1.1 	A bill for an act
1.2 	relating to insurance; regulating life insurance; prohibiting stranger-originated 
1.3 	life insurance;proposing coding for new law in Minnesota Statutes, chapter 60A; 
1.4 	repealing Minnesota Statutes 2008, sections 61A.073; 61A.074.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. [60A.078] SHORT TITLE.
1.7 	Sections 60A.078 to 60A.0789 may be cited as the "Insurable Interest Act."

1.8 	Sec. 2. [60A.0782] DEFINITIONS.
1.9 		Subdivision 1.Terms. For the purpose of this act, unless the context clearly 
1.10 	indicates otherwise, the terms in this section have the meanings given them.
1.11 		Subd. 2.Act. "Act" means sections 60A.078 to 60A.0789.
1.12 		Subd. 3.Business entity. "Business entity" includes, but is not limited to, a joint 
1.13 	venture, partnership, corporation, limited liability company, and business trust.
1.14 		Subd. 4.Commissioner. "Commissioner" means the commissioner of commerce.
1.15 		Subd. 5.Legitimate settlement contracts. "Legitimate settlement contracts" 
1.16 	mean settlement contracts that comply with Minnesota law governing viatical settlement 
1.17 	contracts and that are not prohibited by section 60A.0785 or otherwise part of or in 
1.18 	furtherance of an act, practice, or arrangement that is prohibited by this act.
1.19 		Subd. 6.Life expectancy evaluation. "Life expectancy evaluation" means an 
1.20 	evaluation conducted by any person other than the insurer or its authorized representatives 
1.21 	for the purpose of projecting or estimating how long a particular individual is expected to 
1.22 	live. 
2.1 		Subd. 7.Person. "Person" means any natural person or legal entity, including, but 
2.2 	not limited to, a partnership, limited liability company, association, trust, or corporation.
2.3 		Subd. 8.Policy. "Policy" means an individual or group policy, group certificate, 
2.4 	contract, or arrangement of life insurance affecting the rights of a resident of this state 
2.5 	or bearing a reasonable relation to this state, regardless of whether delivered or issued 
2.6 	for delivery in this state.
2.7 		Subd. 9.Policyowner. "Policyowner" means the owner of a policy.
2.8 		Subd. 10.Prospective purchaser. "Prospective purchaser" means any person that 
2.9 	may purchase or acquire the policy or a beneficial interest in the policy, but excluding 
2.10 	individuals closely related to the insured by blood or law or who have a lawful and 
2.11 	substantial interest in the continued life of the insured, or trusts established for the benefit 
2.12 	of those individuals, provided those trusts meet the requirements of section 60A.0783, 
2.13 	subdivision 2, paragraph (d).
2.14 		Subd. 11.Settlement contract. (a) "Settlement contract" means an agreement 
2.15 	between a policyowner and another person establishing the terms under which 
2.16 	compensation or anything of value will be paid or which compensation or value is 
2.17 	less than the expected death benefit of the insurance policy, in return for the owner's 
2.18 	assignment, transfer, sale, devise, or bequest of the death benefit or ownership of any 
2.19 	portion of the policy. Settlement contract also includes:
2.20 	(1) the transfer for compensation or value of ownership or beneficial interest in a 
2.21 	trust or other entity that owns such a policy if the trust or other entity was formed or 
2.22 	availed of for the principal purpose of acquiring one or more policies, which policy insures 
2.23 	the life of an individual who is a resident of this state; and
2.24 	(2) a premium finance loan made for a policy by a lender to a policyowner on, 
2.25 	before, or after the date of issuance of the policy where:
2.26 	(i) the policyowner or the insured receives a guarantee of a future settlement value 
2.27 	of the policy; or
2.28 	(ii) the policyowner or the insured agrees to sell the policy or any portion of its death 
2.29 	benefit on any date following the issuance of the policy.
