1.1 	A bill for an act
1.2 	relating to commerce; making technical changes to various provisions governing 
1.3 	or administered by the Department of Commerce; modifying the Minnesota Life 
1.4 	and Health Insurance Guaranty Association Act;amending Minnesota Statutes 
1.5 	2018, sections 47.60, by adding a subdivision; 48A.11; 53.03, by adding a 
1.6 	subdivision; 53A.03; 53B.07, by adding a subdivision; 53C.01, subdivision 12; 
1.7 	53C.02; 56.02; 58.02, subdivision 21; 58.06, by adding a subdivision; 58A.02, 
1.8 	subdivision 13; 58A.13; 59A.03, by adding a subdivision; 60A.031, subdivision 
1.9 	4; 60A.07, subdivision 1d; 60A.16, subdivisions 1, 2; 60B.02; 61B.19, subdivisions 
1.10 	1, 2, 3, 4; 61B.20, subdivisions 10, 13, 16; 61B.21, subdivision 1; 61B.22, 
1.11 	subdivision 1; 61B.23, subdivisions 1, 3, 4, 8a, 12, 13, 14; 61B.24, subdivisions 
1.12 	3, 5, 6, 7, 8, 10; 61B.26; 61B.27; 61B.28, subdivisions 3, 3a, 4, 6, 7, 8; 62D.18, 
1.13 	subdivision 1; 82.68, subdivision 2; 82C.03, subdivision 2; 82C.06; 82C.15; 
1.14 	216C.437, subdivision 11; 297I.20, subdivision 1; 332.30; 332.54, subdivision 4, 
1.15 	by adding a subdivision; 332.57, subdivision 2; 332A.03; 332B.04, by adding a 
1.16 	subdivision; proposing coding for new law in Minnesota Statutes, chapter 61B; 
1.17 	repealing Minnesota Statutes 2018, sections 53B.27, subdivisions 3, 4; 60A.07, 
1.18 	subdivision 1a; 72B.14.
1.19 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.20 	ARTICLE 1
1.21 	COMMERCE PROVISIONS

1.22 	Section 1. Minnesota Statutes 2018, section 47.60, is amended by adding a subdivision 
1.23 	to read:
1.24 		Subd. 7.Records and fees; maintenance and processing. Section 58A.04, subdivisions 
1.25 	2 and 3, apply to this section.

2.1 	Sec. 2. Minnesota Statutes 2018, section 48A.11, is amended to read:
2.2 	48A.11 NATIONAL BANKS AS FIDUCIARIES.
2.3 	A national bank in this state granted a special permit to act in a fiduciary capacity by 
2.4 	either the Federal Reserve Board under subsection K of section 11 of the Federal Reserve 
2.5 	Act, as amended by the act of September 26, 1918, or the Office of the Comptroller of the 
2.6 	Currency under the provisions of United States Code, title 12, section 92a, may without 
2.7 	oath or security assign, transfer to, and deposit with the commissioner, the kinds and amounts 
2.8 	of authorized securities required by section 48A.03 of a bank or trust company in a city in 
2.9 	which the national bank is located. If the national bank has a capital of $500,000 or more, 
2.10 	it is not required to deposit these securities for more than the lesser of $1,000,000 or ten 
2.11 	percent of this capital or $1,000,000 the amount of assets the bank is acting in a fiduciary 
2.12 	capacity for at offices located in Minnesota. The securities so deposited must be held and 
2.13 	maintained as a guaranty fund for the national bank for the performance of its duties in this 
2.14 	fiduciary capacity.
2.15 	When a national bank has complied with section 48A.03, no oath or security is required 
2.16 	of it to accept and perform the trust, as provided in section 48A.07, subdivision 4.
2.17 	For purposes of this section, "bank" and "trust company" have the meanings given in 
2.18 	section 48A.09.

2.19 	Sec. 3. Minnesota Statutes 2018, section 53.03, is amended by adding a subdivision to 
2.20 	read:
2.21 		Subd. 9.Records and fees; maintenance and processing. Section 58A.04, subdivisions 
2.22 	2 and 3, apply to this section.

2.23 	Sec. 4. Minnesota Statutes 2018, section 53A.03, is amended to read:
2.24 	53A.03 APPLICATION FOR LICENSE; FEES.
2.25 	(a) An application for a license must be in writing, under oath, and in the form prescribed 
2.26 	and furnished by the commissioner and must contain the following:
2.27 	(1) the full name and address (both of residence and place of business) of the applicant, 
2.28 	and if the applicant is a partnership or association, of every member, and the name and 
2.29 	business address if the applicant is a corporation;
2.30 	(2) the county and municipality, with street and number, if any, of all currency exchange 
2.31 	locations operated by the applicant; and
3.1 	(3) the applicant's occupation or profession, for the ten years immediately preceding the 
3.2 	application; present or previous connection with any other currency exchange in this or any 
3.3 	other state; whether the applicant has ever been convicted of any crime; and the nature of 
3.4 	the applicant's occupancy of the premises to be licensed; and if the applicant is a partnership 
3.5 	or a corporation, the information specified in this paragraph must be supplied for each 
3.6 	partner and each officer and director of the corporation. If the applicant is a partnership or 
3.7 	a nonpublicly held corporation, the information specified in this paragraph must be required 
3.8 	of each partner and each officer, director, and stockholders owning in excess of ten percent 
3.9 	of the corporate stock of the corporation.
3.10 	(b) The application shall be accompanied by a nonrefundable fee of $1,000 for the review 
3.11 	of the initial application. Upon approval by the commissioner, an additional license fee of 
3.12 	$500 must be paid by the applicant as an annual license fee for the remainder of the calendar 
3.13 	year. An annual license fee of $500 is due for each subsequent calendar year of operation 
3.14 	upon submission of a license renewal application on or before September 1. Fees must be 
3.15 	deposited in the state treasury and credited to the general fund. Upon payment of the required 
3.16 	annual license fee, the commissioner shall issue a license for the year beginning January 1.
3.17 	(c) The commissioner shall require the applicant to submit to a background investigation 
3.18 	conducted by the Bureau of Criminal Apprehension as a condition of licensure. As part of 
3.19 	the background investigation, the Bureau of Criminal Apprehension shall conduct criminal 
3.20 	history checks of Minnesota records and is authorized to exchange fingerprints with the 
3.21 	Federal Bureau of Investigation for the purpose of a criminal background check of the 
3.22 	national files. The cost of the investigation must be paid by the applicant.
3.23 	(d) Section 58A.04, subdivisions 2 and 3, apply to this section.
3.24 	(d) (e) For purposes of this section, "applicant" includes an employee who exercises 
3.25 	management or policy control over the company, a director, an officer, a limited or general 
3.26 	partner, a manager, or a shareholder holding more than ten percent of the outstanding stock 
3.27 	of the corporation.

3.28 	Sec. 5. Minnesota Statutes 2018, section 53B.07, is amended by adding a subdivision to 
3.29 	read:
3.30 		Subd. 6.Records and fees; maintenance and processing. Section 58A.04, subdivisions 
3.31 	2 and 3, apply to this section.

4.1 	Sec. 6. Minnesota Statutes 2018, section 53C.01, subdivision 12, is amended to read:
4.2 		Subd. 12.Sales finance company. "Sales finance company" means a person engaged, 
4.3 	in whole or in part, in the business of purchasing retail installment contracts entered into in 
4.4 	this state from one or more retail sellers. The term includes a bank, trust company, or 
4.5 	industrial loan and thrift company, if so engaged. The term also includes a retail seller 
4.6 	engaged, in whole or in part, in the business of creating and holding retail installment 
4.7 	contracts. The term does not include the pledges of an aggregate number of the contracts 
4.8 	to secure a bona fide loan thereon.

4.9 	Sec. 7. Minnesota Statutes 2018, section 53C.02, is amended to read:
4.10 	53C.02 SALES FINANCE COMPANY; LICENSE, FEES, REFUND.
4.11 	(a) No person shall engage in the business of a sales finance company in this state without 
4.12 	a license therefor as provided in sections 53C.01 to 53C.14 provided, however, that no bank, 
4.13 	trust company, savings bank, savings association, or credit union, whether state or federally 
4.14 	chartered, industrial loan and thrift company, or licensee under the Minnesota Regulated 
4.15 	Loan Act authorized to do business in this state shall be required to obtain a license under 
4.16 	sections 53C.01 to 53C.14.
4.17 	(b) The application for a license shall be in writing, under oath and in the form prescribed 
4.18 	by the commissioner. The application shall contain the name of the applicant; date of 
4.19 	incorporation, if incorporated; the address where the business is or is to be conducted and 
4.20 	similar information as to any branch office of the applicant; the name and resident address 
4.21 	of the owner or partners, or, if a corporation or association, of the directors, trustees and 
4.22 	principal officers, and other pertinent information the commissioner requires.
4.23 	(c) The licensee fee for the fiscal year beginning July 1 and ending June 30 of the 
4.24 	following year, or any part thereof shall be the sum of $250 for the principal place of business 
4.25 	of the licensee, and the sum of $125 for each branch of the licensee, maintained in this state. 
4.26 	Any licensee who proves to the satisfaction of the commissioner, by affidavit or other proof 
4.27 	satisfactory to the commissioner, that during the 12 calendar months of the immediately 
4.28 	preceding fiscal year, for which the license has been paid that the licensee has not held retail 
4.29 	installment contracts exceeding $15,000 in amount, shall be entitled to a refund of that 
4.30 	portion of each license fee paid in excess of $25. The commissioner shall certify to the 
4.31 	commissioner of management and budget that the licensee is entitled to a refund, and 
4.32 	payment thereof shall be made by the commissioner of management and budget. The amount 
4.33 	necessary to pay for the refundment of the license fee is appropriated out of the general 
5.1 	fund. All license fees received by the commissioner under sections 53C.01 to 53C.14 shall 
5.2 	be deposited with the commissioner of management and budget.
5.3 	(d) Each license shall specify the location of the office or branch and must be 
5.4 	conspicuously displayed there. In case the location be changed, the commissioner shall 
5.5 	endorse the change of location on the license.
5.6 	(e) Upon the filing of such application, and the payment of the fee, the commissioner 
5.7 	shall issue a license to the applicant to engage in the business of a sales finance company 
5.8 	under and in accordance with the provisions of sections 53C.01 to 53C.14 for a period which 
5.9 	shall expire the last day of June next following the date of its issuance. The license shall 
5.10 	not be transferable or assignable. No licensee shall transact any business provided for by 
5.11 	sections 53C.01 to 53C.14 under any other name.
5.12 	(f) Section 58A.04, subdivisions 2 and 3, apply to this section.

5.13 	Sec. 8. Minnesota Statutes 2018, section 56.02, is amended to read:
5.14 	56.02 APPLICATION FEE.
5.15 	(a) Application for license shall be in writing, under oath, and in the form prescribed by 
5.16 	the commissioner, and contain the name and the address, both of the residence and place 
5.17 	of business, of the applicant and, if the applicant is a copartnership or association, of every 
5.18 	member thereof, and if a corporation, of each officer and director thereof; also the county 
5.19 	and municipality, with street and number, if any, where the business is to be conducted, and 
5.20 	such further information as the commissioner may require. The applicant at the time of 
5.21 	making application, shall pay to the commissioner the sum of $500 as a fee for investigating 
5.22 	the application, and the additional sum of $250 as an annual license fee for a period 
5.23 	terminating on the last day of the current calendar year. In addition to the annual license 
5.24 	fee, every licensee hereunder shall pay to the commissioner the actual costs of each 
5.25 	examination, as provided for in section 56.10. All moneys collected by the commissioner 
5.26 	under this chapter shall be turned over to the commissioner of management and budget and 
5.27 	credited by the commissioner of management and budget to the general fund of the state.
5.28 	(b) Every applicant shall also prove, in form satisfactory to the commissioner, that the 
5.29 	applicant has available for the operation of the business at the location specified in the 
5.30 	application, liquid assets of at least $50,000.
5.31 	(c) Section 58A.04, subdivisions 2 and 3, apply to this section.

6.1 	Sec. 9. Minnesota Statutes 2018, section 58.02, subdivision 21, is amended to read:
6.2 		Subd. 21.Residential real property; residential real estate. "Residential real property" 
6.3 	or "residential real estate" means real property improved or intended to be improved by a 
6.4 	structure designed principally for the occupancy of from one to four families, whether or 
6.5 	not the owner occupies the real property. "Residential real estate" means real property 
6.6 	located in Minnesota upon which a dwelling is constructed or is intended to be constructed, 
6.7 	whether or not the owner occupies the real property.

