<a id="pl.1.3"></a><var>1.3</var>requirements; making technical changes; modifying enforcement provisions and <br/>
<a id="pl.1.4"></a><var>1.4</var>other actions; prohibiting certain homeowners policy surcharges; regulating <br/>
<a id="pl.1.5"></a><var>1.5</var>insurance holding company systems by enacting changes proposed by the <br/>
<a id="pl.1.6"></a><var>1.6</var>National Association of Insurance Commissioners;amending Minnesota Statutes <br/>
<a id="pl.1.7"></a><var>1.7</var>2012, sections 45.027, subdivision 7; 45.32, by adding subdivisions; 58.12, <br/>
<a id="pl.1.8"></a><var>1.8</var>subdivision 1; 60A.0789, subdivision 3; 60A.10, subdivision 1; 60D.09; 60D.15, <br/>
<a id="pl.1.9"></a><var>1.9</var>by adding a subdivision; 60D.17, subdivisions 1, 2, 4, 6, 7; 60D.18, subdivisions <br/>
<a id="pl.1.10"></a><var>1.10</var>2, 6; 60D.19, subdivisions 1, 2, 3, 11, 12, by adding a subdivision; 60D.20, <br/>
<a id="pl.1.11"></a><var>1.11</var>subdivisions 1, 3; 60D.21, subdivision 1, by adding subdivisions; 60D.22; <br/>
<a id="pl.1.12"></a><var>1.12</var>60K.54, subdivision 2; 61A.282, subdivision 1; 66A.01; 68A.01, subdivision 2; <br/>
<a id="pl.1.13"></a><var>1.13</var>68A.02, subdivision 1; 68A.04, subdivision 1; 82.55, subdivision 4; 82.641, <br/>
<a id="pl.1.14"></a><var>1.14</var>subdivision 6; 82.81, subdivision 8; 82B.135, subdivision 1; 82B.19, subdivisions <br/>
<a id="pl.1.15"></a><var>1.15</var>1, 3, by adding a subdivision; 115C.02, subdivision 16; 115C.09, subdivisions <br/>
<a id="pl.1.16"></a><var>1.16</var>2a, 3; 239.785, subdivision 6; 297I.01, subdivision 9; 327C.095, subdivision 11; <br/>
<a id="pl.1.17"></a><var>1.17</var>386.66; 507.401, subdivisions 1, 2, 3, 4, 5; 507.45, subdivision 4; 515B.4-109; <br/>
<a id="pl.1.18"></a><var>1.18</var>Minnesota Statutes 2013 Supplement, sections 82B.094; 82B.13, subdivision <br/>
<a id="pl.1.19"></a><var>1.19</var>1; 239.761, subdivision 8; 332A.02, subdivision 8; 559.202, subdivision 3; <br/>
<a id="pl.1.20"></a><var>1.20</var>proposing coding for new law in Minnesota Statutes, chapters 60D; 65A; 82B; <br/>
<a id="pl.1.21"></a><var>1.21</var>repealing Minnesota Statutes 2012, section 82B.10, subdivision 7.<br/>
<a id="pl.1.22"></a><var>1.22</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.1.0.0"></a>

<a id="bill.1.1.0"></a><a id="pl.1.25"></a><var>1.25</var>    Section 1. Minnesota Statutes 2012, section 45.32, is amended by adding a subdivision <br/>
<a id="pl.1.26"></a><var>1.26</var>to read:<br/>
<a id="pl.1.27"></a><var>1.27</var>    Subd. 2a. <b>Qualifications for instructors of the Minnesota Supervisor/Trainee </b><br/>
<a id="pl.1.28"></a><var>1.28</var><b>Appraiser Course.</b> In addition to qualifying under subdivision 2, an instructor of the <br/>
<a id="pl.1.29"></a><var>1.29</var>Minnesota Supervisor/Trainee Appraiser Course offered as continuing education must:<br/>
<a id="pl.2.1"></a><var>2.1</var>(1) be licensed in good standing as either a certified residential real property <br/>
<a id="pl.2.2"></a><var>2.2</var>appraiser or a certified general real property appraiser, and must have been so licensed for <br/>
<a id="pl.2.3"></a><var>2.3</var>the three-year period immediately preceding the individual's application to become an <br/>
<a id="pl.2.4"></a><var>2.4</var>instructor of the Minnesota Supervisor/Trainee Appraiser Course; and<br/>
<a id="pl.2.5"></a><var>2.5</var>(2) not have been the subject of any license or certificate suspension or revocation, <br/>
<a id="pl.2.6"></a><var>2.6</var>or been prohibited from supervising activities in this state or any other state within the <br/>
<a id="pl.2.7"></a><var>2.7</var>three years immediately preceding the individual's application to become an instructor <br/>
<a id="pl.2.8"></a><var>2.8</var>of the Minnesota Supervisor/Trainee Appraiser Course.<br/>
<br/>
<a id="bill.1.2.0"></a><a id="pl.2.9"></a><var>2.9</var>    Sec. 2. Minnesota Statutes 2012, section 45.32, is amended by adding a subdivision to <br/>
<a id="pl.2.10"></a><var>2.10</var>read:<br/>
<a id="pl.2.11"></a><var>2.11</var>    Subd. 3a. <b>Qualifications for instructors of the Minnesota Supervisor/Trainee </b><br/>
<a id="pl.2.12"></a><var>2.12</var><b>Appraiser Course.</b> In addition to qualifying under subdivision 3, an instructor of the <br/>
<a id="pl.2.13"></a><var>2.13</var>Minnesota Supervisor/Trainee Appraiser Course offered as prelicense education must:<br/>
<a id="pl.2.14"></a><var>2.14</var>(1) be licensed in good standing as either a certified residential real property <br/>
<a id="pl.2.15"></a><var>2.15</var>appraiser or a certified general real property appraiser, and must have been so licensed for <br/>
<a id="pl.2.16"></a><var>2.16</var>the three-year period immediately preceding the individual's application to become an <br/>
<a id="pl.2.17"></a><var>2.17</var>instructor of the Minnesota Supervisor/Trainee Appraiser Course; and<br/>
<a id="pl.2.18"></a><var>2.18</var>(2) not have been the subject of any license or certificate suspension or revocation, <br/>
<a id="pl.2.19"></a><var>2.19</var>or been prohibited from supervising activities in this state or any other state within the <br/>
<a id="pl.2.20"></a><var>2.20</var>three years immediately preceding the individual's application to become an instructor <br/>
<a id="pl.2.21"></a><var>2.21</var>of the Minnesota Supervisor/Trainee Appraiser Course.<br/>
<br/>
<a id="bill.1.3.0"></a><a id="pl.2.22"></a><var>2.22</var>    Sec. 3. Minnesota Statutes 2013 Supplement, section 82B.094, is amended to read:<br/>
<a id="pl.2.23"></a><var>2.23</var><b>82B.094 SUPERVISION OF TRAINEE REAL PROPERTY APPRAISERS.</b><br/>
<a id="pl.2.24"></a><var>2.24</var>(a) A certified residential real property appraiser or a certified general real property <br/>
<a id="pl.2.25"></a><var>2.25</var>appraiser, in good standing, may engage a trainee real property appraiser to assist in the <br/>
<a id="pl.2.26"></a><var>2.26</var>performance of real estate appraisals, provided that the certified residential real property <br/>
<a id="pl.2.27"></a><var>2.27</var>appraiser or a certified general real property appraiser:<br/>
<a id="pl.2.28"></a><var>2.28</var>(1) has been licensed in good standing as either a certified residential real property <br/>
<a id="pl.2.29"></a><var>2.29</var>appraiser or a certified general real property appraiser for a total of at least three years<br/>
<a id="pl.2.30"></a><var>2.30</var> the three-year period immediately preceding the individual's application to become a <br/>
<a id="pl.2.31"></a><var>2.31</var>supervisor;<br/>
<a id="pl.2.32"></a><var>2.32</var>(2) has completed a six-hour course, approved in advance by the commissioner and <br/>
<a id="pl.2.33"></a><var>2.33</var>provided by an education provider approved by the commissioner, that is specifically <br/>
<a id="pl.2.34"></a><var>2.34</var>oriented to the requirements and responsibilities of supervisory appraisers and trainee <br/>
<a id="pl.3.1"></a><var>3.1</var>appraisers. A course approved by the commissioner for the purposes of this section must <br/>
<a id="pl.3.2"></a><var>3.2</var>be given the course title "Minnesota Supervisor/Trainee Appraiser Course";<br/>
<a id="pl.3.3"></a><var>3.3</var>(3) has not been the subject of any license or certificate suspension or revocation <br/>
<a id="pl.3.4"></a><var>3.4</var>or has not been prohibited from supervising activities in this state or any other state <br/>
<a id="pl.3.5"></a><var>3.5</var>within the previous two three years immediately preceding the individual's application <br/>
<a id="pl.3.6"></a><var>3.6</var>to become a supervisor;<br/>
<a id="pl.3.7"></a><var>3.7</var>(4) has no more than three trainee real property appraisers working under supervision <br/>
<a id="pl.3.8"></a><var>3.8</var>at any one time;<br/>
<a id="pl.3.9"></a><var>3.9</var>(5) actively and personally supervises the trainee real property appraiser, which <br/>
<a id="pl.3.10"></a><var>3.10</var>includes ensuring that research of general and specific data has been adequately conducted <br/>
<a id="pl.3.11"></a><var>3.11</var>and properly reported, application of appraisal principles and methodologies has been <br/>
<a id="pl.3.12"></a><var>3.12</var>properly applied, that the analysis is sound and adequately reported, and that any analyses, <br/>
<a id="pl.3.13"></a><var>3.13</var>opinions, or conclusions are adequately developed and reported so that the appraisal <br/>
<a id="pl.3.14"></a><var>3.14</var>report is not misleading;<br/>
<a id="pl.3.15"></a><var>3.15</var>(6) discusses with the trainee real property appraiser any necessary and appropriate <br/>
<a id="pl.3.16"></a><var>3.16</var>changes that are made to a report, involving any trainee appraiser, before it is transmitted <br/>
<a id="pl.3.17"></a><var>3.17</var>to the client. Changes not discussed with the trainee real property appraiser that are made <br/>
<a id="pl.3.18"></a><var>3.18</var>by the supervising appraiser must be provided in writing to the trainee real property <br/>
<a id="pl.3.19"></a><var>3.19</var>appraiser upon completion of the appraisal report;<br/>
<a id="pl.3.20"></a><var>3.20</var>(7) accompanies the trainee real property appraiser on the inspections of the subject <br/>
<a id="pl.3.21"></a><var>3.21</var>properties and drive-by inspections of the comparable sales on all appraisal assignments <br/>
<a id="pl.3.22"></a><var>3.22</var>for which the trainee will perform work until the trainee appraiser is determined to be <br/>
<a id="pl.3.23"></a><var>3.23</var>competent, in accordance with the competency rule of USPAP for the property type;<br/>
<a id="pl.3.24"></a><var>3.24</var>(8) accepts full responsibility for the appraisal report by signing and certifying <br/>
<a id="pl.3.25"></a><var>3.25</var>that the report complies with USPAP; and<br/>
<a id="pl.3.26"></a><var>3.26</var>(9) reviews and signs the trainee real property appraiser's appraisal report or reports <br/>
<a id="pl.3.27"></a><var>3.27</var>or if the trainee appraiser is not signing the report, states in the appraisal the name of the <br/>
<a id="pl.3.28"></a><var>3.28</var>trainee and scope of the trainee's significant contribution to the report.<br/>
<a id="pl.3.29"></a><var>3.29</var>(b) The supervising appraiser must review and sign the applicable experience log <br/>
<a id="pl.3.30"></a><var>3.30</var>required to be kept by the trainee real property appraiser.<br/>
<a id="pl.3.31"></a><var>3.31</var>(c) The supervising appraiser must notify the commissioner within ten days when <br/>
<a id="pl.3.32"></a><var>3.32</var>the supervision of a trainee real property appraiser has terminated or when the trainee <br/>
<a id="pl.3.33"></a><var>3.33</var>appraiser is no longer under the supervision of the supervising appraiser.<br/>
<a id="pl.3.34"></a><var>3.34</var>(d) The supervising appraiser must maintain a separate work file for each appraisal <br/>
<a id="pl.3.35"></a><var>3.35</var>assignment.<br/>
<a id="pl.4.1"></a><var>4.1</var>(e) The supervising appraiser must verify that any trainee real property appraiser that <br/>
<a id="pl.4.2"></a><var>4.2</var>is subject to supervision is properly licensed and in good standing with the commissioner.<br/>
<br/>
<a id="bill.1.4.0"></a><a id="pl.4.3"></a><var>4.3</var>    Sec. 4. <b>[82B.105] RECIPROCITY.</b><br/>
<a id="pl.4.4"></a><var>4.4</var>The education, experience, and examination requirements of this chapter may be <br/>
<a id="pl.4.5"></a><var>4.5</var>waived by the commissioner for individuals of other jurisdictions if: (1) the individual is <br/>
<a id="pl.4.6"></a><var>4.6</var>licensed in another jurisdiction and is listed in good standing on the National Registry <br/>
<a id="pl.4.7"></a><var>4.7</var>maintained by the Appraisal Subcommittee, and (2) the licensing requirements of that <br/>
<a id="pl.4.8"></a><var>4.8</var>jurisdiction are substantially similar to the provisions of this chapter.<br/>
<br/>
<a id="bill.1.5.0"></a><a id="pl.4.9"></a><var>4.9</var>    Sec. 5. Minnesota Statutes 2013 Supplement, section 82B.13, subdivision 1, is <br/>
<a id="pl.4.10"></a><var>4.10</var>amended to read:<br/>
<a id="pl.4.11"></a><var>4.11</var>    Subdivision 1. <b>Trainee real property appraiser.</b> (a) As a prerequisite for licensing <br/>
<a id="pl.4.12"></a><var>4.12</var>as a trainee real property appraiser, an applicant must present evidence satisfactory to the <br/>
<a id="pl.4.13"></a><var>4.13</var>commissioner that the person has successfully completed:<br/>
<a id="pl.4.14"></a><var>4.14</var>(1) at least 75 hours of prelicense courses approved by the commissioner. Fifteen of <br/>
<a id="pl.4.15"></a><var>4.15</var>the 75 hours must include successful completion of the 15-hour national USPAP course; and<br/>
<a id="pl.4.16"></a><var>4.16</var>(2) in addition to the required hours under clause (1), a six-hour course that is <br/>
<a id="pl.4.17"></a><var>4.17</var>specifically oriented to the requirements and responsibilities of supervisory appraisers <br/>
<a id="pl.4.18"></a><var>4.18</var>and trainee appraisers. A course approved by the commissioner for the purposes of this <br/>
<a id="pl.4.19"></a><var>4.19</var>subdivision must be given the course title "Minnesota Supervisor/Trainee Appraiser <br/>
<a id="pl.4.20"></a><var>4.20</var>Course." This course must not be counted toward qualifying education to upgrade to <br/>
<a id="pl.4.21"></a><var>4.21</var>a higher level appraiser license.<br/>
<a id="pl.4.22"></a><var>4.22</var>(b) All qualifying education must be completed within the five-year period prior to <br/>
<a id="pl.4.23"></a><var>4.23</var>the date of submission of a trainee real property appraiser license application.<br/>
<br/>
<a id="bill.1.6.0"></a><a id="pl.4.24"></a><var>4.24</var>    Sec. 6. Minnesota Statutes 2012, section 82B.135, subdivision 1, is amended to read:<br/>
<a id="pl.4.25"></a><var>4.25</var>    Subdivision 1. <b>Submitting to commissioner.</b> An applicant for a real estate appraiser <br/>
<a id="pl.4.26"></a><var>4.26</var>license must submit to the commissioner, along with an application for licensure and in a <br/>
<a id="pl.4.27"></a><var>4.27</var>manner prescribed by the commissioner, a copy of the course completion certificate for<br/>
<a id="pl.4.28"></a><var>4.28</var> evidence that the applicant has completed all required prelicensing education coursework <br/>
<a id="pl.4.29"></a><var>4.29</var>applicable to the class of license sought.<br/>
<br/>
<a id="bill.1.7.0"></a><a id="pl.4.30"></a><var>4.30</var>    Sec. 7. Minnesota Statutes 2012, section 82B.19, subdivision 1, is amended to read:<br/>
<a id="pl.4.31"></a><var>4.31</var>    Subdivision 1. <b>License renewals.</b> (a) A licensed real estate appraiser must present <br/>
<a id="pl.4.32"></a><var>4.32</var>evidence satisfactory to the commissioner of having The commissioner must determine <br/>
<a id="pl.5.1"></a><var>5.1</var>that a licensed real estate appraiser has met the continuing education requirements of <br/>
<a id="pl.5.2"></a><var>5.2</var>this chapter before the commissioner renews a license. This determination must be <br/>
<a id="pl.5.3"></a><var>5.3</var>based on, for a resident appraiser, course completion records uploaded electronically <br/>
<a id="pl.5.4"></a><var>5.4</var>in a manner prescribed by the commissioner and, for a nonresident appraiser, course <br/>
<a id="pl.5.5"></a><var>5.5</var>completion records presented by electronic transmission or uploaded electronically in a <br/>
<a id="pl.5.6"></a><var>5.6</var>manner prescribed by the commissioner.<br/>
<a id="pl.5.7"></a><var>5.7</var>The basic continuing education requirement for renewal of a license is the <br/>
<a id="pl.5.8"></a><var>5.8</var>completion by the applicant either as a student or as an instructor, during the immediately <br/>
<a id="pl.5.9"></a><var>5.9</var>preceding term of licensing, of at least 30 classroom hours of instruction in courses or <br/>
<a id="pl.5.10"></a><var>5.10</var>seminars that have received the approval of the commissioner. Classroom hour credit <br/>
<a id="pl.5.11"></a><var>5.11</var>must not be accepted for courses of less than two hours. As part of the continuing <br/>
<a id="pl.5.12"></a><var>5.12</var>education requirements of this section, the commissioner must require that all real estate <br/>
<a id="pl.5.13"></a><var>5.13</var>appraisers successfully complete the seven-hour national USPAP update course every two <br/>
<a id="pl.5.14"></a><var>5.14</var>years. If the applicant's immediately preceding term of licensing consisted of six or more <br/>
<a id="pl.5.15"></a><var>5.15</var>months, but fewer than 24 months, the applicant must provide evidence of completion <br/>
<a id="pl.5.16"></a><var>5.16</var>of 15 hours of instruction during the license period. The credit hours required under this <br/>
<a id="pl.5.17"></a><var>5.17</var>section may be credited to a person for distance education courses that meet Appraiser <br/>
<a id="pl.5.18"></a><var>5.18</var>Qualifications Board criteria. An approved prelicense education course may be taken <br/>
<a id="pl.5.19"></a><var>5.19</var>for continuing education credit.<br/>
<a id="pl.5.20"></a><var>5.20</var>(b) The 15-hour USPAP course cannot be used to satisfy the requirement to complete <br/>
<a id="pl.5.21"></a><var>5.21</var>the seven-hour national USPAP update course every two years.<br/>
<a id="pl.5.22"></a><var>5.22</var>(c) Notwithstanding section 
<statute_ref>326.56, subdivision 2</statute_ref>, a licensed real estate appraiser <br/>
<a id="pl.5.23"></a><var>5.23</var>returning from active military duty may be placed in active status for a period of up to 90 <br/>
<a id="pl.5.24"></a><var>5.24</var>days pending completion of all continuing education requirements.<br/>
<br/>
<a id="bill.1.8.0"></a><a id="pl.5.25"></a><var>5.25</var>    Sec. 8. Minnesota Statutes 2012, section 82B.19, is amended by adding a subdivision <br/>
<a id="pl.5.26"></a><var>5.26</var>to read:<br/>
<a id="pl.5.27"></a><var>5.27</var>    Subd. 1a. <b>Deferral.</b> (a) Deferrals may not be granted to appraisers, except in the <br/>
<a id="pl.5.28"></a><var>5.28</var>case of individuals returning from active military duty, or individuals impacted by a <br/>
<a id="pl.5.29"></a><var>5.29</var>state-declared or federally declared disaster. The commissioner may allow appraisers <br/>
<a id="pl.5.30"></a><var>5.30</var>returning from active military duty to be placed in active status for a period of up to 90 <br/>
<a id="pl.5.31"></a><var>5.31</var>days pending completion of all continuing education requirements. The commissioner <br/>
<a id="pl.5.32"></a><var>5.32</var>may allow appraisers impacted by a state-declared or federally declared disaster that <br/>
<a id="pl.5.33"></a><var>5.33</var>occurs within 90 days before the end of the continuing education cycle to remain or <br/>
<a id="pl.5.34"></a><var>5.34</var>be placed in active status for a period of up to 90 days after the end of the appraiser's <br/>
<a id="pl.5.35"></a><var>5.35</var>continuing education cycle, pending completion of all continuing education requirements.<br/>
<a id="pl.6.1"></a><var>6.1</var>(b) This subdivision supersedes any conflicting provision in section 326.56, <br/>
<a id="pl.6.2"></a><var>6.2</var>subdivision 2.<br/>
<br/>
<a id="bill.1.9.0"></a><a id="pl.6.3"></a><var>6.3</var>    Sec. 9. Minnesota Statutes 2012, section 82B.19, subdivision 3, is amended to read:<br/>
<a id="pl.6.4"></a><var>6.4</var>    Subd. 3. <b>Reinstatements.</b> A license as a real estate appraiser that has been revoked<br/>
<a id="pl.6.5"></a><var>6.5</var> suspended for less than two years as a result of disciplinary action by the commissioner <br/>
<a id="pl.6.6"></a><var>6.6</var>may not be reinstated unless the applicant presents evidence of completion of the <br/>
<a id="pl.6.7"></a><var>6.7</var>continuing education required by this chapter. This requirement may not be imposed upon <br/>
<a id="pl.6.8"></a><var>6.8</var>an applicant for reinstatement who has been required to successfully complete the current <br/>
<a id="pl.6.9"></a><var>6.9</var>experience, education, and examination requirements for real estate appraiser licensure as <br/>
<a id="pl.6.10"></a><var>6.10</var>a condition to reinstatement of a license.<br/>
<br/>
<a id="bill.1.10.0"></a><a id="pl.6.11"></a><var>6.11</var>    Sec. 10. <b>MONEY TRANSMITTERS; NO TRANSIT LIST; DELAYED </b><br/>
<a id="pl.6.12"></a><var>6.12</var><b>EFFECTIVE DATE.</b><br/>
<a id="pl.6.13"></a><var>6.13</var>Notwithstanding Laws 2013, chapter 50, Minnesota Statutes 2013 Supplement, <br/>
<a id="pl.6.14"></a><var>6.14</var>section 53B.27, subdivision 3, is effective January 1, 2016.<br/>
<br/>
<a id="bill.1.11.0"></a><a id="pl.6.15"></a><var>6.15</var>    Sec. 11. <b> REPEALER.</b><br/>
<a id="pl.6.16"></a><var>6.16</var>Minnesota Statutes 2012, section 82B.10, subdivision 7, is repealed.<br/>
<br/>
<a id="bill.2.0.0"></a>

<a id="bill.2.1.0"></a><a id="pl.6.19"></a><var>6.19</var>    Section 1. Minnesota Statutes 2012, section 115C.02, subdivision 16, is amended to <br/>
<a id="pl.6.20"></a><var>6.20</var>read:<br/>
<a id="pl.6.21"></a><var>6.21</var>    Subd. 16. <b>Tank in transport.</b> "Tank in transport" means a liquid fuel cargo tank <br/>
<a id="pl.6.22"></a><var>6.22</var>with a capacity of greater than 250 gallons used to deliver petroleum into storage tanks<br/>
<a id="pl.6.23"></a><var>6.23</var> or dispense petroleum into mobile tanks.<br/>
<br/>
<a id="bill.2.2.0"></a><a id="pl.6.24"></a><var>6.24</var>    Sec. 2. Minnesota Statutes 2012, section 115C.09, subdivision 2a, is amended to read:<br/>
<a id="pl.6.25"></a><var>6.25</var>    Subd. 2a. <b>Application for reimbursement.</b> (a) Applications for reimbursement <br/>
<a id="pl.6.26"></a><var>6.26</var>may be submitted for consideration by the board at the following stages:<br/>
<a id="pl.6.27"></a><var>6.27</var>(1) after costs have been incurred, and the associated tasks completed, for excavation <br/>
<a id="pl.6.28"></a><var>6.28</var>basin soil sampling, excavation of contaminated soil, treatment of contaminated soil, or <br/>
<a id="pl.6.29"></a><var>6.29</var>remedial investigation tasks such as soil boring drilling, monitoring well installation, <br/>
<a id="pl.6.30"></a><var>6.30</var>vapor risk assessment, and groundwater receptor survey; corrective action costs relating to <br/>
<a id="pl.7.1"></a><var>7.1</var>the construction and installation of a comprehensive corrective action design system are <br/>
<a id="pl.7.2"></a><var>7.2</var>not reimbursable at this stage; and<br/>
<a id="pl.7.3"></a><var>7.3</var>(2) after costs have been incurred, and the associated tasks completed, for tasks related <br/>
<a id="pl.7.4"></a><var>7.4</var>to the construction and installation of a comprehensive corrective action design system, but <br/>
<a id="pl.7.5"></a><var>7.5</var>only if the commissioner has approved a comprehensive plan for corrective action that will <br/>
<a id="pl.7.6"></a><var>7.6</var>adequately address the entire release, including groundwater contamination if necessary.<br/>
<a id="pl.7.7"></a><var>7.7</var>(b) An applicant shall not submit an application for reimbursement more frequently <br/>
<a id="pl.7.8"></a><var>7.8</var>than four times per 12-month period unless the application is for more than $2,000 <br/>
<a id="pl.7.9"></a><var>7.9</var>in reimbursement.<br/>
<a id="pl.7.10"></a><var>7.10</var>(c) The commissioner shall review a plan, and provide an approval or disapproval to <br/>
<a id="pl.7.11"></a><var>7.11</var>the applicant and the board, within 60 days in the case of a plan submitted under paragraph <br/>
<a id="pl.7.12"></a><var>7.12</var>(a), clause (1), and within 120 days in the case of a plan submitted under paragraph (a), <br/>
<a id="pl.7.13"></a><var>7.13</var>clause (2), or the commissioner shall explain to the board why additional time is necessary. <br/>
<a id="pl.7.14"></a><var>7.14</var>The board shall consider a complete initial application within 60 days of its submission, <br/>
<a id="pl.7.15"></a><var>7.15</var>and shall consider a complete supplemental application within 120 days of its submission, <br/>
<a id="pl.7.16"></a><var>7.16</var>or the board shall explain for the record why additional time is necessary. Board staff may <br/>
<a id="pl.7.17"></a><var>7.17</var>review applications submitted to the board at the same time the commissioner considers <br/>
<a id="pl.7.18"></a><var>7.18</var>the appropriateness of the corrective action, but the board may not act on the application <br/>
<a id="pl.7.19"></a><var>7.19</var>until after the commissioner's approval is received.<br/>
<a id="pl.7.20"></a><var>7.20</var>(d) A reimbursement may not be made unless the board determines that the <br/>
<a id="pl.7.21"></a><var>7.21</var>commissioner has determined that the corrective action was appropriate in terms of <br/>
<a id="pl.7.22"></a><var>7.22</var>protecting public health, welfare, and the environment.<br/>
<a id="pl.7.23"></a><var>7.23</var>(e) A reimbursement may not be made unless the application was submitted within <br/>
<a id="pl.7.24"></a><var>7.24</var>seven years after the corrective action services for which reimbursement has been <br/>
<a id="pl.7.25"></a><var>7.25</var>requested were performed.<br/>
<a id="pl.7.26"></a><var>7.26</var><b>EFFECTIVE DATE; APPLICATION.</b>This section is effective July 1, 2015, and <br/>
<a id="pl.7.27"></a><var>7.27</var>applies to applications for reimbursement on or after that date.<br/>
<br/>
<a id="bill.2.3.0"></a><a id="pl.7.28"></a><var>7.28</var>    Sec. 3. Minnesota Statutes 2012, section 115C.09, subdivision 3, is amended to read:<br/>
<a id="pl.7.29"></a><var>7.29</var>    Subd. 3. <b>Reimbursements; subrogation; appropriation.</b> (a) The board shall <br/>
<a id="pl.7.30"></a><var>7.30</var>reimburse an eligible applicant from the fund for 90 percent of the total reimbursable costs <br/>
<a id="pl.7.31"></a><var>7.31</var>incurred at the site, except that the board may reimburse an eligible applicant from the <br/>
<a id="pl.7.32"></a><var>7.32</var>fund for greater than 90 percent of the total reimbursable costs, if the applicant previously <br/>
<a id="pl.7.33"></a><var>7.33</var>qualified for a higher reimbursement rate. For costs associated with a release from a <br/>
<a id="pl.7.34"></a><var>7.34</var>tank in transport, the board may reimburse 90 percent of costs over $10,000, with the a<br/>
<a id="pl.7.35"></a><var>7.35</var> maximum reimbursement not to exceed of $100,000.<br/>
<a id="pl.8.1"></a><var>8.1</var>Not more than $1,000,000 may be reimbursed for costs associated with a single <br/>
<a id="pl.8.2"></a><var>8.2</var>release, regardless of the number of persons eligible for reimbursement, and not more than <br/>
<a id="pl.8.3"></a><var>8.3</var>$2,000,000 may be reimbursed for costs associated with a single tank facility.<br/>
<a id="pl.8.4"></a><var>8.4</var>(b) A reimbursement may not be made from the fund under this chapter until the <br/>