2.30 	(b) Settlement contract does not include:
2.31 	(1) a policy loan or accelerated death benefit made by the insurer under the policy's 
2.32 	terms;
2.33 	(2) loan proceeds that are used solely to pay premiums for the policy and loan-related 
2.34 	costs, including, without limitation, interest, arrangement fees, utilization fees and similar 
2.35 	fees, closing costs, legal fees and expenses, trustee fees and expenses, and third-party 
2.36 	collateral provider fees and expenses, including fees payable to letter of credit issuers;
3.1 	(3) a loan made by a bank or other licensed financial institution in which the lender 
3.2 	takes an interest in a policy solely to secure repayment of a loan or, if there is a default 
3.3 	on the loan and the policy is transferred, the transfer of such a policy by the lender, as 
3.4 	long as the default itself is not pursuant to an agreement or understanding with any other 
3.5 	person for the purpose of evading regulation under this act;
3.6 	(4) an agreement in which all the parties are closely related to the insured by blood 
3.7 	or law or have a lawful substantial economic interest in the continued life, health, and 
3.8 	bodily safety of the person insured or are trusts established for the benefit of such parties;
3.9 	(5) any designation, consent, or agreement by an insured who is an employee or an 
3.10 	employer in connection with the purchase by the employer, or by a trust established by the 
3.11 	employer, of life insurance on the life of the employee;
3.12 	(6) a bona fide business succession planning arrangement:
3.13 	(i) between shareholders in a corporation or between a corporation and one or more 
3.14 	of its shareholders or one or more trusts established by its shareholders;
3.15 	(ii) between partners in a partnership or between a partnership and one or more of its 
3.16 	partners or one or more trusts established by its partner; or
3.17 	(iii) between members in a limited liability company or between a limited liability 
3.18 	company and one or more of its members or one or more trusts established by its 
3.19 	members; or
3.20 	(7) an agreement entered into by a service recipient, or a trust established by the 
3.21 	service recipient, and a service provider, or a trust established by the service provider, who 
3.22 	performs significant services for the service recipient's trade or business.
3.23 		Subd. 12.Stranger-originated life insurance practices. "Stranger-originated life 
3.24 	insurance practices" or "STOLI practices" mean an act, practice, or arrangement to initiate 
3.25 	a life insurance policy for the benefit of a third-party investor who, at the time of policy 
3.26 	origination, has no insurable interest in the insured. STOLI practices include, but are not 
3.27 	limited to, cases in which life insurance is purchased with resources or guarantees from or 
3.28 	through a person or entity, who, at the time of policy inception, could not lawfully initiate 
3.29 	the policy themselves, and where, at the time of inception, there is an arrangement or 
3.30 	agreement, whether spoken or written, to directly or indirectly transfer the ownership of 
3.31 	the policy and/or the policy benefits to a third party. Trusts that are created to give the 
3.32 	appearance of insurable interest and are used to initiate policies for investors violate the 
3.33 	insurable interest requirements and the prohibition against STOLI practices.

3.34 	Sec. 3. [60A.0783] INSURABLE INTEREST REQUIRED.
4.1 		Subdivision 1.Insurance on life of another. A person may not procure or cause 
4.2 	to be procured or effected a policy upon the life of another individual unless the benefits 
4.3 	under the policy are payable to the insured, the personal representatives of the insured's 
4.4 	estate, or to a person having, at the time the policy is issued, an insurable interest in the 
4.5 	individual insured.
4.6 		Subd. 2.What constitutes an insurable interest. Insurable interest, with reference 
4.7 	to insurance on the life of another, includes only the following interests.
4.8 	(a) An individual has an insurable interest in the life of another person to whom 
4.9 	the individual is closely related by blood or by law and in whom the individual has a 
4.10 	substantial interest engendered by love and affection.
4.11 	(b) An individual has an insurable interest in the life of another person if such 
4.12 	individual has a lawful and substantial interest in the continued life of the individual 
4.13 	insured, as distinguished from an interest that would arise only by or would be enhanced 
4.14 	in value by the death of the individual insured.
4.15 	(c) An individual party to a contract for the purchase or sale of an interest in any 
4.16 	business entity and, if applicable, a trust or the trustee of a trust of which the individual is 
4.17 	a settlor, has an insurable interest in the life of each other individual party to the contract, 
4.18 	but only for the purpose of carrying out the intent and purpose of the contract.