6.8 	Sec. 10. Minnesota Statutes 2018, section 58.06, is amended by adding a subdivision to 
6.9 	read:
6.10 		Subd. 4.Records and fees; maintenance and processing. Section 58A.04, subdivisions 
6.11 	2 and 3, apply to this section.

6.12 	Sec. 11. Minnesota Statutes 2018, section 58A.02, subdivision 13, is amended to read:
6.13 		Subd. 13.Residential mortgage loan. "Residential mortgage loan" means a loan 
6.14 	primarily for personal, family, or household use that is secured by a mortgage, deed of trust, 
6.15 	or other equivalent consensual security interest on a dwelling, as defined in United States 
6.16 	Code, title 15, section 1602(v)(w), or residential real estate upon which a dwelling is 
6.17 	constructed or intended to be constructed.

6.18 	Sec. 12. Minnesota Statutes 2018, section 58A.13, is amended to read:
6.19 	58A.13 SURETY BOND REQUIRED.
6.20 		Subdivision 1.Coverage, form, and rules. (a) Each mortgage loan originator must be 
6.21 	covered by a surety bond meeting the requirements of this section 58.08. In the event that 
6.22 	the mortgage loan originator is an employee or exclusive agent of a person subject to this 
6.23 	chapter, the surety bond of the person subject to this chapter can be used in lieu of the 
6.24 	mortgage loan originator's surety bond requirement.
6.25 	(b) The surety bond shall provide coverage for each mortgage loan originator in an 
6.26 	amount as prescribed in subdivision 2.
6.27 	(c) The surety bond must be in a form as prescribed by the commissioner.
6.28 		Subd. 2.Penal sum of surety bond. The penal sum of the surety bond must be maintained 
6.29 	in an the amount that reflects the dollar amount of loans originated as determined by the 
6.30 	commissioner under section 58.08, subdivision 1a, paragraph (c).
7.1 		Subd. 3.Action on bond. When an action is commenced on a licensee's residential 
7.2 	mortgage originator bond, the commissioner may require the filing of a new bond.
7.3 		Subd. 4.New bond. Immediately upon recovery upon any action on the bond, the licensee
7.4 	residential mortgage originator shall file a new bond.

7.5 	Sec. 13. Minnesota Statutes 2018, section 59A.03, is amended by adding a subdivision to 
7.6 	read:
7.7 		Subd. 4.Records and fees; maintenance and processing. Section 58A.04, subdivisions 
7.8 	2 and 3, apply to this section.

7.9 	Sec. 14. Minnesota Statutes 2018, section 60A.031, subdivision 4, is amended to read:
7.10 		Subd. 4.Examination report; foreign and domestic companies. (a) The commissioner 
7.11 	shall make a full and true report of every examination conducted pursuant to this chapter, 
7.12 	which shall include (1) a statement of findings of fact relating to the financial status and 
7.13 	other matters ascertained from the books, papers, records, documents, and other evidence 
7.14 	obtained by investigation and examination or ascertained from the testimony of officers, 
7.15 	agents, or other persons examined under oath concerning the business, affairs, assets, 
7.16 	obligations, ability to fulfill obligations, and compliance with all the provisions of the law 
7.17 	of the company, applicant, organization, or person subject to this chapter and (2) a summary 
7.18 	of important points noted in the report, conclusions, recommendations and suggestions as 
7.19 	may reasonably be warranted from the facts so ascertained in the examinations. The report 
7.20 	of examination shall be verified by the oath of the examiner in charge thereof, and shall be 
7.21 	prima facie evidence in any action or proceedings in the name of the state against the 
7.22 	company, applicant, organization, or person upon the facts stated therein.
7.23 	(b) No later than 60 days following completion of the examination, the examiner in 
7.24 	charge shall file with the department a verified written report of examination under oath. 
7.25 	Upon receipt of the verified report, the department shall transmit the report to the company 
7.26 	examined, together with a notice which provides the company examined with a reasonable 
7.27 	opportunity of not more than 30 days to make a written submission or rebuttal with respect 
7.28 	to matters contained in the examination report.
7.29 	(c) Within 30 days of the end of the period allowed for the receipt of written submissions 
7.30 	or rebuttals, the commissioner shall fully consider and review the report, together with the 
7.31 	written submissions or rebuttals and the relevant portions of the examiner's work papers 
7.32 	and enter an order:
8.1 	(1) adopting the examination report as filed or with modification or corrections. If the 
8.2 	examination report reveals that the company is operating in violation of any law, rule, or 
8.3 	prior order of the commissioner, the commissioner may order the company to take any 
8.4 	action the commissioner considers necessary and appropriate to cure the violation;
8.5 	(2) rejecting the examination report with directions to the examiners to reopen the 
8.6 	examination for purposes of obtaining additional data, documentation, or information, and 
8.7 	refiling the report as required under paragraph (b); or
8.8 	(3) calling for an investigatory hearing with no less than 20 days' notice to the company 
8.9 	for purposes of obtaining additional documentation, data, information, and testimony.
8.10 	(d)(1) All orders entered under paragraph (c), clause (1), must be accompanied by 
8.11 	findings and conclusions resulting from the commissioner's consideration and review of 
8.12 	the examination report, relevant examiner work papers, and any written submissions or 
8.13 	rebuttals. The order is a final administrative decision and may be appealed as provided 
8.14 	under chapter 14. The order must be served upon the company by certified mail, together 
8.15 	with a copy of the adopted examination report. Within 30 days of the issuance of the adopted 
8.16 	report, the company shall file affidavits executed by each of its directors stating under oath 
8.17 	that they have received a copy of the adopted report and related orders.
8.18 	(2) A hearing conducted under paragraph (c), clause (3), by the commissioner or 
8.19 	authorized representative, must be conducted as a nonadversarial confidential investigatory 
8.20 	proceeding as necessary for the resolution of inconsistencies, discrepancies, or disputed 
8.21 	issues apparent upon the face of the filed examination report or raised by or as a result of 
8.22 	the commissioner's review of relevant work papers or by the written submission or rebuttal 
8.23 	of the company. Within 20 days of the conclusion of the hearing, the commissioner shall 
8.24 	enter an order as required under paragraph (c), clause (1).
8.25 	(3) The commissioner shall not appoint an examiner as an authorized representative to 
8.26 	conduct the hearing. The hearing must proceed expeditiously. Discovery by the company 
8.27 	is limited to the examiner's work papers which tend to substantiate assertions in a written 
8.28 	submission or rebuttal. The commissioner or the commissioner's representative may issue 
8.29 	subpoenas for the attendance of witnesses or the production of documents considered relevant 
8.30 	to the investigation whether under the control of the department, the company, or other 
8.31 	persons. The documents produced must be included in the record. Testimony taken by the 
8.32 	commissioner or the commissioner's representative must be under oath and preserved for 
8.33 	the record.
9.1 	This section does not require the department to disclose information or records which 
9.2 	would indicate or show the existence or content of an investigation or activity of a criminal 
9.3 	justice agency.
9.4 	(4) The hearing must proceed with the commissioner or the commissioner's representative 
9.5 	posing questions to the persons subpoenaed. Thereafter, the company and the department 
9.6 	may present testimony relevant to the investigation. Cross-examination may be conducted 
9.7 	only by the commissioner or the commissioner's representative. The company and the 
9.8 	department shall be permitted to make closing statements and may be represented by counsel 
9.9 	of their choice.
9.10 	(e)(1) Upon the adoption of the examination report under paragraph (c), clause (1), the 
9.11 	commissioner shall continue to hold the content of the examination report as private and 
9.12 	confidential information for a period of 30 days except as otherwise provided in paragraph 
9.13 	(b). Thereafter, the commissioner may open the report for public inspection if a court of 
9.14 	competent jurisdiction has not stayed its publication.
9.15 	(2) Nothing contained in this subdivision prevents or shall be construed as prohibiting 
9.16 	the commissioner from disclosing the content of an examination report, preliminary 
9.17 	examination report or results, or any matter relating to the reports, to the Commerce 
9.18 	Department or the insurance department of another state or country, or to law enforcement 
9.19 	officials of this or another state or agency of the federal government at any time, if the 
9.20 	agency or office receiving the report or matters relating to the report agrees in writing to 
9.21 	hold it confidential and in a manner consistent with this subdivision.
9.22 	(3) If the commissioner determines that regulatory action is appropriate as a result of an 
9.23 	examination, the commissioner may initiate proceedings or actions as provided by law.
9.24 	(f) All working papers, scheduling orders, recorded information, documents and copies 
9.25 	thereof produced by, obtained by, or disclosed to the commissioner or any other person in 
9.26 	the course of an examination made under this subdivision, or in the course of market analysis, 
9.27 	including documents related to scheduling conferences, must be given confidential treatment 
9.28 	and are not subject to subpoena and may not be made public by the commissioner or any 
9.29 	other person, except to the extent provided in paragraph (e). Access may also be granted to 
9.30 	the National Association of Insurance Commissioners (NAIC), the Financial Industry 
9.31 	Regulatory Authority, and any national securities association registered under the Securities 
9.32 	Exchange Act of 1934. The parties must agree in writing prior to receiving the information 
9.33 	to provide to it the same confidential treatment as required by this section, unless the prior 
9.34 	written consent of the company to which it pertains has been obtained. For purposes of this 
10.1 	section, "market analysis" means a process whereby market conduct surveillance personnel 
10.2 	collect and analyze information from filed schedules, surveys, required reports, such as the 
10.3 	NAIC Market Conduct Annual Statement, or other sources in order to develop a baseline 
10.4 	profile of an insurer, to review the operation or activity of an insurer, or to identify patterns 
10.5 	or practices of insurers licensed to do business in this state that deviate significantly from 
10.6 	the norm or that may pose a potential risk to the insurance consumer.
10.7 	(g) Information in the possession or control of, or obtained or disclosed to, the 
10.8 	commissioner in the course of, or derived from, market analysis, as defined in paragraph 
10.9 	(f), by an insurance company and any scheduling order, supplement to a scheduling order, 
10.10 	or document related to a scheduling conference required under section 60A.033 is:
10.11 	(1) subject to confidential treatment as provided under paragraph (f); and
10.12 	(2) not subject to subpoena or other discovery nor admissible in evidence in a private 
10.13 	civil action. Neither the commissioner nor any person who received information while acting 
10.14 	under the authority of the commissioner is permitted or required to testify in a private civil 
10.15 	action concerning the information. Nothing in this paragraph limits the ability of the 
10.16 	commissioner to use the information in furtherance of an action brought by the commissioner.
10.17 	(h) Requests for information issued by the commissioner to an insurance company in 
10.18 	the course of a market analysis, as defined in paragraph (f), must be issued under the 
10.19 	commissioner's authority as provided in this section.
10.20 	(i) Notwithstanding paragraph (h), the commissioner may request information from an 
10.21 	insurance company pursuant to the commissioner's authority under section 45.027, 
10.22 	subdivision 1a or 2, if:
10.23 	(1) the request for information is in connection with an unresolved consumer complaint; 
10.24 	or
10.25 	(2) there is an imminent risk of significant harm to a consumer.
10.26 	(j) Requests for information from the commissioner to an insurance company under 
10.27 	paragraph (i) are not subject to section 60A.033.

10.28 	Sec. 15. Minnesota Statutes 2018, section 60A.07, subdivision 1d, is amended to read:
10.29 		Subd. 1d.Certificate of incorporation; amendments. The certificate of incorporation 
10.30 	of an insurance corporation organized and existing under the laws of this state may be 
10.31 	amended in the manner set forth in section 302A.135. Amendments must be filed with the 
10.32 	secretary of state in the manner set forth in section 302A.151, except the secretary of state 
11.1 	may not accept a certificate of filing unless the certificate also contains the endorsement of 
11.2 	the commissioner of commerce. Amendments are effective upon the commissioner's approval.