<a id="pl.8.5"></a><var>8.5</var>board has determined that the costs for which reimbursement is requested were actually <br/>
<a id="pl.8.6"></a><var>8.6</var>incurred and were reasonable.<br/>
<a id="pl.8.7"></a><var>8.7</var>(c) When an applicant has obtained responsible competitive bids or proposals <br/>
<a id="pl.8.8"></a><var>8.8</var>according to rules promulgated under this chapter prior to June 1, 1995, the eligible costs <br/>
<a id="pl.8.9"></a><var>8.9</var>for the tasks, procedures, services, materials, equipment, and tests of the low bid or proposal <br/>
<a id="pl.8.10"></a><var>8.10</var>are presumed to be reasonable by the board, unless the costs of the low bid or proposal are <br/>
<a id="pl.8.11"></a><var>8.11</var>substantially in excess of the average costs charged for similar tasks, procedures, services, <br/>
<a id="pl.8.12"></a><var>8.12</var>materials, equipment, and tests in the same geographical area during the same time period.<br/>
<a id="pl.8.13"></a><var>8.13</var>(d) When an applicant has obtained a minimum of two responsible competitive bids <br/>
<a id="pl.8.14"></a><var>8.14</var>or proposals on forms prescribed by the board and where the rules promulgated under <br/>
<a id="pl.8.15"></a><var>8.15</var>this chapter after June 1, 1995, designate maximum costs for specific tasks, procedures, <br/>
<a id="pl.8.16"></a><var>8.16</var>services, materials, equipment and tests, the eligible costs of the low bid or proposal are <br/>
<a id="pl.8.17"></a><var>8.17</var>deemed reasonable if the costs are at or below the maximums set forth in the rules.<br/>
<a id="pl.8.18"></a><var>8.18</var>(e) Costs incurred for change orders executed as prescribed in rules promulgated <br/>
<a id="pl.8.19"></a><var>8.19</var>under this chapter after June 1, 1995, are presumed reasonable if the costs are at or below <br/>
<a id="pl.8.20"></a><var>8.20</var>the maximums set forth in the rules, unless the costs in the change order are above those in <br/>
<a id="pl.8.21"></a><var>8.21</var>the original bid or proposal or are unsubstantiated and inconsistent with the process and <br/>
<a id="pl.8.22"></a><var>8.22</var>standards required by the rules.<br/>
<a id="pl.8.23"></a><var>8.23</var>(f) A reimbursement may not be made from the fund in response to either an initial <br/>
<a id="pl.8.24"></a><var>8.24</var>or supplemental application for costs incurred after June 4, 1987, that are payable under <br/>
<a id="pl.8.25"></a><var>8.25</var>an applicable insurance policy, except that if the board finds that the applicant has made <br/>
<a id="pl.8.26"></a><var>8.26</var>reasonable efforts to collect from an insurer and failed, the board shall reimburse the <br/>
<a id="pl.8.27"></a><var>8.27</var>applicant.<br/>
<a id="pl.8.28"></a><var>8.28</var>(g) If the board reimburses an applicant for costs for which the applicant has <br/>
<a id="pl.8.29"></a><var>8.29</var>insurance coverage, the board is subrogated to the rights of the applicant with respect to <br/>
<a id="pl.8.30"></a><var>8.30</var>that insurance coverage, to the extent of the reimbursement by the board. The board may <br/>
<a id="pl.8.31"></a><var>8.31</var>request the attorney general to bring an action in district court against the insurer to enforce <br/>
<a id="pl.8.32"></a><var>8.32</var>the board's subrogation rights. Acceptance by an applicant of reimbursement constitutes <br/>
<a id="pl.8.33"></a><var>8.33</var>an assignment by the applicant to the board of any rights of the applicant with respect to <br/>
<a id="pl.8.34"></a><var>8.34</var>any insurance coverage applicable to the costs that are reimbursed. Notwithstanding this <br/>
<a id="pl.8.35"></a><var>8.35</var>paragraph, the board may instead request a return of the reimbursement under subdivision <br/>
<a id="pl.8.36"></a><var>8.36</var>5 and may employ against the applicant the remedies provided in that subdivision, except <br/>
<a id="pl.9.1"></a><var>9.1</var>where the board has knowingly provided reimbursement because the applicant was denied <br/>
<a id="pl.9.2"></a><var>9.2</var>coverage by the insurer.<br/>
<a id="pl.9.3"></a><var>9.3</var>(h) Money in the fund is appropriated to the board to make reimbursements under <br/>
<a id="pl.9.4"></a><var>9.4</var>this chapter. A reimbursement to a state agency must be credited to the appropriation <br/>
<a id="pl.9.5"></a><var>9.5</var>account or accounts from which the reimbursed costs were paid.<br/>
<a id="pl.9.6"></a><var>9.6</var>(i) The board may reduce the amount of reimbursement to be made under this <br/>
<a id="pl.9.7"></a><var>9.7</var>chapter if it finds that the applicant has not complied with a provision of this chapter, a <br/>
<a id="pl.9.8"></a><var>9.8</var>rule or order issued under this chapter, or one or more of the following requirements:<br/>
<a id="pl.9.9"></a><var>9.9</var>(1) the agency was given notice of the release as required by section 
         <statute_ref>115.061</statute_ref>;<br/>
<a id="pl.9.10"></a><var>9.10</var>(2) the applicant, to the extent possible, fully cooperated with the agency in <br/>
<a id="pl.9.11"></a><var>9.11</var>responding to the release;<br/>
<a id="pl.9.12"></a><var>9.12</var>(3) the state rules applicable after December 22, 1993, to operating an underground <br/>
<a id="pl.9.13"></a><var>9.13</var>storage tank and appurtenances without leak detection;<br/>
<a id="pl.9.14"></a><var>9.14</var>(4) the state rules applicable after December 22, 1998, to operating an underground <br/>
<a id="pl.9.15"></a><var>9.15</var>storage tank and appurtenances without corrosion protection or spill and overfill <br/>
<a id="pl.9.16"></a><var>9.16</var>protection; and<br/>
<a id="pl.9.17"></a><var>9.17</var>(5) the state rule applicable after November 1, 1998, to operating an aboveground <br/>
<a id="pl.9.18"></a><var>9.18</var>tank without a dike or other structure that would contain a spill at the aboveground tank site.<br/>
<a id="pl.9.19"></a><var>9.19</var>(j) The reimbursement may be reduced as much as 100 percent for failure by <br/>
<a id="pl.9.20"></a><var>9.20</var>the applicant to comply with the requirements in paragraph (i), clauses (1) to (5). In <br/>
<a id="pl.9.21"></a><var>9.21</var>determining the amount of the reimbursement reduction, the board shall consider:<br/>
<a id="pl.9.22"></a><var>9.22</var>(1) the reasonable determination by the agency that the noncompliance poses a <br/>
<a id="pl.9.23"></a><var>9.23</var>threat to the environment;<br/>
<a id="pl.9.24"></a><var>9.24</var>(2) whether the noncompliance was negligent, knowing, or willful;<br/>
<a id="pl.9.25"></a><var>9.25</var>(3) the deterrent effect of the award reduction on other tank owners and operators;<br/>
<a id="pl.9.26"></a><var>9.26</var>(4) the amount of reimbursement reduction recommended by the commissioner; and<br/>
<a id="pl.9.27"></a><var>9.27</var>(5) the documentation of noncompliance provided by the commissioner.<br/>
<a id="pl.9.28"></a><var>9.28</var>(k) An applicant may request that the board issue a multiparty check that includes each <br/>
<a id="pl.9.29"></a><var>9.29</var>lender who advanced funds to pay the costs of the corrective action or to each contractor <br/>
<a id="pl.9.30"></a><var>9.30</var>or consultant who provided corrective action services. This request must be made by filing <br/>
<a id="pl.9.31"></a><var>9.31</var>with the board a document, in a form prescribed by the board, indicating the identity of the <br/>
<a id="pl.9.32"></a><var>9.32</var>applicant, the identity of the lender, contractor, or consultant, the dollar amount, and the <br/>
<a id="pl.9.33"></a><var>9.33</var>location of the corrective action. The applicant must submit a request for the issuance <br/>
<a id="pl.9.34"></a><var>9.34</var>of a multiparty check for each application submitted to the board. Payment under this <br/>
<a id="pl.9.35"></a><var>9.35</var>paragraph does not constitute the assignment of the applicant's right to reimbursement <br/>
<a id="pl.10.1"></a><var>10.1</var>to the consultant, contractor, or lender. The board has no liability to an applicant for a <br/>
<a id="pl.10.2"></a><var>10.2</var>payment issued as a multiparty check that meets the requirements of this paragraph.<br/>
<a id="pl.10.3"></a><var>10.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.0.0"></a>

<a id="bill.3.1.0"></a><a id="pl.10.6"></a><var>10.6</var>    Section 1. Minnesota Statutes 2013 Supplement, section 239.761, subdivision 8, <br/>
<a id="pl.10.7"></a><var>10.7</var>is amended to read:<br/>
<a id="pl.10.8"></a><var>10.8</var>    Subd. 8. <b>Diesel fuel oil.</b> (a) When diesel fuel oil is not blended with biodiesel, it <br/>
<a id="pl.10.9"></a><var>10.9</var>must comply with ASTM specification D975-12a.<br/>
<a id="pl.10.10"></a><var>10.10</var>(b) When diesel fuel oil is a blend of up to five volume percent biodiesel, the diesel <br/>
<a id="pl.10.11"></a><var>10.11</var>component must comply with ASTM specification D975-12a and the biodiesel component <br/>
<a id="pl.10.12"></a><var>10.12</var>must comply with ASTM specification D675-11b D6751-11b.<br/>
<br/>
<a id="bill.3.2.0"></a><a id="pl.10.13"></a><var>10.13</var>    Sec. 2. Minnesota Statutes 2012, section 239.785, subdivision 6, is amended to read:<br/>
<a id="pl.10.14"></a><var>10.14</var>    Subd. 6. <b>Liquefied petroleum gas account.</b> A liquefied petroleum gas account in <br/>
<a id="pl.10.15"></a><var>10.15</var>the special revenue fund is established in the state treasury. Fees and penalties collected <br/>
<a id="pl.10.16"></a><var>10.16</var>under this section must be deposited in the state treasury and credited to the liquefied <br/>
<a id="pl.10.17"></a><var>10.17</var>petroleum gas account. Money in that account, including interest earned, is appropriated <br/>
<a id="pl.10.18"></a><var>10.18</var>to the commissioner of education commerce for programs to improve the energy efficiency <br/>
<a id="pl.10.19"></a><var>10.19</var>of residential liquefied petroleum gas heating equipment in low-income households, and, <br/>
<a id="pl.10.20"></a><var>10.20</var>when necessary, to provide weatherization services to the homes.<br/>
<br/>
<a id="bill.4.0.0"></a>

<a id="bill.4.1.0"></a><a id="pl.10.23"></a><var>10.23</var>    Section 1. Minnesota Statutes 2012, section 45.027, subdivision 7, is amended to read:<br/>
<a id="pl.10.24"></a><var>10.24</var>    Subd. 7. <b>Actions against licensees.</b> (a) In addition to any other actions authorized <br/>
<a id="pl.10.25"></a><var>10.25</var>by this section, the commissioner may, by order, deny, suspend, or revoke the authority <br/>
<a id="pl.10.26"></a><var>10.26</var>or license of a person subject to the duties and responsibilities entrusted to the <br/>
<a id="pl.10.27"></a><var>10.27</var>commissioner, as described under section 
         <statute_ref>45.011, subdivision 4</statute_ref>, or censure that person if <br/>
<a id="pl.10.28"></a><var>10.28</var>the commissioner finds that:<br/>
<a id="pl.10.29"></a><var>10.29</var>(1) the order is in the public interest; and<br/>
<a id="pl.10.30"></a><var>10.30</var>(2) the person has violated any law, rule, or order related to the duties and <br/>
<a id="pl.10.31"></a><var>10.31</var>responsibilities entrusted to the commissioner; or<br/>
<a id="pl.11.1"></a><var>11.1</var>(3) the person has provided false, misleading, or incomplete information to the <br/>
<a id="pl.11.2"></a><var>11.2</var>commissioner or has refused to allow a reasonable inspection of records or premises; or<br/>
<a id="pl.11.3"></a><var>11.3</var>(4) the person has engaged in an act or practice, whether or not the act or practice <br/>
<a id="pl.11.4"></a><var>11.4</var>directly involves the business for which the person is licensed or authorized, which <br/>
<a id="pl.11.5"></a><var>11.5</var>demonstrates that the applicant or licensee is untrustworthy, financially irresponsible, or <br/>
<a id="pl.11.6"></a><var>11.6</var>otherwise incompetent or unqualified to act under the authority or license granted by <br/>
<a id="pl.11.7"></a><var>11.7</var>the commissioner.<br/>
<a id="pl.11.8"></a><var>11.8</var>(b)(1) The commissioner shall issue an order requiring a licensee or applicant for a <br/>
<a id="pl.11.9"></a><var>11.9</var>license to show cause why the license should not be revoked or suspended, or the licensee <br/>
<a id="pl.11.10"></a><var>11.10</var>censured, or the application denied and provide the licensee or applicant an opportunity <br/>
<a id="pl.11.11"></a><var>11.11</var>to request a hearing under the contested case provisions of chapter 14. The order must <br/>
<a id="pl.11.12"></a><var>11.12</var>be calculated to give reasonable notice of the time and place for a hearing on the action, <br/>
<a id="pl.11.13"></a><var>11.13</var>and must state the reasons for the entry of the order. The commissioner may, by order, <br/>
<a id="pl.11.14"></a><var>11.14</var>summarily suspend a license pending final determination of an order to show cause. If a <br/>
<a id="pl.11.15"></a><var>11.15</var>license is suspended pending final determination of an order to show cause, a hearing on <br/>
<a id="pl.11.16"></a><var>11.16</var>the merits must be held within 30 days of the issuance of the order of suspension. The <br/>
<a id="pl.11.17"></a><var>11.17</var>order must: (i) state the reasons that an order is being sought and whether a civil penalty <br/>
<a id="pl.11.18"></a><var>11.18</var>is sought; and (ii) inform the licensee or applicant that unless the licensee or applicant <br/>
<a id="pl.11.19"></a><var>11.19</var>requests a hearing on the matter within 30 days of receipt of the order, it becomes final by <br/>
<a id="pl.11.20"></a><var>11.20</var>operation of law and that a final order will be issued under paragraph (a). If a hearing is <br/>
<a id="pl.11.21"></a><var>11.21</var>requested by the licensee or applicant pursuant to item (ii): (A) the commissioner shall, <br/>
<a id="pl.11.22"></a><var>11.22</var>within 15 days of receiving the request, set the date and time for the hearing and notify <br/>
<a id="pl.11.23"></a><var>11.23</var>the licensee or applicant of those facts; and (B) the commissioner may modify, vacate, or <br/>
<a id="pl.11.24"></a><var>11.24</var>extend the order, until the commissioner issues a final order under paragraph (a).<br/>
<a id="pl.11.25"></a><var>11.25</var>(2) The commissioner may, by order, summarily suspend a license pending final <br/>
<a id="pl.11.26"></a><var>11.26</var>determination of an order to show cause issued under clause (1). If a license is suspended <br/>
<a id="pl.11.27"></a><var>11.27</var>pending final determination of an order to show cause and the licensee requests a hearing <br/>
<a id="pl.11.28"></a><var>11.28</var>on the matter within 30 days of receipt of the order to show cause, a hearing on the merits <br/>
<a id="pl.11.29"></a><var>11.29</var>must be held within 30 days of receipt of the hearing request. The summary suspension or <br/>
<a id="pl.11.30"></a><var>11.30</var>summary revocation procedure does not apply to action by the commissioner against the <br/>
<a id="pl.11.31"></a><var>11.31</var>certificate of authority of an insurer authorized to do business in Minnesota.<br/>
<a id="pl.11.32"></a><var>11.32</var>(c) All hearings must be conducted according to chapter 14. After the hearing, the <br/>
<a id="pl.11.33"></a><var>11.33</var>commissioner shall enter an a final order disposing of the matter as the facts require. If the <br/>
<a id="pl.11.34"></a><var>11.34</var>licensee or applicant fails to appear at a hearing after having been duly notified of it, the <br/>
<a id="pl.11.35"></a><var>11.35</var>person is considered in default, and the proceeding may be determined against the licensee <br/>
<a id="pl.11.36"></a><var>11.36</var>or applicant upon consideration of the order to show cause, the allegations of which may <br/>
<a id="pl.12.1"></a><var>12.1</var>be considered true. The summary suspension or summary revocation procedures does not <br/>
<a id="pl.12.2"></a><var>12.2</var>apply to action by the commissioner against the certificate of authority of an insurer <br/>
<a id="pl.12.3"></a><var>12.3</var>authorized to do business in Minnesota.<br/>
<a id="pl.12.4"></a><var>12.4</var>(d) If an order becomes final because a person subject to an order does not timely <br/>
<a id="pl.12.5"></a><var>12.5</var>request a hearing as provided in paragraph (b) or if the petition for judicial review is not <br/>
<a id="pl.12.6"></a><var>12.6</var>timely filed after a hearing and a final order is issued by the commissioner as provided <br/>
<a id="pl.12.7"></a><var>12.7</var>in paragraph (a), the commissioner may file a certified copy of the final order with the <br/>
<a id="pl.12.8"></a><var>12.8</var>clerk of a court of competent jurisdiction. The final order so filed has the same effect as a <br/>
<a id="pl.12.9"></a><var>12.9</var>judgment of the court and may be recorded, enforced, or satisfied in the same manner as <br/>
<a id="pl.12.10"></a><var>12.10</var>a judgment of the court.<br/>
<a id="pl.12.11"></a><var>12.11</var>(e) If a person does not comply with a final order under this section, the <br/>
<a id="pl.12.12"></a><var>12.12</var>commissioner may petition a court of competent jurisdiction to enforce the order. The <br/>
<a id="pl.12.13"></a><var>12.13</var>court may not require the commissioner to post a bond in an action or proceeding under <br/>
<a id="pl.12.14"></a><var>12.14</var>this section. If the court finds, after service and opportunity for hearing, that the person <br/>
<a id="pl.12.15"></a><var>12.15</var>was not in compliance with the order, the court may adjudge the person in civil contempt <br/>
<a id="pl.12.16"></a><var>12.16</var>of the order. The court may impose a further civil penalty against the person for contempt <br/>
<a id="pl.12.17"></a><var>12.17</var>in an amount up to $10,000 for each violation and may grant any other relief the court <br/>
<a id="pl.12.18"></a><var>12.18</var>determines is just and proper in the circumstances.<br/>
<a id="pl.12.19"></a><var>12.19</var>(f) Except for information classified as confidential under sections 
         <statute_ref>60A.03, <br/>
<a id="pl.12.20"></a><var>12.20</var>subdivision 9
         </statute_ref>; 
         <statute_ref>60A.031</statute_ref>; 
         <statute_ref>60A.93</statute_ref>; and 
         <statute_ref>60D.22</statute_ref>, the commissioner may make any data <br/>
<a id="pl.12.21"></a><var>12.21</var>otherwise classified as private or confidential pursuant to this section accessible to an <br/>
<a id="pl.12.22"></a><var>12.22</var>appropriate person or agency if the commissioner determines that the access will aid the <br/>
<a id="pl.12.23"></a><var>12.23</var>law enforcement process, promote public health or safety, or dispel widespread rumor or <br/>
<a id="pl.12.24"></a><var>12.24</var>unrest. If the commissioner determines that private or confidential information should <br/>
<a id="pl.12.25"></a><var>12.25</var>be disclosed, the commissioner shall notify the attorney general as to the information to <br/>
<a id="pl.12.26"></a><var>12.26</var>be disclosed, the purpose of the disclosure, and the need for the disclosure. The attorney <br/>
<a id="pl.12.27"></a><var>12.27</var>general shall review the commissioner's determination. If the attorney general believes <br/>
<a id="pl.12.28"></a><var>12.28</var>that the commissioner's determination does not satisfy the purpose and intent of this <br/>
<a id="pl.12.29"></a><var>12.29</var>provision paragraph, the attorney general shall advise the commissioner in writing that <br/>
<a id="pl.12.30"></a><var>12.30</var>the information may not be disclosed. If the attorney general believes the commissioner's <br/>
<a id="pl.12.31"></a><var>12.31</var>determination satisfies the purpose and intent of this provision, the attorney general shall <br/>
<a id="pl.12.32"></a><var>12.32</var>advise the commissioner in writing, accordingly.<br/>
<a id="pl.12.33"></a><var>12.33</var>After disclosing information pursuant to this provision, the commissioner shall <br/>
<a id="pl.12.34"></a><var>12.34</var>advise the chairs of the senate and house of representatives judiciary committees of the <br/>
<a id="pl.12.35"></a><var>12.35</var>disclosure and the basis for it.<br/>
<br/>
<a id="bill.4.2.0"></a><a id="pl.13.1"></a><var>13.1</var>    Sec. 2. Minnesota Statutes 2012, section 58.12, subdivision 1, is amended to read:<br/>
<a id="pl.13.2"></a><var>13.2</var>    Subdivision 1. <b>Powers of commissioner.</b> (a) The commissioner may by order <br/>
<a id="pl.13.3"></a><var>13.3</var>take any or all of the following actions:<br/>
<a id="pl.13.4"></a><var>13.4</var>(1) bar a person from engaging in residential mortgage origination or servicing;<br/>
<a id="pl.13.5"></a><var>13.5</var>(2) deny, suspend, or revoke a residential mortgage originator or a servicer license;<br/>
<a id="pl.13.6"></a><var>13.6</var>(3) censure a licensee;<br/>
<a id="pl.13.7"></a><var>13.7</var>(4) impose a civil penalty as provided for in section 
         <statute_ref>45.027, subdivision 6</statute_ref>; or<br/>
<a id="pl.13.8"></a><var>13.8</var>(5) revoke an exemption or certificate of exemption.<br/>
<a id="pl.13.9"></a><var>13.9</var>(b) In order to take the action in paragraph (a), the commissioner must find:<br/>
<a id="pl.13.10"></a><var>13.10</var>(1) that the order is in the public interest; and<br/>
<a id="pl.13.11"></a><var>13.11</var>(2) that the residential mortgage originator, servicer, applicant, or other person, an <br/>
<a id="pl.13.12"></a><var>13.12</var>officer, director, partner, employee, or agent or any person occupying a similar status or <br/>
<a id="pl.13.13"></a><var>13.13</var>performing similar functions, or a person in control of the originator, servicer, applicant, <br/>
<a id="pl.13.14"></a><var>13.14</var>or other person has:<br/>
<a id="pl.13.15"></a><var>13.15</var>(i) violated any provision of this chapter or rule or order under this chapter;<br/>
<a id="pl.13.16"></a><var>13.16</var>(ii) filed an application for a license that is incomplete in any material respect or <br/>
<a id="pl.13.17"></a><var>13.17</var>contains a statement that, in light of the circumstances under which it is made, is false or <br/>
<a id="pl.13.18"></a><var>13.18</var>misleading with respect to a material fact;<br/>
<a id="pl.13.19"></a><var>13.19</var>(iii) failed to maintain compliance with the affirmations made under section 
         <statute_ref>58.06, <br/>
<a id="pl.13.20"></a><var>13.20</var>subdivision 2
         </statute_ref>;<br/>
<a id="pl.13.21"></a><var>13.21</var>(iv) violated a standard of conduct or engaged in a fraudulent, coercive, deceptive, <br/>
<a id="pl.13.22"></a><var>13.22</var>or dishonest act or practice, whether or not the act or practice involves the residential <br/>
<a id="pl.13.23"></a><var>13.23</var>mortgage lending business including, but not limited to, negligently making a false <br/>
<a id="pl.13.24"></a><var>13.24</var>statement or knowingly and willfully omitting a material fact;<br/>
<a id="pl.13.25"></a><var>13.25</var>(v) engaged in an act or practice, whether or not the act or practice involves the <br/>
<a id="pl.13.26"></a><var>13.26</var>business of making a residential mortgage loan, that demonstrates untrustworthiness, <br/>
<a id="pl.13.27"></a><var>13.27</var>financial irresponsibility, or incompetence;<br/>
<a id="pl.13.28"></a><var>13.28</var>(vi) pled guilty, with or without explicitly admitting guilt, pled nolo contendere, <br/>
<a id="pl.13.29"></a><var>13.29</var>or been convicted of a felony, gross misdemeanor, or a misdemeanor involving moral <br/>
<a id="pl.13.30"></a><var>13.30</var>turpitude;<br/>
<a id="pl.13.31"></a><var>13.31</var>(vii) paid a civil penalty or been the subject of disciplinary action by the <br/>
<a id="pl.13.32"></a><var>13.32</var>commissioner, or an order of suspension or revocation, cease and desist order or injunction <br/>
<a id="pl.13.33"></a><var>13.33</var>order or order barring involvement in an industry or profession issued by this or any other <br/>
<a id="pl.13.34"></a><var>13.34</var>state or federal regulatory agency or by the Secretary of Housing and Urban Development;<br/>
<a id="pl.13.35"></a><var>13.35</var>(viii) been found by a court of competent jurisdiction to have engaged in conduct <br/>
<a id="pl.13.36"></a><var>13.36</var>evidencing gross negligence, fraud, misrepresentation, or deceit;<br/>
<a id="pl.14.1"></a><var>14.1</var>(ix) refused to cooperate with an investigation or examination by the commissioner;<br/>
<a id="pl.14.2"></a><var>14.2</var>(x) failed to pay any fee or assessment imposed by the commissioner; or<br/>
<a id="pl.14.3"></a><var>14.3</var>(xi) failed to comply with state and federal tax obligations.<br/>
<br/>
<a id="bill.4.3.0"></a><a id="pl.14.4"></a><var>14.4</var>    Sec. 3. Minnesota Statutes 2012, section 60A.0789, subdivision 3, is amended to read:<br/>
<a id="pl.14.5"></a><var>14.5</var>    Subd. 3. <b>Declaratory judgment action.</b> (a) If, prior to payment of death benefits, <br/>
<a id="pl.14.6"></a><var>14.6</var>the insurer believes the policy was initiated by STOLI practices, the insurer may bring a <br/>
<a id="pl.14.7"></a><var>14.7</var>declaratory judgment action seeking a court order declaring the policy void.<br/>
<a id="pl.14.8"></a><var>14.8</var>(b) A life insurance policy owner, who believes in good faith that the insurer may <br/>
<a id="pl.14.9"></a><var>14.9</var>challenge the policy for lack of insurable interest, may bring a declaratory judgment action <br/>
<a id="pl.14.10"></a><var>14.10</var>seeking a court order declaring the policy valid.<br/>
<a id="pl.14.11"></a><var>14.11</var>(c) The right of a life insurance policy owner to bring a declaratory judgment action <br/>
<a id="pl.14.12"></a><var>14.12</var>applies only to policies issued in Minnesota prior to the effective date of the Insurable <br/>
<a id="pl.14.13"></a><var>14.13</var>Interest Act and that have a death benefit equal to or greater than one million dollars. Only <br/>
<a id="pl.14.14"></a><var>14.14</var>the owner of record of a life insurance policy on the effective date of this section may <br/>
<a id="pl.14.15"></a><var>14.15</var>bring a declaratory judgment action under this section.<br/>
<a id="pl.14.16"></a><var>14.16</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.14.17"></a><var>14.17</var>and shall sunset on December 31, 2016.<br/>
<br/>
<a id="bill.4.4.0"></a><a id="pl.14.18"></a><var>14.18</var>    Sec. 4. Minnesota Statutes 2012, section 60A.10, subdivision 1, is amended to read:<br/>
<a id="pl.14.19"></a><var>14.19</var>    Subdivision 1. <b>Domestic companies.</b> (1) <b>Deposit as security for all policyholders </b><br/>
<a id="pl.14.20"></a><var>14.20</var><b>required.</b> No company in this state, other than farmers' mutual, or real estate title <br/>
<a id="pl.14.21"></a><var>14.21</var>insurance companies insurers, shall do business in this state unless it has on deposit with <br/>