4.19 	(d) A trust, or the trustee of a trust, has an insurable interest in the life of an 
4.20 	individual insured under a life insurance policy owned by the trust, or the trustee of the 
4.21 	trust acting in a fiduciary capacity, if the insured is the settlor of the trust; an individual 
4.22 	closely related by blood or law to the settlor; or an individual in whom the settlor otherwise 
4.23 	has an insurable interest if, in each of the situations described in this paragraph, the life 
4.24 	insurance proceeds are primarily for the benefit of trust beneficiaries having an insurable 
4.25 	interest in the life of the insured and the trust is not used, directly or indirectly, as part of or 
4.26 	in furtherance of an act, practice, or arrangement that is otherwise prohibited by this act.
4.27 	(e) A guardian, trustee, or other fiduciary, acting in a fiduciary capacity, has an 
4.28 	insurable interest in the life of any person for whose benefit the fiduciary holds property, 
4.29 	and in the life of any other individual in whose life the person has an insurable interest so 
4.30 	long as the life insurance proceeds are used primarily for the benefit of persons having an 
4.31 	insurable interest in the life of the insured and the guardianship or fiduciary relationship 
4.32 	is not used, directly or indirectly, as part of or in furtherance of an act, practice, or 
4.33 	arrangement that is otherwise prohibited by this act.
4.34 	(f) An organization in section 170(c) of the United States Internal Revenue Code 
4.35 	of 1986, as amended through December 31, 2008, has an insurable interest in the life of 
5.1 	any person who consents in writing to the organization's ownership or purchase of that 
5.2 	insurance.
5.3 	(g) A trustee, sponsor, or custodian of assets held in any plan governed by the 
5.4 	Employee Retirement Income Security Act of 1974, United States Code, title 29, section 
5.5 	1001, et seq., or in any other retirement or employee benefit plan, has an insurable interest 
5.6 	in the life of any participant in the plan provided consent is obtained in writing from the 
5.7 	participant before the insurance is purchased. An employer, trustee, sponsor, or custodian 
5.8 	may not retaliate or take adverse action against any participant who does not consent to 
5.9 	the issuance of insurance on the participant's life.
5.10 	(h) A business entity has an insurable interest in the life of any of the owners, 
5.11 	directors, officers, partners, and managers of the business entity or any affiliate or 
5.12 	subsidiary of the business entity, or key employees or key persons of the business entity 
5.13 	or affiliate or subsidiary, provided consent is obtained in writing from key employees or 
5.14 	persons before the insurance is purchased. The business entity or affiliate or subsidiary 
5.15 	may not retaliate or take adverse action against any key employee or person who does 
5.16 	not consent to the issuance of insurance on the key employee or key person's life. For 
5.17 	purposes of this subdivision, a "key employee" or "key person" means an individual 
5.18 	whose position or compensation is described in section 101(j)(2)(A)(ii) of the Internal 
5.19 	Revenue Code of 1986, as amended through December 31, 2008.
5.20 	(i) A financial institution or other person to whom a debt is owed, whether for the 
5.21 	purposes of premium financing or otherwise, has an insurable interest in the life of the 
5.22 	borrower limited to the amount of debt owed plus reasonable interest and service charges.
5.23 		Subd. 3.Insured's own life. An individual has an insurable interest in the 
5.24 	individual's own life and an individual of competent legal capacity that procures or 
5.25 	effects a policy on the individual's own life may designate any person as the beneficiary, 
5.26 	provided the policy is not part of or in furtherance of an act, practice, or arrangement that 
5.27 	is otherwise prohibited by this act.
5.28 		Subd. 4.Reliance on statements. An insurer is entitled to rely upon all reasonable 
5.29 	statements, declarations, and representations made by an applicant for life insurance 
5.30 	relative to the existence of an insurable interest; and no insurer shall incur legal 
5.31 	liability, except as set forth in the policy, by virtue of untrue statements, declarations, or 
5.32 	representations so relied upon in good faith by the insurer.