11.3 	Sec. 16. Minnesota Statutes 2018, section 60A.16, subdivision 1, is amended to read:
11.4 		Subdivision 1.Scope. (1) Domestic insurance corporations. Any two or more domestic 
11.5 	insurance corporations, formed for any of the purposes for which stock, mutual, or stock 
11.6 	and mutual insurance corporations, or reciprocal or interinsurance contract exchanges might 
11.7 	be formed under the laws of this state, may be
11.8 	(a) merged into one of such domestic insurance corporations, or
11.9 	(b) consolidated into a new insurance corporation to be formed under the laws of this 
11.10 	state.
11.11 	(2) Domestic and foreign insurance corporations. Any such domestic insurance 
11.12 	corporations and any foreign insurance corporations formed to carry on any insurance 
11.13 	business for the conduct of which an insurance corporation might be organized under the 
11.14 	laws of this state, may be
11.15 	(a) merged into one of such domestic insurance corporations, or
11.16 	(b) merged into one of such foreign insurance corporations, or
11.17 	(c) consolidated into a new insurance corporation to be formed under the laws of this 
11.18 	state, or
11.19 	(d) consolidated into a new insurance corporation to be formed under the laws of the 
11.20 	government under which one of such foreign insurance corporations was formed, provided 
11.21 	that each of such foreign insurance corporations is authorized by the laws of the government 
11.22 	under which it was formed to effect such merger or consolidation.

11.23 	Sec. 17. Minnesota Statutes 2018, section 60A.16, subdivision 2, is amended to read:
11.24 		Subd. 2.Procedure to be followed. (1) Plan of merger. The merger or consolidation 
11.25 	of insurance corporations can be effected only as a result of a plan of merger adopted, 
11.26 	approved, and filed as follows:
11.27 	(a) A resolution containing the plan of merger shall be approved by the affirmative vote 
11.28 	of a majority of the directors of the board of each constituent corporation. The plan of merger 
11.29 	shall prescribe the terms and conditions of merger or consolidation, and the mode of carrying 
11.30 	the same into effect, with such other details and provisions as are deemed necessary. In the 
11.31 	case of merging or consolidating stock insurance corporations or stock and mutual insurance 
12.1 	corporations, such plan of merger may prescribe that stock of one or more of such 
12.2 	corporations shall be converted, in whole or in part, into stock or other securities of a 
12.3 	corporation which is not a merging or consolidating corporation or into cash.
12.4 	(b) The plan of merger, or a summary of the plan approved by the commissioner, shall 
12.5 	be submitted to the respective shareholders or members, as the case may be, of each 
12.6 	constituent corporation, for consideration at a regular meeting or at a special meeting duly 
12.7 	called for the purpose of considering and acting upon the plan. Written notice of the meeting, 
12.8 	which shall state that the purpose of the meeting is to consider the proposed plan of merger, 
12.9 	shall be given to each shareholder or member entitled to vote upon the plan of merger not 
12.10 	less than 30 nor more than 60 days before the meeting. The plan of merger must be approved 
12.11 	by the affirmative vote of the holders of two-thirds of the voting power of the shareholders 
12.12 	or members present or represented at the meeting of each constituent corporation; provided, 
12.13 	however, that in the case of a merger, except one in which any shares of the surviving 
12.14 	insurance corporation are to be converted into shares or other securities of another corporation 
12.15 	or into cash, the agreement need not be submitted to the shareholders or members of that 
12.16 	one of the insurance corporations into which it has been agreed the others shall be merged. 
12.17 	Upon receiving the approval of the shareholders or members of each constituent corporation, 
12.18 	articles of merger shall be prepared that contain the plan of merger and a statement that the 
12.19 	plan has been approved by each corporation under this section.
12.20 	(c) The articles of merger and plan of merger shall be delivered to the commissioner of 
12.21 	commerce, who, if the plan of merger is reasonable and if the provisions thereof providing 
12.22 	for any transfer of assets and assumption of liabilities are fair and equitable to the claimants 
12.23 	and policyholders, shall place a certificate of approval on the articles of issue an order 
12.24 	approving the merger and shall file the articles in the commissioner's office, and. Copies of 
12.25 	the articles of merger, certified by the commissioner of commerce, shall be filed for record 
12.26 	in the Office of the Secretary of State and delivered to the surviving corporation or its legal 
12.27 	representative.
12.28 	(2) Articles of incorporation of new company. (a) If the plan of merger is for a 
12.29 	consolidation into a new insurance corporation to be formed under any law or laws of this 
12.30 	state, articles of incorporation for such new insurance corporation shall be prepared and 
12.31 	delivered to the commissioner of commerce together with the articles of merger as provided 
12.32 	in clause (1) hereof.
12.33 	(b) Such articles shall be prepared, executed, approved, filed and recorded in the form 
12.34 	and manner prescribed in, or applicable to, the particular law or laws under which the new 
12.35 	insurance corporation is to be formed.
13.1 	(3) Abandonment. A proposed merger or consolidation may be abandoned at any time 
13.2 	prior to approval by the commissioner under the provision for abandonment, if any, set forth 
13.3 	in the plan of merger.
13.4 	(4) Mutual insurance holding companies. In the case of a merger of two mutual 
13.5 	insurance holding companies under section 66A.40, subdivision 2, paragraph (c), the 
13.6 	procedures set forth in subdivisions 1, 2, 3, 4, and 6 shall apply, subject to the following:
13.7 	(a) the plan of merger must be fair and reasonable to the members of each constituent 
13.8 	corporation;
13.9 	(b) no member of either constituent corporation on the effective date of the merger shall 
13.10 	lose membership solely on account of the merger;
13.11 	(c) membership and voting rights in each respective constituent corporation for purposes 
13.12 	of the meeting of the members held to consider the plan of merger shall be determined in 
13.13 	accordance with the articles and bylaws of that constituent corporation as of a record date 
13.14 	established in the plan of merger; and
13.15 	(d) the commissioner may require changes to the plan or require certain undertakings 
13.16 	from the surviving corporation to assure compliance with this clause.

13.17 	Sec. 18. Minnesota Statutes 2018, section 82.68, subdivision 2, is amended to read:
13.18 		Subd. 2.Financial interests disclosure; licensee. (a) Before the negotiation or 
13.19 	consummation of any transaction, a licensee shall affirmatively disclose to the owner of 
13.20 	real property that the licensee is a real estate broker or agent salesperson, and in what capacity 
13.21 	the licensee is acting, if the licensee directly, or indirectly through a third party, purchases 
13.22 	for himself or herself or acquires, or intends to acquire, any interest in, or any option to 
13.23 	purchase, the owner's property.
13.24 	(b) When a principal in the transaction is a licensee or a relative or business associate 
13.25 	of the licensee, that fact must be disclosed in writing before negotiating or consummating 
13.26 	any transaction.

13.27 	Sec. 19. Minnesota Statutes 2018, section 82C.03, subdivision 2, is amended to read:
13.28 		Subd. 2.Owner requirements. (a) An appraisal management company applying to the 
13.29 	commissioner for a license in this state may must not be more than ten percent owned by 
13.30 	any person that is currently subject to any cease and desist order or injunctive order that 
13.31 	would preclude involvement with an appraisal management company, or that has ever:
14.1 	(1) voluntarily surrendered in lieu of disciplinary action an appraiser certification, 
14.2 	registration or license, or an appraisal management company license;
14.3 	(2) been the subject of a final order revoking or denying an appraiser certification, 
14.4 	registration or license, or an appraisal management company license; or
14.5 	(3) a final order barring involvement in any industry or profession issued by this or 
14.6 	another state or federal regulatory agency.
14.7 	(b) A person that owns more than ten percent of an appraisal management company in 
14.8 	this state shall:
14.9 	(1) be of good moral character, as determined by the commissioner;
14.10 	(2) submit to a background investigation, as determined by the commissioner; and
14.11 	(3) certify to the commissioner that the person has never been the subject of an order of 
14.12 	certificate, registration or license suspension, revocation, or denial; cease and desist order; 
14.13 	injunctive order; or order barring involvement in an industry or profession issued by this 
14.14 	or another state or federal regulatory agency.

14.15 	Sec. 20. Minnesota Statutes 2018, section 82C.06, is amended to read:
14.16 	82C.06 EXEMPTIONS.
14.17 	This chapter does not apply to:
14.18 	(1) a person that exclusively employs appraisers on an employer and employee basis 
14.19 	for the performance of appraisals, and:
14.20 	(i) the employer is responsible for ensuring that the appraisals are performed by 
14.21 	employees in accordance with USPAP; and
14.22 	(ii) the employer accepts all liability associated with the performance of the appraisal 
14.23 	by the employee;
14.24 	(2) a department or unit within a financial institution that is subject to direct regulation 
14.25 	by an agency of the United States government, or to regulation by an agency of this state, 
14.26 	that receives a request for the performance of an appraisal from one employee of the financial 
14.27 	institution, and another employee of the same financial institution assigns the request for 
14.28 	the appraisal to an appraiser that is an independent contractor to the institution, except that 
14.29 	an appraisal management company that is a wholly owned subsidiary of a financial institution 
14.30 	shall not be is considered a department or unit within a financial institution to which the 
14.31 	provisions of this chapter do not apply;
15.1 	(3) a person that enters into an agreement, whether written or otherwise, with an appraiser 
15.2 	for the performance of an appraisal, and upon the completion of the appraisal, the report of 
15.3 	the appraiser performing the appraisal is signed by both the appraiser who completed the 
15.4 	appraisal and the appraiser who requested the completion of the appraisal, except that an 
15.5 	appraisal management company may not avoid the requirements of this chapter by requiring 
15.6 	that an employee of the appraisal management company that is an appraiser to sign an 
15.7 	appraisal that is completed by an appraiser that is part of the appraisal panel of the appraisal 
15.8 	management company; or
15.9 	(4) any governmental agency performing appraisals on behalf of that level of government 
15.10 	or any agency performing ad valorem tax appraisals for county assessors.

15.11 	Sec. 21. Minnesota Statutes 2018, section 82C.15, is amended to read:
15.12 	82C.15 ADJUDICATION OF DISPUTES BETWEEN AN APPRAISAL 
15.13 	MANAGEMENT COMPANY AND AN INDEPENDENT APPRAISER.
15.14 	Except within the first 30 days after an independent appraiser is first added to the 
15.15 	appraiser panel of an appraisal management company, An appraisal management company 
15.16 	may not remove an appraiser from its appraiser panel, or otherwise refuse to assign requests 
15.17 	for real estate appraisal services to an independent appraiser without:
15.18 	(1) notifying the appraiser in writing of the reasons why the appraiser is being removed 
15.19 	from the appraiser panel or is not receiving appraisal requests from the appraisal management 
15.20 	company;
15.21 	(2) if the appraiser is being removed from the panel for illegal conduct, having determined 
15.22 	that the appraiser has violated USPAP, or chapter 82B, taking into account the nature of 
15.23 	the alleged conduct or violation; and
15.24 	(3) providing an opportunity for the appraiser to respond and appeal the notification of 
15.25 	the appraisal management company.

15.26 	Sec. 22. Minnesota Statutes 2018, section 216C.437, subdivision 11, is amended to read:
15.27 		Subd. 11.Powers of the commissioner. (a) The commissioner has under this section 
15.28 	the same powers the commissioner has under section 45.027, including the authority to 
15.29 	impose a civil penalty not to exceed $10,000 per violation.
15.30 	(b) The commissioner may condition or refuse to renew a license for any of the reasons 
15.31 	the commissioner may deny, suspend, or revoke a license.
16.1 	(c) The commissioner may order restitution against persons subject to this section for 
16.2 	violations of this section.
16.3 	(d) The commissioner may issue orders or directives under this section as follows:
16.4 	(1) order or direct persons subject to this chapter to cease and desist from conducting 
16.5 	business, including immediate temporary orders to cease and desist;
16.6 	(2) order or direct persons subject to this chapter to cease any harmful activities or 
16.7 	violations of this chapter, including immediate temporary orders to cease and desist;
16.8 	(3) enter immediate temporary orders to cease business under a license if the 
16.9 	commissioner determines that the license was erroneously granted or the licensee is currently 
16.10 	in violation of this chapter; and
16.11 	(4) order or direct other affirmative action the commissioner considers necessary.
16.12 	(e) Each violation or failure to comply with any directive or order of the commissioner 
16.13 	is a separate and distinct violation or failure.
16.14 	(f) Section 58A.04, subdivisions 2 and 3, apply to this section.