<a id="pl.14.22"></a><var>14.22</var>the commissioner, for the protection of both its resident and nonresident policyholders, <br/>
<a id="pl.14.23"></a><var>14.23</var>securities to an amount, the actual market value of which, exclusive of interest, shall <br/>
<a id="pl.14.24"></a><var>14.24</var>never be less than $500,000 or one-half the applicable financial requirement set forth in <br/>
<a id="pl.14.25"></a><var>14.25</var>sections 
         <statute_ref>60A.07</statute_ref>, 
         <statute_ref>66A.32</statute_ref>, and 
         <statute_ref>66A.33</statute_ref>, whichever is less. The securities shall be retained <br/>
<a id="pl.14.26"></a><var>14.26</var>under the control of the commissioner as long as any policies of the depositing company <br/>
<a id="pl.14.27"></a><var>14.27</var>remain in force.<br/>
<a id="pl.14.28"></a><var>14.28</var>(2) <b>Securities defined.</b> For the purpose of this subdivision, the word "securities" <br/>
<a id="pl.14.29"></a><var>14.29</var>means bonds or other obligations of, or bonds or other obligations insured or guaranteed <br/>
<a id="pl.14.30"></a><var>14.30</var>by, the United States, any state of the United States, any municipality of this state, or any <br/>
<a id="pl.14.31"></a><var>14.31</var>agency or instrumentality of the foregoing.<br/>
<a id="pl.14.32"></a><var>14.32</var>(3) <b>Protection of deposit from levy.</b> No judgment creditor or other claimant may <br/>
<a id="pl.14.33"></a><var>14.33</var>levy upon any securities held on deposit with, or for the account of, the commissioner. <br/>
<a id="pl.14.34"></a><var>14.34</var>Upon the entry of an order by a court of competent jurisdiction for the rehabilitation, <br/>
<a id="pl.15.1"></a><var>15.1</var>liquidation or conservation of any depositing company as provided in chapter 60B, that <br/>
<a id="pl.15.2"></a><var>15.2</var>company's deposit together with any accrued income thereon shall be transferred to the <br/>
<a id="pl.15.3"></a><var>15.3</var>commissioner as rehabilitator, liquidator, or conservator.<br/>
<br/>
<a id="bill.4.5.0"></a><a id="pl.15.4"></a><var>15.4</var>    Sec. 5. Minnesota Statutes 2012, section 60K.54, subdivision 2, is amended to read:<br/>
<a id="pl.15.5"></a><var>15.5</var>    Subd. 2. <b>Criminal prosecutions.</b> Within 30 days of the initial pretrial hearing date<br/>
<a id="pl.15.6"></a><var>15.6</var> criminal prosecution begins, a producer shall report to the commissioner any criminal <br/>
<a id="pl.15.7"></a><var>15.7</var>prosecution of the producer taken in any jurisdiction. The report must include a copy of <br/>
<a id="pl.15.8"></a><var>15.8</var>the initial complaint filed, the order resulting from the hearing, and any other relevant legal <br/>
<a id="pl.15.9"></a><var>15.9</var>documents. In addition, a producer shall report to the commissioner within ten days any <br/>
<a id="pl.15.10"></a><var>15.10</var>conviction, guilty plea, or plea of nolo contendere to any felony or gross misdemeanor.<br/>
<a id="pl.15.11"></a><var>15.11</var>For purposes of this subdivision, the date the criminal prosecution begins is the date <br/>
<a id="pl.15.12"></a><var>15.12</var>the indictment is returned or the date the criminal complaint is filed.<br/>
<br/>
<a id="bill.4.6.0"></a><a id="pl.15.13"></a><var>15.13</var>    Sec. 6. Minnesota Statutes 2012, section 61A.282, subdivision 1, is amended to read:<br/>
<a id="pl.15.14"></a><var>15.14</var>    Subdivision 1. <b>Requirements.</b> A company's investments shall be held in its <br/>
<a id="pl.15.15"></a><var>15.15</var>corporate name or its nominee name, except that:<br/>
<a id="pl.15.16"></a><var>15.16</var>(a) Investments may be held in the name of a clearing corporation or of a custodian <br/>
<a id="pl.15.17"></a><var>15.17</var>bank or in the name of the nominee of either under the following conditions:<br/>
<a id="pl.15.18"></a><var>15.18</var>(1) The clearing corporation, custodian bank, or nominee must be legally authorized <br/>
<a id="pl.15.19"></a><var>15.19</var>to hold the particular investment for the account of others;<br/>
<a id="pl.15.20"></a><var>15.20</var>(2) Where the investment is evidenced by a certificate and held in the name of a <br/>
<a id="pl.15.21"></a><var>15.21</var>custodian bank or the nominee of a custodian bank, a written agreement shall provide that <br/>
<a id="pl.15.22"></a><var>15.22</var>certificates so deposited shall at all times be kept separate and apart from other deposits <br/>
<a id="pl.15.23"></a><var>15.23</var>with the depository, so that at all times they may be identified as belonging solely to the <br/>
<a id="pl.15.24"></a><var>15.24</var>company making the deposit; or<br/>
<a id="pl.15.25"></a><var>15.25</var>(3) Where a clearing corporation is to act as depository, the investment may be <br/>
<a id="pl.15.26"></a><var>15.26</var>merged or held in bulk in the clearing corporation's name, or in the name of its nominee, <br/>
<a id="pl.15.27"></a><var>15.27</var>together with any other investments deposited with the clearing corporation by any other <br/>
<a id="pl.15.28"></a><var>15.28</var>person, if a written agreement provides that adequate evidence of the deposit will be <br/>
<a id="pl.15.29"></a><var>15.29</var>obtained and retained by the company or a custodian bank.<br/>
<a id="pl.15.30"></a><var>15.30</var>As used in this subdivision, the term "custodian bank" means a bank or trust <br/>
<a id="pl.15.31"></a><var>15.31</var>company licensed by the United States or any state thereof.<br/>
<a id="pl.15.32"></a><var>15.32</var>(b) A company may participate, through a bank or trust company which is a member <br/>
<a id="pl.15.33"></a><var>15.33</var>of the Federal Reserve System, in the Federal Reserve's book-entry system, if the records <br/>
<a id="pl.16.1"></a><var>16.1</var>of the member bank or trust company at all times show that the investments are held for <br/>
<a id="pl.16.2"></a><var>16.2</var>the company and/or for specific accounts of the company.<br/>
<a id="pl.16.3"></a><var>16.3</var>(c) If an investment consists of an individual interest in a pool of obligations, or of a <br/>
<a id="pl.16.4"></a><var>16.4</var>fractional interest in a single obligation, the certificate of participation or interest, or the <br/>
<a id="pl.16.5"></a><var>16.5</var>confirmation of participation or interest in the investment, shall be held in the manner set <br/>
<a id="pl.16.6"></a><var>16.6</var>forth in paragraph (a) or held in the name of the company.<br/>
<a id="pl.16.7"></a><var>16.7</var>(d) Where an investment is not evidenced by a certificate, except as provided in <br/>
<a id="pl.16.8"></a><var>16.8</var>paragraph (b), adequate evidence of the company's investment shall be obtained from the <br/>
<a id="pl.16.9"></a><var>16.9</var>issuer or its transfer or recording agent and retained by the company, a custodian bank, or <br/>
<a id="pl.16.10"></a><var>16.10</var>clearing corporation. Adequate evidence, for purposes of this section, shall mean a written <br/>
<a id="pl.16.11"></a><var>16.11</var>receipt or other verification issued by the depository or issuer or a custodian bank which <br/>
<a id="pl.16.12"></a><var>16.12</var>shows that the investment is held for the company. Transfers of ownership of investments <br/>
<a id="pl.16.13"></a><var>16.13</var>held as described in paragraphs (a)(3), (b), and (c) may be evidenced by bookkeeping <br/>
<a id="pl.16.14"></a><var>16.14</var>entry on the books of the issuer of the investment or its transfer or recording agent or <br/>
<a id="pl.16.15"></a><var>16.15</var>the clearing corporation without physical delivery of certificates, if any, evidencing the <br/>
<a id="pl.16.16"></a><var>16.16</var>company's investment.<br/>
<a id="pl.16.17"></a><var>16.17</var>(e) Investments or cash posted as collateral or variation margin (other than initial <br/>
<a id="pl.16.18"></a><var>16.18</var>margin amounts) in connection with qualified financial contracts, as defined in section <br/>
<a id="pl.16.19"></a><var>16.19</var>60B.03, subdivision 22, are not subject to this subdivision.<br/>
<br/>
<a id="bill.4.7.0"></a><a id="pl.16.20"></a><var>16.20</var>    Sec. 7. <b>[65A.285] SURCHARGE PROHIBITION.</b><br/>
<a id="pl.16.21"></a><var>16.21</var>    Subdivision 1. <b>Surcharge prohibition.</b> An insurer may not impose a surcharge on <br/>
<a id="pl.16.22"></a><var>16.22</var>homeowners insurance solely as a result of a consumer inquiry.<br/>
<a id="pl.16.23"></a><var>16.23</var>    Subd. 2. <b>Definitions.</b> For purposes of this section:<br/>
<a id="pl.16.24"></a><var>16.24</var>(1) "consumer inquiry" means a telephone call or other communication made to an <br/>
<a id="pl.16.25"></a><var>16.25</var>insurer that does not result in a paid claim and that is in regard to the general terms or <br/>
<a id="pl.16.26"></a><var>16.26</var>conditions of or coverage offered under an insurance policy. The term includes a question <br/>
<a id="pl.16.27"></a><var>16.27</var>concerning the process for filing a claim and whether a policy will cover a loss; and<br/>
<a id="pl.16.28"></a><var>16.28</var>(2) "surcharge" means an increase in premium for a policy, including the removal <br/>
<a id="pl.16.29"></a><var>16.29</var>of a claim-free discount.<br/>
<br/>
<a id="bill.4.8.0"></a><a id="pl.16.30"></a><var>16.30</var>    Sec. 8. Minnesota Statutes 2012, section 66A.01, is amended to read:<br/>
<a id="pl.16.31"></a><var>16.31</var><b>66A.01 SCOPE OF CHAPTER.</b><br/>
<a id="pl.16.32"></a><var>16.32</var>This chapter shall apply to mutual insurance companies other than: assessment <br/>
<a id="pl.16.33"></a><var>16.33</var>benefit associations, fraternal benefit societies, township mutual insurance companies and <br/>
<a id="pl.17.1"></a><var>17.1</var>title insurance companies insurers. Sections 
         <statute_ref>66A.08</statute_ref> to 
         <statute_ref>66A.311</statute_ref> do not apply to mutual <br/>
<a id="pl.17.2"></a><var>17.2</var>life insurance companies.<br/>
<a id="pl.17.3"></a><var>17.3</var>Sections 
         <statute_ref>60A.07, subdivision 1</statute_ref>, clauses (1) and (2); 
         <statute_ref>66A.34</statute_ref>; 
         <statute_ref>66A.35</statute_ref>; 
         <statute_ref>66A.36</statute_ref>; <br/>
<statute_ref><a id="pl.17.4"></a><var>17.4</var>66A.37
         </statute_ref>; 
         <statute_ref>66A.38</statute_ref>; and 
         <statute_ref>66A.39</statute_ref>, do not apply to mutual property and casualty insurance <br/>
<a id="pl.17.5"></a><var>17.5</var>companies.<br/>
<br/>
<a id="bill.4.9.0"></a><a id="pl.17.6"></a><var>17.6</var>    Sec. 9. Minnesota Statutes 2012, section 68A.01, subdivision 2, is amended to read:<br/>
<a id="pl.17.7"></a><var>17.7</var>    Subd. 2. <b>Guaranty fund and investment thereof.</b> Before issuing any policy or other <br/>
<a id="pl.17.8"></a><var>17.8</var>contract of guaranty or insurance, every real estate title insurance company insurer shall set <br/>
<a id="pl.17.9"></a><var>17.9</var>apart and keep separate a guaranty fund of $100,000 or an amount equal to two-fifths of its <br/>
<a id="pl.17.10"></a><var>17.10</var>capital stock whichever is the greater. The guaranty fund shall be invested according to law.<br/>
<br/>
<a id="bill.4.10.0"></a><a id="pl.17.11"></a><var>17.11</var>    Sec. 10. Minnesota Statutes 2012, section 68A.02, subdivision 1, is amended to read:<br/>
<a id="pl.17.12"></a><var>17.12</var>    Subdivision 1. <b>1964-2001 premium reserve.</b> Upon issuance of each contract of <br/>
<a id="pl.17.13"></a><var>17.13</var>title insurance issued on or after January 1, 1964, through January 1, 2001, by a domestic <br/>
<a id="pl.17.14"></a><var>17.14</var>real estate title insurance company insurer, there shall be reserved initially a sum equal <br/>
<a id="pl.17.15"></a><var>17.15</var>to ten percent of the original premium charged therefor. At the end of each calendar <br/>
<a id="pl.17.16"></a><var>17.16</var>year following the year in which the contract of title insurance is issued, there shall be <br/>
<a id="pl.17.17"></a><var>17.17</var>a reduction in the sum so reserved in the amount of one-twentieth of such sum. On any <br/>
<a id="pl.17.18"></a><var>17.18</var>contract of title insurance issued prior to January 1, 1964, by a domestic real estate title <br/>
<a id="pl.17.19"></a><var>17.19</var>insurance company insurer, a reserve shall be set up on January 1, 1964, and thereafter <br/>
<a id="pl.17.20"></a><var>17.20</var>maintained in such sum as would have been required if the foregoing requirements with <br/>
<a id="pl.17.21"></a><var>17.21</var>respect to title insurance reserves had existed at and after the date of the contract of title <br/>
<a id="pl.17.22"></a><var>17.22</var>insurance. Such sums herein required to be reserved shall at all times and for all purposes <br/>
<a id="pl.17.23"></a><var>17.23</var>be considered and constitute unearned portions of the original premiums on such contracts <br/>
<a id="pl.17.24"></a><var>17.24</var>of title insurance, shall be charged as a reserve liability of the real estate title insurance <br/>
<a id="pl.17.25"></a><var>17.25</var>company insurer in determining its financial condition, and, for the purpose of applying the <br/>
<a id="pl.17.26"></a><var>17.26</var>provisions of section 
         <statute_ref>60A.23, subdivision 4</statute_ref>, shall be deemed to constitute the whole amount <br/>
<a id="pl.17.27"></a><var>17.27</var>of the premiums on the unexpired risks of such real estate title insurance company insurer.<br/>
<br/>
<a id="bill.4.11.0"></a><a id="pl.17.28"></a><var>17.28</var>    Sec. 11. Minnesota Statutes 2012, section 68A.04, subdivision 1, is amended to read:<br/>
<a id="pl.17.29"></a><var>17.29</var>    Subdivision 1. <b>Direct risk premiums.</b> For purposes of this chapter, "direct risk <br/>
<a id="pl.17.30"></a><var>17.30</var>premiums" means the charge for title insurance made by a title insurance company insurer<br/>
<a id="pl.17.31"></a><var>17.31</var> or its agents according to the company's insurer's rate filing approved by the commissioner <br/>
<a id="pl.17.32"></a><var>17.32</var>of commerce without a deduction for commissions paid to or retained by the agent and <br/>
<a id="pl.17.33"></a><var>17.33</var>is that portion of the fee charged by a title insurance company insurer to an insured or <br/>
<a id="pl.18.1"></a><var>18.1</var>an applicant for insurance for the assumption by the title insurance company insurer of <br/>
<a id="pl.18.2"></a><var>18.2</var>the risk created by the issuance of the title insurance policy. Direct risk premiums of a <br/>
<a id="pl.18.3"></a><var>18.3</var>title insurance company insurer do not include any other charge or fee for abstracting, <br/>
<a id="pl.18.4"></a><var>18.4</var>searching, or examining the title, or for escrow, closing, or other related services.<br/>
<br/>
<a id="bill.4.12.0"></a><a id="pl.18.5"></a><var>18.5</var>    Sec. 12. Minnesota Statutes 2012, section 82.55, subdivision 4, is amended to read:<br/>
<a id="pl.18.6"></a><var>18.6</var>    Subd. 4. <b>Closing agent; real estate closing agent.</b> "Closing agent" or "real estate <br/>
<a id="pl.18.7"></a><var>18.7</var>closing agent" means any person whether or not acting as an agent for a title company<br/>
<a id="pl.18.8"></a><var>18.8</var> insurance agent, a licensed attorney, real estate broker, or real estate salesperson, who for <br/>
<a id="pl.18.9"></a><var>18.9</var>another and with or without a commission, fee, or other valuable consideration or with <br/>
<a id="pl.18.10"></a><var>18.10</var>or without the intention or expectation of receiving a commission, fee, or other valuable <br/>
<a id="pl.18.11"></a><var>18.11</var>consideration, directly or indirectly provides closing services incident to the sale, trade, <br/>
<a id="pl.18.12"></a><var>18.12</var>lease, or loan of residential real estate, including drawing or assisting in drawing papers <br/>
<a id="pl.18.13"></a><var>18.13</var>incident to the sale, trade, lease, or loan, or advertises or claims to be engaged in these <br/>
<a id="pl.18.14"></a><var>18.14</var>activities.<br/>
<br/>
<a id="bill.4.13.0"></a><a id="pl.18.15"></a><var>18.15</var>    Sec. 13. Minnesota Statutes 2012, section 82.641, subdivision 6, is amended to read:<br/>
<a id="pl.18.16"></a><var>18.16</var>    Subd. 6. <b>Exemption.</b> The following persons, when acting as closing agents, <br/>
<a id="pl.18.17"></a><var>18.17</var>are exempt from the requirements of this section and sections 
         <statute_ref>82.75</statute_ref> and 
         <statute_ref>82.81</statute_ref> unless <br/>
<a id="pl.18.18"></a><var>18.18</var>otherwise required in this chapter:<br/>
<a id="pl.18.19"></a><var>18.19</var>(1) a direct employee of a title insurance company insurer authorized to do business <br/>
<a id="pl.18.20"></a><var>18.20</var>in this state, or a direct employee of a title company insurance agent, or a person who <br/>
<a id="pl.18.21"></a><var>18.21</var>has an agency agreement with a title insurance company insurer or a title company<br/>
<a id="pl.18.22"></a><var>18.22</var> insurance agent in which the agent agrees to perform closing services on the title insurance <br/>
<a id="pl.18.23"></a><var>18.23</var>company's insurer's or title company's insurance agent's behalf and the title insurance <br/>
<a id="pl.18.24"></a><var>18.24</var>company insurer or title company insurance agent assumes responsibility for the actions <br/>
<a id="pl.18.25"></a><var>18.25</var>of the agent as if the agent were a direct employee of the title insurance company insurer<br/>
<a id="pl.18.26"></a><var>18.26</var> or title company insurance agent;<br/>
<a id="pl.18.27"></a><var>18.27</var>(2) a licensed attorney or a direct employee of a licensed attorney;<br/>
<a id="pl.18.28"></a><var>18.28</var>(3) a licensed real estate broker or salesperson;<br/>
<a id="pl.18.29"></a><var>18.29</var>(4) a direct employee of a licensed real estate broker if the broker maintains all funds <br/>
<a id="pl.18.30"></a><var>18.30</var>received in connection with the closing services in the broker's trust account;<br/>
<a id="pl.18.31"></a><var>18.31</var>(5) a bank, trust company, savings association, credit union, industrial loan and thrift <br/>
<a id="pl.18.32"></a><var>18.32</var>company, regulated lender under chapter 56, public utility, or land mortgage or farm loan <br/>
<a id="pl.18.33"></a><var>18.33</var>association organized under the laws of this state or the United States, when engaged in <br/>
<a id="pl.18.34"></a><var>18.34</var>the transaction of businesses within the scope of its corporate powers as provided by law;<br/>
<a id="pl.19.1"></a><var>19.1</var>(6) a title insurance company insurer authorized to do business in this state; and<br/>
<a id="pl.19.2"></a><var>19.2</var>(7) a title company insurance agent that has a contractual agency relationship with <br/>
<a id="pl.19.3"></a><var>19.3</var>a title insurance company insurer authorized to do business in this state, where the title <br/>
<a id="pl.19.4"></a><var>19.4</var>insurance company insurer assumes responsibility for the actions of the title company<br/>
<a id="pl.19.5"></a><var>19.5</var> insurance agent and its employees or agents as if they were employees or agents of the <br/>
<a id="pl.19.6"></a><var>19.6</var>title insurance company insurer.<br/>
<br/>
<a id="bill.4.14.0"></a><a id="pl.19.7"></a><var>19.7</var>    Sec. 14. Minnesota Statutes 2012, section 82.81, subdivision 8, is amended to read:<br/>
<a id="pl.19.8"></a><var>19.8</var>    Subd. 8. <b>Closing services.</b> No real estate broker, salesperson, or closing agent <br/>
<a id="pl.19.9"></a><var>19.9</var>shall require a person to use any particular lender, licensed attorney, real estate broker, <br/>
<a id="pl.19.10"></a><var>19.10</var>real estate salesperson, real estate closing agent, or title company insurance agent in <br/>
<a id="pl.19.11"></a><var>19.11</var>connection with a residential real estate closing.<br/>
<br/>
<a id="bill.4.15.0"></a><a id="pl.19.12"></a><var>19.12</var>    Sec. 15. Minnesota Statutes 2012, section 297I.01, subdivision 9, is amended to read:<br/>
<a id="pl.19.13"></a><var>19.13</var>    Subd. 9. <b>Gross premiums.</b> "Gross premiums" means total premiums paid by <br/>
<a id="pl.19.14"></a><var>19.14</var>policyholders and applicants of policies, whether received in the form of money or other <br/>
<a id="pl.19.15"></a><var>19.15</var>valuable consideration, on property, persons, lives, interests and other risks located, <br/>
<a id="pl.19.16"></a><var>19.16</var>resident, or to be performed in this state, but excluding consideration and premiums for <br/>
<a id="pl.19.17"></a><var>19.17</var>reinsurance assumed from other insurance companies.<br/>
<a id="pl.19.18"></a><var>19.18</var> (a) "Gross premiums" includes the total consideration paid to bail bond agents <br/>
<a id="pl.19.19"></a><var>19.19</var>for bail bonds.<br/>
<a id="pl.19.20"></a><var>19.20</var>(b) For title insurance companies insurers, "gross premiums" means the charge for <br/>
<a id="pl.19.21"></a><var>19.21</var>title insurance made by a title insurance company insurer or its agents according to the <br/>
<a id="pl.19.22"></a><var>19.22</var>company's insurer's rate filing approved by the commissioner of commerce without a <br/>
<a id="pl.19.23"></a><var>19.23</var>deduction for commissions paid to or retained by the agent. Gross premiums of a title <br/>
<a id="pl.19.24"></a><var>19.24</var>insurance company insurer does not include any other charge or fee for abstracting, <br/>
<a id="pl.19.25"></a><var>19.25</var>searching, or examining the title, or escrow, closing, or other related services.<br/>
<a id="pl.19.26"></a><var>19.26</var> (c) "Gross premiums" includes any workers' compensation special compensation <br/>
<a id="pl.19.27"></a><var>19.27</var>fund premium surcharge pursuant to section 
         <statute_ref>176.129</statute_ref>.<br/>
<a id="pl.19.28"></a><var>19.28</var>(d) "Gross premiums" for nonadmitted insurance includes any payment made as <br/>
<a id="pl.19.29"></a><var>19.29</var>consideration for an insurance contract for such insurance, including premium deposits, <br/>
<a id="pl.19.30"></a><var>19.30</var>assessments, fees, and any other compensation given in consideration for a contract <br/>
<a id="pl.19.31"></a><var>19.31</var>of insurance. Gross premiums does not include the stamping fee, as provided under <br/>
<a id="pl.19.32"></a><var>19.32</var>section 
         <statute_ref>60A.2085, subdivision 7</statute_ref>, nor the operating assessment, as provided under section <br/>
<statute_ref><a id="pl.19.33"></a><var>19.33</var>60A.208, subdivision 8
         </statute_ref>.<br/>
<br/>
<a id="bill.4.16.0"></a><a id="pl.20.1"></a><var>20.1</var>    Sec. 16. Minnesota Statutes 2012, section 327C.095, subdivision 11, is amended to read:<br/>
<a id="pl.20.2"></a><var>20.2</var>    Subd. 11. <b>Affidavit of compliance.</b> After a park is sold, a park owner or other <br/>
<a id="pl.20.3"></a><var>20.3</var>person with personal knowledge may record an affidavit with the county recorder or <br/>
<a id="pl.20.4"></a><var>20.4</var>registrar of titles in the county in which the park is located certifying compliance with <br/>
<a id="pl.20.5"></a><var>20.5</var>subdivision 6 or 7 or that subdivisions 6 and 7 are not applicable. The affidavit may be <br/>
<a id="pl.20.6"></a><var>20.6</var>used as proof of the facts stated in the affidavit. A person acquiring an interest in a park <br/>
<a id="pl.20.7"></a><var>20.7</var>or a title insurance company insurer or attorney who prepares, furnishes, or examines <br/>
<a id="pl.20.8"></a><var>20.8</var>evidence of title may rely on the truth and accuracy of statements made in the affidavit and <br/>
<a id="pl.20.9"></a><var>20.9</var>is not required to inquire further as to the park owner's compliance with subdivisions 6 <br/>
<a id="pl.20.10"></a><var>20.10</var>and 7. When an affidavit is recorded, the right to purchase provided under subdivisions 6 <br/>
<a id="pl.20.11"></a><var>20.11</var>and 7 terminate, and if registered property, the registrar of titles shall delete the memorials <br/>
<a id="pl.20.12"></a><var>20.12</var>of the notice and affidavit from future certificates of title.<br/>
<br/>
<a id="bill.4.17.0"></a><a id="pl.20.13"></a><var>20.13</var>    Sec. 17. Minnesota Statutes 2013 Supplement, section 332A.02, subdivision 8, is <br/>
<a id="pl.20.14"></a><var>20.14</var>amended to read:<br/>
<a id="pl.20.15"></a><var>20.15</var>    Subd. 8. <b>Debt management services provider.</b> "Debt management services <br/>
<a id="pl.20.16"></a><var>20.16</var>provider" means any person offering or providing debt management services to a debtor <br/>
<a id="pl.20.17"></a><var>20.17</var>domiciled in this state, regardless of whether or not a fee is charged for the services and <br/>
<a id="pl.20.18"></a><var>20.18</var>regardless of whether the person maintains a physical presence in the state. This term <br/>
<a id="pl.20.19"></a><var>20.19</var>includes any person to whom debt management services are delegated, and does not <br/>
<a id="pl.20.20"></a><var>20.20</var>include services performed by the following when engaged in the regular course of their <br/>
<a id="pl.20.21"></a><var>20.21</var>respective businesses and professions:<br/>
<a id="pl.20.22"></a><var>20.22</var>    (1) exempt attorneys at law, escrow agents, accountants, broker-dealers in securities;<br/>
<a id="pl.20.23"></a><var>20.23</var>    (2) state or national banks, credit unions, trust companies, savings associations, title <br/>
<a id="pl.20.24"></a><var>20.24</var>insurance companies insurers, insurance companies, and all other lending institutions duly <br/>
<a id="pl.20.25"></a><var>20.25</var>authorized to transact business in Minnesota;<br/>
<a id="pl.20.26"></a><var>20.26</var>    (3) persons who, as employees on a regular salary or wage of an employer not <br/>
<a id="pl.20.27"></a><var>20.27</var>engaged in the business of debt management, perform credit services for their employer;<br/>
<a id="pl.20.28"></a><var>20.28</var>    (4) public officers acting in their official capacities and persons acting as a debt <br/>
<a id="pl.20.29"></a><var>20.29</var>management services provider pursuant to court order;<br/>
<a id="pl.20.30"></a><var>20.30</var>    (5) any person while performing services incidental to the dissolution, winding up, <br/>
<a id="pl.20.31"></a><var>20.31</var>or liquidation of a partnership, corporation, or other business enterprise;<br/>
<a id="pl.20.32"></a><var>20.32</var>    (6) the state, its political subdivisions, public agencies, and their employees;<br/>
<a id="pl.20.33"></a><var>20.33</var>    (7) collection agencies, provided that the services are provided to a creditor;<br/>
<a id="pl.21.1"></a><var>21.1</var>    (8) "qualified organizations" designated as representative payees for purposes of the <br/>