5.33 		Subd. 5.Consent of insured. A policy upon the life of an individual, other than 
5.34 	a policy of noncontributory group life insurance, may not be effectuated unless, on or 
5.35 	before the time the policy is effectuated, the individual insured, having legal capacity to 
6.1 	contract, applies for or consents in writing to the policy and its terms. Consent may be 
6.2 	given by another in the following cases:
6.3 	(1) a parent or a person having legal custody of a minor may consent to the issuance 
6.4 	of a policy on a dependent child;
6.5 	(2) a court-appointed guardian of a person may consent to the issuance of a policy 
6.6 	on the person under guardianship;
6.7 	(3) a court-appointed conservator of a person's estate may consent to the issuance of 
6.8 	a policy on the person whose estate is under conservatorship;
6.9 	(4) an attorney-in-fact may consent to the issuance of a policy on the person that 
6.10 	appointed the attorney-in-fact for the limited purpose of replacing one or more policies 
6.11 	with one or more new policies, provided the aggregate amount of life insurance on the 
6.12 	person as the result of the replacement remains the same or decreases;
6.13 	(5) a trustee of a revocable trust may consent to the issuance of a policy on the 
6.14 	life of a settlor of the trust; and
6.15 	(6) a court of general jurisdiction may give consent to the issuance of a policy upon 
6.16 	a showing of facts the court considers sufficient to justify the issuance of the policy.

6.17 	Sec. 4. [60A.0784] PROHIBITED PRACTICES.
6.18 	It is unlawful for any person to:
6.19 	(1) procure or cause to be procured or effected a policy in violation of section 
6.20 	60A.0783;
6.21 	(2) engage in STOLI practices or otherwise wager on life;
6.22 	(3) solicit, market, or otherwise promote the purchase of a policy for the purpose of 
6.23 	or with an emphasis on the subsequent sale of the policy in the secondary market; 
6.24 	(4) enter into a premium finance agreement with any person or agency, or any 
6.25 	person affiliated with such person or agency, pursuant to which the lender or any person 
6.26 	affiliated with the lender shall receive any proceeds, fees, or other consideration, directly 
6.27 	or indirectly, from the policy or policyowner or any other person with respect to the 
6.28 	premium finance agreement or any settlement contract or other transaction related to 
6.29 	such policy that are in addition to the amounts required to pay the principal, interest, and 
6.30 	service charges related to policy premiums pursuant to the premium finance agreement or 
6.31 	subsequent sale of such agreement; provided, further, that any payments, charges, fees, 
6.32 	or other amounts in addition to the amounts required to pay the principal, interest, and 
6.33 	service charges related to policy premiums paid under the premium finance agreement 
6.34 	shall be remitted to the insured or to the insured's estate if the insured is not living at the 
6.35 	time of the determination of the overpayment; or
7.1 	(5) enter into or to offer to enter into a settlement contract prior to the issuance of a 
7.2 	policy that is the subject of the settlement contract or proposed settlement contract.

