapter or the rules of 
32.34 	the commissioner for the administration and enforcement of the provisions of this chapter;
33.1 	(9) accept an appraisal assignment when the employment itself is contingent upon 
33.2 	the appraiser reporting a predetermined estimate, analysis, or opinion, or where the fee 
33.3 	to be paid is contingent upon the opinion, conclusion, or valuation reached, or upon the 
33.4 	consequences resulting from the appraisal assignment;
33.5 	(10) violate the confidential nature of governmental records to which the person 
33.6 	gained access through employment or engagement as an appraiser by a governmental 
33.7 	agency;
33.8 	(11) offer, pay, or give, and no person shall accept, any compensation or other thing 
33.9 	of value from a real estate appraiser by way of commission-splitting, rebate, finder's fee, 
33.10 	or otherwise in connection with a real estate appraisal. This prohibition does not apply 
33.11 	to transactions among persons licensed under this chapter if the transactions involve 
33.12 	appraisals for which the license is required;
33.13 	(12) engage or authorize a person, except a person licensed under this chapter, to act 
33.14 	as a real estate appraiser on the appraiser's behalf;
33.15 	(13) violate standards of professional practice;
33.16 	(14) make an oral appraisal report without also making a written report within a 
33.17 	reasonable time after the oral report is made;
33.18 	(15) represent a market analysis to be an appraisal report;
33.19 	(16) give an appraisal in any circumstances where the appraiser has a conflict of 
33.20 	interest, as determined under rules adopted by the commissioner; or
33.21 	(17) engage in other acts the commissioner by rule prohibits.
33.22 	No person, including a mortgage originator, appraisal management company, real 
33.23 	estate broker or salesperson, appraiser, or other licensee, registrant, or certificate holder 
33.24 	regulated by the commissioner may improperly influence or attempt to improperly 
33.25 	influence the development, reporting, result, or review of a real estate appraisal. Prohibited 
33.26 	acts include blacklisting, boycotting, intimidation, coercion, and any other means that 
33.27 	impairs or may impair the independent judgment of the appraiser, including but not 
33.28 	limited to the withholding or threatened withholding of payment for an appraisal fee, or 
33.29 	the conditioning of the payment of any appraisal fee upon the opinion, conclusion, or 
33.30 	valuation to be reached, or a request that the appraiser report a predetermined opinion, 
33.31 	conclusion, or valuation, or the desired valuation of any person, or withholding or 
33.32 	threatening to withhold future work in order to obtain a desired value on a current or 
33.33 	proposed appraisal assignment.

33.34 	Sec. 43.  REPEALER.
 34.1 	Minnesota Statutes 2008, sections 70A.07; 79.56, subdivision 4; 325E.311; 
34.2 	325E.312; 325E.313; 325E.314; 325E.315; and 325E.316, are repealed.

34.3 	Sec. 44. EFFECTIVE DATE; APPLICATION.
 34.4 	Sections 19 to 23 apply to plans and certificates with an effective date for coverage 
34.5 	on or after June 10, 2010. Sections 32 to 36 are effective the day following the final 
34.6 	enactment.