<a id="pl.21.2"></a><var>21.2</var>Social Security and Supplemental Security Income Representative Payee System and the <br/>
<a id="pl.21.3"></a><var>21.3</var>federal Omnibus Budget Reconciliation Act of 1990, Public Law 101-508;<br/>
<a id="pl.21.4"></a><var>21.4</var>    (9) accelerated mortgage payment providers. "Accelerated mortgage payment <br/>
<a id="pl.21.5"></a><var>21.5</var>providers" are persons who, after satisfying the requirements of sections 
         <statute_ref>332.30</statute_ref> to 
         <statute_ref>332.303</statute_ref>, <br/>
<a id="pl.21.6"></a><var>21.6</var>receive funds to make mortgage payments to a lender or lenders, on behalf of mortgagors, <br/>
<a id="pl.21.7"></a><var>21.7</var>in order to exceed regularly scheduled minimum payment obligations under the terms of <br/>
<a id="pl.21.8"></a><var>21.8</var>the indebtedness. The term does not include: (i) persons or entities described in clauses (1) <br/>
<a id="pl.21.9"></a><var>21.9</var>to (8); (ii) mortgage lenders or servicers, industrial loan and thrift companies, or regulated <br/>
<a id="pl.21.10"></a><var>21.10</var>lenders under chapter 56; or (iii) persons authorized to make loans under section 
         <statute_ref>47.20, <br/>
<a id="pl.21.11"></a><var>21.11</var>subdivision 1
         </statute_ref>. For purposes of this clause and sections 
         <statute_ref>332.30</statute_ref> to 
         <statute_ref>332.303</statute_ref>, "lender" means <br/>
<a id="pl.21.12"></a><var>21.12</var>the original lender or that lender's assignee, whichever is the current mortgage holder;<br/>
<a id="pl.21.13"></a><var>21.13</var>    (10) trustees, guardians, and conservators; and<br/>
<a id="pl.21.14"></a><var>21.14</var>    (11) debt settlement services providers.<br/>
<br/>
<a id="bill.4.18.0"></a><a id="pl.21.15"></a><var>21.15</var>    Sec. 18. Minnesota Statutes 2012, section 386.66, is amended to read:<br/>
<a id="pl.21.16"></a><var>21.16</var><b>386.66 BOND OR ABSTRACTER'S LIABILITY INSURANCE POLICY.</b><br/>
<a id="pl.21.17"></a><var>21.17</var>Before a license shall be issued, the applicant shall file with the commissioner an <br/>
<a id="pl.21.18"></a><var>21.18</var>annual bond or abstracter's liability insurance policy for each license year, to be approved <br/>
<a id="pl.21.19"></a><var>21.19</var>by the commissioner, running to the state of Minnesota in the penal sum of at least <br/>
<a id="pl.21.20"></a><var>21.20</var>$100,000 conditioned for the payment by such abstracter of any damages that may be <br/>
<a id="pl.21.21"></a><var>21.21</var>sustained by or accrue to any person by reason of or on account of any error, deficiency or <br/>
<a id="pl.21.22"></a><var>21.22</var>mistake arising wrongfully or negligently in any abstract, or continuation thereof, or in <br/>
<a id="pl.21.23"></a><var>21.23</var>any certificate showing ownership of, or interest in, or liens upon any lands in the state of <br/>
<a id="pl.21.24"></a><var>21.24</var>Minnesota, whether registered or not, made by and issued by such abstracter, provided <br/>
<a id="pl.21.25"></a><var>21.25</var>however, that the aggregate liability of the surety to all persons under such bond shall <br/>
<a id="pl.21.26"></a><var>21.26</var>in no event exceed the amount of such bond. If the applicant intends to engage in the <br/>
<a id="pl.21.27"></a><var>21.27</var>business of abstracting in any county having more than 200,000 inhabitants, the bond or <br/>
<a id="pl.21.28"></a><var>21.28</var>insurance policy required herein shall be in the penal sum of at least $250,000. Applicants <br/>
<a id="pl.21.29"></a><var>21.29</var>that are title insurance companies insurers regulated by chapter 68A and licensed pursuant <br/>
<a id="pl.21.30"></a><var>21.30</var>to sections 
         <statute_ref>60A.02</statute_ref> and 
         <statute_ref>60A.06, subdivision 1</statute_ref>, clause (7), and their employees or those <br/>
<a id="pl.21.31"></a><var>21.31</var>having cash or securities on deposit with the state of Minnesota in an amount equal to the <br/>
<a id="pl.21.32"></a><var>21.32</var>said bond or insurance policy shall be exempt from furnishing the bond or an insurance <br/>
<a id="pl.21.33"></a><var>21.33</var>policy herein required but shall be liable to the same extent as if a bond or insurance policy <br/>
<a id="pl.21.34"></a><var>21.34</var>has been given and filed. The bond or insurance policy required hereunder shall be written <br/>
<a id="pl.21.35"></a><var>21.35</var>by some surety or other company authorized to do business in this state issuing bonds or <br/>
<a id="pl.22.1"></a><var>22.1</var>abstracter's liability insurance policies and shall be issued for a period of one or more <br/>
<a id="pl.22.2"></a><var>22.2</var>years, and renewed for one year at the date of expiration as principal continues in business.<br/>
<br/>
<a id="bill.4.19.0"></a><a id="pl.22.3"></a><var>22.3</var>    Sec. 19. Minnesota Statutes 2012, section 507.401, subdivision 1, is amended to read:<br/>
<a id="pl.22.4"></a><var>22.4</var>    Subdivision 1. <b>Definitions.</b> (a) The definitions in this subdivision apply to this <br/>
<a id="pl.22.5"></a><var>22.5</var>section.<br/>
<a id="pl.22.6"></a><var>22.6</var>(b) "Assignment of rents and profits" means an assignment, whether in a separate <br/>
<a id="pl.22.7"></a><var>22.7</var>document or in a mortgage, of any of the benefits accruing under a recorded or unrecorded <br/>
<a id="pl.22.8"></a><var>22.8</var>lease or tenancy existing, or subsequently created, on property encumbered by a mortgage, <br/>
<a id="pl.22.9"></a><var>22.9</var>which is given as additional security for the debt secured by the mortgage.<br/>
<a id="pl.22.10"></a><var>22.10</var>(c) "Mortgage" means a mortgage or mortgage lien, including any assignment of <br/>
<a id="pl.22.11"></a><var>22.11</var>rents and profits given as additional security for the debt secured by that lien, on an <br/>
<a id="pl.22.12"></a><var>22.12</var>interest in real property in this state given to secure a loan in the original principal amount <br/>
<a id="pl.22.13"></a><var>22.13</var>of $1,500,000 or less.<br/>
<a id="pl.22.14"></a><var>22.14</var>(d) "Mortgagee" means:<br/>
<a id="pl.22.15"></a><var>22.15</var>(1) the grantee of a mortgage; or<br/>
<a id="pl.22.16"></a><var>22.16</var>(2) if a mortgage has been assigned of record, the last person to whom the mortgage <br/>
<a id="pl.22.17"></a><var>22.17</var>has been assigned of record.<br/>
<a id="pl.22.18"></a><var>22.18</var>(e) "Mortgage servicer" means the last person to whom a mortgagor or the <br/>
<a id="pl.22.19"></a><var>22.19</var>mortgagor's successor in interest has been instructed by a mortgagee to send payments on <br/>
<a id="pl.22.20"></a><var>22.20</var>a loan secured by a mortgage. A person transmitting a payoff statement is the mortgage <br/>
<a id="pl.22.21"></a><var>22.21</var>servicer for the mortgage described in the payoff statement.<br/>
<a id="pl.22.22"></a><var>22.22</var>(f) "Mortgagor" means the grantor of a mortgage.<br/>
<a id="pl.22.23"></a><var>22.23</var>(g) "Partial release" means the release of specified parcels of land from a mortgage.<br/>
<a id="pl.22.24"></a><var>22.24</var>(h) "Payoff statement" means a statement of the amount of:<br/>
<a id="pl.22.25"></a><var>22.25</var>(1) the unpaid balance of a loan secured by a mortgage, including principal, interest, <br/>
<a id="pl.22.26"></a><var>22.26</var>and any other charges properly due under or secured by the mortgage, and interest on a <br/>
<a id="pl.22.27"></a><var>22.27</var>per day basis for the unpaid balance; or<br/>
<a id="pl.22.28"></a><var>22.28</var>(2) the portion of the unpaid balance of the loan secured by the mortgage required <br/>
<a id="pl.22.29"></a><var>22.29</var>by the mortgagee or mortgage servicer to be paid as a condition for the issuance of a <br/>
<a id="pl.22.30"></a><var>22.30</var>partial release.<br/>
<a id="pl.22.31"></a><var>22.31</var>(i) "Record" means to record with the county recorder or file with the registrar of titles.<br/>
<a id="pl.22.32"></a><var>22.32</var>(j) "Title insurance company insurer" means a corporation or other business entity <br/>
<a id="pl.22.33"></a><var>22.33</var>authorized and licensed to transact the business of insuring titles to interests in real <br/>
<a id="pl.22.34"></a><var>22.34</var>property in this state under chapter 68A.<br/>
<br/>
<a id="bill.4.20.0"></a><a id="pl.23.1"></a><var>23.1</var>    Sec. 20. Minnesota Statutes 2012, section 507.401, subdivision 2, is amended to read:<br/>
<a id="pl.23.2"></a><var>23.2</var>    Subd. 2. <b>Certificate of release.</b> An officer or duly appointed agent of a title <br/>
<a id="pl.23.3"></a><var>23.3</var>insurance company insurer may, on behalf of a mortgagor or a person who acquired from <br/>
<a id="pl.23.4"></a><var>23.4</var>the mortgagor title to all or a part of the property described in a mortgage, execute a <br/>
<a id="pl.23.5"></a><var>23.5</var>certificate of release that complies with the requirements of this section and record the <br/>
<a id="pl.23.6"></a><var>23.6</var>certificate of release in the real property records of each county in which the mortgage is <br/>
<a id="pl.23.7"></a><var>23.7</var>recorded if a satisfaction or release of the mortgage has not been executed and recorded <br/>
<a id="pl.23.8"></a><var>23.8</var>after the date payment in full of the loan secured by the mortgage was sent in accordance <br/>
<a id="pl.23.9"></a><var>23.9</var>with a payoff statement furnished by the mortgagee or the mortgage servicer.<br/>
<br/>
<a id="bill.4.21.0"></a><a id="pl.23.10"></a><var>23.10</var>    Sec. 21. Minnesota Statutes 2012, section 507.401, subdivision 3, is amended to read:<br/>
<a id="pl.23.11"></a><var>23.11</var>    Subd. 3. <b>Contents.</b> A certificate of release executed under this section must contain <br/>
<a id="pl.23.12"></a><var>23.12</var>substantially all of the following:<br/>
<a id="pl.23.13"></a><var>23.13</var>(1) the name of the mortgagor, the name of the original mortgagee, and, if applicable, <br/>
<a id="pl.23.14"></a><var>23.14</var>the mortgage servicer, the date of the mortgage, the date of recording, and volume and <br/>
<a id="pl.23.15"></a><var>23.15</var>page or document number in the real property records where the mortgage is recorded, <br/>
<a id="pl.23.16"></a><var>23.16</var>together with similar information for the last recorded assignment of the mortgage;<br/>
<a id="pl.23.17"></a><var>23.17</var>(2) if applicable, the date of any assignment of rents and profits, the date of its <br/>
<a id="pl.23.18"></a><var>23.18</var>recording, and its volume and page or document number in the real property records <br/>
<a id="pl.23.19"></a><var>23.19</var>where it has been recorded or filed, together with similar information for the last recorded <br/>
<a id="pl.23.20"></a><var>23.20</var>assignment thereof;<br/>
<a id="pl.23.21"></a><var>23.21</var>(3) a statement that the mortgage was in the original principal amount of $1,500,000 <br/>
<a id="pl.23.22"></a><var>23.22</var>or less;<br/>
<a id="pl.23.23"></a><var>23.23</var>(4) a statement that the person executing the certificate of release is an officer or a duly <br/>
<a id="pl.23.24"></a><var>23.24</var>appointed agent of a title insurance company insurer authorized and licensed to transact <br/>
<a id="pl.23.25"></a><var>23.25</var>the business of insuring titles to interests in real property in this state under chapter 68A;<br/>
<a id="pl.23.26"></a><var>23.26</var>(5) a statement that the certificate of release is made on behalf of the mortgagor or a <br/>
<a id="pl.23.27"></a><var>23.27</var>person who acquired title from the mortgagor to all or a part of the property described in <br/>
<a id="pl.23.28"></a><var>23.28</var>the mortgage;<br/>
<a id="pl.23.29"></a><var>23.29</var>(6) a statement that the mortgagee or mortgage servicer provided a payoff statement <br/>
<a id="pl.23.30"></a><var>23.30</var>which was used to make full or partial payment of the unpaid balance of the loan secured <br/>
<a id="pl.23.31"></a><var>23.31</var>by the mortgage;<br/>
<a id="pl.23.32"></a><var>23.32</var>(7) a statement that full or partial payment of the unpaid balance of the loan secured <br/>
<a id="pl.23.33"></a><var>23.33</var>by the mortgage was made in accordance with the written or verbal payoff statement; and<br/>
<a id="pl.23.34"></a><var>23.34</var>(8) where the certificate of release affects only a portion of the land encumbered by <br/>
<a id="pl.23.35"></a><var>23.35</var>the mortgage, a legal description of the portion being released.<br/>
<br/>
<a id="bill.4.22.0"></a><a id="pl.24.1"></a><var>24.1</var>    Sec. 22. Minnesota Statutes 2012, section 507.401, subdivision 4, is amended to read:<br/>
<a id="pl.24.2"></a><var>24.2</var>    Subd. 4. <b>Execution.</b> (a) A certificate of release authorized by subdivision 2 must be <br/>
<a id="pl.24.3"></a><var>24.3</var>executed and acknowledged as required by law in the case of a deed and may be executed <br/>
<a id="pl.24.4"></a><var>24.4</var>by a duly appointed agent of a title insurance company insurer, but such delegation to an <br/>
<a id="pl.24.5"></a><var>24.5</var>agent by a title insurance company insurer shall not relieve the title insurance company<br/>
<a id="pl.24.6"></a><var>24.6</var> insurer of any liability for damages caused by its agent for the wrongful or erroneous <br/>
<a id="pl.24.7"></a><var>24.7</var>execution of a certificate of release.<br/>
<a id="pl.24.8"></a><var>24.8</var>(b) The appointment of agent must be executed and acknowledged as required by <br/>
<a id="pl.24.9"></a><var>24.9</var>law in the case of a deed and must state:<br/>
<a id="pl.24.10"></a><var>24.10</var>(1) the title insurance company insurer as the grantor;<br/>
<a id="pl.24.11"></a><var>24.11</var>(2) the identity of the person, partnership, or corporation authorized to act as agent <br/>
<a id="pl.24.12"></a><var>24.12</var>to execute and record certificates of release provided for in this section on behalf of the <br/>
<a id="pl.24.13"></a><var>24.13</var>title insurance company insurer;<br/>
<a id="pl.24.14"></a><var>24.14</var>(3) that the agent has the full authority to execute and record certificates of release <br/>
<a id="pl.24.15"></a><var>24.15</var>provided for in this section on behalf of the title insurance company insurer;<br/>
<a id="pl.24.16"></a><var>24.16</var>(4) the term of appointment of the agent; and<br/>
<a id="pl.24.17"></a><var>24.17</var>(5) that the agent has consented to and accepts the terms of the appointment.<br/>
<a id="pl.24.18"></a><var>24.18</var>(c) A single appointment of agent may be recorded in each county in each recording <br/>
<a id="pl.24.19"></a><var>24.19</var>or filing office. A separate appointment of agent shall not be necessary for each certificate <br/>
<a id="pl.24.20"></a><var>24.20</var>of release. For registered land the appointment of agent shall be shown as a memorial on <br/>
<a id="pl.24.21"></a><var>24.21</var>each certificate of title on which a mortgage to be released by a certificate of release under <br/>
<a id="pl.24.22"></a><var>24.22</var>this section is a memorial. The appointment of agent may be rerecorded where necessary <br/>
<a id="pl.24.23"></a><var>24.23</var>to establish authority of the agent, but such authority shall continue until a revocation of <br/>
<a id="pl.24.24"></a><var>24.24</var>appointment is recorded in the office of the county recorder, or registrar of titles, where <br/>
<a id="pl.24.25"></a><var>24.25</var>the appointment of agent was recorded.<br/>
<br/>
<a id="bill.4.23.0"></a><a id="pl.24.26"></a><var>24.26</var>    Sec. 23. Minnesota Statutes 2012, section 507.401, subdivision 5, is amended to read:<br/>
<a id="pl.24.27"></a><var>24.27</var>    Subd. 5. <b>Effect.</b> For purposes of releasing the mortgage, a certificate of release <br/>
<a id="pl.24.28"></a><var>24.28</var>containing the information and statements provided for in subdivision 3 and executed as <br/>
<a id="pl.24.29"></a><var>24.29</var>provided in this section is prima facie evidence of the facts contained in it, is entitled to be <br/>
<a id="pl.24.30"></a><var>24.30</var>recorded with the county recorder or registrar of titles, and operates as a release of the <br/>
<a id="pl.24.31"></a><var>24.31</var>mortgage described in the certificate of release. The county recorder and the registrar of <br/>
<a id="pl.24.32"></a><var>24.32</var>titles shall rely upon it to release the mortgage. Recording of a wrongful or erroneous <br/>
<a id="pl.24.33"></a><var>24.33</var>certificate of release by a title insurance company insurer or its agent shall not relieve <br/>
<a id="pl.24.34"></a><var>24.34</var>the mortgagor, or the mortgagor's successors or assigns, from any personal liability on <br/>
<a id="pl.24.35"></a><var>24.35</var>the loan or other obligations secured by the mortgage. In addition to any other remedy <br/>
<a id="pl.25.1"></a><var>25.1</var>provided by law, a title insurance company insurer wrongfully or erroneously recording a <br/>
<a id="pl.25.2"></a><var>25.2</var>certificate of release under this section shall be liable to the mortgagee for actual damage <br/>
<a id="pl.25.3"></a><var>25.3</var>sustained due to the recordings of the certificate of release.<br/>
<br/>
<a id="bill.4.24.0"></a><a id="pl.25.4"></a><var>25.4</var>    Sec. 24. Minnesota Statutes 2012, section 507.45, subdivision 4, is amended to read:<br/>
<a id="pl.25.5"></a><var>25.5</var>    Subd. 4. <b>Choice of closer; notice.</b> (a) No real estate salesperson, broker, attorney, <br/>
<a id="pl.25.6"></a><var>25.6</var>auctioneer, builder, title company agent, financial institution, or other person making a <br/>
<a id="pl.25.7"></a><var>25.7</var>mortgage loan may require a person to use any particular licensed attorney, real estate <br/>
<a id="pl.25.8"></a><var>25.8</var>broker, real estate salesperson, or real estate closing agent in connection with a residential <br/>
<a id="pl.25.9"></a><var>25.9</var>real estate closing.<br/>
<a id="pl.25.10"></a><var>25.10</var>(b) All listing agreements must include a notice informing sellers of their rights <br/>
<a id="pl.25.11"></a><var>25.11</var>under this subdivision. The notice must require the seller to indicate in writing whether it <br/>
<a id="pl.25.12"></a><var>25.12</var>is acceptable to the seller to have the licensee arrange for closing services or whether the <br/>
<a id="pl.25.13"></a><var>25.13</var>seller wishes to arrange for others to conduct the closing. The notice must also include the <br/>
<a id="pl.25.14"></a><var>25.14</var>disclosure of any controlled business arrangement, as the term is defined in United States <br/>
<a id="pl.25.15"></a><var>25.15</var>Code, title 12, section 1602, between the licensee and the real estate closing agent through <br/>
<a id="pl.25.16"></a><var>25.16</var>which the licensee proposes to arrange closing services.<br/>
<br/>
<a id="bill.4.25.0"></a><a id="pl.25.17"></a><var>25.17</var>    Sec. 25. Minnesota Statutes 2012, section 515B.4-109, is amended to read:<br/>
<a id="pl.25.18"></a><var>25.18</var><b>515B.4-109 ESCROW DEPOSITS.</b><br/>
<a id="pl.25.19"></a><var>25.19</var>All earnest money paid or deposits made in connection with the purchase or <br/>
<a id="pl.25.20"></a><var>25.20</var>reservation of units from or with a declarant shall be deposited in an escrow account <br/>
<a id="pl.25.21"></a><var>25.21</var>controlled jointly by the declarant and the purchaser, or controlled by a licensed title <br/>
<a id="pl.25.22"></a><var>25.22</var>insurance company insurer or agent thereof, an attorney representing either the declarant <br/>
<a id="pl.25.23"></a><var>25.23</var>or the purchaser, a licensed real estate broker, an independent bonded escrow company, or <br/>
<a id="pl.25.24"></a><var>25.24</var>a governmental agency or instrumentality. The escrow account shall be in an institution <br/>
<a id="pl.25.25"></a><var>25.25</var>whose deposits are insured by a governmental agency or instrumentality. The money or <br/>
<a id="pl.25.26"></a><var>25.26</var>deposits shall be held in the escrow account until (i) delivered to the declarant at closing; <br/>
<a id="pl.25.27"></a><var>25.27</var>(ii) delivered to the declarant because of the purchaser's default under a reservation <br/>
<a id="pl.25.28"></a><var>25.28</var>agreement or a contract to purchase the unit; (iii) delivered to the purchaser pursuant to <br/>
<a id="pl.25.29"></a><var>25.29</var>the provisions of section 
         <statute_ref>515B.4-106</statute_ref> or the provisions of a reservation agreement or a <br/>
<a id="pl.25.30"></a><var>25.30</var>contract to purchase; or (iv) delivered for payment of construction costs pursuant to a <br/>
<a id="pl.25.31"></a><var>25.31</var>written agreement between the declarant and the purchaser.<br/>
<br/>
<a id="bill.4.26.0"></a><a id="pl.25.32"></a><var>25.32</var>    Sec. 26. Minnesota Statutes 2013 Supplement, section 559.202, subdivision 3, is <br/>
<a id="pl.25.33"></a><var>25.33</var>amended to read:<br/>
<a id="pl.26.1"></a><var>26.1</var>    Subd. 3. <b>Content of the notice.</b> The notice must contain the following verbatim <br/>
<a id="pl.26.2"></a><var>26.2</var>language:<br/>

<a id="pl.26.5"></a><var>26.5</var>(1) A contract for deed is a complex legal agreement. You are NOT a tenant. Mortgage <br/>
<a id="pl.26.6"></a><var>26.6</var>foreclosure laws don't apply.<br/>
<a id="pl.26.7"></a><var>26.7</var>(2) You should know ALL of your obligations and rights before you sign a purchase <br/>
<a id="pl.26.8"></a><var>26.8</var>agreement or contract for deed.<br/>
<a id="pl.26.9"></a><var>26.9</var>(3) You (seller must circle one):<br/>
<table>
<col width="50px"/>
<col width="2.5"/>
<col width="3.4000000000000004"/>
<col width="5.300000000000001"/>
<col width="29"/>
<tr>
<td><a id="pl.26.10"></a><var>26.10</var><br/>
</td>
<td>(a)<br/>
</td>
<td>DO<br/>
</td>
<td>DO NOT<br/>
</td>
<td>have to pay homeowner's insurance.<br/>
</td>
</tr>
<tr>
<td><a id="pl.26.11"></a><var>26.11</var><br/>
</td>
<td>(b)<br/>
</td>
<td>DO<br/>
</td>
<td>DO NOT<br/>
</td>
<td>have to pay property taxes.<br/>
</td>
</tr>
<tr>
<td><a id="pl.26.12"></a><var>26.12</var><br/>
<a id="pl.26.13"></a><var>26.13</var><br/>
</td>
<td valign="top">(c)<br/>
</td>
<td valign="top">DO<br/>
</td>
<td valign="top">DO NOT<br/>
</td>
<td valign="bottom">have to make and pay for some or all of the repairs or <br/>
                  		maintenance, as described in the contract for deed.<br/>
</td>
</tr>
</table><a id="pl.26.14"></a><var>26.14</var>(4) After some time, you may need to make a large lump sum payment (called a "balloon <br/>
<a id="pl.26.15"></a><var>26.15</var>payment"). Know when it is due and how much it will be. You'll probably need to get a <br/>
<a id="pl.26.16"></a><var>26.16</var>new mortgage, another financial arrangement, or pay for the balance in cash at that time.<br/>
<a id="pl.26.17"></a><var>26.17</var>(5) If you miss just a single payment or can't make the balloon payment, the seller can <br/>
<a id="pl.26.18"></a><var>26.18</var>cancel your contract. You will likely lose all the money you have already paid. You will <br/>
<a id="pl.26.19"></a><var>26.19</var>likely lose your ability to purchase the home. The seller can begin an eviction action <br/>
<a id="pl.26.20"></a><var>26.20</var>against you in just a few months.<br/>
<a id="pl.26.21"></a><var>26.21</var>(6) Within four months of signing the contract for deed, you must "record" it in the office <br/>
<a id="pl.26.22"></a><var>26.22</var>of the county recorder or registrar of titles in the county in which the property is located. <br/>
<a id="pl.26.23"></a><var>26.23</var>If you do not do so, you could face a fine.<br/>
<a id="pl.26.24"></a><var>26.24</var><b>Key Things Highly Recommended Before You Sign</b><br/>
<a id="pl.26.25"></a><var>26.25</var>(1) Get advice from a lawyer or the Minnesota Home Ownership Center at 1-866-462-6466 <br/>
<a id="pl.26.26"></a><var>26.26</var>or go to www.hocmn.org. To find a lawyer through the Minnesota State Bar Association, <br/>
<a id="pl.26.27"></a><var>26.27</var>go to www.mnfindalawyer.com.<br/>
<a id="pl.26.28"></a><var>26.28</var>(2) Get an independent, professional appraisal of the property to learn what it is worth.<br/>
<a id="pl.26.29"></a><var>26.29</var>(3) Get an independent, professional inspection of the property.<br/>
<a id="pl.26.30"></a><var>26.30</var>(4) Buy title insurance or ask a real estate lawyer for a "title opinion."<br/>
<a id="pl.26.31"></a><var>26.31</var>(5) Check with the city or county to find out if there are inspection reports or unpaid <br/>
<a id="pl.26.32"></a><var>26.32</var>utility bills.<br/>
<a id="pl.27.1"></a><var>27.1</var>(6) Check with a title company agent or the county where the property is located to find out <br/>
<a id="pl.27.2"></a><var>27.2</var>if there is a mortgage or other lien on the property and if the property taxes have been paid.<br/>
<a id="pl.27.3"></a><var>27.3</var>(7) Ensure that your interest rate does not exceed the maximum allowed by law by <br/>
<a id="pl.27.4"></a><var>27.4</var>calling the Department of Commerce to get a recorded message for the current month's <br/>
<a id="pl.27.5"></a><var>27.5</var>maximum rate.<br/>
<a id="pl.27.6"></a><var>27.6</var><b>If You Are Entering into a Purchase Agreement</b><br/>
<a id="pl.27.7"></a><var>27.7</var>(1) If you haven't already signed the contract for deed, you can cancel the purchase <br/>
<a id="pl.27.8"></a><var>27.8</var>agreement (and get all your money back) if you do so within five business days after <br/>
<a id="pl.27.9"></a><var>27.9</var>getting this notice.<br/>
<a id="pl.27.10"></a><var>27.10</var>(2) To cancel the purchase agreement, you must follow the provisions of Minnesota <br/>
<a id="pl.27.11"></a><var>27.11</var>Statutes, section 
         <statute_ref>559.217, subdivision 4</statute_ref>. Ask a lawyer for help."<br/>
<br/>
<a id="bill.5.0.0"></a>

<a id="bill.5.1.0"></a><a id="pl.27.14"></a><var>27.14</var>    Section 1. Minnesota Statutes 2012, section 60D.09, is amended to read:<br/>
<a id="pl.27.15"></a><var>27.15</var><b>60D.09 </b><b>CRIMINAL PROCEEDINGS</b><b> PENALTIES</b><b>.</b><br/>
<a id="pl.27.16"></a><var>27.16</var>    Subdivision 1. <b>Failure to file registration statement; civil penalty.</b> An insurer <br/>
<a id="pl.27.17"></a><var>27.17</var>failing, without just cause, to file a registration statement as required in section 60D.19 <br/>
<a id="pl.27.18"></a><var>27.18</var>shall pay a penalty of $1,000 for each day's delay, to be recovered by the commissioner <br/>
<a id="pl.27.19"></a><var>27.19</var>and paid into the general fund. The commissioner may reduce the penalty if the insurer <br/>
<a id="pl.27.20"></a><var>27.20</var>demonstrates to the commissioner that the imposition of the penalty would constitute a <br/>
<a id="pl.27.21"></a><var>27.21</var>financial hardship to the insurer.<br/>