7.3 	Sec. 5. [60A.0785] PROHIBITION; ENTRY INTO SETTLEMENT 
7.4 	CONTRACTS.
7.5 		Subdivision 1.Prohibition. No prospective purchaser of the policy or beneficial 
7.6 	interest in the policy shall, at any time prior to issuance of a policy, or during a four-year 
7.7 	period commencing with the date of issuance of the policy, enter into a settlement contract 
7.8 	or any other agreement the effect of which is to acquire the policy or a beneficial interest in 
7.9 	the policy regardless of the date the compensation is to be provided and regardless of the 
7.10 	date the assignment, transfer, sale, devise, bequest, or surrender of the policy or beneficial 
7.11 	interest in the policy is to occur, unless and until the prospective purchaser has determined, 
7.12 	based on reasonable inquiry, which includes but is not limited to questioning the insured 
7.13 	and reviewing the broker's files, that none of the following circumstances are present:
7.14 	(1) there was an agreement or understanding, before issuance of the policy, between 
7.15 	the insured, policyowner, or owner of a beneficial interest in the policy, and another person 
7.16 	to guarantee any liability or to purchase, or stand ready to purchase, the policy or an 
7.17 	interest therein, including through an assumption or forgiveness of a loan; or
7.18 	(2) both of the following are present:
7.19 	(i) all or a portion of the policy premiums were funded by means other than by the 
7.20 	insured's personal assets or assets provided by a person who is closely related to the 
7.21 	insured by blood or law or who has a lawful and substantial economic interest in the 
7.22 	continued life of the insured.  For purposes of this provision, funds from a premium finance 
7.23 	loan are considered assets of the insured or such person only if the insured or such person 
7.24 	is contractually obligated to repay the full amount of the loan and to pledge personal 
7.25 	assets, other than the policy itself, for loan amounts exceeding the policy's cash value; and
7.26 	(ii) the insured underwent a life expectancy evaluation within the 18-month time 
7.27 	period immediately prior to the issuance of the policy and, during the same time period, 
7.28 	the results of the life expectancy evaluation were shared with or used by any person for the 
7.29 	purpose of determining the actual or potential value of the policy in the secondary market. 
7.30 	Nothing in this paragraph shall prevent such a life expectancy evaluation from being shared 
7.31 	with or used by the insured or the insured's accountant, attorney, or insurance producer 
7.32 	for estate planning purposes so long as the life expectancy evaluation is not used by such 
7.33 	persons to determine the actual or potential value of the policy in the secondary market.
7.34 		Subd. 2.Certification. As part of the prospective purchaser's responsibility to 
7.35 	make reasonable inquiry, the prospective purchaser shall request, and the settlement 
8.1 	broker shall provide, a certification in which the broker certifies that, to the best of the 
8.2 	broker's knowledge, any life expectancy evaluation performed on the insured prior to 
8.3 	the issuance of the policy was not used by or shared with any other person prior to the 
8.4 	issuance of the policy for the purpose of determining the actual or potential value of the 
8.5 	policy in the secondary market.
8.6 		Subd. 3.Legitimate insurance transactions. Nothing in this act prevents:
8.7 	(1) any policyowner, whether or not the policyowner is also the subject of the 
8.8 	insurance, from entering into a legitimate settlement contract;
8.9 	(2) any person from soliciting a person to enter into a legitimate settlement contract;
8.10 	(3) a person from enforcing the payment of proceeds from the interest obtained 
8.11 	under a legitimate settlement contract; or
8.12 	(4) the assignment, sale, transfer, devise, or bequest with respect to the death benefit 
8.13 	or ownership of any portion of a policy, provided the assignment, sale, transfer, devise, or 
8.14 	bequest is connected to a legitimate settlement contract and not part of or in furtherance 
8.15 	of STOLI practices.

8.16 	Sec. 6. [60A.0786] PRESUMPTION OF STOLI PRACTICES.
8.17 		Subdivision 1.Presumption of STOLI practices. A settlement contract, or any 
8.18 	agreement the effect of which is to sell or acquire the policy or a beneficial interest in the 
8.19 	policy, entered into within the four-year period commencing with the date the policy is 
8.20 	issued creates a rebuttable presumption of STOLI practices if either of the following 
8.21 	circumstances are present:
8.22 	(1) there was an agreement or understanding, before issuance of the policy, between 
8.23 	the insured, policyowner, or owner of a beneficial interest in the policy, and another person 
8.24 	to guarantee any liability or to purchase, or stand ready to purchase, the policy or an 
8.25 	interest in the policy, including through an assumption or forgiveness of a loan; or
8.26 	(2) both of the following are present:
8.27 	(i) all or a portion of the policy premiums were funded by means other than by the 
8.28 	insured's personal assets or assets provided by a person who is closely related to the 
8.29 	insured by blood or law or who has a lawful and substantial economic interest in the 
8.30 	continued life of the insured. For purposes of this provision, funds from a premium finance 
8.31 	loan are considered assets of the insured or that person only if the insured or that person is 
8.32 	contractually obligated to repay the full amount of the loan and to pledge personal assets, 
8.33 	other than the policy itself, for loan amounts exceeding the policy's cash value; and
8.34 	(ii) the insured underwent a life expectancy evaluation within the 18-month time 
8.35 	period immediately prior to the issuance of the policy and, during the same time period, 
9.1 	the results of the life expectancy evaluation were shared with or used by any person for the 
9.2 	purpose of determining the actual or potential value of the policy in the secondary market.