16.15 	Sec. 23. Minnesota Statutes 2018, section 332.30, is amended to read:
16.16 	332.30 ACCELERATED MORTGAGE PAYMENT PROVIDER; BOND 
16.17 	REQUIREMENTS.
16.18 	(a) Before beginning business in this state, an accelerated mortgage payment provider, 
16.19 	as defined in section 332A.02, subdivision 8, clause (9), shall submit to the commissioner 
16.20 	of commerce an authorization fee of $250 and either:
16.21 	(1) a surety bond in which the accelerated mortgage payment provider is the obligor, in 
16.22 	an amount determined by the commissioner; or
16.23 	(2) if the commissioner agrees to accept it, a deposit:
16.24 	(i) in cash in an amount equivalent to the bond amount; or
16.25 	(ii) of authorized securities, as defined in section 50.14, with an aggregate market value 
16.26 	equal to the bond amount. The cash or securities must be deposited with the commissioner 
16.27 	of management and budget.
16.28 	(b) The amount of the bond required by the commissioner shall vary with the amount 
16.29 	of Minnesota client funds held or to be held by the obligor. For new businesses, the bond 
16.30 	must be no less than $100,000, except as provided in section 332.301. The commissioner 
17.1 	may increase the required bond amount upon 30 days' notice to the accelerated mortgage 
17.2 	payment provider.
17.3 	(c) If a bond is submitted, it must name as surety an insurance company authorized to 
17.4 	transact fidelity and surety business in this state. The bond must run to the state of Minnesota 
17.5 	for the use of the state and of any person who may have a claim against the obligor arising 
17.6 	out of the obligor's activities as an accelerated mortgage payment provider. The bond must 
17.7 	be conditioned that the obligor will not commit any fraudulent act and will faithfully conform 
17.8 	to and abide by the provisions of accelerated mortgage payment agreements with Minnesota 
17.9 	residents.
17.10 	(d) If an accelerated mortgage payment provider has failed to account to a mortgagor 
17.11 	or distribute funds to the mortgagee as required by an accelerated mortgage payment 
17.12 	agreement, the mortgagor or the mortgagor's legal representative or receiver or the 
17.13 	commissioner shall have, in addition to any other legal remedies, a right of action in the 
17.14 	name of the debtor on the bond or the security given pursuant to this section.
17.15 	(e) Section 58A.04, subdivisions 2 and 3, apply to this section.

17.16 	Sec. 24. Minnesota Statutes 2018, section 332.54, subdivision 4, is amended to read:
17.17 		Subd. 4.Update of information. The credit services organization must update the 
17.18 	registration statement required under this section not later than 90 30 days after the date 
17.19 	from which a change in the information required in the statement occurs.

17.20 	Sec. 25. Minnesota Statutes 2018, section 332.54, is amended by adding a subdivision to 
17.21 	read:
17.22 		Subd. 8.Records and fees; maintenance and processing. Section 58A.04, subdivisions 
17.23 	2 and 3, apply to this section.

17.24 	Sec. 26. Minnesota Statutes 2018, section 332.57, subdivision 2, is amended to read:
17.25 		Subd. 2.Contents. The disclosure statement required under subdivision 1 must be printed 
17.26 	in boldface and in at least 10-point type and must include the following statement:
17.27 	"CONSUMER CREDIT FILE RIGHTS UNDER MINNESOTA AND FEDERAL LAW
17.28 	You have a right to obtain a copy of your credit report from a credit bureau. You may 
17.29 	be charged a reasonable fee. There is no fee, however, if you have been turned down for 
17.30 	credit, employment, insurance, or a rental dwelling because of information in your credit 
18.1 	report within the preceding 30 days. The credit bureau must provide someone to help you 
18.2 	interpret the information in your credit file.
18.3 	You have a right to dispute inaccurate information by contacting the credit bureau 
18.4 	directly. However, neither you nor any "credit repair" company or credit services organization 
18.5 	has the right to have accurate, current, and verifiable information removed from your credit 
18.6 	bureau report. Under the federal Fair Credit Reporting Act, the credit bureau must remove 
18.7 	accurate, negative information from your report only if it is over seven years old. Bankruptcy 
18.8 	can be reported for ten years.
18.9 	You have a right to sue a credit repair company that violates Minnesota's Credit Services 
18.10 	Organization Act. This law prohibits deceptive practices by credit repair companies and 
18.11 	gives you a right to cancel your contract for any reason within five working days from the 
18.12 	date you signed it.
18.13 	Credit bureaus are required to follow reasonable procedures to ensure that creditors 
18.14 	report information accurately. However, mistakes may occur.
18.15 	You may, on your own, notify a credit bureau in writing that you dispute the accuracy 
18.16 	of information in your credit file. The credit bureau must then reinvestigate and modify or 
18.17 	remove inaccurate information. The credit bureau may not charge any fee for this service. 
18.18 	Any pertinent information and copies of any documents you have concerning an error should 
18.19 	be given to the credit bureau.
18.20 	If reinvestigation does not resolve the dispute to your satisfaction, you may send a brief 
18.21 	statement to the credit bureau to keep in your file, explaining why you think the record is 
18.22 	inaccurate. The credit bureau must include your statement about disputed information with 
18.23 	any reports it issues about you."
18.24 	You have a right to dispute inaccurate information in your credit report by contacting 
18.25 	the credit bureau directly. However, neither you nor any 'credit repair' company or credit 
18.26 	repair organization has the right to have accurate, current, and verifiable information removed 
18.27 	from your credit report. The credit bureau must remove accurate, negative information from 
18.28 	your report only if it is over seven years old. Bankruptcy information can be reported for 
18.29 	ten years.
18.30 	You have a right to obtain a copy of your credit report from a credit bureau. You may 
18.31 	be charged a reasonable fee. There is no fee, however, if you have been turned down for 
18.32 	credit, employment, insurance, or a rental dwelling because of information in your credit 
18.33 	report within the preceding 60 days. The credit bureau must provide assistance to help you 
18.34 	interpret the information in your credit file. You are entitled to receive a free copy of your 
19.1 	credit report if you are unemployed and intend to apply for employment in the next 60 days, 
19.2 	if you are a recipient of public welfare assistance, or if you have reason to believe that there 
19.3 	is inaccurate information in your credit report due to fraud.
19.4 	You have a right to sue a credit repair ORGANIZATION that violates the Credit Repair 
19.5 	Organization Act. This law prohibits deceptive practices by credit repair organizations.
19.6 	You have the right to cancel your contract with any credit repair organization for any 
19.7 	reason within three business days of the date you signed it.
19.8 	Credit bureaus are required to follow reasonable procedures to ensure that the information 
19.9 	they report is accurate. However, mistakes may occur.
19.10 	You may, on your own, notify a credit bureau in writing that you dispute the accuracy 
19.11 	of information in your credit file. The credit bureau must then reinvestigate and modify or 
19.12 	remove inaccurate or incomplete information. The credit bureau is prohibited from charging 
19.13 	any fee for this service. Any pertinent information and copies of all documents you have 
19.14 	concerning an error should be given to the credit bureau.
19.15 	If the credit bureau's reinvestigation does not resolve the dispute to your satisfaction, 
19.16 	you may send a brief statement to the credit bureau, to be kept in your file, explaining why 
19.17 	you think the record is inaccurate. The credit bureau must include a summary of your 
19.18 	statement about disputed information with any report it issues about you."

19.19 	Sec. 27. Minnesota Statutes 2018, section 332A.03, is amended to read:
19.20 	332A.03 REQUIREMENT OF REGISTRATION.
19.21 	(a) On or after August 1, 2007, it is unlawful for any person, whether or not located in 
19.22 	this state, to operate as a debt management services provider or provide debt management 
19.23 	services, including but not limited to offering, advertising, or executing or causing to be 
19.24 	executed any debt management services or debt management services agreement, except 
19.25 	as authorized by law without first becoming registered as provided in this chapter. A person 
19.26 	who possesses a valid license as a debt prorater that was issued by the commissioner before 
19.27 	August 1, 2007, is deemed to be registered as a debt management services provider until 
19.28 	the date the debt prorater license expires, at which time the licensee must obtain a renewal 
19.29 	as a debt management services provider in compliance with this chapter. Debt proraters 
19.30 	who were not required to be licensed as debt proraters before August 1, 2007, may continue 
19.31 	to provide debt management services without complying with this chapter to those debtors 
19.32 	who entered into a contract to participate in a debt management plan before August 1, 2007, 
19.33 	except that the debt prorater must comply with section 332A.13, subdivision 2.
20.1 	(b) Section 58A.04, subdivisions 2 and 3, apply to this section.

20.2 	Sec. 28. Minnesota Statutes 2018, section 332B.04, is amended by adding a subdivision 
20.3 	to read:
20.4 		Subd. 8.Records and fees; maintenance and processing. Section 58A.04, subdivisions 
20.5 	2 and 3, apply to this section.

20.6 	Sec. 29. REPEALER.
 20.7 	Minnesota Statutes 2018, sections 53B.27, subdivisions 3 and 4; 60A.07, subdivision 
20.8 	1a; and 72B.14, are repealed.

20.9 	ARTICLE 2
20.10 	LIFE AND HEALTH INSURANCE GUARANTEE ACT AMENDMENTS

20.11 	Section 1. Minnesota Statutes 2018, section 60B.02, is amended to read:
20.12 	60B.02 PERSONS COVERED.
20.13 	The proceedings authorized by sections 60B.01 to 60B.61 may be applied to:
20.14 	(1) all insurers who are doing, or have done, an insurance business in this state, and 
20.15 	against whom claims arising from that business may exist now or in the future;
20.16 	(2) all insurers who purport to do an insurance business in this state;
20.17 	(3) all insurers who have insureds resident in this state;
20.18 	(4) all other persons organized or in the process of organizing with the intent to do an 
20.19 	insurance business in this state; and
20.20 	(5) all nonprofit service plan corporations incorporated or operating under the Nonprofit 
20.21 	Health Service Plan Corporation Act, all health maintenance organizations operating under 
20.22 	chapter 62D, any health plan incorporated under chapter 317A, all fraternal benefit societies 
20.23 	operating under chapter 64B, except those associations enumerated in section 64B.38, all 
20.24 	township mutual or other companies operating under chapter 67A, and all reciprocals or 
20.25 	interinsurance exchanges operating under chapter 71A.

20.26 	Sec. 2. Minnesota Statutes 2018, section 61B.19, subdivision 1, is amended to read:
20.27 		Subdivision 1.Purpose. (a) The purpose of sections 61B.18 to 61B.32 is to protect, 
20.28 	subject to certain limitations, the persons specified in subdivision 2 against failure in the 
20.29 	performance of contractual obligations, under life insurance policies, health insurance 
21.1 	policies, and annuity policies or contracts, and the supplemental contracts specified in 
21.2 	subdivision 2, because of the impairment or insolvency of the member insurer that issued 
21.3 	the policies or contracts.
21.4 	(b) To provide this protection, an association of member insurers has been created and 
21.5 	exists to pay benefits and to continue coverages, as limited in sections 61B.18 to 61B.32. 
21.6 	Members of the association are subject to assessment to provide funds to carry out the 
21.7 	purpose of sections 61B.18 to 61B.32.

21.8 	Sec. 3. Minnesota Statutes 2018, section 61B.19, subdivision 2, is amended to read:
21.9 		Subd. 2.Scope. (a) Sections 61B.18 to 61B.32 provide coverage for the policies and 
21.10 	contracts specified in paragraph (b) to:
21.11 	(1) persons who are owners of or, certificate holders, or enrollees under these policies 
21.12 	or contracts, or, (i) in the case of unallocated annuity contracts, to the persons who are 
21.13 	participants in a covered retirement plan, or (ii) in the case of structured settlement annuities, 
21.14 	to persons who are payees in respect of their liability claims (or beneficiaries of such payees 
21.15 	who are deceased) and who:
21.16 	(A) are residents; or
21.17 	(B) are not residents, but only under all of the following conditions: the member insurers 
21.18 	that issued the policies or contracts are domiciled in the state of Minnesota; those insurers 
21.19 	never held a license or certificate of authority in the states in which those persons reside; 
21.20 	those states have associations similar to the association created by sections 61B.18 to 61B.32; 
21.21 	and those persons are not eligible for coverage by those associations; and
21.22 	(2) persons who, regardless of where they reside, except for nonresident certificate 
21.23 	holders under group policies or contracts, are the beneficiaries, assignees, or payees of the 
21.24 	persons covered under clause (1). This includes health care providers rendering services 
21.25 	covered by a health insurance policy or contract.
21.26 	(b) Sections 61B.18 to 61B.32 provide coverage to the persons specified in paragraph 
21.27 	(a) for direct, nongroup life insurance, health insurance, annuity, and supplemental policies 
21.28 	or contracts, for subscriber contracts issued by a nonprofit health service plan corporation 
21.29 	operating under chapter 62C, for health maintenance contracts issued by a health maintenance 
21.30 	organization under chapter 62D, for certificates under direct group policies and contracts, 
21.31 	and for unallocated annuity contracts issued by member insurers, except as limited by 
21.32 	sections 61B.18 to 61B.32. Except as expressly excluded under subdivision 3, annuity 
21.33 	contracts and certificates under group annuity contracts include, but are not limited to, 
22.1 	guaranteed investment contracts, deposit administration contracts, unallocated funding 
22.2 	agreements, allocated funding agreements, structured settlement annuities, annuities issued 
22.3 	to or in connection with government lotteries, and any immediate or deferred annuity 
22.4 	contracts. Covered unallocated annuity contracts include those that fund a qualified defined 
22.5 	contribution retirement plan under sections 401, 403(b), and 457 of the Internal Revenue 
22.6 	Code of 1986, as amended through December 31, 1992.