<a id="pl.27.22"></a><var>27.22</var>    Subd. 2. <b>Failure to provide notice and filing regarding affiliated transaction </b><br/>
<a id="pl.27.23"></a><var>27.23</var><b>or agreement; civil penalty.</b> An insurer failing, without just cause, to provide the <br/>
<a id="pl.27.24"></a><var>27.24</var>appropriate notice and filing under section 60D.20 regarding an affiliated transaction or <br/>
<a id="pl.27.25"></a><var>27.25</var>agreement, shall pay a penalty of $5,000, to be recovered by the commissioner and paid <br/>
<a id="pl.27.26"></a><var>27.26</var>into the general fund.<br/>
<a id="pl.27.27"></a><var>27.27</var>    Subd. 3. <b>Certain contracts and agreements; cease and desist and void orders.</b><br/>
<a id="pl.27.28"></a><var>27.28</var>Whenever it appears to the commissioner that an insurer subject to sections 60D.15 to <br/>
<a id="pl.27.29"></a><var>27.29</var>60D.29 or a director, officer, employee, or agent of an insurer has engaged in a transaction <br/>
<a id="pl.27.30"></a><var>27.30</var>or entered into a contract that is subject to section 60D.20 and that would have been <br/>
<a id="pl.27.31"></a><var>27.31</var>disapproved by the commissioner, the commissioner may order the insurer to cease and <br/>
<a id="pl.27.32"></a><var>27.32</var>desist immediately any further activity under that transaction or contract. After notice and <br/>
<a id="pl.28.1"></a><var>28.1</var>hearing, the commissioner may also order the insurer to void any contracts and restore the <br/>
<a id="pl.28.2"></a><var>28.2</var>status quo if the action is in the best interest of the policyholders, creditors, or the public.<br/>
<a id="pl.28.3"></a><var>28.3</var>    Subd. 4. <b>Criminal penalties.</b> Whenever it appears to the commissioner that any <br/>
<a id="pl.28.4"></a><var>28.4</var>insurer or any director, officer, employee or agent thereof has committed a willful violation <br/>
<a id="pl.28.5"></a><var>28.5</var>of sections 
         <statute_ref>60D.15</statute_ref> to 
         <statute_ref>60D.29</statute_ref>, the commissioner may cause criminal proceedings to be <br/>
<a id="pl.28.6"></a><var>28.6</var>instituted by the district court for the county in which the principal office of the insurer <br/>
<a id="pl.28.7"></a><var>28.7</var>is located or if such insurer has no such office in the state, then by the District Court for <br/>
<a id="pl.28.8"></a><var>28.8</var>Ramsey County against such insurer or the responsible director, officer, employee or agent <br/>
<a id="pl.28.9"></a><var>28.9</var>thereof. Any person who willfully violates sections 
         <statute_ref>60D.15</statute_ref> to 
         <statute_ref>60D.29</statute_ref> shall be guilty, for the <br/>
<a id="pl.28.10"></a><var>28.10</var>first offense, of a misdemeanor, and for each subsequent offense, of a gross misdemeanor.<br/>
<br/>
<a id="bill.5.2.0"></a><a id="pl.28.11"></a><var>28.11</var>    Sec. 2. Minnesota Statutes 2012, section 60D.15, is amended by adding a subdivision <br/>
<a id="pl.28.12"></a><var>28.12</var>to read:<br/>
<a id="pl.28.13"></a><var>28.13</var>    Subd. 4a. <b>Enterprise risk.</b> "Enterprise risk" means an activity, circumstance, event, <br/>
<a id="pl.28.14"></a><var>28.14</var>or series of events involving one or more affiliates of an insurer that, if not remedied <br/>
<a id="pl.28.15"></a><var>28.15</var>promptly, is likely to have a material adverse effect upon the financial condition or <br/>
<a id="pl.28.16"></a><var>28.16</var>liquidity of the insurer or its insurance holding company system as a whole, including, <br/>
<a id="pl.28.17"></a><var>28.17</var>but not limited to, anything that would cause the insurer's risk-based capital to fall into <br/>
<a id="pl.28.18"></a><var>28.18</var>company action level as set forth in sections 60A.50 to 60A.696 or would cause the insurer <br/>
<a id="pl.28.19"></a><var>28.19</var>to be in hazardous financial condition in accordance with the standards of section 60G.20.<br/>
<br/>
<a id="bill.5.3.0"></a><a id="pl.28.20"></a><var>28.20</var>    Sec. 3. Minnesota Statutes 2012, section 60D.17, subdivision 1, is amended to read:<br/>
<a id="pl.28.21"></a><var>28.21</var>    Subdivision 1. <b>Filing requirements.</b> (a) No person other than the issuer shall: (1) <br/>
<a id="pl.28.22"></a><var>28.22</var>make a tender offer for or a request or invitation for tenders of, or enter into any agreement <br/>
<a id="pl.28.23"></a><var>28.23</var>to exchange securities or, seek to acquire, or acquire, in the open market or otherwise, <br/>
<a id="pl.28.24"></a><var>28.24</var>any voting security of a domestic insurer if, after the consummation thereof, the person <br/>
<a id="pl.28.25"></a><var>28.25</var>would, directly or indirectly, or by conversion or by exercise of any right to acquire, be in <br/>
<a id="pl.28.26"></a><var>28.26</var>control of the insurer; or (2) enter into an agreement to merge with or otherwise to acquire <br/>
<a id="pl.28.27"></a><var>28.27</var>control of a domestic insurer or any person controlling a domestic insurer unless, at the <br/>
<a id="pl.28.28"></a><var>28.28</var>time the offer, request, or invitation is made or the agreement is entered into, or before <br/>
<a id="pl.28.29"></a><var>28.29</var>the acquisition of the securities if no offer or agreement is involved, the person has filed <br/>
<a id="pl.28.30"></a><var>28.30</var>with the commissioner and has sent to the insurer, a statement containing the information <br/>
<a id="pl.28.31"></a><var>28.31</var>required by this section and the offer, request, invitation, agreement, or acquisition has <br/>
<a id="pl.28.32"></a><var>28.32</var>been approved by the commissioner in the manner prescribed in this section.<br/>
<a id="pl.28.33"></a><var>28.33</var>(b) For purposes of this section, a controlling person of a domestic insurer seeking to <br/>
<a id="pl.28.34"></a><var>28.34</var>divest its controlling interest in the domestic insurer, in any manner, shall file with the <br/>
<a id="pl.29.1"></a><var>29.1</var>commissioner, with a copy to the insurer, confidential notice of its proposed divestiture <br/>
<a id="pl.29.2"></a><var>29.2</var>at least 30 days before the cessation of control. The commissioner shall determine those <br/>
<a id="pl.29.3"></a><var>29.3</var>instances in which the party or parties seeking to divest or to acquire a controlling interest <br/>
<a id="pl.29.4"></a><var>29.4</var>in an insurer will be required to file for and obtain approval of the transaction.<br/>
<a id="pl.29.5"></a><var>29.5</var>(c) With respect to a transaction subject to this section, the acquiring person must <br/>
<a id="pl.29.6"></a><var>29.6</var>also file a preacquisition notification with the commissioner, which must contain the <br/>
<a id="pl.29.7"></a><var>29.7</var>information set forth in section 60D.18, subdivision 3, paragraph (b). A failure to file the <br/>
<a id="pl.29.8"></a><var>29.8</var>notification may be subject to penalties specified in section 60D.18, subdivision 5.<br/>
<a id="pl.29.9"></a><var>29.9</var>(d) For purposes of this section, a domestic insurer includes a person controlling a <br/>
<a id="pl.29.10"></a><var>29.10</var>domestic insurer unless the person as determined by the commissioner is either directly or <br/>
<a id="pl.29.11"></a><var>29.11</var>through its affiliates primarily engaged in business other than the business of insurance. <br/>
<a id="pl.29.12"></a><var>29.12</var>However, the person shall file a preacquisition notification with the commissioner <br/>
<a id="pl.29.13"></a><var>29.13</var>containing the information set forth in section 
<statute_ref>60D.18, subdivision 3</statute_ref>, paragraph (b), <br/>
<a id="pl.29.14"></a><var>29.14</var>30 days before the proposed effective date of the acquisition. Failure to file is subject <br/>
<a id="pl.29.15"></a><var>29.15</var>to section 
<statute_ref>60D.18, subdivision 5</statute_ref>. For the purposes of this section, "person" does not <br/>
<a id="pl.29.16"></a><var>29.16</var>include any securities broker holding, in the usual and customary brokers function, less <br/>
<a id="pl.29.17"></a><var>29.17</var>than 20 percent of the voting securities of an insurance company or of any person that <br/>
<a id="pl.29.18"></a><var>29.18</var>controls an insurance company.<br/>
<a id="pl.29.19"></a><var>29.19</var>(e) The statement filed with the commissioner pursuant to subdivisions 1 and 2 must <br/>
<a id="pl.29.20"></a><var>29.20</var>remain confidential until the transaction is approved by the commissioner, except that all <br/>
<a id="pl.29.21"></a><var>29.21</var>attachments filed with the statement remain confidential after the approval unless the <br/>
<a id="pl.29.22"></a><var>29.22</var>commissioner, in the commissioner's discretion, determines that confidential treatment of <br/>
<a id="pl.29.23"></a><var>29.23</var>any of this information will interfere with enforcement of this section.<br/>
<br/>
<a id="bill.5.4.0"></a><a id="pl.29.24"></a><var>29.24</var>    Sec. 4. Minnesota Statutes 2012, section 60D.17, subdivision 2, is amended to read:<br/>
<a id="pl.29.25"></a><var>29.25</var>    Subd. 2. <b>Content of statement.</b> The statement to be filed with the commissioner <br/>
<a id="pl.29.26"></a><var>29.26</var>shall be made under oath or affirmation and shall contain the following information:<br/>
<a id="pl.29.27"></a><var>29.27</var>(a) The name and address of each person by whom or on whose behalf the merger <br/>
<a id="pl.29.28"></a><var>29.28</var>or other acquisition of control referred to in subdivision 1 is to be effected, hereinafter <br/>
<a id="pl.29.29"></a><var>29.29</var>called "acquiring party"; and<br/>
<a id="pl.29.30"></a><var>29.30</var>(1) if the person is an individual, the principal occupation and all offices and <br/>
<a id="pl.29.31"></a><var>29.31</var>positions held during the past five years, and any conviction of crimes other than minor <br/>
<a id="pl.29.32"></a><var>29.32</var>traffic violations during the past ten years; and<br/>
<a id="pl.29.33"></a><var>29.33</var>(2) if the person is not an individual, a report of the nature of its business operations <br/>
<a id="pl.29.34"></a><var>29.34</var>during the past five years or for a lesser period as the person and any predecessors have <br/>
<a id="pl.29.35"></a><var>29.35</var>been in existence; an informative description of the business intended to be done by the <br/>
<a id="pl.30.1"></a><var>30.1</var>person and the person's subsidiaries; and a list of all individuals who are or who have <br/>
<a id="pl.30.2"></a><var>30.2</var>been selected to become directors or executive officers of such person, or who perform <br/>
<a id="pl.30.3"></a><var>30.3</var>or will perform functions appropriate to such positions. The list must include for each <br/>
<a id="pl.30.4"></a><var>30.4</var>individual the information required by clause (1).<br/>
<a id="pl.30.5"></a><var>30.5</var>(b) The source, nature, and amount of the consideration used or to be used in <br/>
<a id="pl.30.6"></a><var>30.6</var>effecting the merger or other acquisition of control, a description of any transaction in <br/>
<a id="pl.30.7"></a><var>30.7</var>which funds were or are to be obtained for this purpose, including any pledge of the <br/>
<a id="pl.30.8"></a><var>30.8</var>insurer's stock, or the stock of any of its subsidiaries or controlling affiliates, and the <br/>
<a id="pl.30.9"></a><var>30.9</var>identity of persons furnishing the consideration, provided, however, that where a source of <br/>
<a id="pl.30.10"></a><var>30.10</var>the consideration is a loan made in the lender's ordinary course of business, the identity of <br/>
<a id="pl.30.11"></a><var>30.11</var>the lender shall remain confidential, if the person filing the statement so requests.<br/>
<a id="pl.30.12"></a><var>30.12</var>(c) Fully audited financial information as to the earnings and financial condition of <br/>
<a id="pl.30.13"></a><var>30.13</var>each acquiring party for the preceding five fiscal years of each acquiring party, or for a <br/>
<a id="pl.30.14"></a><var>30.14</var>lesser period as the acquiring party and any predecessors have been in existence, and similar <br/>
<a id="pl.30.15"></a><var>30.15</var>unaudited information as of a date not earlier than 90 days before the filing of the statement.<br/>
<a id="pl.30.16"></a><var>30.16</var>(d) Any plans or proposals that each acquiring party may have to liquidate the <br/>
<a id="pl.30.17"></a><var>30.17</var>insurer, to sell its assets or merge or consolidate it with any person, or to make any other <br/>
<a id="pl.30.18"></a><var>30.18</var>material change in its business or corporate structure or management.<br/>
<a id="pl.30.19"></a><var>30.19</var>(e) The number of shares of any security referred to in subdivision 1 that each <br/>
<a id="pl.30.20"></a><var>30.20</var>acquiring party proposes to acquire, and the terms of the offer, request, invitation, <br/>
<a id="pl.30.21"></a><var>30.21</var>agreement, or acquisition referred to in subdivision 1 and a statement as to the method by <br/>
<a id="pl.30.22"></a><var>30.22</var>which the fairness of the proposal was arrived at.<br/>
<a id="pl.30.23"></a><var>30.23</var>(f) The amount of each class of any security referred to in subdivision 1 that is <br/>
<a id="pl.30.24"></a><var>30.24</var>beneficially owned or concerning which there is a right to acquire beneficial ownership <br/>
<a id="pl.30.25"></a><var>30.25</var>by each acquiring party.<br/>
<a id="pl.30.26"></a><var>30.26</var>(g) A full description of any contracts, arrangements, or understandings with <br/>
<a id="pl.30.27"></a><var>30.27</var>respect to any security referred to in subdivision 1 in which any acquiring party is <br/>
<a id="pl.30.28"></a><var>30.28</var>involved, including but not limited to, transfer of any of the securities, joint ventures, loan <br/>
<a id="pl.30.29"></a><var>30.29</var>or option arrangements, puts or calls, guarantees of loans, guarantees against loss or <br/>
<a id="pl.30.30"></a><var>30.30</var>guarantees of profits, division of losses or profits, or the giving or withholding of proxies. <br/>
<a id="pl.30.31"></a><var>30.31</var>The description must identify the persons with whom the contracts, arrangements, or <br/>
<a id="pl.30.32"></a><var>30.32</var>understandings have been entered into.<br/>
<a id="pl.30.33"></a><var>30.33</var>(h) A description of the purchase of any security referred to in subdivision 1 during <br/>
<a id="pl.30.34"></a><var>30.34</var>the 12 calendar months preceding the filing of the statement, by any acquiring party, <br/>
<a id="pl.30.35"></a><var>30.35</var>including the dates of purchase, names of the purchasers, and consideration paid or <br/>
<a id="pl.30.36"></a><var>30.36</var>agreed to be paid for it.<br/>
<a id="pl.31.1"></a><var>31.1</var>(i) A description of any recommendations to purchase any security referred to in <br/>
<a id="pl.31.2"></a><var>31.2</var>subdivision 1 made during the 12 calendar months preceding the filing of the statement, <br/>
<a id="pl.31.3"></a><var>31.3</var>by any acquiring party, or by anyone based upon interviews or at the suggestion of the <br/>
<a id="pl.31.4"></a><var>31.4</var>acquiring party.<br/>
<a id="pl.31.5"></a><var>31.5</var>(j) Copies of all tender offers for, requests, or invitations for tenders of, exchange <br/>
<a id="pl.31.6"></a><var>31.6</var>offers for, and agreements to acquire or exchange any securities referred to in subdivision <br/>
<a id="pl.31.7"></a><var>31.7</var>1 and, if distributed, of additional soliciting material relating to them.<br/>
<a id="pl.31.8"></a><var>31.8</var>(k) The term of any agreement, contract, or understanding made with or proposed to <br/>
<a id="pl.31.9"></a><var>31.9</var>be made with any broker-dealer as to solicitation of securities referred to in subdivision 1 <br/>
<a id="pl.31.10"></a><var>31.10</var>for tender, and the amount of any fees, commissions, or other compensation to be paid to <br/>
<a id="pl.31.11"></a><var>31.11</var>broker-dealers with regard to it.<br/>
<a id="pl.31.12"></a><var>31.12</var>(l) An agreement by the person required to file the statement referred to in <br/>
<a id="pl.31.13"></a><var>31.13</var>subdivision 1 that it will provide the annual report, specified in section 60D.19, subdivision <br/>
<a id="pl.31.14"></a><var>31.14</var>11a, for so long as control exists.<br/>
<a id="pl.31.15"></a><var>31.15</var>(m) A consent by the person required to file the statement referred to in subdivision <br/>
<a id="pl.31.16"></a><var>31.16</var>1 that the person and all subsidiaries within its control in the insurance holding company <br/>
<a id="pl.31.17"></a><var>31.17</var>system will provide information to the commissioner upon request as necessary to <br/>
<a id="pl.31.18"></a><var>31.18</var>evaluate enterprise risk to the insurer.<br/>
<a id="pl.31.19"></a><var>31.19</var>(l) (n) Additional information the commissioner may by rule prescribe as necessary <br/>
<a id="pl.31.20"></a><var>31.20</var>or appropriate for the protection of policyholders of the insurer or in the public interest.<br/>
<a id="pl.31.21"></a><var>31.21</var>If the person required to file the statement referred to in subdivision 1 is a <br/>
<a id="pl.31.22"></a><var>31.22</var>partnership, limited partnership, syndicate, or other group, the commissioner may require <br/>
<a id="pl.31.23"></a><var>31.23</var>that the information called for by paragraphs (a) to (l) (n) must be given with respect to <br/>
<a id="pl.31.24"></a><var>31.24</var>each partner of the partnership or limited partnership, each member of the syndicate <br/>
<a id="pl.31.25"></a><var>31.25</var>or group, and each person who controls the partner or member. If a partner, member, <br/>
<a id="pl.31.26"></a><var>31.26</var>or person is a corporation, or the person required to file the statement referred to in <br/>
<a id="pl.31.27"></a><var>31.27</var>subdivision 1 is a corporation the commissioner may require that the information called <br/>
<a id="pl.31.28"></a><var>31.28</var>for by paragraphs (a) to (l) (n) be given with respect to the corporation, each officer and <br/>
<a id="pl.31.29"></a><var>31.29</var>director of the corporation, and each person who is directly or indirectly the beneficial <br/>
<a id="pl.31.30"></a><var>31.30</var>owner of more than ten percent of the outstanding voting securities of the corporation.<br/>
<a id="pl.31.31"></a><var>31.31</var>If any material change occurs in the facts set forth in the statement filed with the <br/>
<a id="pl.31.32"></a><var>31.32</var>commissioner and sent to the insurer pursuant to this section, an amendment setting forth <br/>
<a id="pl.31.33"></a><var>31.33</var>the change, together with copies of all documents and other material relevant to the <br/>
<a id="pl.31.34"></a><var>31.34</var>change, must be filed with the commissioner and sent to the insurer within two business <br/>
<a id="pl.31.35"></a><var>31.35</var>days after the person learns of the change.<br/>
<br/>
<a id="bill.5.5.0"></a><a id="pl.32.1"></a><var>32.1</var>    Sec. 5. Minnesota Statutes 2012, section 60D.17, subdivision 4, is amended to read:<br/>
<a id="pl.32.2"></a><var>32.2</var>    Subd. 4. <b>Approval by commissioner; hearings.</b> (a) The commissioner shall <br/>
<a id="pl.32.3"></a><var>32.3</var>approve any merger or other acquisition of control referred to in subdivision 1 unless, after <br/>
<a id="pl.32.4"></a><var>32.4</var>a public hearing, the commissioner finds that:<br/>
<a id="pl.32.5"></a><var>32.5</var>(1) after the change of control, the domestic insurer referred to in subdivision 1 <br/>
<a id="pl.32.6"></a><var>32.6</var>would not be able to satisfy the requirements for the issuance of a license to write the line <br/>
<a id="pl.32.7"></a><var>32.7</var>or lines of insurance for which it is presently licensed, unless the domestic insurer is in <br/>
<a id="pl.32.8"></a><var>32.8</var>rehabilitation or other court-ordered supervision and the acquiring party commits to a plan <br/>
<a id="pl.32.9"></a><var>32.9</var>that would enable the domestic insurer to satisfy the requirements for the issuance of a <br/>
<a id="pl.32.10"></a><var>32.10</var>license within a reasonable amount of time;<br/>
<a id="pl.32.11"></a><var>32.11</var>(2) the effect of the merger or other acquisition of control would be substantially <br/>
<a id="pl.32.12"></a><var>32.12</var>to lessen competition in insurance in this state or tend to create a monopoly therein in <br/>
<a id="pl.32.13"></a><var>32.13</var>applying the competitive standard in this subdivision:<br/>
<a id="pl.32.14"></a><var>32.14</var>(i) the informational requirements of section 
         <statute_ref>60D.18, subdivision 3</statute_ref>, paragraph (b), <br/>
<a id="pl.32.15"></a><var>32.15</var>and the standards of section 
         <statute_ref>60D.18, subdivision 4</statute_ref>, paragraph (c), shall apply;<br/>
<a id="pl.32.16"></a><var>32.16</var>(ii) the merger or other acquisition shall not be disapproved if the commissioner finds <br/>
<a id="pl.32.17"></a><var>32.17</var>that any of the situations meeting the criteria provided by section 
         <statute_ref>60D.18, subdivision 4</statute_ref>, <br/>
<a id="pl.32.18"></a><var>32.18</var>paragraph (c), exist; and<br/>
<a id="pl.32.19"></a><var>32.19</var>(iii) the commissioner may condition the approval of the merger or other acquisition <br/>
<a id="pl.32.20"></a><var>32.20</var>on the removal of the basis of disapproval within a specified period of time;<br/>
<a id="pl.32.21"></a><var>32.21</var>(3) the financial condition of any acquiring party is such as might jeopardize the <br/>
<a id="pl.32.22"></a><var>32.22</var>financial stability of the insurer, or prejudice the interest of its policyholders;<br/>
<a id="pl.32.23"></a><var>32.23</var>(4) the plans or proposals that the acquiring party has to liquidate the insurer, sell its <br/>
<a id="pl.32.24"></a><var>32.24</var>assets, or consolidate or merge it with any person, or to make any other material change <br/>
<a id="pl.32.25"></a><var>32.25</var>in its business or corporate structure or management, are unfair and unreasonable to <br/>
<a id="pl.32.26"></a><var>32.26</var>policyholders of the insurer and not in the public interest;<br/>
<a id="pl.32.27"></a><var>32.27</var>(5) the competence, experience, and integrity of those persons who would control <br/>
<a id="pl.32.28"></a><var>32.28</var>the operation of the insurer are such that it would not be in the interest of policyholders of <br/>
<a id="pl.32.29"></a><var>32.29</var>the insurer and of the public to permit the merger or other acquisition of control; or<br/>
<a id="pl.32.30"></a><var>32.30</var>(6) the acquisition is likely to be hazardous or prejudicial to the insurance buying <br/>
<a id="pl.32.31"></a><var>32.31</var>public.<br/>
<a id="pl.32.32"></a><var>32.32</var>(b) The public hearing referred to in paragraph (a) must be held 30 days after the <br/>
<a id="pl.32.33"></a><var>32.33</var>statement required by subdivision 1 is filed, and at least 20 days' notice of it shall be <br/>
<a id="pl.32.34"></a><var>32.34</var>given by the commissioner to the person filing the statement. Not less than seven days <br/>
<a id="pl.32.35"></a><var>32.35</var>notice of the public hearing shall be given by the person filing the statement to the insurer <br/>
<a id="pl.32.36"></a><var>32.36</var>and to other persons designated by the commissioner. The commissioner shall make a <br/>
<a id="pl.33.1"></a><var>33.1</var>determination within 30 days after the conclusion of the hearing. At the hearing, the <br/>
<a id="pl.33.2"></a><var>33.2</var>person filing the statement, the insurer, any person to whom notice of hearing was sent, <br/>
<a id="pl.33.3"></a><var>33.3</var>and any other person whose interest may be affected by it may present evidence, examine <br/>
<a id="pl.33.4"></a><var>33.4</var>and cross-examine witnesses, and offer oral and written arguments and may conduct <br/>
<a id="pl.33.5"></a><var>33.5</var>discovery proceedings in the same manner as is presently allowed in the district courts of <br/>
<a id="pl.33.6"></a><var>33.6</var>this state. All discovery proceedings must be concluded not later than three days before <br/>
<a id="pl.33.7"></a><var>33.7</var>the start of the public hearing.<br/>
<a id="pl.33.8"></a><var>33.8</var>(c) If the proposed acquisition of control will require the approval of more <br/>
<a id="pl.33.9"></a><var>33.9</var>than one commissioner, the public hearing referred to in paragraph (b) may be held <br/>
<a id="pl.33.10"></a><var>33.10</var>on a consolidated basis upon request of the person filing the statement referred to in <br/>
<a id="pl.33.11"></a><var>33.11</var>subdivision 1. The person shall file the statement referred to in subdivision 1 with the <br/>
<a id="pl.33.12"></a><var>33.12</var>National Association of Insurance Commissioners (NAIC) within five days of making <br/>
<a id="pl.33.13"></a><var>33.13</var>the request for a public hearing. A commissioner may opt out of a consolidated hearing, <br/>
<a id="pl.33.14"></a><var>33.14</var>and shall provide notice to the applicant of the opt-out within ten days of the receipt of <br/>
<a id="pl.33.15"></a><var>33.15</var>the statement referred to in subdivision 1. A hearing conducted on a consolidated basis <br/>
<a id="pl.33.16"></a><var>33.16</var>must be public and must be held within the United States before the commissioners of <br/>
<a id="pl.33.17"></a><var>33.17</var>the states in which the insurers are domiciled. The commissioners shall hear and receive <br/>
<a id="pl.33.18"></a><var>33.18</var>evidence. A commissioner may attend the hearing, in person or by telecommunication. <br/>
<a id="pl.33.19"></a><var>33.19</var>In this paragraph, the term "commissioner" when used in reference to an official from a <br/>
<a id="pl.33.20"></a><var>33.20</var>state other than Minnesota means the state official charged with the responsibility of <br/>
<a id="pl.33.21"></a><var>33.21</var>supervising the business of insurance in that state.<br/>
<a id="pl.33.22"></a><var>33.22</var>(d) In connection with a change of control of a domestic insurer, any determination <br/>
<a id="pl.33.23"></a><var>33.23</var>by the commissioner that the person acquiring control of the insurer shall be required <br/>
<a id="pl.33.24"></a><var>33.24</var>to maintain or restore the capital of the insurer to the level required by the laws and <br/>
<a id="pl.33.25"></a><var>33.25</var>regulations of this state shall be made not later than 60 days after the date of notification of <br/>
<a id="pl.33.26"></a><var>33.26</var>the change in control submitted pursuant to section 60D.17, subdivision 1.<br/>
<a id="pl.33.27"></a><var>33.27</var>(c) (e) The commissioner may retain at the acquiring person's expense any attorneys, <br/>
<a id="pl.33.28"></a><var>33.28</var>actuaries, accountants, and other experts not otherwise a part of the commissioner's staff <br/>