9.3 		Subd. 2.Not applicable in criminal proceedings. The rebuttable presumption 
9.4 	created in this section does not apply in any criminal proceeding.

9.5 	Sec. 7. [60A.0787] PROCESSING CHANGE OF OWNERSHIP OR 
9.6 	BENEFICIARY REQUESTS.
9.7 		Subdivision 1.Obligation to process change of ownership or beneficiary 
9.8 	requests. Upon receipt of a properly completed request for change of ownership or 
9.9 	beneficiary of a policy and, if applicable, the completed questionnaire described in 
9.10 	this section, the insurer shall respond in writing within 30 calendar days with written 
9.11 	acknowledgment confirming that the change has been effected or specifying the reasons 
9.12 	why the requested change cannot be processed. The insurer shall not unreasonably delay 
9.13 	effecting change of ownership or beneficiary and shall not otherwise interfere with any 
9.14 	permitted settlement contract entered into in this state.
9.15 		Subd. 2.Written questionnaire. If the insurer receives a request for change 
9.16 	of ownership or beneficiary within the four-year period commencing with the date the 
9.17 	policy is issued, the insurer may require, as a condition of effecting the requested change, 
9.18 	that the policyowner complete and return a written questionnaire designed to determine 
9.19 	whether the change request relates to or is made in accordance with a settlement contract 
9.20 	and if so, whether the circumstances described in section 60A.0785 are present. The 
9.21 	questionnaire shall be in a form approved by the commissioner and shall include, but 
9.22 	not be limited to, the following:
9.23 	(1) the definition of settlement contract;
9.24 	(2) an inquiry regarding whether the request for change of ownership or beneficiary 
9.25 	relates to or is made in accordance with a settlement contract;
9.26 	(3) if the answer to clause (2) is "yes," then an inquiry regarding whether the 
9.27 	circumstances described in section 60A.0785 are present; 
9.28 	(4) a disclosure that presenting false material information, or concealing material 
9.29 	information, in connection with the questionnaire is defined under the laws of this state 
9.30 	as a fraudulent act; and
9.31 	(5) a signed certification by the policyowner that the answers and information 
9.32 	provided in and pursuant to the questionnaire are true and complete to the best of the 
9.33 	policyowner's knowledge and belief.
9.34 		Subd. 3.Other inquiries. Nothing in this section should be interpreted to limit an 
9.35 	insurer's ability to make other inquiries to detect STOLI practices.
10.1 		Subd. 4.Fraternal benefit societies. Nothing in this act shall prohibit a fraternal 
10.2 	benefit society regulated under chapter 64B from enforcing the terms of its bylaws or rules 
10.3 	regarding permitted beneficiaries and owners.

10.4 	Sec. 8. [60A.0788] FRAUDULENT ACTS.
10.5 		Subdivision 1.Fraudulent acts.  A person who commits a fraudulent act as defined 
10.6 	in this section commits insurance fraud and may be sentenced under section 609.611, 
10.7 	subdivision 3.