22.7 	Sec. 4. Minnesota Statutes 2018, section 61B.19, subdivision 3, is amended to read:
22.8 		Subd. 3.Limitation of coverage. Sections 61B.18 to 61B.32 do not provide coverage 
22.9 	for:
22.10 	(1) a portion of a policy or contract not guaranteed by the member insurer, or under 
22.11 	which the investment risk is borne by the policy or contract holder;
22.12 	(2) a policy or contract of reinsurance, unless assumption certificates have been issued 
22.13 	and the insured has consented to the assumption as provided under section 60A.09, 
22.14 	subdivision 4a;
22.15 	(3) a policy or contract issued by an assessment benefit association operating under 
22.16 	section 61A.39, or a fraternal benefit society operating under chapter 64B;
22.17 	(4) any obligation to nonresident participants of a covered retirement plan or to the plan 
22.18 	sponsor, employer, trustee, or other party who owns the contract; in these cases, the 
22.19 	association is obligated under this chapter only to participants in a covered plan who are 
22.20 	residents of the state of Minnesota on the date of impairment or insolvency;
22.21 	(5) a structured settlement annuity in situations where a liability insurer remains liable 
22.22 	to the payee;
22.23 	(6) a portion of an unallocated annuity contract which is not issued to or in connection 
22.24 	with a specific employee, union, or association of natural persons benefit plan or a 
22.25 	governmental lottery, including but not limited to, a contract issued to, or purchased at the 
22.26 	direction of, any governmental bonding authority, such as a municipal guaranteed investment 
22.27 	contract;
22.28 	(7) a portion of a policy or contract issued to a plan or program of an employer, 
22.29 	association, or similar entity to provide life, health, or annuity benefits to its employees or 
22.30 	members to the extent that the plan or program is self-funded or uninsured, including benefits 
22.31 	payable by an employer, association, or similar entity under:
23.1 	(i) a multiple employer welfare arrangement as defined in the Employee Retirement 
23.2 	Income Security Act of 1974, United States Code, title 29, section 1002(40)(A), as amended;
23.3 	(ii) a minimum premium group insurance plan;
23.4 	(iii) a stop-loss group insurance plan; or
23.5 	(iv) an administrative services only contract;
23.6 	(8) any policy or contract issued by an insurer at a time when it was not licensed or did 
23.7 	not have a certificate of authority to issue the policy or contract in this state;
23.8 	(9) an unallocated annuity contract issued to or in connection with a benefit plan protected 
23.9 	under the federal Pension Benefit Guaranty Corporation, regardless of whether the federal 
23.10 	Pension Benefit Guaranty Corporation has yet become liable to make any payments with 
23.11 	respect to the benefit plan;
23.12 	(10) a portion of a policy or contract to the extent that it provides for (i) dividends or 
23.13 	experience rating credits except to the extent the dividends or experience rating credits have 
23.14 	actually become due and payable or have been credited to the policy or contract before the 
23.15 	date of impairment or insolvency, (ii) voting rights, or (iii) payment of any fees or allowances 
23.16 	to any person, including the policy or contract holder, in connection with the service to, or 
23.17 	administration of, the policy or contract;
23.18 	(11) a contractual agreement that establishes the member insurer's obligations to provide 
23.19 	a book value accounting guaranty for defined contribution benefit plan participants by 
23.20 	reference to a portfolio of assets that is owned by the benefit plan or its trustee, which in 
23.21 	each case is not an affiliate of the member insurer;
23.22 	(12) a portion of a policy or contract to the extent that the rate of interest on which it is 
23.23 	based, or the interest rate, crediting rate, or similar factor determined by use of an index or 
23.24 	other external reference stated in the policy or contract, employed in calculating returns or 
23.25 	changes in value:
23.26 	(i) averaged over the period of four years prior to the date on which the member insurer 
23.27 	becomes an impaired or insolvent insurer under sections 61B.18 to 61B.32, whichever is 
23.28 	earlier, exceeds the rate of interest determined by subtracting two percentage points from 
23.29 	Moody's Corporate Bond Yield Average averaged for that same four-year period or for the 
23.30 	lesser period if the policy or contract was issued less than four years before the member 
23.31 	insurer becomes an impaired or insolvent insurer under sections 61B.18 to 61B.32, whichever 
23.32 	is earlier; and
24.1 	(ii) on and after the date on which the member insurer becomes an impaired or insolvent 
24.2 	insurer under this chapter, whichever is earlier, exceeds the rate of interest determined by 
24.3 	subtracting three percentage points from Moody's Corporate Bond Yield Average as most 
24.4 	recently available;
24.5 	(iii) however, this paragraph shall not apply to a contract, policy, or rider for long-term 
24.6 	care or health insurance;
24.7 	(13) a portion of a policy or contract to the extent it provides for interest or other changes 
24.8 	in value to be determined by the use of an index or other external reference stated in the 
24.9 	policy or contract, but which have not been credited to the policy or contract, or as to which 
24.10 	the policy or contract owner's rights are subject to forfeiture, as of the date the member 
24.11 	insurer becomes an impaired or insolvent insurer under sections 61B.18 to 61B.32, whichever 
24.12 	is earlier. If a policy's or contract's interest or changes in value are credited less frequently 
24.13 	than annually, then for purposes of determining the values that have been credited and not 
24.14 	subject to forfeiture under this clause, the interest or changes in value determined by using 
24.15 	the procedures defined in the policy or contract will be credited as if the contractual date 
24.16 	of crediting interest or changing values was the date of impairment or insolvency, whichever 
24.17 	is earlier, and will not be subject to forfeiture;
24.18 	(14) a portion of a policy or contract to the extent that the assessments required by section 
24.19 	61B.24 with respect to the policy or contract are preempted by federal or state law; and
24.20 	(15) a policy or contract providing any hospital, medical, prescription drug, or other 
24.21 	health care benefits pursuant to United States Code, title 42, chapter 7, subchapter XVIII, 
24.22 	Part C or Part D, commonly known as Medicare Part C & D, or United States Code, title 
24.23 	42, chapter 7, subchapter XIX, commonly known as Medicaid, or any regulations issued 
24.24 	under those provisions; and
24.25 	(16) structured settlement annuity benefits to which a payee or beneficiary has transferred 
24.26 	his or her rights in a structured settlement factoring transaction, as defined in United States 
24.27 	Code, title 26, section 5891, regardless of whether the transaction occurred before or after 
24.28 	the effective date of section 5891.

24.29 	Sec. 5. Minnesota Statutes 2018, section 61B.19, subdivision 4, is amended to read:
24.30 		Subd. 4.Limitation of benefits. The benefits for which the association may become 
24.31 	liable shall in no event exceed the lesser of:
24.32 	(1) the contractual obligations for which the member insurer is liable or would have 
24.33 	been liable if it were not an impaired or insolvent insurer; or
25.1 	(2) subject to the limitation in clause (5), with respect to any one life, regardless of the 
25.2 	number of policies or contracts:
25.3 	(i) $500,000 in life insurance death benefits, but not more than $130,000 in net cash 
25.4 	surrender and net cash withdrawal values for life insurance;
25.5 	(ii) $500,000 in health insurance, long-term care, and disability income insurance benefits, 
25.6 	including any net cash surrender and net cash withdrawal values;
25.7 	(iii) $250,000 in the present value of annuity benefits, including net cash surrender and 
25.8 	net cash withdrawal values;
25.9 	(iv) $410,000 in present value of annuity benefits for structured settlement annuities or 
25.10 	for annuities in regard to which periodic annuity benefits, for a period of not less than the 
25.11 	annuitant's lifetime or for a period certain of not less than ten years, have begun to be paid, 
25.12 	on or before the date of impairment or insolvency; or
25.13 	(3) subject to the limitations in clauses (5) and (6), with respect to each individual resident 
25.14 	participating in a retirement plan, except a defined benefit plan, established under section 
25.15 	401, 403(b), or 457 of the Internal Revenue Code of 1986, as amended through December 
25.16 	31, 1992, covered by an unallocated annuity contract, or the beneficiaries of each such 
25.17 	individual if deceased, in the aggregate, $250,000 in net cash surrender and net cash 
25.18 	withdrawal values;
25.19 	(4) where no coverage limit has been specified for a covered policy or benefit, the 
25.20 	coverage limit shall be $500,000 in present value;
25.21 	(5) in no event shall the association be liable to expend cover more than $500,000 in 
25.22 	benefits in the aggregate with respect to any one life under clause (2), items (i), (ii), (iii), 
25.23 	(iv), and clause (4), and any one individual under clause (3);
25.24 	(6) in no event shall the association be liable to expend cover more than $10,000,000 in 
25.25 	benefits with respect to all unallocated annuities of a retirement plan, except a defined 
25.26 	benefit plan, established under section 401, 403(b), or 457 of the Internal Revenue Code of 
25.27 	1986, as amended through December 31, 1992. If total claims from a plan exceed 
25.28 	$10,000,000, the $10,000,000 shall be prorated among the claimants;
25.29 	(7) for purposes of applying clause (2)(ii) and clause (5), with respect only to health 
25.30 	insurance benefits, the term "any one life" applies to each individual covered by a health 
25.31 	insurance policy or contract;
25.32 	(8) where covered contractual obligations are equal to or less than the limits stated in 
25.33 	this subdivision, the association will pay the difference between the covered contractual 
26.1 	obligations and the amount credited by the estate of the insolvent or impaired insurer, if 
26.2 	that amount has been determined or, if it has not, the covered contractual limit, subject to 
26.3 	the association's right of subrogation;
26.4 	(9) where covered contractual obligations exceed the limits stated in this subdivision, 
26.5 	the amount payable by the association will be determined as though the covered contractual 
26.6 	obligations were equal to those limits. In making the determination, the estate shall be 
26.7 	deemed to have credited the covered person the same amount as the estate would credit a 
26.8 	covered person with contractual obligations equal to those limits; or
26.9 	(10) the following illustrates how the principles stated in clauses (8) and (9) apply. The 
26.10 	example illustrated concerns hypothetical claims subject to the limit stated in clause (2)(iii). 
26.11 	The principles stated in clauses (8) and (9), and illustrated in this clause, apply to claims 
26.12 	subject to any limits stated in this subdivision.
26.13 	CONTRACTUAL OBLIGATIONS OF:

26.14			$100,000
			
26.1626.15
		Estate
		Guaranty 
Association
		
26.1726.18	0% recovery from estate
	$ 0
		$100,000
		
26.1926.20	25% recovery from estate
	$25,000
		$75,000
		
26.2126.22	50% recovery from estate
	$50,000
		$50,000
		
26.2326.24	75% recovery from estate
	$75,000
		$25,000
		
26.25			$250,000
			
26.2726.26
		Estate
		Guaranty 
Association
		
26.2826.29	0% recovery from estate
	$ 0
		$250,000
		
26.3026.31	25% recovery from estate
	$62,500
		$187,500
		
26.3226.33	50% recovery from estate
	$125,000
		$125,000
		
26.3426.35	75% recovery from estate
	$187,500
		$62,500
		
26.36			$300,000
			
26.3826.37
		Estate
		Guaranty 
Association
		
26.3926.40	0% recovery from estate
	$ 0
		$250,000
		
27.127.2	25% recovery from estate
	$75,000
		$187,500
		
27.327.4	50% recovery from estate
	$150,000
		$125,000
		
27.527.6	75% recovery from estate
	$225,000
		$62,500

27.7 	Sec. 6. Minnesota Statutes 2018, section 61B.20, subdivision 10, is amended to read:
27.8 		Subd. 10.Health insurance. "Health insurance" means accident and health insurance 
27.9 	as described in section 60A.06, subdivision 1, clause (5)(a), long-term care insurance as 
27.10 	described in section 62A.46, subdivision 2, and chapter 62S, credit accident and health 
27.11 	insurance regulated under chapter 62B, and subscriber contracts issued by a nonprofit health 
27.12 	service plan corporation operating under chapter 62C, and health maintenance contracts 
27.13 	issued by a health maintenance organization operating under chapter 62D.