<a id="pl.33.29"></a><var>33.29</var>as may be reasonably necessary to assist the commissioner in reviewing the proposed <br/>
<a id="pl.33.30"></a><var>33.30</var>acquisition of control.<br/>
<br/>
<a id="bill.5.6.0"></a><a id="pl.33.31"></a><var>33.31</var>    Sec. 6. Minnesota Statutes 2012, section 60D.17, subdivision 6, is amended to read:<br/>
<a id="pl.33.32"></a><var>33.32</var>    Subd. 6. <b>Violations.</b> The following are violations of this section:<br/>
<a id="pl.33.33"></a><var>33.33</var>(1) the failure to file any statement, amendment, or other material required to be filed <br/>
<a id="pl.33.34"></a><var>33.34</var>pursuant to subdivision 1 or 2; or<br/>
<a id="pl.34.1"></a><var>34.1</var>(2) the effectuation or any attempt to effectuate an acquisition of control of, <br/>
<a id="pl.34.2"></a><var>34.2</var>divestiture of, or merger with, a domestic insurer unless the commissioner has approved it.<br/>
<br/>
<a id="bill.5.7.0"></a><a id="pl.34.3"></a><var>34.3</var>    Sec. 7. Minnesota Statutes 2012, section 60D.17, subdivision 7, is amended to read:<br/>
<a id="pl.34.4"></a><var>34.4</var>    Subd. 7. <b>Jurisdiction, consent to service of process.</b> The courts of this state have <br/>
<a id="pl.34.5"></a><var>34.5</var>jurisdiction over every person not resident, domiciled, or authorized to do business in this <br/>
<a id="pl.34.6"></a><var>34.6</var>state who files a statement with the commissioner under this section, and overall actions <br/>
<a id="pl.34.7"></a><var>34.7</var>involving the person arising out of violations of this section, and the person is deemed to <br/>
<a id="pl.34.8"></a><var>34.8</var>have performed acts equivalent to and constituting an appointment by the person of the <br/>
<a id="pl.34.9"></a><var>34.9</var>commissioner to be the person's true and lawful attorney upon whom may be served all <br/>
<a id="pl.34.10"></a><var>34.10</var>lawful process in any action, suit, or proceeding arising out of violations of this section. <br/>
<a id="pl.34.11"></a><var>34.11</var>Copies of all lawful process shall be served on the commissioner and transmitted by <br/>
<a id="pl.34.12"></a><var>34.12</var>registered or certified mail by the commissioner to the person at the person's last known <br/>
<a id="pl.34.13"></a><var>34.13</var>address in compliance with section 45.028, subdivision 2.<br/>
<br/>
<a id="bill.5.8.0"></a><a id="pl.34.14"></a><var>34.14</var>    Sec. 8. Minnesota Statutes 2012, section 60D.18, subdivision 2, is amended to read:<br/>
<a id="pl.34.15"></a><var>34.15</var>    Subd. 2. <b>Scope.</b> (a) Except as exempted in paragraph (b), this section applies to any <br/>
<a id="pl.34.16"></a><var>34.16</var>acquisition in which there is a change in control of an insurer authorized to do business in <br/>
<a id="pl.34.17"></a><var>34.17</var>this state.<br/>
<a id="pl.34.18"></a><var>34.18</var>(b) This section does not apply to the following:<br/>
<a id="pl.34.19"></a><var>34.19</var>(1) an acquisition subject to approval or disapproval by the commissioner pursuant <br/>
<a id="pl.34.20"></a><var>34.20</var>to section 
<statute_ref>60D.17</statute_ref>;<br/>
<a id="pl.34.21"></a><var>34.21</var>(2) (1) a purchase of securities solely for investment purposes so long as such <br/>
<a id="pl.34.22"></a><var>34.22</var>securities are not used by voting or otherwise to cause or attempt to cause the substantial <br/>
<a id="pl.34.23"></a><var>34.23</var>lessening of competition in any insurance market in this state. If a purchase of securities <br/>
<a id="pl.34.24"></a><var>34.24</var>results in a presumption of control under section 
         <statute_ref>60D.15, subdivision 4</statute_ref>, it is not solely for <br/>
<a id="pl.34.25"></a><var>34.25</var>investment purposes unless the commissioner of the insurer's state of domicile accepts a <br/>
<a id="pl.34.26"></a><var>34.26</var>disclaimer of control or affirmatively finds that control does not exist and such disclaimer <br/>
<a id="pl.34.27"></a><var>34.27</var>action or affirmative finding is communicated by the domiciliary commissioner to the <br/>
<a id="pl.34.28"></a><var>34.28</var>commissioner of this state;<br/>
<a id="pl.34.29"></a><var>34.29</var>(3) (2) the acquisition of a person by another person when both persons are <br/>
<a id="pl.34.30"></a><var>34.30</var>neither directly nor through affiliates primarily engaged in the business of insurance, if <br/>
<a id="pl.34.31"></a><var>34.31</var>preacquisition notification is filed with the commissioner in accordance with subdivision 3, <br/>
<a id="pl.34.32"></a><var>34.32</var>paragraph (a), 30 days before the proposed effective date of the acquisition. However, the <br/>
<a id="pl.34.33"></a><var>34.33</var>preacquisition notification is not required for exclusion from this section, if the acquisition <br/>
<a id="pl.34.34"></a><var>34.34</var>would otherwise be excluded from this section by any other clause of this paragraph;<br/>
<a id="pl.35.1"></a><var>35.1</var>(4) (3) the acquisition of already affiliated persons;<br/>
<a id="pl.35.2"></a><var>35.2</var>(5) (4) an acquisition if, as an immediate result of the acquisition;<br/>
<a id="pl.35.3"></a><var>35.3</var>(i) in no market would the combined market share of the involved insurers exceed <br/>
<a id="pl.35.4"></a><var>35.4</var>five percent of the total market;<br/>
<a id="pl.35.5"></a><var>35.5</var>(ii) there would be no increase in any market share; or<br/>
<a id="pl.35.6"></a><var>35.6</var>(iii) in no market would the combined market share of the involved insurers exceed <br/>
<a id="pl.35.7"></a><var>35.7</var>12 percent of the total market; and the market share increases by more than two percent <br/>
<a id="pl.35.8"></a><var>35.8</var>of the total market.<br/>
<a id="pl.35.9"></a><var>35.9</var>For the purpose of this clause, a market means direct written insurance premium in <br/>
<a id="pl.35.10"></a><var>35.10</var>this state for a line of business as contained in the annual statement required to be filed by <br/>
<a id="pl.35.11"></a><var>35.11</var>insurers licensed to do business in this state;<br/>
<a id="pl.35.12"></a><var>35.12</var>(6) (5) an acquisition for which a preacquisition notification would be required <br/>
<a id="pl.35.13"></a><var>35.13</var>pursuant to this section due solely to the resulting effect on the ocean marine insurance <br/>
<a id="pl.35.14"></a><var>35.14</var>line of business; and<br/>
<a id="pl.35.15"></a><var>35.15</var>(7) (6) an acquisition of an insurer whose domiciliary commissioner affirmatively <br/>
<a id="pl.35.16"></a><var>35.16</var>finds that the insurer is in failing condition; there is a lack of feasible alternative to <br/>
<a id="pl.35.17"></a><var>35.17</var>improving the condition; the public benefits of improving the insurer's condition through <br/>
<a id="pl.35.18"></a><var>35.18</var>the acquisition exceed the public benefits that would arise from not lessening competition; <br/>
<a id="pl.35.19"></a><var>35.19</var>and the findings are communicated by the domiciliary commissioner to the commissioner <br/>
<a id="pl.35.20"></a><var>35.20</var>of this state.<br/>
<br/>
<a id="bill.5.9.0"></a><a id="pl.35.21"></a><var>35.21</var>    Sec. 9. Minnesota Statutes 2012, section 60D.18, subdivision 6, is amended to read:<br/>
<a id="pl.35.22"></a><var>35.22</var>    Subd. 6. <b>Inapplicable provisions.</b> Sections 
         <statute_ref>60D.24</statute_ref>, paragraphs (b) and (c)<br/>
<a id="pl.35.23"></a><var>35.23</var> subdivisions 2 and 3; and 
         <statute_ref>60D.26</statute_ref> 
<statute_ref>60D.25</statute_ref> do not apply to acquisitions covered under <br/>
<a id="pl.35.24"></a><var>35.24</var>subdivision 2.<br/>
<br/>
<a id="bill.5.10.0"></a><a id="pl.35.25"></a><var>35.25</var>    Sec. 10. Minnesota Statutes 2012, section 60D.19, subdivision 1, is amended to read:<br/>
<a id="pl.35.26"></a><var>35.26</var>    Subdivision 1. <b>Registration.</b> Every domestic insurer that is authorized to do <br/>
<a id="pl.35.27"></a><var>35.27</var>business in this state and that is a member of an insurance holding company system <br/>
<a id="pl.35.28"></a><var>35.28</var>shall register with the commissioner, except a foreign insurer subject to registration <br/>
<a id="pl.35.29"></a><var>35.29</var>requirements and standards adopted by statute or regulation in the jurisdiction of its <br/>
<a id="pl.35.30"></a><var>35.30</var>domicile that are substantially similar to those contained in:.<br/>
<a id="pl.35.31"></a><var>35.31</var>(1) this section;<br/>
<a id="pl.35.32"></a><var>35.32</var>(2) section 
<statute_ref>60D.20, subdivisions 1, paragraph (a)</statute_ref>; 2; and 4; and<br/>
<a id="pl.35.33"></a><var>35.33</var>(3) either section 
<statute_ref>60D.20, subdivision 1</statute_ref>, paragraph (b), or a provision such as the <br/>
<a id="pl.35.34"></a><var>35.34</var>following: Each registered insurer shall keep current the information required to be <br/>
<a id="pl.36.1"></a><var>36.1</var>disclosed in its registration statement by reporting all material changes or additions within <br/>
<a id="pl.36.2"></a><var>36.2</var>15 days after the end of the month in which it learns of each such change or addition.<br/>
<a id="pl.36.3"></a><var>36.3</var>Any insurer that is subject to registration under this section shall register within 15 <br/>
<a id="pl.36.4"></a><var>36.4</var>days after it becomes subject to registration, and annually thereafter by June 1 of each year <br/>
<a id="pl.36.5"></a><var>36.5</var>for the previous calendar year, unless the commissioner for good cause shown extends <br/>
<a id="pl.36.6"></a><var>36.6</var>the time for registration, and then within such extended time. The commissioner may <br/>
<a id="pl.36.7"></a><var>36.7</var>require any insurer authorized to do business in the state that is a member of a an insurance<br/>
<a id="pl.36.8"></a><var>36.8</var> holding company system, and that is not subject to registration under this section, to <br/>
<a id="pl.36.9"></a><var>36.9</var>furnish a copy of the registration statement, the summary specified in subdivision 3 or <br/>
<a id="pl.36.10"></a><var>36.10</var>other information filed by the insurance company with the insurance regulatory authority <br/>
<a id="pl.36.11"></a><var>36.11</var>of domiciliary jurisdiction.<br/>
<br/>
<a id="bill.5.11.0"></a><a id="pl.36.12"></a><var>36.12</var>    Sec. 11. Minnesota Statutes 2012, section 60D.19, subdivision 2, is amended to read:<br/>
<a id="pl.36.13"></a><var>36.13</var>    Subd. 2. <b>Information and form required.</b> Every insurer subject to registration <br/>
<a id="pl.36.14"></a><var>36.14</var>shall file the registration statement with the commissioner on a form and in a format<br/>
<a id="pl.36.15"></a><var>36.15</var> prescribed by the National Association of Insurance Commissioners, which shall contain<br/>
<a id="pl.36.16"></a><var>36.16</var> containing the following current information:<br/>
<a id="pl.36.17"></a><var>36.17</var>(1) the capital structure, general financial condition, ownership, and management of <br/>
<a id="pl.36.18"></a><var>36.18</var>the insurer and any person controlling the insurer;<br/>
<a id="pl.36.19"></a><var>36.19</var>(2) the identity and relationship of every member of the insurance holding company <br/>
<a id="pl.36.20"></a><var>36.20</var>system;<br/>
<a id="pl.36.21"></a><var>36.21</var>(3) the following agreements in force, and transactions currently outstanding or that <br/>
<a id="pl.36.22"></a><var>36.22</var>have occurred during the last calendar year between the insurer and its affiliates:<br/>
<a id="pl.36.23"></a><var>36.23</var>(i) loans, other investments, or purchases, sales, or exchanges of securities of the <br/>
<a id="pl.36.24"></a><var>36.24</var>affiliates by the insurer or of the insurer by its affiliates;<br/>
<a id="pl.36.25"></a><var>36.25</var>(ii) purchases, sales, or exchange of assets;<br/>
<a id="pl.36.26"></a><var>36.26</var>(iii) transactions not in the ordinary course of business;<br/>
<a id="pl.36.27"></a><var>36.27</var>(iv) guarantees or undertakings for the benefit of an affiliate which result in an actual <br/>
<a id="pl.36.28"></a><var>36.28</var>contingent exposure of the insurer's assets to liability, other than insurance contracts <br/>
<a id="pl.36.29"></a><var>36.29</var>entered into in the ordinary course of the insurer's business;<br/>
<a id="pl.36.30"></a><var>36.30</var>(v) all management agreements, service contracts, and all cost-sharing arrangements;<br/>
<a id="pl.36.31"></a><var>36.31</var>(vi) reinsurance agreements;<br/>
<a id="pl.36.32"></a><var>36.32</var>(vii) dividends and other distributions to shareholders; and<br/>
<a id="pl.36.33"></a><var>36.33</var>(viii) consolidated tax allocation agreements;<br/>
<a id="pl.36.34"></a><var>36.34</var>(4) any pledge of the insurer's stock, including stock of any subsidiary or controlling <br/>
<a id="pl.36.35"></a><var>36.35</var>affiliate, for a loan made to any member of the insurance holding company system; and<br/>
<a id="pl.37.1"></a><var>37.1</var>(5) if requested by the commissioner, financial statements of or within an insurance <br/>
<a id="pl.37.2"></a><var>37.2</var>holding company system and all affiliates including, but not limited to, annual audited <br/>
<a id="pl.37.3"></a><var>37.3</var>financial statements filed with the United States Securities and Exchange Commission <br/>
<a id="pl.37.4"></a><var>37.4</var>(SEC) pursuant to the Securities Act of 1933, as amended, or the Securities Exchange <br/>
<a id="pl.37.5"></a><var>37.5</var>Act of 1934, as amended. An insurer required to file financial statements pursuant to this <br/>
<a id="pl.37.6"></a><var>37.6</var>clause may satisfy the request by providing the commissioner with the most recently filed <br/>
<a id="pl.37.7"></a><var>37.7</var>parent corporation financial statements that have been filed with the SEC;<br/>
<a id="pl.37.8"></a><var>37.8</var>(5) (6) other matters concerning transactions between registered insurers and any <br/>
<a id="pl.37.9"></a><var>37.9</var>affiliates as may be included from time to time in any registration forms adopted or <br/>
<a id="pl.37.10"></a><var>37.10</var>approved by the commissioner.;<br/>
<a id="pl.37.11"></a><var>37.11</var>(7) statements that the insurer's board of directors oversees corporate governance <br/>
<a id="pl.37.12"></a><var>37.12</var>and internal controls and that the insurer's officers or senior management have approved <br/>
<a id="pl.37.13"></a><var>37.13</var>and implemented, and continue to maintain and monitor, corporate governance and <br/>
<a id="pl.37.14"></a><var>37.14</var>internal control procedures; and<br/>
<a id="pl.37.15"></a><var>37.15</var>(8) any other information required by the commissioner by rule.<br/>
<br/>
<a id="bill.5.12.0"></a><a id="pl.37.16"></a><var>37.16</var>    Sec. 12. Minnesota Statutes 2012, section 60D.19, subdivision 3, is amended to read:<br/>
<a id="pl.37.17"></a><var>37.17</var>    Subd. 3. <b>Summary of </b><b>changes to </b><b>registration statement.</b> All registration <br/>
<a id="pl.37.18"></a><var>37.18</var>statements must contain a summary outlining all items in the current registration statement <br/>
<a id="pl.37.19"></a><var>37.19</var>representing changes from the prior registration statement.<br/>
<br/>
<a id="bill.5.13.0"></a><a id="pl.37.20"></a><var>37.20</var>    Sec. 13. Minnesota Statutes 2012, section 60D.19, subdivision 11, is amended to read:<br/>
<a id="pl.37.21"></a><var>37.21</var>    Subd. 11. <b>Disclaimer.</b> Any person may file with the commissioner a disclaimer of <br/>
<a id="pl.37.22"></a><var>37.22</var>affiliation with any authorized insurer or the disclaimer may be filed by the insurer or any <br/>
<a id="pl.37.23"></a><var>37.23</var>member of an insurance holding company system. The disclaimer shall fully disclose all <br/>
<a id="pl.37.24"></a><var>37.24</var>material relationships and bases for affiliation between the person and the insurer as well <br/>
<a id="pl.37.25"></a><var>37.25</var>as the basis for disclaiming the affiliation. After a disclaimer has been filed, the insurer <br/>
<a id="pl.37.26"></a><var>37.26</var>shall be relieved of any duty to register or report under this section that may arise out of <br/>
<a id="pl.37.27"></a><var>37.27</var>the insurer's relationship with the person unless and until the commissioner disallows <br/>
<a id="pl.37.28"></a><var>37.28</var>the disclaimer. The commissioner shall disallow the disclaimer only after furnishing <br/>
<a id="pl.37.29"></a><var>37.29</var>all parties in interest with notice and opportunity to be heard and after making specific <br/>
<a id="pl.37.30"></a><var>37.30</var>findings of fact to support the disallowance. A disclaimer of affiliation is deemed to have <br/>
<a id="pl.37.31"></a><var>37.31</var>been granted unless the commissioner, within 30 days following receipt of a complete <br/>
<a id="pl.37.32"></a><var>37.32</var>disclaimer, notifies the filing party that the disclaimer is disallowed. In the event of <br/>
<a id="pl.37.33"></a><var>37.33</var>disallowance, the disclaiming party may request an administrative hearing, which must <br/>
<a id="pl.37.34"></a><var>37.34</var>be granted. The disclaiming party is relieved of its duty to register under this section if <br/>
<a id="pl.38.1"></a><var>38.1</var>approval of the disclaimer has been granted by the commissioner, or if the disclaimer is <br/>
<a id="pl.38.2"></a><var>38.2</var>deemed to have been approved.<br/>
<br/>
<a id="bill.5.14.0"></a><a id="pl.38.3"></a><var>38.3</var>    Sec. 14. Minnesota Statutes 2012, section 60D.19, is amended by adding a subdivision <br/>
<a id="pl.38.4"></a><var>38.4</var>to read:<br/>
<a id="pl.38.5"></a><var>38.5</var>    Subd. 11a. <b>Enterprise risk filing.</b> The ultimate controlling person of an insurer <br/>
<a id="pl.38.6"></a><var>38.6</var>subject to registration shall also file an annual enterprise risk report. The report must, to <br/>
<a id="pl.38.7"></a><var>38.7</var>the best of the ultimate controlling person's knowledge and belief, identify the material <br/>
<a id="pl.38.8"></a><var>38.8</var>risks within the insurance holding company system that could pose enterprise risk to the <br/>
<a id="pl.38.9"></a><var>38.9</var>insurer. The report must be filed with the lead state commissioner of the insurance holding <br/>
<a id="pl.38.10"></a><var>38.10</var>company system as determined by the procedures within the Financial Analysis Handbook <br/>
<a id="pl.38.11"></a><var>38.11</var>adopted by the National Association of Insurance Commissioners.<br/>
<br/>
<a id="bill.5.15.0"></a><a id="pl.38.12"></a><var>38.12</var>    Sec. 15. Minnesota Statutes 2012, section 60D.19, subdivision 12, is amended to read:<br/>
<a id="pl.38.13"></a><var>38.13</var>    Subd. 12. <b>Violations.</b> The failure to file a registration statement or any summary <br/>
<a id="pl.38.14"></a><var>38.14</var>of the registration statement or enterprise risk filing required by this section within the <br/>
<a id="pl.38.15"></a><var>38.15</var>time specified for the filing is a violation of this section.<br/>
<br/>
<a id="bill.5.16.0"></a><a id="pl.38.16"></a><var>38.16</var>    Sec. 16. Minnesota Statutes 2012, section 60D.20, subdivision 1, is amended to read:<br/>
<a id="pl.38.17"></a><var>38.17</var>    Subdivision 1. <b>Transactions within </b><b>a</b><b> an insurance</b><b> holding company system.</b> (a) <br/>
<a id="pl.38.18"></a><var>38.18</var>Transactions within a an insurance holding company system to which an insurer subject to <br/>
<a id="pl.38.19"></a><var>38.19</var>registration is a party are subject to the following standards:<br/>
<a id="pl.38.20"></a><var>38.20</var>(1) the terms shall be fair and reasonable;<br/>
<a id="pl.38.21"></a><var>38.21</var>(2) agreements for cost-sharing services and management shall include the <br/>
<a id="pl.38.22"></a><var>38.22</var>provisions required by rule issued by the commissioner;<br/>
<a id="pl.38.23"></a><var>38.23</var>(2) (3) charges or fees for services performed shall be reasonable;<br/>
<a id="pl.38.24"></a><var>38.24</var>(3) (4) expenses incurred and payment received shall be allocated to the insurer in <br/>
<a id="pl.38.25"></a><var>38.25</var>conformity with customary insurance accounting practices consistently applied;<br/>
<a id="pl.38.26"></a><var>38.26</var>(4) (5) the books, accounts, and records of each party to all such transactions shall be <br/>
<a id="pl.38.27"></a><var>38.27</var>so maintained as to clearly and accurately disclose the nature and details of the transactions <br/>
<a id="pl.38.28"></a><var>38.28</var>including this accounting information as is necessary to support the reasonableness of the <br/>
<a id="pl.38.29"></a><var>38.29</var>charges or fees to the respective parties; and<br/>
<a id="pl.38.30"></a><var>38.30</var>(5) (6) the insurer's surplus as regards policyholders following any dividends or <br/>
<a id="pl.38.31"></a><var>38.31</var>distributions to shareholder affiliates shall be reasonable in relation to the insurer's <br/>
<a id="pl.38.32"></a><var>38.32</var>outstanding liabilities and adequate to its financial needs.<br/>
<a id="pl.39.1"></a><var>39.1</var>(b) The following transactions involving a domestic insurer and any person in its<br/>
<a id="pl.39.2"></a><var>39.2</var> insurance holding company system, including amendments or modifications of affiliate <br/>
<a id="pl.39.3"></a><var>39.3</var>agreements previously filed pursuant to this section, which are subject to any materiality <br/>
<a id="pl.39.4"></a><var>39.4</var>standards contained in clauses (1) to (7), may not be entered into unless the insurer has <br/>
<a id="pl.39.5"></a><var>39.5</var>notified the commissioner in writing of its intention to enter into the transaction at least 30 <br/>
<a id="pl.39.6"></a><var>39.6</var>days prior thereto, or a shorter period the commissioner permits, and the commissioner <br/>
<a id="pl.39.7"></a><var>39.7</var>has not disapproved it within this period. The notice for amendments or modifications <br/>
<a id="pl.39.8"></a><var>39.8</var>must include the reasons for the change and the financial impact on the domestic insurer. <br/>
<a id="pl.39.9"></a><var>39.9</var>Informal notice must be reported, within 30 days after a termination of a previously filed <br/>
<a id="pl.39.10"></a><var>39.10</var>agreement , to the commissioner for determination of the type of filing required, if any:<br/>
<a id="pl.39.11"></a><var>39.11</var>(1) sales, purchases, exchanges, loans or extensions of credit, guarantees, or <br/>
<a id="pl.39.12"></a><var>39.12</var>investments provided the transactions are equal to or exceed: (i) with respect to nonlife <br/>
<a id="pl.39.13"></a><var>39.13</var>insurers, the lesser of three percent of the insurer's admitted assets, or 25 percent of surplus <br/>
<a id="pl.39.14"></a><var>39.14</var>as regards policyholders; (ii) with respect to life insurers, three percent of the insurer's <br/>
<a id="pl.39.15"></a><var>39.15</var>admitted assets; each as of the 31st day of December next preceding;<br/>
<a id="pl.39.16"></a><var>39.16</var>(2) loans or extensions of credit to any person who is not an affiliate, where the <br/>
<a id="pl.39.17"></a><var>39.17</var>insurer makes the loans or extensions of credit with the agreement or understanding that <br/>
<a id="pl.39.18"></a><var>39.18</var>the proceeds of the transactions, in whole or in substantial part, are to be used to make <br/>
<a id="pl.39.19"></a><var>39.19</var>loans or extensions of credit to, to purchase assets of, or to make investments in, any <br/>
<a id="pl.39.20"></a><var>39.20</var>affiliate of the insurer making such loans or extensions of credit provided the transactions <br/>
<a id="pl.39.21"></a><var>39.21</var>are equal to or exceed: (i) with respect to nonlife insurers, the lesser of three percent of <br/>
<a id="pl.39.22"></a><var>39.22</var>the insurer's admitted assets or 25 percent of surplus as regards policyholders; (ii) with <br/>
<a id="pl.39.23"></a><var>39.23</var>respect to life insurers, three percent of the insurer's admitted assets; each as of the 31st <br/>
<a id="pl.39.24"></a><var>39.24</var>day of December next preceding;<br/>
<a id="pl.39.25"></a><var>39.25</var>(3) reinsurance agreements or modifications to those agreements, including: (i) all <br/>
<a id="pl.39.26"></a><var>39.26</var>reinsurance pooling agreements; and (ii) agreements in which the reinsurance premium or <br/>
<a id="pl.39.27"></a><var>39.27</var>a change in the insurer's liabilities, or the projected reinsurance premium or a change in <br/>
<a id="pl.39.28"></a><var>39.28</var>the insurer's liabilities in any of the next three years, equals or exceeds five percent of the <br/>
<a id="pl.39.29"></a><var>39.29</var>insurer's surplus as regards policyholders, as of the 31st day of December next preceding, <br/>
<a id="pl.39.30"></a><var>39.30</var>including those agreements which may require as consideration the transfer of assets <br/>
<a id="pl.39.31"></a><var>39.31</var>from an insurer to a nonaffiliate, if an agreement or understanding exists between the <br/>
<a id="pl.39.32"></a><var>39.32</var>insurer and nonaffiliate that any portion of such assets will be transferred to one or more <br/>
<a id="pl.39.33"></a><var>39.33</var>affiliates of the insurer;<br/>
<a id="pl.39.34"></a><var>39.34</var>(4) all management agreements, service contracts, tax allocation agreements, <br/>
<a id="pl.39.35"></a><var>39.35</var>guarantees, and all cost-sharing arrangements; and<br/>
<a id="pl.40.1"></a><var>40.1</var>(5) guarantees when made by a domestic insurer; provided, however, that a <br/>
<a id="pl.40.2"></a><var>40.2</var>guarantee which is quantifiable as to amount is not subject to the notice requirements <br/>
<a id="pl.40.3"></a><var>40.3</var>of this paragraph unless it exceeds the lesser of one-half of one percent of the insurer's <br/>
<a id="pl.40.4"></a><var>40.4</var>admitted assets or ten percent of surplus as regards policyholders as of the 31st day of <br/>
<a id="pl.40.5"></a><var>40.5</var>December next preceding. Further, all guarantees which are not quantifiable as to amount <br/>
<a id="pl.40.6"></a><var>40.6</var>are subject to the notice requirements of this paragraph;<br/>
<a id="pl.40.7"></a><var>40.7</var>(6) direct or indirect acquisitions or investments in a person that controls the insurer <br/>
<a id="pl.40.8"></a><var>40.8</var>or in an affiliate of the insurer in an amount which, together with its present holdings in the <br/>
<a id="pl.40.9"></a><var>40.9</var>investments, exceeds two and one-half percent of the insurer's surplus to policyholders. <br/>
<a id="pl.40.10"></a><var>40.10</var>Direct or indirect acquisitions or investments in subsidiaries acquired pursuant to section <br/>
<a id="pl.40.11"></a><var>40.11</var>60D.16, or in nonsubsidiary insurance affiliates that are subject to the provisions of <br/>
