HF 3395

Introduction - 88th Legislature (2013 - 2014)

Posted on 05/16/2014 06:33 p.m.

A bill for an act
relating to insurance; regulating sales of insurance coverage to governmental
entities; amending Minnesota Statutes 2012, section 60K.46, by adding a
subdivision.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2012, section 60K.46, is amended by adding a
subdivision to read:

new text begin Subd. 9. new text end

new text begin Sales of insurance to governmental entities. new text end

new text begin An insurance broker who
provides insurance coverage to governmental entities must not:
new text end

new text begin (1) receive and retain an overriding commission in connection with the sale. For
purposes of this subdivision, an overriding commission is a portion of the proceeds of a
sale of insurance that is earned by an agent of the broker, rather than by the broker, but
which the broker retains as income for the broker;
new text end

new text begin (2) fail to disclose all compensation to the broker or agents from any potential sale
of insurance to the governmental entity; or
new text end

new text begin (3) fail to initiate and maintain a fiduciary responsibility to the governmental entity.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2014.
new text end