27.14 	Sec. 7. Minnesota Statutes 2018, section 61B.20, subdivision 13, is amended to read:
27.15 		Subd. 13.Member insurer. "Member insurer" means an insurer or health maintenance 
27.16 	organization licensed or holding a certificate of authority to transact in this state any kind 
27.17 	of insurance or health maintenance organization business for which coverage is provided 
27.18 	under section 61B.19, subdivision 2, and includes an insurer or health maintenance 
27.19 	organization whose license or certificate of authority in this state may have been suspended, 
27.20 	revoked, not renewed, or voluntarily withdrawn. The term does not include:
27.21 	(1) a nonprofit hospital or medical service organization, other than a nonprofit health 
27.22 	service plan corporation that operates under chapter 62C;
27.23 	(2) a health maintenance organization;
27.24 	(3) (2) a fraternal benefit society;
27.25 	(4) (3) a mandatory state pooling plan;
27.26 	(5) (4) a mutual assessment company or an entity that operates on an assessment basis;
27.27 	(6) (5) an insurance exchange;
27.28 	(7) (6) a community integrated service network; or
27.29 	(8) (7) an entity similar to those listed in clauses (1) to (7) (6).

28.1 	Sec. 8. Minnesota Statutes 2018, section 61B.20, subdivision 16, is amended to read:
28.2 		Subd. 16.Resident. "Resident" means a person who resides in whose principal place 
28.3 	of residence is Minnesota at the time a member insurer is initially determined by the 
28.4 	commissioner or a court to be an impaired or insolvent insurer and to whom a contractual 
28.5 	obligation is owed, whichever occurs first. A person may be a resident of only one state, 
28.6 	which in the case offor a natural person is the person's principle place of residence, for a 
28.7 	person other than a natural person is its principal place of business, and which, in the case 
28.8 	of for a trust, is the principal place of business of the settlor or entity which established the 
28.9 	trust. Citizens of the United States who are either (i) residents of foreign countries, or (ii) 
28.10 	residents of United States possessions, territories, or protectorates that do not have an 
28.11 	association similar to the association created by sections 61B.19 to 61B.32, are considered 
28.12 	residents of this state if the insurer that issued the covered policies or contracts was domiciled 
28.13 	in this state.

28.14 	Sec. 9. Minnesota Statutes 2018, section 61B.21, subdivision 1, is amended to read:
28.15 		Subdivision 1.Functions. The Minnesota Life and Health Insurance Guaranty 
28.16 	Association shall perform its functions under the plan of operation established and approved 
28.17 	under section 61B.25, and shall exercise its powers through a board of directors. The 
28.18 	association is not a state agency for purposes of chapter 16A, 16B, 16C, or 43A. For purposes 
28.19 	of administration and assessment, the association shall establish and maintain two accounts:
28.20 	(1) the life insurance and annuity account which includes the following subaccounts:
28.21 	(i) the life insurance account;
28.22 	(ii) the annuity account; and
28.23 	(iii) the unallocated annuity account; and
28.24 	(2) the health insurance account.

28.25 	Sec. 10. Minnesota Statutes 2018, section 61B.22, subdivision 1, is amended to read:
28.26 		Subdivision 1.Members. The board of directors of the association consists of nine 
28.27 	members member insurers serving terms as established in the plan of operation under section 
28.28 	61B.25. Members of The insurer board members must be elected by member insurers, 
28.29 	subject to the approval of the commissioner, for the terms of office specified in their 
28.30 	nominations. Each elected insurer board member shall designate its representative and may 
28.31 	designate an alternate. Vacancies on the board shall be filled for the remaining period of 
28.32 	the term by a majority vote of the remaining board members, subject to approval of the 
29.1 	commissioner. In approving selections or in appointing members to the board insurer board 
29.2 	members, the commissioner shall consider whether all member insurers are fairly represented.

29.3 	Sec. 11. Minnesota Statutes 2018, section 61B.23, subdivision 1, is amended to read:
29.4 		Subdivision 1.Impaired domestic insurer. If a member insurer is an impaired domestic 
29.5 	insurer, the association may, in its discretion, and subject to any conditions imposed by the 
29.6 	association that do not impair the contractual obligations of the impaired insurer and that 
29.7 	are approved by the commissioner, and that are, except in cases of court ordered conservation 
29.8 	or rehabilitation, also approved by the impaired insurer:
29.9 	(1) guarantee, assume, reissue, or reinsure, or cause to be guaranteed, assumed, reissued, 
29.10 	or reinsured, any or all of the policies or contracts of the impaired insurer;
29.11 	(2) provide money, pledges, notes, guarantees, or other means as are proper to exercise 
29.12 	the power granted in clause (1) and assure payment of the contractual obligations of the 
29.13 	impaired insurer pending action under clause (1); or
29.14 	(3) loan money to the impaired insurer.

29.15 	Sec. 12. Minnesota Statutes 2018, section 61B.23, subdivision 3, is amended to read:
29.16 		Subd. 3.Insolvent insurer. If a member insurer is an insolvent insurer then, subject to 
29.17 	any conditions imposed by the association and approved by the commissioner, the association 
29.18 	shall, in its discretion:
29.19 	(1) guaranty, assume, reissue, or reinsure, or cause to be guaranteed, assumed, reissued,
29.20 	or reinsured, the policies or contracts of the insolvent insurer;
29.21 	(2) assure payment of the contractual obligations of the insolvent insurer which are due 
29.22 	and owing;
29.23 	(3) provide money, pledges, guarantees, or other means as are reasonably necessary to 
29.24 	discharge its duties; or
29.25 	(4) provide benefits and coverages in accordance with subdivision 4.

29.26 	Sec. 13. Minnesota Statutes 2018, section 61B.23, subdivision 4, is amended to read:
29.27 		Subd. 4.Payments; alternative policies. When proceeding under subdivision 2, 
29.28 	paragraph (a), clause (2), or subdivision 3, clause (4), the association shall, with respect to 
29.29 	life and health insurance policies and annuities contracts:
30.1 	(a) Assure payment of benefits for premiums identical to the premiums and benefits, 
30.2 	except for terms of conversion and renewability, that would have been payable under the 
30.3 	policies of the impaired or insolvent insurer, for claims incurred:
30.4 	(1) with respect to group policies, not later than the earlier of the next renewal date under 
30.5 	those policies or contracts or 45 days, but in no event less than 30 days, after the date on 
30.6 	which the association becomes obligated with respect to those policies; or
30.7 	(2) with respect to individual policies, contracts, and annuities not later than the earlier 
30.8 	of the next renewal date, if any, under those policies or one year, but in no event less than 
30.9 	30 days, from the date on which the association becomes obligated with respect to those 
30.10 	policies.
30.11 	(b) Make diligent efforts to provide all known insureds, enrollees, or annuitants for 
30.12 	individual policies or group policy or contract owners with respect to group policies 30 
30.13 	days' notice of the termination pursuant to paragraph (a) of the benefits provided.
30.14 	(c) With respect to individual policies and contracts, make available to each known 
30.15 	insured, enrollee, or annuitant, or owner if other than the insured or annuitant, and with 
30.16 	respect to an individual formerly an insured or formerly an, enrollee, or annuitant under a 
30.17 	group policy or contract who is not eligible for replacement group coverage, make available 
30.18 	substitute coverage on an individual basis in accordance with paragraph (d), if the insureds, 
30.19 	enrollees, or annuitants had a right under law or the terminated policy, contract, or annuity 
30.20 	to convert coverage to individual coverage or to continue an individual policy, contract, or 
30.21 	annuity in force until a specified age or for a specified time, during which the insurer or 
30.22 	health maintenance organization had no right unilaterally to make changes in any provision 
30.23 	of the policy, contract, or annuity or had a right only to make changes in premium by class.
30.24 	(d)(1) In providing the substitute coverage required under paragraph (c), the association 
30.25 	may offer either to reissue the terminated coverage or to issue an alternative policy or 
30.26 	contract at actuarially justified rates subject to prior approval of the commissioner.
30.27 	(2) Alternative or reissued policies or contracts must be offered without requiring evidence 
30.28 	of insurability, and must not provide for any waiting period or exclusion that would not 
30.29 	have applied under the terminated policy or contract.
30.30 	(3) The association may reinsure any alternative or reissued policy or contract.
30.31 	(e)(1) Alternative policies or contracts adopted by the association are subject to the 
30.32 	approval of the commissioner. The association may adopt alternative policies or contracts 
30.33 	of various types for future issuance without regard to any particular impairment or insolvency.
31.1 	(2) Alternative policies or contracts must contain at least the minimum statutory 
31.2 	provisions required in this state and provide benefits that are not unreasonable in relation 
31.3 	to the premium charged. The association shall set the premium in accordance with a table 
31.4 	of rates which it shall adopt. The premium must reflect the amount of insurance to be 
31.5 	provided and the age and class of risk of each insured, but must not reflect any changes in 
31.6 	the health of the insured after the original policy or contract was last underwritten.
31.7 	(3) Any alternative policy or contract issued by the association must provide coverage 
31.8 	of a type similar to that of the policy or contract issued by the impaired or insolvent insurer, 
31.9 	as determined by the association.
31.10 	(f) If the association elects to reissue terminated coverage at a premium rate different 
31.11 	from that charged under the terminated policy or contract, the premium must be actuarially 
31.12 	justified and set by the association in accordance with the amount of insurance or coverage 
31.13 	provided and the age and class of risk, subject to prior approval of the commissioner or by 
31.14 	a court of competent jurisdiction.
31.15 	(g) The association's obligations with respect to coverage under any policy or contract
31.16 	of the impaired or insolvent insurer or under any reissued or alternative policy or contract
31.17 	ceases on the date the coverage, or on the date the policy or contract is replaced by another 
31.18 	similar policy or contract by the policyholder policy or contract holder, the insurer insured, 
31.19 	the enrollee, or the association and the preexisting condition limitations have been satisfied.
31.20 	(h) When proceeding under this subdivision with respect to any policy carrying 
31.21 	guaranteed minimum interest rates, the association shall assure the payment or crediting of 
31.22 	a rate of interest consistent with section 61B.19, subdivision 3, clause (12).

31.23 	Sec. 14. Minnesota Statutes 2018, section 61B.23, subdivision 8a, is amended to read:
31.24 		Subd. 8a.Deposits in this state for insolvent or impaired insurer. A deposit in this 
31.25 	state, held pursuant to law or required by the commissioner for the benefit of creditors, 
31.26 	including policy or contract owners, not turned over to the domiciliary liquidator upon the 
31.27 	entry of a final order of liquidation or order approving a rehabilitation plan of an a member
31.28 	insurer domiciled in this state or in a reciprocal state, pursuant to section 60B.54, shall be 
31.29 	promptly paid to the association. The association is entitled to retain a portion of any amount 
31.30 	so paid to it equal to the percentage determined by dividing the aggregate amount of policy 
31.31 	owners or contract owners' claims related to that insolvency for which the association has 
31.32 	provided statutory benefits by the aggregate amount of all policy or contract owners' claims 
31.33 	in this state related to that insolvency. The association shall remit to the domiciliary receiver 
31.34 	the amount so paid to the association and not retained pursuant to this subdivision. Any 
32.1 	amount retained by the association shall be treated as a distribution of estate assets pursuant 
32.2 	to section 60B.46 or similar provision of the state of domicile of the impaired or insolvent 
32.3 	insurer.