<a id="pl.40.12"></a><var>40.12</var>sections 60D.15 to 60D.29, are exempt from this requirement; and<br/>
<a id="pl.40.13"></a><var>40.13</var>(5) (7) any material transactions, specified by regulation, which the commissioner <br/>
<a id="pl.40.14"></a><var>40.14</var>determines may adversely affect the interests of the insurer's policyholders.<br/>
<a id="pl.40.15"></a><var>40.15</var>Nothing contained in this section authorizes or permits any transactions that, in the <br/>
<a id="pl.40.16"></a><var>40.16</var>case of an insurer not a member of the same insurance holding company system, would be <br/>
<a id="pl.40.17"></a><var>40.17</var>otherwise contrary to law.<br/>
<a id="pl.40.18"></a><var>40.18</var>(c) A domestic insurer may not enter into transactions which are part of a plan or <br/>
<a id="pl.40.19"></a><var>40.19</var>series of like transactions with persons within the insurance holding company system if <br/>
<a id="pl.40.20"></a><var>40.20</var>the purpose of those separate transactions is to avoid the statutory threshold amount and <br/>
<a id="pl.40.21"></a><var>40.21</var>thus avoid the review that would occur otherwise. If the commissioner determines that <br/>
<a id="pl.40.22"></a><var>40.22</var>the separate transactions were entered into over any 12-month period for the purpose, the <br/>
<a id="pl.40.23"></a><var>40.23</var>commissioner may exercise the authority under section 
         <statute_ref>60D.25</statute_ref>.<br/>
<a id="pl.40.24"></a><var>40.24</var>(d) The commissioner, in reviewing transactions pursuant to paragraph (b), shall <br/>
<a id="pl.40.25"></a><var>40.25</var>consider whether the transactions comply with the standards set forth in paragraph (a), and <br/>
<a id="pl.40.26"></a><var>40.26</var>whether they may adversely affect the interests of policyholders.<br/>
<a id="pl.40.27"></a><var>40.27</var>(e) The commissioner shall be notified within 30 days of any investment of the <br/>
<a id="pl.40.28"></a><var>40.28</var>domestic insurer in any one corporation if the total investment in the corporation by <br/>
<a id="pl.40.29"></a><var>40.29</var>the insurance holding company system exceeds ten percent of the corporation's voting <br/>
<a id="pl.40.30"></a><var>40.30</var>securities.<br/>
<br/>
<a id="bill.5.17.0"></a><a id="pl.40.31"></a><var>40.31</var>    Sec. 17. Minnesota Statutes 2012, section 60D.20, subdivision 3, is amended to read:<br/>
<a id="pl.40.32"></a><var>40.32</var>    Subd. 3. <b>Management of domestic insurers subject to registration.</b> (a) <br/>
<a id="pl.40.33"></a><var>40.33</var>Notwithstanding the control of a domestic insurer by any person, the officers and directors <br/>
<a id="pl.40.34"></a><var>40.34</var>of the insurer shall not thereby be relieved of any obligation or liability to which they <br/>
<a id="pl.41.1"></a><var>41.1</var>would otherwise be subject by law, and the insurer shall be managed so as to assure its <br/>
<a id="pl.41.2"></a><var>41.2</var>separate operating identity consistent with this chapter sections 60D.15 to 60D.29.<br/>
<a id="pl.41.3"></a><var>41.3</var>(b) Nothing in this chapter sections 60D.15 to 60D.29 precludes a domestic insurer <br/>
<a id="pl.41.4"></a><var>41.4</var>from having or sharing a common management or cooperative or joint use of personnel, <br/>
<a id="pl.41.5"></a><var>41.5</var>property, or services with one or more other persons under arrangements meeting the <br/>
<a id="pl.41.6"></a><var>41.6</var>standards of subdivision 1, paragraph (a), clause (1).<br/>
<a id="pl.41.7"></a><var>41.7</var>(c) Not less than one-third of the directors of a publicly traded domestic insurer, and <br/>
<a id="pl.41.8"></a><var>41.8</var>not less than one-third of the members of each committee of the board of directors of any <br/>
<a id="pl.41.9"></a><var>41.9</var>publicly traded domestic insurer shall be persons who are not officers or employees of <br/>
<a id="pl.41.10"></a><var>41.10</var>the insurer or of any entity controlling, controlled by, or under common control with the <br/>
<a id="pl.41.11"></a><var>41.11</var>insurer and who are not beneficial owners of a controlling interest in the voting stock of <br/>
<a id="pl.41.12"></a><var>41.12</var>the insurer or any such entity. At least one such person must be included in any quorum <br/>
<a id="pl.41.13"></a><var>41.13</var>for the transaction of business at any meeting of the board of directors or any committee <br/>
<a id="pl.41.14"></a><var>41.14</var>of the board.<br/>
<a id="pl.41.15"></a><var>41.15</var>(d) The board of directors of a publicly traded domestic insurer shall establish an audit <br/>
<a id="pl.41.16"></a><var>41.16</var>committee having a majority one or more committees comprised solely of directors who <br/>
<a id="pl.41.17"></a><var>41.17</var>are not officers or employees of the insurer or of any entity controlling, controlled by, or <br/>
<a id="pl.41.18"></a><var>41.18</var>under common control with the insurer and who are not beneficial owners of a controlling <br/>
<a id="pl.41.19"></a><var>41.19</var>interest in the voting stock of the insurer or any such entity. The committee or committees<br/>
<a id="pl.41.20"></a><var>41.20</var> shall have responsibility for selecting independent certified public accountants and <br/>
<a id="pl.41.21"></a><var>41.21</var>reviewing the scope and results of the independent audit and any internal audit nominating <br/>
<a id="pl.41.22"></a><var>41.22</var>candidates for director for election by shareholders or policyholders, evaluating the <br/>
<a id="pl.41.23"></a><var>41.23</var>performance of officers deemed to be principal officers of the insurer, and recommending <br/>
<a id="pl.41.24"></a><var>41.24</var>to the board of directors the selection and compensation of the principal officers.<br/>
<a id="pl.41.25"></a><var>41.25</var>(e) Paragraphs (c) and (d) do not apply to a domestic insurer if the person controlling <br/>
<a id="pl.41.26"></a><var>41.26</var>the insurer is, such as an insurer, or a general business corporation the principal business <br/>
<a id="pl.41.27"></a><var>41.27</var>of which is insurance, having a mutual insurance holding company, or a publicly <br/>
<a id="pl.41.28"></a><var>41.28</var>held corporation, has a board of directors and committees of the board that meet the <br/>
<a id="pl.41.29"></a><var>41.29</var>requirements of paragraphs (c) and (d) with respect to the controlling entity.<br/>
<a id="pl.41.30"></a><var>41.30</var>(f) An insurer may make application to the commissioner for a waiver from the <br/>
<a id="pl.41.31"></a><var>41.31</var>requirements of this subdivision, if the insurer's annual direct written and assumed <br/>
<a id="pl.41.32"></a><var>41.32</var>premium, excluding premiums reinsured with the Federal Crop Insurance Corporation and <br/>
<a id="pl.41.33"></a><var>41.33</var>Federal Flood Program, is less than $300,000,000. An insurer may also make application <br/>
<a id="pl.41.34"></a><var>41.34</var>to the commissioner for a waiver from the requirements of this subdivision based upon <br/>
<a id="pl.41.35"></a><var>41.35</var>unique circumstances. The commissioner may consider various factors including, but not <br/>
<a id="pl.42.1"></a><var>42.1</var>limited to, the type of business entity, volume of business written, availability of qualified <br/>
<a id="pl.42.2"></a><var>42.2</var>board members, or ownership or organizational structure of the entity.<br/>
<br/>
<a id="bill.5.18.0"></a><a id="pl.42.3"></a><var>42.3</var>    Sec. 18. Minnesota Statutes 2012, section 60D.21, subdivision 1, is amended to read:<br/>
<a id="pl.42.4"></a><var>42.4</var>    Subdivision 1. <b>Power of commissioner.</b> Subject to the limitation contained in this <br/>
<a id="pl.42.5"></a><var>42.5</var>section and in addition to the powers that the commissioner has under chapter 60A relating <br/>
<a id="pl.42.6"></a><var>42.6</var>to the examination of insurers, the commissioner shall also have the power to order any <br/>
<a id="pl.42.7"></a><var>42.7</var>insurer registered under section 
<statute_ref>60D.19</statute_ref> to produce records, books, or other information <br/>
<a id="pl.42.8"></a><var>42.8</var>papers in the possession of the insurer or its affiliates as are reasonably necessary to <br/>
<a id="pl.42.9"></a><var>42.9</var>ascertain the financial condition of the insurer or to determine compliance with this <br/>
<a id="pl.42.10"></a><var>42.10</var>chapter. In the event the insurer fails to comply with the order, the commissioner shall <br/>
<a id="pl.42.11"></a><var>42.11</var>have the power to examine the affiliates to obtain the information examine an insurer <br/>
<a id="pl.42.12"></a><var>42.12</var>registered under section 60D.19 and its affiliates to ascertain the financial condition of the <br/>
<a id="pl.42.13"></a><var>42.13</var>insurer, including the enterprise risk to the insurer by the ultimate controlling party, or by <br/>
<a id="pl.42.14"></a><var>42.14</var>an entity or combination of entities within the insurance holding company system, or by <br/>
<a id="pl.42.15"></a><var>42.15</var>the insurance holding company system on a consolidated basis.<br/>
<br/>
<a id="bill.5.19.0"></a><a id="pl.42.16"></a><var>42.16</var>    Sec. 19. Minnesota Statutes 2012, section 60D.21, is amended by adding a subdivision <br/>
<a id="pl.42.17"></a><var>42.17</var>to read:<br/>
<a id="pl.42.18"></a><var>42.18</var>    Subd. 1a. <b>Access to books and records.</b> (a) The commissioner may order an insurer <br/>
<a id="pl.42.19"></a><var>42.19</var>registered under section 60D.19 to produce the records, books, or other information papers <br/>
<a id="pl.42.20"></a><var>42.20</var>in the possession of the insurer or its affiliates that are reasonably necessary to determine <br/>
<a id="pl.42.21"></a><var>42.21</var>compliance with sections 60D.15 to 60D.29.<br/>
<a id="pl.42.22"></a><var>42.22</var>(b) To determine compliance with sections 60D.15 to 60D.29, the commissioner <br/>
<a id="pl.42.23"></a><var>42.23</var>may order an insurer registered under section 60D.19 to produce information not in the <br/>
<a id="pl.42.24"></a><var>42.24</var>possession of the insurer if the insurer can obtain access to the information pursuant to <br/>
<a id="pl.42.25"></a><var>42.25</var>contractual relationships, statutory obligations, or other method. In the event the insurer <br/>
<a id="pl.42.26"></a><var>42.26</var>cannot obtain the information requested by the commissioner, the insurer shall provide <br/>
<a id="pl.42.27"></a><var>42.27</var>the commissioner a detailed explanation of the reason that the insurer cannot obtain the <br/>
<a id="pl.42.28"></a><var>42.28</var>information and the identity of the holder of the information. Whenever it appears to <br/>
<a id="pl.42.29"></a><var>42.29</var>the commissioner that the detailed explanation is without merit, the commissioner may <br/>
<a id="pl.42.30"></a><var>42.30</var>require, after notice and hearing, the insurer to pay a penalty of $5,000 for each day's <br/>
<a id="pl.42.31"></a><var>42.31</var>delay, or may suspend or revoke the insurer's license.<br/>
<br/>
<a id="bill.5.20.0"></a><a id="pl.42.32"></a><var>42.32</var>    Sec. 20. Minnesota Statutes 2012, section 60D.21, is amended by adding a subdivision <br/>
<a id="pl.42.33"></a><var>42.33</var>to read:<br/>
<a id="pl.43.1"></a><var>43.1</var>    Subd. 4. <b>Compelling production.</b> In the event the insurer fails to comply with <br/>
<a id="pl.43.2"></a><var>43.2</var>an order, the commissioner may examine the affiliates to obtain the information. The <br/>
<a id="pl.43.3"></a><var>43.3</var>commissioner may also issue subpoenas, administer oaths, and to examine under oath <br/>
<a id="pl.43.4"></a><var>43.4</var>any person for purposes of determining compliance with this section. Upon the failure <br/>
<a id="pl.43.5"></a><var>43.5</var>or refusal of a person to obey a subpoena, the commissioner may petition a court of <br/>
<a id="pl.43.6"></a><var>43.6</var>competent jurisdiction, and upon proper showing, the court may enter an order compelling <br/>
<a id="pl.43.7"></a><var>43.7</var>the witness to appear and testify or produce documentary evidence. Failure to obey the <br/>
<a id="pl.43.8"></a><var>43.8</var>court order is punishable as contempt of court. Every person is obliged to attend as a <br/>
<a id="pl.43.9"></a><var>43.9</var>witness at the place specified in the subpoena, when subpoenaed, anywhere within the <br/>
<a id="pl.43.10"></a><var>43.10</var>state. The person is entitled to the same fees and mileage, if claimed, as a witness in <br/>
<a id="pl.43.11"></a><var>43.11</var>district court. The fees, mileage, and actual expense, if any, necessarily incurred in <br/>
<a id="pl.43.12"></a><var>43.12</var>securing the attendance of witnesses and their testimony, must be itemized and charged <br/>
<a id="pl.43.13"></a><var>43.13</var>against, and be paid by, the company being examined.<br/>
<br/>
<a id="bill.5.21.0"></a><a id="pl.43.14"></a><var>43.14</var>    Sec. 21. <b>[60D.215] SUPERVISORY COLLEGES.</b><br/>
<a id="pl.43.15"></a><var>43.15</var>    Subdivision 1. <b>Power of commissioner.</b> With respect to any insurer registered <br/>
<a id="pl.43.16"></a><var>43.16</var>under section 60D.19, and in accordance with subdivision 3, the commissioner may also <br/>
<a id="pl.43.17"></a><var>43.17</var>participate in a supervisory college for a domestic insurer that is part of an insurance <br/>
<a id="pl.43.18"></a><var>43.18</var>holding company system with international operations in order to determine compliance <br/>
<a id="pl.43.19"></a><var>43.19</var>by the insurer with sections 60D.15 to 60D.29. The powers of the commissioner with <br/>
<a id="pl.43.20"></a><var>43.20</var>respect to supervisory colleges include, but are not limited to, the following:<br/>
<a id="pl.43.21"></a><var>43.21</var>(1) initiating the establishment of a supervisory college;<br/>
<a id="pl.43.22"></a><var>43.22</var>(2) clarifying the membership and participation of other supervisors in the <br/>
<a id="pl.43.23"></a><var>43.23</var>supervisory college;<br/>
<a id="pl.43.24"></a><var>43.24</var>(3) clarifying the functions of the supervisory college and the role of other regulators, <br/>
<a id="pl.43.25"></a><var>43.25</var>including the establishment of a groupwide supervisor;<br/>
<a id="pl.43.26"></a><var>43.26</var>(4) coordinating the ongoing activities of the supervisory college, including planning <br/>
<a id="pl.43.27"></a><var>43.27</var>meetings, supervisory activities, and processes for information sharing; and<br/>
<a id="pl.43.28"></a><var>43.28</var>(5) establishing a crisis management plan.<br/>
<a id="pl.43.29"></a><var>43.29</var>    Subd. 2. <b>Expenses.</b> Each registered insurer subject to this section is liable for and <br/>
<a id="pl.43.30"></a><var>43.30</var>shall pay the reasonable expenses of the commissioner's participation in a supervisory <br/>
<a id="pl.43.31"></a><var>43.31</var>college in accordance with subdivision 3, including reasonable travel expenses. For <br/>
<a id="pl.43.32"></a><var>43.32</var>purposes of this section, a supervisory college may be convened as either a temporary <br/>
<a id="pl.43.33"></a><var>43.33</var>or permanent forum for communication and cooperation between the regulators charged <br/>
<a id="pl.43.34"></a><var>43.34</var>with the supervision of the insurer or its affiliates, and the commissioner may establish a <br/>
<a id="pl.43.35"></a><var>43.35</var>regular assessment to the insurer for the payment of these expenses.<br/>
<a id="pl.44.1"></a><var>44.1</var>    Subd. 3. <b>Supervisory college.</b> In order to assess the business strategy, financial <br/>
<a id="pl.44.2"></a><var>44.2</var>position, legal and regulatory position, risk exposure, risk management, and governance <br/>
<a id="pl.44.3"></a><var>44.3</var>processes, and as part of the examination of individual insurers in accordance with section <br/>
<a id="pl.44.4"></a><var>44.4</var>60D.21, the commissioner may participate in a supervisory college with other regulators <br/>
<a id="pl.44.5"></a><var>44.5</var>charged with supervision of the insurer or its affiliates, including other state, federal, <br/>
<a id="pl.44.6"></a><var>44.6</var>and international regulatory agencies. The commissioner may enter into agreements <br/>
<a id="pl.44.7"></a><var>44.7</var>in accordance with section 60D.22 providing the basis for cooperation between the <br/>
<a id="pl.44.8"></a><var>44.8</var>commissioner and the other regulatory agencies, and the activities of the supervisory <br/>
<a id="pl.44.9"></a><var>44.9</var>college. Nothing in this section delegates to the supervisory college the authority of the <br/>
<a id="pl.44.10"></a><var>44.10</var>commissioner to regulate or supervise the insurer or its affiliates within its jurisdiction.<br/>
<br/>
<a id="bill.5.22.0"></a><a id="pl.44.11"></a><var>44.11</var>    Sec. 22. Minnesota Statutes 2012, section 60D.22, is amended to read:<br/>
<a id="pl.44.12"></a><var>44.12</var><b>60D.22 </b><b>CONFIDENTIAL TREATMENT</b><b> CONFIDENTIALITY</b><b>.</b><br/>
<a id="pl.44.13"></a><var>44.13</var>    Subdivision 1. <b>Classification protection and use of information by commissioner.</b><br/>
<a id="pl.44.14"></a><var>44.14</var>All information, documents, and copies of them obtained by or disclosed to the <br/>
<a id="pl.44.15"></a><var>44.15</var>commissioner or any other person in the course of an examination or investigation <br/>
<a id="pl.44.16"></a><var>44.16</var>made pursuant to section 
<statute_ref>60D.20</statute_ref> and all information reported pursuant to sections <br/>
<a id="pl.44.17"></a><var>44.17</var><statute_ref>60D.18</statute_ref> and 
<statute_ref>60D.19</statute_ref>, shall be given confidential treatment and shall not be subject to <br/>
<a id="pl.44.18"></a><var>44.18</var>subpoena and shall not be made public by the commissioner, the National Association <br/>
<a id="pl.44.19"></a><var>44.19</var>of Insurance Commissioners, or any other person, except to insurance departments of <br/>
<a id="pl.44.20"></a><var>44.20</var>other states, without the prior written consent of the insurer to which it pertains unless <br/>
<a id="pl.44.21"></a><var>44.21</var>the commissioner, after giving the insurer and its affiliates who would be affected, notice <br/>
<a id="pl.44.22"></a><var>44.22</var>and opportunity to be heard, determines that the interest of policyholders or the public <br/>
<a id="pl.44.23"></a><var>44.23</var>will be served by the publication, in which event the commissioner may publish all or <br/>
<a id="pl.44.24"></a><var>44.24</var>any part in the manner the commissioner considers appropriate. Documents, materials, <br/>
<a id="pl.44.25"></a><var>44.25</var>or other information in the possession or control of the department that are obtained by <br/>
<a id="pl.44.26"></a><var>44.26</var>or disclosed to the commissioner or any other person in the course of an examination or <br/>
<a id="pl.44.27"></a><var>44.27</var>investigation made pursuant to section 60D.21 and all information reported pursuant to <br/>
<a id="pl.44.28"></a><var>44.28</var>sections 60D.17, except as provided in section 60D.17, subdivision 1, paragraph (e); <br/>
<a id="pl.44.29"></a><var>44.29</var>60D.18; 60D.19; and 60D.20, are classified as confidential or protected nonpublic or both, <br/>
<a id="pl.44.30"></a><var>44.30</var>are not subject to subpoena, and are not subject to discovery or admissible in evidence <br/>
<a id="pl.44.31"></a><var>44.31</var>in a private civil action. However, the commissioner may use the documents, materials, <br/>
<a id="pl.44.32"></a><var>44.32</var>or other information in the furtherance of any regulatory or legal action brought as a <br/>
<a id="pl.44.33"></a><var>44.33</var>part of the commissioner's official duties. The commissioner shall not otherwise make <br/>
<a id="pl.44.34"></a><var>44.34</var>the documents, materials, or other information public without the prior written consent <br/>
<a id="pl.44.35"></a><var>44.35</var>of the insurer to which it pertains unless the commissioner, after giving the insurer and <br/>
<a id="pl.45.1"></a><var>45.1</var>its affiliates who would be affected by this action notice and opportunity to be heard, <br/>
<a id="pl.45.2"></a><var>45.2</var>determines that the interest of policyholders, shareholders, or the public will be served by <br/>
<a id="pl.45.3"></a><var>45.3</var>the publication of it, in which event the commissioner may publish all or any part in the <br/>
<a id="pl.45.4"></a><var>45.4</var>manner the commissioner deems appropriate.<br/>
<a id="pl.45.5"></a><var>45.5</var>    Subd. 2. <b>Testimonial privilege.</b> Neither the commissioner nor any person who <br/>
<a id="pl.45.6"></a><var>45.6</var>received documents, materials, or other information while acting under the authority of the <br/>
<a id="pl.45.7"></a><var>45.7</var>commissioner or with whom these documents, materials, or other information are shared <br/>
<a id="pl.45.8"></a><var>45.8</var>pursuant to sections 60D.15 to 60D.29 is permitted or required to testify in a private civil <br/>
<a id="pl.45.9"></a><var>45.9</var>action concerning documents, materials, or information subject to subdivision 1 that are <br/>
<a id="pl.45.10"></a><var>45.10</var>classified as confidential, protected nonpublic, or both.<br/>
<a id="pl.45.11"></a><var>45.11</var>    Subd. 3. <b>Sharing of information.</b> In order to assist in the performance of the <br/>
<a id="pl.45.12"></a><var>45.12</var>commissioner's duties, the commissioner:<br/>
<a id="pl.45.13"></a><var>45.13</var>(1) may share documents, materials, or other information, including the confidential, <br/>
<a id="pl.45.14"></a><var>45.14</var>protected nonpublic, and privileged documents, materials, or information subject to this <br/>
<a id="pl.45.15"></a><var>45.15</var>section, with other state, federal, and international regulatory agencies, with the NAIC and <br/>
<a id="pl.45.16"></a><var>45.16</var>its affiliates and subsidiaries, and with state, federal, and international law enforcement <br/>
<a id="pl.45.17"></a><var>45.17</var>authorities, including members of any supervisory college described in section 60D.215, <br/>
<a id="pl.45.18"></a><var>45.18</var>provided that the recipient agrees in writing to maintain the confidentiality and privileged <br/>
<a id="pl.45.19"></a><var>45.19</var>status of the document, material, or other information, and has verified in writing the <br/>
<a id="pl.45.20"></a><var>45.20</var>legal authority to maintain confidentiality;<br/>
<a id="pl.45.21"></a><var>45.21</var>(2) notwithstanding clause (1), may only share confidential, protected nonpublic, and <br/>
<a id="pl.45.22"></a><var>45.22</var>privileged documents, materials, or information reported pursuant to section 60D.19 with <br/>
<a id="pl.45.23"></a><var>45.23</var>commissioners of states having statutes or regulations substantially similar to subdivision <br/>
<a id="pl.45.24"></a><var>45.24</var>1 and who have agreed in writing not to disclose this information;<br/>
<a id="pl.45.25"></a><var>45.25</var>(3) may receive documents, materials, or information, including otherwise <br/>
<a id="pl.45.26"></a><var>45.26</var>confidential and privileged documents, materials, or information from the NAIC and <br/>
<a id="pl.45.27"></a><var>45.27</var>its affiliates and subsidiaries and from regulatory and law enforcement officials of <br/>
<a id="pl.45.28"></a><var>45.28</var>other foreign or domestic jurisdictions, and shall maintain as confidential, protected <br/>
<a id="pl.45.29"></a><var>45.29</var>nonpublic, or privileged any document, material, or information received with notice or <br/>
<a id="pl.45.30"></a><var>45.30</var>the understanding that it is confidential or privileged under the laws of the jurisdiction that <br/>
<a id="pl.45.31"></a><var>45.31</var>is the source of the document, material, or information; and<br/>
<a id="pl.45.32"></a><var>45.32</var>(4) shall enter into written agreements with the NAIC governing sharing and use of <br/>
<a id="pl.45.33"></a><var>45.33</var>information provided pursuant to sections 60D.15 to 60D.29 consistent with this clause <br/>
<a id="pl.45.34"></a><var>45.34</var>that shall:<br/>
<a id="pl.45.35"></a><var>45.35</var>(i) specify procedures and protocols regarding the confidentiality and security of <br/>
<a id="pl.45.36"></a><var>45.36</var>information shared with the NAIC and its affiliates and subsidiaries pursuant to sections <br/>
<a id="pl.46.1"></a><var>46.1</var>60D.15 to 60D.29, including procedures and protocols for sharing by the NAIC with other <br/>
<a id="pl.46.2"></a><var>46.2</var>state, federal, or international regulators;<br/>
<a id="pl.46.3"></a><var>46.3</var>(ii) specify that ownership of information shared with the NAIC and its affiliates and <br/>
<a id="pl.46.4"></a><var>46.4</var>subsidiaries pursuant to sections 60D.15 to 60D.29 remains with the commissioner and <br/>
<a id="pl.46.5"></a><var>46.5</var>the NAIC's use of the information is subject to the direction of the commissioner;<br/>
<a id="pl.46.6"></a><var>46.6</var>(iii) require prompt notice to be given to an insurer whose confidential or protected <br/>
<a id="pl.46.7"></a><var>46.7</var>nonpublic information in the possession of the NAIC pursuant to sections 60D.15 to <br/>
<a id="pl.46.8"></a><var>46.8</var>60D.29 is subject to a request or subpoena to the NAIC for disclosure or production; and<br/>
<a id="pl.46.9"></a><var>46.9</var>(iv) require the NAIC and its affiliates and subsidiaries to consent to intervention by <br/>
<a id="pl.46.10"></a><var>46.10</var>an insurer in any judicial or administrative action in which the NAIC and its affiliates and <br/>
<a id="pl.46.11"></a><var>46.11</var>subsidiaries may be required to disclose confidential or protected nonpublic information <br/>
<a id="pl.46.12"></a><var>46.12</var>about the insurer shared with the NAIC and its affiliates and subsidiaries pursuant to <br/>
<a id="pl.46.13"></a><var>46.13</var>sections 60D.15 to 60D.29.<br/>
<a id="pl.46.14"></a><var>46.14</var>    Subd. 4. <b>Responsibility for administration, execution, and enforcement.</b> The <br/>
<a id="pl.46.15"></a><var>46.15</var>sharing of information by the commissioner pursuant to sections 60D.15 to 60D.29 does <br/>
<a id="pl.46.16"></a><var>46.16</var>not constitute a delegation of regulatory authority or rulemaking, and the commissioner is <br/>
<a id="pl.46.17"></a><var>46.17</var>solely responsible for the administration, execution, and enforcement of the provisions of <br/>
<a id="pl.46.18"></a><var>46.18</var>sections 60D.15 to 60D.29.<br/>
<a id="pl.46.19"></a><var>46.19</var>    Subd. 5. <b>Disclosure not deemed to be waiver of privilege or confidentiality.</b> No <br/>
<a id="pl.46.20"></a><var>46.20</var>waiver of any applicable privilege or claim of confidentiality in the documents, materials, <br/>