10.8 		Subd. 2.List of fraudulent acts. All of the following acts are fraudulent when 
10.9 	committed by a person who, with intent to defraud and for the purpose of depriving 
10.10 	another of property or for pecuniary gain, commits, or permits any of its employees or its 
10.11 	agents to commit them:
10.12 	(1) failing to disclose to the insurer where the insurer has requested such disclosure 
10.13 	that the prospective insured has undergone a life expectancy evaluation;
10.14 	(2) misrepresenting a person's state of residence or facilitating the change of the state 
10.15 	in which a person resides for the express purpose of evading or avoiding the provisions 
10.16 	of this act;
10.17 	(3) presenting, causing to be presented, or preparing with knowledge or belief that it 
10.18 	will be presented to an insurer any false material information, or concealing any material 
10.19 	information, as part of, in support of, or concerning a fact material to one or more of 
10.20 	the following:
10.21 	(i) a questionnaire as provided for under section 60A.0787; or
10.22 	(ii) any other documents or communications, whether written or verbal, which are 
10.23 	intended to detect STOLI practices or demonstrate compliance with this act;
10.24 	(4) encouraging the insured, policyowner, or owner of a beneficial interest in the 
10.25 	policy to falsely state that the circumstances described in section 60A.0785 are not 
10.26 	present or aiding in the preparation or execution of documents designed to create the false 
10.27 	impression that those circumstances are not present; and
10.28 	(5) failing to request or to provide the broker certification required by section 
10.29 	60A.0785, subdivision 2, or falsely certifying that the life expectancy evaluation in section 
10.30 	60A.0785, subdivision 2, was not shared with any other person prior to the issuance of 
10.31 	the policy for the purpose of determining the actual or potential value of the policy in the 
10.32 	secondary market.

10.33 	Sec. 9. [60A.0789] REMEDIES.
11.1 		Subdivision 1.Actions to recover death benefits. (a) If the beneficiary, assignee, or 
11.2 	other payee receives the death benefits under a life insurance policy initiated by STOLI 
11.3 	practices or a policy procured or effected in violation of section 60A.0783 or section 
11.4 	60A.0785, the personal representative of the insured's estate or other lawfully acting agent 
11.5 	may maintain an action to recover such benefits from the person receiving them.
11.6 	(b) Where a person receives the death benefit as a result of a nonwillful violation of 
11.7 	this act, the court may limit the recovery to unjust enrichment, calculated as the benefits 
11.8 	received plus interest from the date of receipt, less premiums paid under the policy by 
11.9 	the recipient and any consideration paid by the recipient to the insured in connection 
11.10 	with the policy.
11.11 	(c) Where a person receives the death benefits as the result of a willful violation of 
11.12 	this act, the court may, in addition to actual damages, order the defendant or defendants to 
11.13 	pay exemplary damages in an amount up to two times the death benefits. A pattern of 
11.14 	violations of this act and conduct involving one or more fraudulent acts are evidence of 
11.15 	willfulness. The exemplary damages shall be paid to one or more governmental agencies 
11.16 	charged with combating consumer fraud, including the Department of Commerce.
11.17 	(d) The court may award reasonable attorney fees, together with costs and 
11.18 	disbursements, to any party that recovers damages in any action brought under this 
11.19 	subdivision.
11.20 	(e) An action under this subdivision must be brought within two years after the 
11.21 	death of the insured.
11.22 		Subd. 2.Enforceability of contracts. Any contract, agreement, arrangement, or 
11.23 	transaction prohibited under this act is voidable.
11.24 		Subd. 3.Declaratory judgment action. If, prior to payment of death benefits, the 
11.25 	insurer believes the policy was initiated by STOLI practices, the insurer may bring a 
11.26 	declaratory judgment action seeking a court order declaring the policy void.
11.27 		Subd. 4.Effect on other law. This act shall not:
11.28 	(1) preempt or limit other civil remedies, including, but not limited to, declaratory 
11.29 	judgments, injunctive relief, and interpleaders;
11.30 	(2) preempt the authority or relieve the duty of other law enforcement or regulatory 
11.31 	agencies to investigate, examine, and prosecute suspected violations of law; 
11.32 	(3) limit the powers granted elsewhere by the laws of this state to the commissioner 
11.33 	or an insurance fraud unit or the attorney general to investigate and examine possible 
11.34 	violations of law and to take appropriate actions against wrongdoers; or
11.35 	(4) limit the power of this state to punish a person for conduct that constitutes a 
11.36 	crime under other laws of this state.

12.1 	Sec. 10.  REPEALER.
 12.2 	Minnesota Statutes 2008, sections 61A.073; and 61A.074, are repealed.

12.3 	Sec. 11. EFFECTIVE DATE.
 12.4 	This act is effective for policies issued on or after the day following final enactment.