32.4 	Sec. 15. Minnesota Statutes 2018, section 61B.23, subdivision 12, is amended to read:
32.5 		Subd. 12.Assignments; subrogation rights. (a) A person receiving benefits under 
32.6 	sections 61B.18 to 61B.32 shall be considered to have assigned the rights under, and any 
32.7 	causes of action against any person for losses arising under, resulting from or otherwise 
32.8 	relating to, the covered policy or contract to the association to the extent of the benefits 
32.9 	received because of sections 61B.18 to 61B.32, whether the benefits are payments of or on 
32.10 	account of contractual obligations, continuation of coverage, or provision of substitute or 
32.11 	alternative policies, contracts, or coverages. The association may require an assignment to 
32.12 	it of those rights and causes of action by a an enrollee, payee, policy or contract owner, 
32.13 	beneficiary, insured, or annuitant as a condition precedent to the receipt of rights or benefits 
32.14 	conferred by sections 61B.18 to 61B.32 upon that person. The assignment and subrogation 
32.15 	rights of the association include any rights that a person may have as a beneficiary of a plan 
32.16 	covered under the Employee Retirement Income Security Act of 1974, United States Code, 
32.17 	title 29, section 1003, as amended.
32.18 	(b) The subrogation rights of the association under this subdivision against the assets of 
32.19 	the impaired or insolvent insurer have the same priority as those of a person entitled to 
32.20 	receive benefits under sections 61B.18 to 61B.32.
32.21 	(c) In addition to paragraphs (a) and (b), the association has all common law rights of 
32.22 	subrogation and other equitable or legal remedies that would have been available to the 
32.23 	impaired or insolvent insurer or person receiving benefits under sections 61B.18 to 61B.32
32.24 	including without limitation, in the case of a structured settlement annuity, any rights of the 
32.25 	owner, enrollee, beneficiary, or payee of the annuity, to the extent of benefits received 
32.26 	pursuant to sections 61B.18 to 61B.32, against a person originally or by succession 
32.27 	responsible for the losses arising from the personal injury relating to the annuity or payment 
32.28 	thereof, excepting any such person responsible solely by reason of serving as an assignee 
32.29 	in respect of a qualified assignment under section 130 of the Internal Revenue Code of 
32.30 	1986, as amended.
32.31 	(d) If the preceding provisions of this subdivision are invalid or ineffective with respect 
32.32 	to any person or claim for any reason, the amount payable by the association with respect 
32.33 	to the related covered obligations shall be reduced by the amount realized by any other 
33.1 	person with respect to the person or claim that is attributable to the policies or contracts or 
33.2 	portion thereof covered by the association.
33.3 	(e) If the association has provided benefits with respect to a covered obligation and a 
33.4 	person recovers amounts as to which the association has rights as described in the preceding 
33.5 	paragraphs of this subdivision, the person shall pay to the association the portion of the 
33.6 	recovery attributable to the policies or contracts or portion thereof covered by the association.

33.7 	Sec. 16. Minnesota Statutes 2018, section 61B.23, subdivision 13, is amended to read:
33.8 		Subd. 13.Permissive powers. The association may:
33.9 	(1) enter into contracts as are necessary or proper to carry out the provisions and purposes 
33.10 	of sections 61B.18 to 61B.32;
33.11 	(2) sue or be sued, including taking any legal actions necessary or proper to recover any 
33.12 	unpaid assessments under section 61B.26 to settle claims or potential claims against it;
33.13 	(3) borrow money to effect the purposes of sections 61B.18 to 61B.32 and any notes or 
33.14 	other evidence of indebtedness of the association not in default are legal investments for 
33.15 	domestic member insurers and may be carried as admitted assets;
33.16 	(4) employ or retain persons as are necessary or appropriate to handle the financial 
33.17 	transactions of the association, and to perform other functions as the association considers 
33.18 	necessary or proper under sections 61B.18 to 61B.32;
33.19 	(5) enter into arbitration or take legal action as may be necessary or appropriate to avoid 
33.20 	or recover payment of improper claims;
33.21 	(6) exercise, for the purposes of sections 61B.18 to 61B.32 and to the extent approved 
33.22 	by the commissioner, the powers of a domestic life or insurer, health insurer, or health 
33.23 	maintenance organization, but in no case may the association issue insurance policies or 
33.24 	annuity contracts other than those issued to perform its obligations under sections 61B.18
33.25 	to 61B.32;
33.26 	(7) join an organization of one or more other state associations of similar purposes, to 
33.27 	further the purposes and administer the powers and duties of the association;
33.28 	(8) negotiate and contract with any liquidator, rehabilitator, conservator, or ancillary 
33.29 	receiver to carry out the powers and duties of the association;
33.30 	(9) participate in the organization of and/or own stock in an entity which exists or was 
33.31 	formed for the purpose of assuming liability for contracts or policies issued by impaired or 
33.32 	insolvent insurers; and
34.1 	(10) request information from a person seeking coverage from the association in order 
34.2 	to aid the association in determining its obligations under sections 61B.18 to 61B.32 with 
34.3 	respect to the person, and the person shall promptly comply with the request.;
34.4 	(11) in accordance with the terms and conditions of the policy or contract, file for 
34.5 	actuarially justified rate or premium increases for any policy or contract for which it provides 
34.6 	coverage under this act; and
34.7 	(12) take other necessary or appropriate action to discharge its duties and obligations 
34.8 	under this act or to exercise its powers under this act.

34.9 	Sec. 17. Minnesota Statutes 2018, section 61B.23, subdivision 14, is amended to read:
34.10 		Subd. 14.Association election to succeed to rights of insolvent or impaired insurer 
34.11 	under indemnity reinsurance contracts. (a) At any time within one year after the date on 
34.12 	which the association becomes responsible for the obligations of a member insurer the 
34.13 	coverage date, the association may elect to succeed to the rights and obligations of the 
34.14 	member insurer, that accrue on or after the coverage date and that relate to policies, contracts, 
34.15 	or annuities covered in whole or in part by the association, under any one or more indemnity 
34.16 	reinsurance agreements entered into by the member insurer as a ceding insurer and selected 
34.17 	by the association. However, the association may not exercise an election with respect to a 
34.18 	reinsurance agreement if the receiver, rehabilitator, or liquidator of the member insurer has 
34.19 	previously and expressly disaffirmed the reinsurance agreement. The election shall be 
34.20 	effected by a notice to the receiver, rehabilitator, or liquidator, and to the affected reinsurers. 
34.21 	If the association makes an election, clauses (1) through (4) apply with respect to the 
34.22 	agreements selected by the association:
34.23 	(1) the association is responsible for all unpaid premiums due under the agreements for 
34.24 	periods both before and after the coverage date, and is responsible for the performance of 
34.25 	all other obligations to be performed after the coverage date, in each case that relates to 
34.26 	contracts covered in whole or in part by the association and the association may charge 
34.27 	policies, contracts, or annuities covered in part by the association, through reasonable 
34.28 	allocation methods, the costs for reinsurance in excess of the obligations of the association;
34.29 	(2) the association is entitled to any amounts payable by the reinsurer under the 
34.30 	agreements with respect to losses or events that occur in periods after the coverage date and 
34.31 	that relate to policies, contracts, or annuities covered by the association in whole or in part, 
34.32 	provided that, upon receipt of any such amounts, the association is obliged to pay to the 
34.33 	beneficiary under the policy or, contract, or annuity on account of which the amounts were 
34.34 	paid a portion of the amount equal to the excess of:
35.1 	(i) the amount received by the association, over
35.2 	(ii) the benefits paid by the association on account of the policy or contract less the 
35.3 	retention of the impaired or insolvent member insurer applicable to the loss or event;
35.4 	(3) within 30 days following the association's election, the association and each indemnity 
35.5 	reinsurer shall calculate the net balance due to or from the association under each reinsurance 
35.6 	agreement as of the date of the association's election, giving full credit to all items paid by 
35.7 	either the member insurer or its receiver, rehabilitator, or liquidator or the indemnity reinsurer 
35.8 	during the period between the coverage date and the date of the association's election and 
35.9 	(i) either the association or indemnity reinsurer shall pay the net balance due the other within 
35.10 	five days of the completion of the aforementioned calculation and (ii) if the receiver, 
35.11 	rehabilitator, or liquidator has received any amounts due the association pursuant to paragraph 
35.12 	(a), the receiver, rehabilitator, or liquidator shall remit the same to the association as promptly 
35.13 	as practicable; and
35.14 	(4) if the association, within 60 days of the election, pays the premiums due for periods 
35.15 	both before and after the coverage date that relate to contracts covered by the association 
35.16 	in whole or in part, the reinsurer shall not be entitled to terminate the reinsurance agreements 
35.17 	insofar as the agreements relate to contracts covered by the association in whole or in part 
35.18 	and shall not be entitled to set off any unpaid premium due for periods prior to the coverage 
35.19 	date against amounts due the association.
35.20 	(b) In the event the association transfers its obligations to another insurer, and if the 
35.21 	association and the other insurer agree, the other insurer shall succeed to the rights and 
35.22 	obligations of the association under paragraph (a) effective as of the date agreed upon by 
35.23 	the association and the other insurer and regardless of whether the association has made the 
35.24 	election referred to in paragraph (a) provided that:
35.25 	(1) the indemnity reinsurance agreements shall automatically terminate for new 
35.26 	reinsurance unless the indemnity reinsurer and the other insurer agree to the contrary;
35.27 	(2) the obligations described in the proviso to paragraph (a), clause (2), shall no longer 
35.28 	apply on and after the date the indemnity reinsurance agreement is transferred to the 
35.29 	third-party insurer; and
35.30 	(3) paragraph (b) does not apply if the association has previously expressly determined 
35.31 	in writing that it will not exercise the election referred to in paragraph (a).
35.32 	(c) The provisions of this subdivision shall supersede the provisions of any law of this 
35.33 	state or of any affected reinsurance agreement that provides for or requires any payment of 
36.1 	reinsurance proceeds, on account of losses or events that occur in periods after the coverage 
36.2 	date, to the receiver, liquidator, or rehabilitator of the insolvent member insurer. The receiver, 
36.3 	rehabilitator, or liquidator shall remain entitled to any amounts payable by the reinsurer 
36.4 	under the reinsurance agreement with respect to losses or events that occur in periods prior 
36.5 	to the coverage date subject to applicable setoff provisions.
36.6 	(d) Except as otherwise expressly provided in this subdivision, nothing in this subdivision 
36.7 	alters or modifies the terms and conditions of the indemnity reinsurance agreements of the 
36.8 	insolvent member insurer. Nothing in this subdivision abrogates or limits any rights of any 
36.9 	reinsurer to claim that it is entitled to rescind a reinsurance agreement. Nothing in this 
36.10 	subdivision gives a policy owner, contract owner, enrollee, certificate holder, or beneficiary 
36.11 	an independent cause of action against an indemnity reinsurer that is not otherwise set forth 
36.12 	in the indemnity reinsurance agreement.

36.13 	Sec. 18. Minnesota Statutes 2018, section 61B.24, subdivision 3, is amended to read:
36.14 		Subd. 3.Formula for determination. (a) The amount of a class A assessment shall be 
36.15 	determined by the board and may be made on a pro rata or nonpro rata basis. If pro rata, 
36.16 	the board may provide that it be credited against future class B assessments. A nonpro rata 
36.17 	assessment shall not exceed $500 per member insurer in any one calendar year.
36.18 	(b) The amount of any class B assessment, except for assessments related to long-term 
36.19 	care insurance, must be allocated for assessment purposes between the accounts and among 
36.20 	the accounts or subaccounts of the life insurance and annuity account pursuant to an allocation 
36.21 	formula which may be based on the premiums or reserves of the impaired or insolvent 
36.22 	insurer or any other standard considered by the board in its sole discretion as being fair and 
36.23 	reasonable under the circumstances.
36.24 	(c) The amount of the Class B assessment for long-term care insurance written by the 
36.25 	impaired or insolvent insurer shall be allocated according to a methodology included in the 
36.26 	plan of operation and approved by the commissioner. The methodology shall provide for 
36.27 	50 percent of the assessment to be allocated to health insurance member insurers and 50 
36.28 	percent to be allocated to life and annuity member insurers.
36.29 	(c) (d) Class B assessments against member insurers for each subaccount or account 
36.30 	must be in the proportion that the average annual premiums received on business in this 
36.31 	state by each assessed member insurer on policies or contracts covered by each subaccount 
36.32 	or account for the three most recent calendar years for which information is available 
36.33 	preceding the calendar year in which the member insurer became impaired or insolvent, as 
36.34 	the case may be, bears to the average annual premiums received on business in this state 
37.1 	by all assessed member insurers on policies or contracts covered by that subaccount or 
37.2 	account for those same calendar years. If the impaired insurer becomes insolvent, the date 
37.3 	of impairmentinsolvency must be used to determine the assessment. Premiums for purposes 
37.4 	of calculating average annual premium for calendar years prior to 1993 shall be determined 
37.5 	in accordance with Minnesota Statutes 1992, sections 61B.01 to 61B.16.
37.6 	(d) (e) Assessments for funds to meet the requirements of the association with respect 
37.7 	to an impaired or insolvent insurer must not be made until necessary to implement the 
37.8 	purposes of sections 61B.18 to 61B.32. Classification of assessments under subdivision 2 
37.9 	and computation of assessments under this subdivision must be made with a reasonable 
37.10 	degree of accuracy, recognizing that exact determinations may not always be possible.