<a id="pl.46.21"></a><var>46.21</var>or information occurs as a result of disclosure to the commissioner under this section or as <br/>
<a id="pl.46.22"></a><var>46.22</var>a result of sharing as authorized in subdivision 3.<br/>
<a id="pl.46.23"></a><var>46.23</var>    Subd. 6. <b>Classification protection and use by others.</b> Documents, materials, or <br/>
<a id="pl.46.24"></a><var>46.24</var>other information in the possession or control of the NAIC pursuant to sections 60D.15 to <br/>
<a id="pl.46.25"></a><var>46.25</var>60D.29 are confidential, protected nonpublic, or privileged, are not subject to subpoena, <br/>
<a id="pl.46.26"></a><var>46.26</var>and are not subject to discovery or admissible in evidence in a private civil action.<br/>
<br/>
<a id="bill.6.0.0"></a>

<a id="pl.46.29"></a><var>46.29</var><b>ASSESSMENT MODEL ACT</b><br/>

<a id="bill.6.1.0"></a><a id="pl.46.30"></a><var>46.30</var>    Section 1. <b>[60D.50] PURPOSE AND SCOPE.</b><br/>
<a id="pl.46.31"></a><var>46.31</var>(a) The purpose of sections 60D.50 to 60D.58 is to provide the requirements for <br/>
<a id="pl.46.32"></a><var>46.32</var>maintaining a risk management framework and completing an Own Risk and Solvency <br/>
<a id="pl.46.33"></a><var>46.33</var>Assessment (ORSA) and provide guidance and instructions for filing an ORSA Summary <br/>
<a id="pl.46.34"></a><var>46.34</var>Report with the commissioner.<br/>
<a id="pl.47.1"></a><var>47.1</var>(b) Sections 60D.50 to 60D.58 apply to all insurers domiciled in this state unless <br/>
<a id="pl.47.2"></a><var>47.2</var>exempt pursuant to section 60D.55.<br/>
<br/>
<a id="bill.6.2.0"></a><a id="pl.47.3"></a><var>47.3</var>    Sec. 2. <b>[60D.51] DEFINITIONS.</b><br/>
<a id="pl.47.4"></a><var>47.4</var>    Subdivision 1. <b>Scope.</b> For purposes of sections 60D.50 to 60D.58, the terms in <br/>
<a id="pl.47.5"></a><var>47.5</var>this section have the meanings given them.<br/>
<a id="pl.47.6"></a><var>47.6</var>    Subd. 2. <b>Insurance group.</b> For the purpose of conducting an ORSA, "insurance <br/>
<a id="pl.47.7"></a><var>47.7</var>group" means those insurers and affiliates included within an insurance holding company <br/>
<a id="pl.47.8"></a><var>47.8</var>system as defined in section 60D.15, subdivision 5.<br/>
<a id="pl.47.9"></a><var>47.9</var>    Subd. 3. <b>Insurer.</b> "Insurer" has the meaning given in section 60D.15, subdivision <br/>
<a id="pl.47.10"></a><var>47.10</var>6, except that it does not include agencies, authorities, or instrumentalities of the United <br/>
<a id="pl.47.11"></a><var>47.11</var>States, its possessions or territories, the Commonwealth of Puerto Rico, the District of <br/>
<a id="pl.47.12"></a><var>47.12</var>Columbia, or a state or political subdivision of a state.<br/>
<a id="pl.47.13"></a><var>47.13</var>    Subd. 4. <b>Own Risk and Solvency Assessment or ORSA.</b> "Own Risk and Solvency <br/>
<a id="pl.47.14"></a><var>47.14</var>Assessment" or "ORSA" means a confidential internal assessment, appropriate to the <br/>
<a id="pl.47.15"></a><var>47.15</var>nature, scale, and complexity of an insurer or insurance group, conducted by that insurer or <br/>
<a id="pl.47.16"></a><var>47.16</var>insurance group of the material and relevant risks associated with the insurer's or insurance <br/>
<a id="pl.47.17"></a><var>47.17</var>group's current business plan, and the sufficiency of capital resources to support those risks.<br/>
<a id="pl.47.18"></a><var>47.18</var>    Subd. 5. <b>ORSA Guidance Manual.</b> "ORSA Guidance Manual" means the current <br/>
<a id="pl.47.19"></a><var>47.19</var>version of the Own Risk and Solvency Assessment Guidance Manual developed and <br/>
<a id="pl.47.20"></a><var>47.20</var>adopted by the National Association of Insurance Commissioners (NAIC) and as amended <br/>
<a id="pl.47.21"></a><var>47.21</var>from time to time. A change in the ORSA Guidance Manual is effective on the January 1 <br/>
<a id="pl.47.22"></a><var>47.22</var>following the calendar year in which the changes have been adopted by the NAIC.<br/>
<a id="pl.47.23"></a><var>47.23</var>    Subd. 6. <b>ORSA Summary Report.</b> "ORSA Summary Report" means a confidential <br/>
<a id="pl.47.24"></a><var>47.24</var>high-level summary of an insurer's or insurance group's ORSA.<br/>
<br/>
<a id="bill.6.3.0"></a><a id="pl.47.25"></a><var>47.25</var>    Sec. 3. <b>[60D.52] RISK MANAGEMENT FRAMEWORK.</b><br/>
<a id="pl.47.26"></a><var>47.26</var>An insurer shall maintain a risk management framework to assist the insurer with <br/>
<a id="pl.47.27"></a><var>47.27</var>identifying, assessing, monitoring, managing, and reporting on its material and relevant <br/>
<a id="pl.47.28"></a><var>47.28</var>risks. This requirement may be satisfied if the insurance group of which the insurer is a <br/>
<a id="pl.47.29"></a><var>47.29</var>member maintains a risk management framework applicable to the operations of the insurer.<br/>
<br/>
<a id="bill.6.4.0"></a><a id="pl.47.30"></a><var>47.30</var>    Sec. 4. <b>[60D.53] ORSA REQUIREMENT.</b><br/>
<a id="pl.47.31"></a><var>47.31</var>Subject to section 60D.55, an insurer, or the insurance group of which the insurer <br/>
<a id="pl.47.32"></a><var>47.32</var>is a member, shall regularly conduct an ORSA consistent with a process comparable to <br/>
<a id="pl.47.33"></a><var>47.33</var>the ORSA Guidance Manual. The ORSA must be conducted no less than annually but <br/>
<a id="pl.48.1"></a><var>48.1</var>also at any time when there are significant changes to the risk profile of the insurer or the <br/>
<a id="pl.48.2"></a><var>48.2</var>insurance group of which the insurer is a member.<br/>
<br/>
<a id="bill.6.5.0"></a><a id="pl.48.3"></a><var>48.3</var>    Sec. 5. <b>[60D.54] ORSA SUMMARY REPORT.</b><br/>
<a id="pl.48.4"></a><var>48.4</var>    Subdivision 1. <b>Required submission.</b> Upon the commissioner's request and no <br/>
<a id="pl.48.5"></a><var>48.5</var>more than once per year, an insurer shall submit to the commissioner an ORSA Summary <br/>
<a id="pl.48.6"></a><var>48.6</var>Report or any combination of reports that together contain the information described in the <br/>
<a id="pl.48.7"></a><var>48.7</var>ORSA Guidance Manual, applicable to the insurer or the insurance group of which it is a <br/>
<a id="pl.48.8"></a><var>48.8</var>member. Notwithstanding any request from the commissioner, if the insurer is a member <br/>
<a id="pl.48.9"></a><var>48.9</var>of an insurance group, the insurer shall submit the reports required by this subdivision if <br/>
<a id="pl.48.10"></a><var>48.10</var>the commissioner is the lead state commissioner of the insurance group as determined by <br/>
<a id="pl.48.11"></a><var>48.11</var>the procedures adopted by the National Association of Insurance Commissioners.<br/>
<a id="pl.48.12"></a><var>48.12</var>    Subd. 2. <b>Attestation.</b> The reports in subdivision 1 shall include a signature of the <br/>
<a id="pl.48.13"></a><var>48.13</var>insurer's or insurance group's chief risk officer or other executive having responsibility for <br/>
<a id="pl.48.14"></a><var>48.14</var>the oversight of the insurer's enterprise risk management process attesting to the best of the <br/>
<a id="pl.48.15"></a><var>48.15</var>executive's belief and knowledge that the insurer applies the enterprise risk management <br/>
<a id="pl.48.16"></a><var>48.16</var>process described in the ORSA Summary Report and that a copy of the report has been <br/>
<a id="pl.48.17"></a><var>48.17</var>provided to the insurer's board of directors or the appropriate committee of the board.<br/>
<a id="pl.48.18"></a><var>48.18</var>    Subd. 3. <b>Alternative compliance.</b> An insurer may comply with subdivision 1 <br/>
<a id="pl.48.19"></a><var>48.19</var>by providing the most recent and substantially similar reports provided by the insurer <br/>
<a id="pl.48.20"></a><var>48.20</var>or another member of an insurance group of which the insurer is a member to the <br/>
<a id="pl.48.21"></a><var>48.21</var>commissioner of another state, or to a supervisor or regulator of a foreign jurisdiction, if <br/>
<a id="pl.48.22"></a><var>48.22</var>that report provides information that is comparable to the information described in the <br/>
<a id="pl.48.23"></a><var>48.23</var>ORSA Guidance Manual. A report in a language other than English must be accompanied <br/>
<a id="pl.48.24"></a><var>48.24</var>by a translation of the report into the English language.<br/>
<br/>
<a id="bill.6.6.0"></a><a id="pl.48.25"></a><var>48.25</var>    Sec. 6. <b>[60D.55] EXEMPTION.</b><br/>
<a id="pl.48.26"></a><var>48.26</var>    Subdivision 1. <b>Annual premium levels.</b> An insurer is exempt from the requirements <br/>
<a id="pl.48.27"></a><var>48.27</var>of sections 60D.50 to 60D.58 if:<br/>
<a id="pl.48.28"></a><var>48.28</var>(1) the insurer has annual direct written and unaffiliated assumed premium, <br/>
<a id="pl.48.29"></a><var>48.29</var>including international direct and assumed premium but excluding premiums reinsured <br/>
<a id="pl.48.30"></a><var>48.30</var>with the Federal Crop Insurance Corporation and Federal Flood Program, less than <br/>
<a id="pl.48.31"></a><var>48.31</var>$500,000,000; and<br/>
<a id="pl.48.32"></a><var>48.32</var>(2) the insurance group of which the insurer is a member has annual direct written <br/>
<a id="pl.48.33"></a><var>48.33</var>and unaffiliated assumed premium, including international direct and assumed premium <br/>
<a id="pl.49.1"></a><var>49.1</var>but excluding premiums reinsured with the Federal Crop Insurance Corporation and <br/>
<a id="pl.49.2"></a><var>49.2</var>Federal Flood Program, less than $1,000,000,000.<br/>
<a id="pl.49.3"></a><var>49.3</var>    Subd. 2. <b>Summary report required.</b> (a) If an insurer qualifies for exemption <br/>
<a id="pl.49.4"></a><var>49.4</var>pursuant to subdivision 1, clause (1), but the insurance group of which the insurer is a <br/>
<a id="pl.49.5"></a><var>49.5</var>member does not qualify for exemption pursuant to subdivision 1, clause (2), then the <br/>
<a id="pl.49.6"></a><var>49.6</var>ORSA Summary Report that may be required pursuant to section 60D.54 must include <br/>
<a id="pl.49.7"></a><var>49.7</var>every insurer within the insurance group. This requirement may be satisfied by the <br/>
<a id="pl.49.8"></a><var>49.8</var>submission of more than one ORSA Summary Report for any combination of insurers, <br/>
<a id="pl.49.9"></a><var>49.9</var>provided any combination of reports includes every insurer within the insurance group.<br/>
<a id="pl.49.10"></a><var>49.10</var>(b) If an insurer does not qualify for exemption pursuant to subdivision 1, clause <br/>
<a id="pl.49.11"></a><var>49.11</var>(1), but the insurance group of which it is a member qualifies for exemption pursuant to <br/>
<a id="pl.49.12"></a><var>49.12</var>subdivision 1, clause (2), then the only ORSA Summary Report that may be required <br/>
<a id="pl.49.13"></a><var>49.13</var>pursuant to section 60D.54 is the report applicable to that insurer.<br/>
<a id="pl.49.14"></a><var>49.14</var>    Subd. 3. <b>Waiver.</b> An insurer that does not qualify for exemption pursuant to <br/>
<a id="pl.49.15"></a><var>49.15</var>subdivision 1 may apply to the commissioner for a waiver from the requirements of <br/>
<a id="pl.49.16"></a><var>49.16</var>sections 60D.50 to 60D.58 based on unique circumstances. In deciding whether to grant <br/>
<a id="pl.49.17"></a><var>49.17</var>the insurer's request for waiver, the commissioner may consider the type and volume <br/>
<a id="pl.49.18"></a><var>49.18</var>of business written, ownership and organizational structure, and any other factor the <br/>
<a id="pl.49.19"></a><var>49.19</var>commissioner considers relevant to the insurer or insurance group of which the insurer is <br/>
<a id="pl.49.20"></a><var>49.20</var>a member. If the insurer is part of an insurance group with insurers domiciled in more <br/>
<a id="pl.49.21"></a><var>49.21</var>than one state, the commissioner shall coordinate with the lead state commissioner and <br/>
<a id="pl.49.22"></a><var>49.22</var>with the other domiciliary commissioners in considering whether to grant the insurer's <br/>
<a id="pl.49.23"></a><var>49.23</var>request for a waiver.<br/>
<a id="pl.49.24"></a><var>49.24</var>    Subd. 4. <b>Additional requirements.</b> Notwithstanding the exemptions in this section, <br/>
<a id="pl.49.25"></a><var>49.25</var>the commissioner may require that an insurer maintain a risk management framework, <br/>
<a id="pl.49.26"></a><var>49.26</var>conduct an ORSA, and file an ORSA Summary Report:<br/>
<a id="pl.49.27"></a><var>49.27</var>(1) based on unique circumstances including, but not limited to, the type and volume <br/>
<a id="pl.49.28"></a><var>49.28</var>of business written, ownership and organizational structure, federal agency requests, <br/>
<a id="pl.49.29"></a><var>49.29</var>and international supervisor requests; and<br/>
<a id="pl.49.30"></a><var>49.30</var>(2) if the insurer has risk-based capital for a company action level event as set forth <br/>
<a id="pl.49.31"></a><var>49.31</var>in section 60A.52 or 60A.62, meets one or more of the standards of an insurer deemed to <br/>
<a id="pl.49.32"></a><var>49.32</var>be in a hazardous financial condition pursuant to section 60G.20, or otherwise exhibits <br/>
<a id="pl.49.33"></a><var>49.33</var>qualities of a troubled insurer as determined by the commissioner.<br/>
<a id="pl.49.34"></a><var>49.34</var>    Subd. 5. <b>Consequences of loss of exemption.</b> If an insurer that qualifies for an <br/>
<a id="pl.49.35"></a><var>49.35</var>exemption pursuant to subdivision 1 subsequently no longer qualifies for that exemption <br/>
<a id="pl.49.36"></a><var>49.36</var>due to changes in premium as reflected in the insurer's most recent annual statement or in <br/>
<a id="pl.50.1"></a><var>50.1</var>the most recent annual statements of the insurers within the insurance group of which the <br/>
<a id="pl.50.2"></a><var>50.2</var>insurer is a member, the insurer has one year following the year the threshold is exceeded <br/>
<a id="pl.50.3"></a><var>50.3</var>to comply with sections 60D.50 to 60D.58.<br/>
<br/>
<a id="bill.6.7.0"></a><a id="pl.50.4"></a><var>50.4</var>    Sec. 7. <b>[60D.56] CONTENTS OF ORSA SUMMARY REPORT.</b><br/>
<a id="pl.50.5"></a><var>50.5</var>    Subdivision 1. <b>Preparation and documentation.</b> The ORSA Summary Report <br/>
<a id="pl.50.6"></a><var>50.6</var>shall be prepared by the insurer consistent with the ORSA Guidance Manual, subject <br/>
<a id="pl.50.7"></a><var>50.7</var>to the requirements of subdivision 2. Documentation and supporting information shall <br/>
<a id="pl.50.8"></a><var>50.8</var>be maintained by the insurer and made available upon examination or upon request of <br/>
<a id="pl.50.9"></a><var>50.9</var>the commissioner.<br/>
<a id="pl.50.10"></a><var>50.10</var>    Subd. 2. <b>Review.</b> The review of the ORSA Summary Report, and any additional <br/>
<a id="pl.50.11"></a><var>50.11</var>requests for information, shall be made by the commissioner using similar procedures <br/>
<a id="pl.50.12"></a><var>50.12</var>currently used in the analysis and examination of multistate or global insurers and <br/>
<a id="pl.50.13"></a><var>50.13</var>insurance groups.<br/>
<br/>
<a id="bill.6.8.0"></a><a id="pl.50.14"></a><var>50.14</var>    Sec. 8. <b>[60D.57] CONFIDENTIALITY.</b><br/>
<a id="pl.50.15"></a><var>50.15</var>    Subdivision 1. <b>Classification protection and use of information by commissioner.</b><br/>
<a id="pl.50.16"></a><var>50.16</var>Documents, materials, or other information, including the ORSA Summary Report, in the <br/>
<a id="pl.50.17"></a><var>50.17</var>possession of or control of the department that are obtained by, created by, or disclosed to <br/>
<a id="pl.50.18"></a><var>50.18</var>the commissioner or any other person under sections 60D.50 to 60D.58 are recognized by <br/>
<a id="pl.50.19"></a><var>50.19</var>this state as being confidential and containing trade secrets. Those documents, materials, <br/>
<a id="pl.50.20"></a><var>50.20</var>or other information are classified as confidential or protected nonpublic or both, are <br/>
<a id="pl.50.21"></a><var>50.21</var>not subject to subpoena, and are not subject to discovery or admissible in evidence in a <br/>
<a id="pl.50.22"></a><var>50.22</var>private civil action. However, the commissioner may use the documents, materials, or <br/>
<a id="pl.50.23"></a><var>50.23</var>other information in the furtherance of a regulatory or legal action brought as a part of the <br/>
<a id="pl.50.24"></a><var>50.24</var>commissioner's official duties. The commissioner shall not otherwise make the documents, <br/>
<a id="pl.50.25"></a><var>50.25</var>materials, or other information public without the prior written consent of the insurer.<br/>
<a id="pl.50.26"></a><var>50.26</var>    Subd. 2. <b>Testimonial privilege.</b> Neither the commissioner nor any person who <br/>
<a id="pl.50.27"></a><var>50.27</var>received documents, materials, or other ORSA-related information, through examination <br/>
<a id="pl.50.28"></a><var>50.28</var>or otherwise, while acting under the authority of the commissioner or with whom the <br/>
<a id="pl.50.29"></a><var>50.29</var>documents, materials, or other information are shared pursuant to sections 60D.50 to <br/>
<a id="pl.50.30"></a><var>50.30</var>60D.58 is permitted or required to testify in a private civil action concerning documents, <br/>
<a id="pl.50.31"></a><var>50.31</var>materials, or information subject to subdivision 1 that are classified as confidential, <br/>
<a id="pl.50.32"></a><var>50.32</var>protected nonpublic, or both.<br/>
<a id="pl.50.33"></a><var>50.33</var>    Subd. 3. <b>Sharing of information.</b> In order to assist in the performance of the <br/>
<a id="pl.50.34"></a><var>50.34</var>commissioner's regulatory duties, the commissioner:<br/>
<a id="pl.51.1"></a><var>51.1</var>(1) may, upon request, share documents, materials, or other ORSA-related <br/>
<a id="pl.51.2"></a><var>51.2</var>information, including the confidential, protected nonpublic, and privileged documents, <br/>
<a id="pl.51.3"></a><var>51.3</var>materials, or information subject to subdivision 1, including proprietary and trade secret <br/>
<a id="pl.51.4"></a><var>51.4</var>documents and materials with other state, federal, and international financial regulatory <br/>
<a id="pl.51.5"></a><var>51.5</var>agencies, including members of a supervisory college, as defined in section 60D.215, with <br/>
<a id="pl.51.6"></a><var>51.6</var>the National Association of Insurance Commissioners and with third-party consultants <br/>
<a id="pl.51.7"></a><var>51.7</var>designated by the commissioner, provided that the recipient agrees in writing to maintain <br/>
<a id="pl.51.8"></a><var>51.8</var>the confidentiality and privileged status of the ORSA-related documents, materials, or <br/>
<a id="pl.51.9"></a><var>51.9</var>other information and has verified in writing the legal authority to maintain confidentiality;<br/>
<a id="pl.51.10"></a><var>51.10</var>(2) may receive documents, materials, or other ORSA-related information, including <br/>
<a id="pl.51.11"></a><var>51.11</var>otherwise confidential and privileged documents, materials, or information, including <br/>
<a id="pl.51.12"></a><var>51.12</var>proprietary and trade secret information or documents, from regulatory officials of other <br/>
<a id="pl.51.13"></a><var>51.13</var>foreign or domestic jurisdictions, including members of a supervisory college, as defined <br/>
<a id="pl.51.14"></a><var>51.14</var>in section 60D.215, and from the National Association of Insurance Commissioners, and <br/>
<a id="pl.51.15"></a><var>51.15</var>shall maintain as confidential, protected nonpublic, or privileged documents, materials, <br/>
<a id="pl.51.16"></a><var>51.16</var>or information received with notice or the understanding that it is confidential or <br/>
<a id="pl.51.17"></a><var>51.17</var>privileged under the laws of the jurisdiction that is the source of the document, material, <br/>
<a id="pl.51.18"></a><var>51.18</var>or information; and<br/>
<a id="pl.51.19"></a><var>51.19</var>(3) shall enter into a written agreement with the National Association of Insurance <br/>
<a id="pl.51.20"></a><var>51.20</var>Commissioners or a third-party consultant governing sharing and use of information <br/>
<a id="pl.51.21"></a><var>51.21</var>provided pursuant to sections 60D.50 to 60D.58, consistent with this subdivision that:<br/>
<a id="pl.51.22"></a><var>51.22</var>    (i) specifies procedures and protocols regarding the confidentiality and security <br/>
<a id="pl.51.23"></a><var>51.23</var>of information shared with the National Association of Insurance Commissioners or a <br/>
<a id="pl.51.24"></a><var>51.24</var>third-party consultant pursuant to sections 60D.50 to 60D.58, including procedures and <br/>
<a id="pl.51.25"></a><var>51.25</var>protocols for sharing by the National Association of Insurance Commissioners with other <br/>
<a id="pl.51.26"></a><var>51.26</var>state regulators from states in which the insurance group has domiciled insurers. The <br/>
<a id="pl.51.27"></a><var>51.27</var>agreement must provide that the recipient agrees in writing to maintain the confidentiality <br/>
<a id="pl.51.28"></a><var>51.28</var>and privileged status of the ORSA-related documents, materials, or other information and <br/>
<a id="pl.51.29"></a><var>51.29</var>has verified in writing the legal authority to maintain confidentiality;<br/>
<a id="pl.51.30"></a><var>51.30</var>(ii) specifies that ownership of information shared with the National Association <br/>
<a id="pl.51.31"></a><var>51.31</var>of Insurance Commissioners or a third-party consultant pursuant to sections 60D.50 <br/>
<a id="pl.51.32"></a><var>51.32</var>to 60D.58 remains with the commissioner and the National Association of Insurance <br/>
<a id="pl.51.33"></a><var>51.33</var>Commissioner's or a third-party consultant's use of the information is subject to the <br/>
<a id="pl.51.34"></a><var>51.34</var>direction of the commissioner;<br/>
<a id="pl.52.1"></a><var>52.1</var>(iii) prohibits the National Association of Insurance Commissioners or a third-party <br/>
<a id="pl.52.2"></a><var>52.2</var>consultant from storing the information shared pursuant to sections 60D.50 to 60D.58 in a <br/>
<a id="pl.52.3"></a><var>52.3</var>permanent database after the underlying analysis is completed;<br/>
<a id="pl.52.4"></a><var>52.4</var>(iv) requires prompt notice to be given to an insurer whose confidential or protected <br/>
<a id="pl.52.5"></a><var>52.5</var>nonpublic information in the possession of the National Association of Insurance <br/>
<a id="pl.52.6"></a><var>52.6</var>Commissioners or a third-party consultant pursuant to sections 60D.50 to 60D.58 is <br/>
<a id="pl.52.7"></a><var>52.7</var>subject to a request or subpoena to the National Association of Insurance Commissioners <br/>
<a id="pl.52.8"></a><var>52.8</var>or a third-party consultant for disclosure or production;<br/>
<a id="pl.52.9"></a><var>52.9</var>(v) requires the National Association of Insurance Commissioners or a third-party <br/>
<a id="pl.52.10"></a><var>52.10</var>consultant to consent to intervention by an insurer in any judicial or administrative action <br/>
<a id="pl.52.11"></a><var>52.11</var>in which the National Association of Insurance Commissioners or a third-party consultant <br/>
<a id="pl.52.12"></a><var>52.12</var>may be required to disclose confidential or protected nonpublic information about the <br/>
<a id="pl.52.13"></a><var>52.13</var>insurer shared with the National Association of Insurance Commissioners or a third-party <br/>
<a id="pl.52.14"></a><var>52.14</var>consultant pursuant to sections 60D.50 to 60D.58; and<br/>
<a id="pl.52.15"></a><var>52.15</var>(vi) in the case of an agreement involving a third-party consultant, provides for the <br/>
<a id="pl.52.16"></a><var>52.16</var>insurer's written consent.<br/>
<a id="pl.52.17"></a><var>52.17</var>    Subd. 4. <b>Responsibility for administration, execution, and enforcement.</b> The <br/>
<a id="pl.52.18"></a><var>52.18</var>sharing of information and documents by the commissioner pursuant to sections 60D.50 to <br/>
<a id="pl.52.19"></a><var>52.19</var>60D.58 does not constitute a delegation of regulatory authority or rulemaking, and the <br/>
<a id="pl.52.20"></a><var>52.20</var>commissioner is solely responsible for the administration, execution, and enforcement of <br/>
<a id="pl.52.21"></a><var>52.21</var>sections 60D.50 to 60D.58.<br/>
<a id="pl.52.22"></a><var>52.22</var>    Subd. 5. <b>Disclosure not deemed to be waiver of privilege or confidentiality.</b> No <br/>
<a id="pl.52.23"></a><var>52.23</var>waiver of an applicable privilege or claim of confidentiality in the documents, proprietary <br/>
<a id="pl.52.24"></a><var>52.24</var>and trade secret materials, or other ORSA-related information occurs as a result of <br/>
<a id="pl.52.25"></a><var>52.25</var>disclosure of ORSA-related information or documents to the commissioner under this <br/>
<a id="pl.52.26"></a><var>52.26</var>subdivision or as a result of sharing as authorized in sections 60D.50 to 60D.58.<br/>
<a id="pl.52.27"></a><var>52.27</var>    Subd. 6. <b>Classification, protection, and use of information by others.</b> Documents, <br/>
<a id="pl.52.28"></a><var>52.28</var>materials, or other information in the possession or control of the National Association <br/>
<a id="pl.52.29"></a><var>52.29</var>of Insurance Commissioners or a third-party consultant pursuant to sections 60D.50 to <br/>
<a id="pl.52.30"></a><var>52.30</var>60D.58 are confidential, protected nonpublic, and privileged, are not subject to subpoena, <br/>
<a id="pl.52.31"></a><var>52.31</var>and are not subject to discovery or admissible in evidence in a private civil action.<br/>
<br/>
<a id="bill.6.9.0"></a><a id="pl.52.32"></a><var>52.32</var>    Sec. 9. <b>[60D.58] SANCTIONS.</b><br/>
<a id="pl.52.33"></a><var>52.33</var>An insurer failing, without just cause, to timely file the ORSA Summary Report as <br/>
<a id="pl.52.34"></a><var>52.34</var>required in sections 60D.50 to 60D.58 shall pay a penalty of $1,000 for each day's delay to <br/>
<a id="pl.52.35"></a><var>52.35</var>be recovered by the commissioner and to be paid into the general fund. The commissioner <br/>
<a id="pl.53.1"></a><var>53.1</var>may reduce the penalty if the insurer demonstrates to the commissioner that the imposition <br/>
<a id="pl.53.2"></a><var>53.2</var>of the penalty would constitute a financial hardship to the insurer.<br/>
<br/>
<a id="bill.6.10.0"></a><a id="pl.53.3"></a><var>53.3</var>    Sec. 10. <b>EFFECTIVE DATE.</b><br/>
<a id="pl.53.4"></a><var>53.4</var>The requirements of sections 1 to 9 are effective January 1, 2015. The first filing of <br/>
<a id="pl.53.5"></a><var>53.5</var>the ORSA Summary Report is in 2015 pursuant to Minnesota Statutes, section 60D.54.<br/>