37.11 	Sec. 19. Minnesota Statutes 2018, section 61B.24, subdivision 5, is amended to read:
37.12 		Subd. 5.Maximum assessment. (a) The total of all assessments upon a member insurer 
37.13 	for each subaccount of the life and annuity account and for the health account shall not in 
37.14 	any one calendar year exceed two percent of that member insurer's average annual premiums 
37.15 	as calculated in subdivision 3, paragraph (c) (d), on policies or contracts covered by that 
37.16 	account or subaccount. If two or more assessments are made with respect to member insurers 
37.17 	that become impaired or insolvent in different calendar years, average annual premiums for 
37.18 	purposes of the assessment percentage limitation are based upon the higher of the three-year 
37.19 	averages calculated under subdivision 3, paragraph (c) (d). If an impaired insurer becomes 
37.20 	insolvent, the date of impairment must be used to determine the assessment. If the maximum 
37.21 	assessment for any subaccount of the life and annuity account in any one calendar year will 
37.22 	not provide an amount sufficient to carry out the responsibilities of the association, then 
37.23 	pursuant to subdivision 3, the board of directors shall assess based on the other subaccounts 
37.24 	of the life and annuity account for the necessary additional amount, subject to the maximum 
37.25 	of two percent stated above for each subaccount.
37.26 	(b) If the maximum assessment for an account, together with the other assets of the 
37.27 	association in that account, does not provide in any one calendar year in that account an 
37.28 	amount sufficient to carry out the responsibilities of the association, the necessary additional 
37.29 	funds must be assessed as soon as permitted by sections 61B.18 to 61B.32.
37.30 	(c) The board may adopt general principles in the plan of operation for allocating funds 
37.31 	among claims, whether relating to one or more impaired or insolvent insurers, when the 
37.32 	maximum assessment will be insufficient to cover anticipated claims.
37.33 	(d) If assessments under this section are inadequate to pay all obligations of the impaired 
37.34 	insurer that are or become due and owing, then the association shall prepare a plan approved 
38.1 	by the commissioner for prioritization of payments. If the association adopts general 
38.2 	principles in the plan of operations, the association shall use the general principles in 
38.3 	preparing the plan required under this paragraph. No formerly impaired or insolvent insurer 
38.4 	may be reinstated until all payments of or on account of the insurer's or health maintenance 
38.5 	organization's contractual obligations by the guaranty association, along with all expenses 
38.6 	thereof and interest on all such payments and expenses, shall have been repaid to the guaranty 
38.7 	association or a plan of repayment by the insurer or health maintenance organization shall 
38.8 	have been approved by the commissioner.

38.9 	Sec. 20. Minnesota Statutes 2018, section 61B.24, subdivision 6, is amended to read:
38.10 		Subd. 6.Refund. The board may, by an equitable method as established in the plan of 
38.11 	operation, refund to member insurers, in proportion to the contribution of each member
38.12 	insurer to that account or subaccount, the amount by which the assets of the account or 
38.13 	subaccount exceed the amount the board finds is necessary to carry out during the coming 
38.14 	year the obligations of the association with regard to that account or subaccount, including 
38.15 	assets accruing from assignment, subrogation, net realized gains, and income from 
38.16 	investments. A reasonable amount may be retained in any account or subaccount to provide 
38.17 	funds for the continuing expenses of the association and for future losses.

38.18 	Sec. 21. Minnesota Statutes 2018, section 61B.24, subdivision 7, is amended to read:
38.19 		Subd. 7.Premium rates and dividends. A member insurer may, in determining its 
38.20 	premium rates and policy owner dividends as to any kind of insurance or health maintenance 
38.21 	organization business within the scope of sections 61B.18 to 61B.32, consider the amount 
38.22 	reasonably necessary to meet its assessment obligations under sections 61B.18 to 61B.32.

38.23 	Sec. 22. Minnesota Statutes 2018, section 61B.24, subdivision 8, is amended to read:
38.24 		Subd. 8.Certificate of contribution. The association shall issue to each member insurer 
38.25 	paying an assessment under sections 61B.18 to 61B.32, other than a class A assessment, a 
38.26 	certificate of contribution, in a form prescribed by the commissioner, for the amount of the 
38.27 	assessment so paid. All outstanding certificates must be of equal dignity and priority without 
38.28 	reference to amounts or dates of issue. A certificate of contribution may be shown by the 
38.29 	member insurer in its financial statement as an asset in the form and for the amount, if any, 
38.30 	and period of time as the commissioner may approve.

39.1 	Sec. 23. Minnesota Statutes 2018, section 61B.24, subdivision 10, is amended to read:
39.2 		Subd. 10.Procedure for protests regarding assessments. (a) A member insurer that 
39.3 	wishes to protest all or part of an assessment shall pay when due the full amount of the 
39.4 	assessment as set forth in the notice provided by the association. The payment is available 
39.5 	to meet association obligations during the pendency of the protest or any subsequent appeal. 
39.6 	Payment must be accompanied by a statement in writing that the payment is made under 
39.7 	protest and setting forth a brief statement of the grounds for the protest.
39.8 	(b) Within 60 days following the payment of an assessment under protest by a member 
39.9 	insurer, the association shall notify the member insurer in writing of its determination with 
39.10 	respect to the protest unless the association notifies the member insurer that additional time 
39.11 	is required to resolve the issues raised by the protest.
39.12 	(c) Within 30 days after a final decision has been made, the association shall notify the 
39.13 	protesting member insurer in writing of that final decision. Within 60 days of receipt of 
39.14 	notice of the final decision, the protesting member insurer may appeal that final action to 
39.15 	the commissioner.
39.16 	(d) In the alternative to rendering a final decision with respect to a protest based on a 
39.17 	question regarding the assessment base, the association may refer the protest to the 
39.18 	commissioner for a final decision, with or without a recommendation from the association.
39.19 	(e) If the protest or appeal on the assessment is upheld, the amount paid in error or excess 
39.20 	shall be returned to the member company insurer. Interest on a refund due a protesting 
39.21 	member insurer shall be paid at the rate actually earned by the association.

39.22 	Sec. 24. Minnesota Statutes 2018, section 61B.26, is amended to read:
39.23 	61B.26 DUTIES AND POWERS OF COMMISSIONER.
39.24 	(a) In addition to other duties and powers in sections 61B.18 to 61B.32, the commissioner 
39.25 	shall:
39.26 	(1) notify the board of directors of the existence of an impaired or insolvent insurer 
39.27 	within three days after a determination of impairment or insolvency is made or the 
39.28 	commissioner receives notice of impairment or insolvency;
39.29 	(2) upon request of the board of directors, provide the association with a statement of 
39.30 	the premiums in this and any other appropriate states for each member insurer;
39.31 	(3) when an impairment is declared and the amount of the impairment is determined, 
39.32 	serve a demand upon the impaired insurer to make good the impairment within a reasonable 
40.1 	time; notice to the impaired insurer shall constitute notice to its shareholders, if any; the 
40.2 	failure of the impaired insurer to promptly comply with the commissioner's demand shall 
40.3 	not excuse the association from the performance of its powers and duties under sections 
40.4 	61B.18 to 61B.32; and
40.5 	(4) in a liquidation, conservation, or rehabilitation proceeding involving a domestic 
40.6 	insurer, be appointed as the liquidator, conservator, or rehabilitator.
40.7 	(b) The commissioner may suspend or revoke, after notice and hearing, the certificate 
40.8 	of authority to transact insurance business in this state of any member insurer which fails 
40.9 	to pay an assessment when due or fails to comply with the plan of operation. As an 
40.10 	alternative, the commissioner may levy a forfeiture on any member insurer which fails to 
40.11 	pay an assessment when due. A forfeiture shall not exceed five percent of the unpaid 
40.12 	assessment per month, but no forfeiture shall be less than $100 per month.
40.13 	(c) A final action of the board of directors or the association may be appealed to the 
40.14 	commissioner if the appeal is taken within 60 days of the aggrieved party's receipt of notice 
40.15 	of the final action being appealed. Any final action or order of the commissioner is subject 
40.16 	to judicial review in a court of competent jurisdiction, in the manner provided by chapter 
40.17 	14. A determination or decision by the commissioner under sections 61B.18 to 61B.32 is 
40.18 	not subject to the contested case or rulemaking provisions of chapter 14.
40.19 	(d) The liquidator, rehabilitator, or conservator of an impaired insurer may notify all 
40.20 	interested persons of the effect of sections 61B.18 to 61B.32.
40.21 	(e) For the purposes of sections 61B.18 to 61B.32, the commissioner may delegate any 
40.22 	of the powers conferred by law.
40.23 	(f) Nonperformance of any of the acts specified in this section or failure to meet the 
40.24 	specific time limits does not affect the association, its members, or any other person as to 
40.25 	the person's duties and obligations.

40.26 	Sec. 25. Minnesota Statutes 2018, section 61B.27, is amended to read:
40.27 	61B.27 PREVENTION OF INSOLVENCIES.
40.28 	(a) To aid in the detection and prevention of member insurer insolvencies or impairments 
40.29 	the commissioner shall notify the commissioners of insurance of all the other states, territories 
40.30 	of the United States, and the District of Columbia when the commissioner takes one of the 
40.31 	following actions against a member insurer:
40.32 	(i) revocation of license; or
41.1 	(ii) suspension of license.
41.2 	The notice must be mailed to all commissioners within 30 days following the action.
41.3 	(b) If the commissioner deems it appropriate, the commissioner may:
41.4 	(1) Report to the board of directors when the commissioner has taken any of the actions 
41.5 	specified in paragraph (a) or has received a report from another commissioner indicating 
41.6 	that an action specified in paragraph (a) has been taken in another state. The report to the 
41.7 	board of directors must contain all significant details of the action taken or the report received 
41.8 	from another commissioner.
41.9 	(2) Report to the board of directors when the commissioner has reasonable cause to 
41.10 	believe from an examination, whether completed or in process, of a member company that 
41.11 	the company may be an impaired or insolvent insurer.
41.12 	(3) Furnish to the board of directors the National Association of Insurance Commissioners 
41.13 	insurance regulatory information system ratios and listings of companies not included in 
41.14 	the ratios developed by the National Association of Insurance Commissioners, and the board 
41.15 	may use the information in carrying out its duties and responsibilities under this section. 
41.16 	The report and the information contained in it must be kept confidential by the board of 
41.17 	directors until it has been made public by the commissioner or other lawful authority. 
41.18 	Nothing in this provision supersedes other requirements of law.
41.19 	(4) Notify the board if the commissioner makes a formal order requiring the company
41.20 	member insurer to restrict its premium writing, obtain additional contributions to surplus, 
41.21 	withdraw from this state, reinsure all or any part of its business, or increase capital, surplus, 
41.22 	or any other account for the security of policyholders, contract holders, certificate holders,
41.23 	or creditors.
41.24 	(c) The commissioner may seek the advice and recommendations of the board of directors 
41.25 	concerning any matter affecting the commissioner's duties and responsibilities regarding 
41.26 	the financial condition of member insurers and of companies insurers or health maintenance 
41.27 	organizations seeking admission to transact insurance business in this state.
41.28 	(d) The board of directors may, upon majority vote, make reports and recommendations 
41.29 	to the commissioner upon matters germane to the solvency, liquidation, rehabilitation, or 
41.30 	conservation of any member insurer or germane to the solvency of a companyan insurer 
41.31 	or health maintenance organization seeking to do an insurance business in this state. Those 
41.32 	reports and recommendations shall not be considered public documents.
42.1 	(e) The board of directors, upon majority vote, may notify the commissioner of 
42.2 	information indicating that a member insurer may be an impaired or insolvent insurer.
42.3 	(f) The board of directors may, upon majority vote, make recommendations to the 
42.4 	commissioner for the detection and prevention of member insurer insolvencies.
42.5 	(g) The board of directors may, at the conclusion of an insurer insolvency in which the 
42.6 	association was obligated to pay covered claims, prepare a report to the commissioner 
42.7 	containing the information it may have in its possession bearing on the history and causes 
42.8 	of the insolvency. The board shall cooperate with the boards of directors of guaranty 
42.9 	associations in other states in preparing a report on the history and causes of insolvency of 
42.10 	a particular insurer or health maintenance organization, and may adopt by reference any 
42.11 	report prepared by those other associations.
42.12 	(h) Nonperformance by the commissioner of any of the acts specified in this section or 
42.13 	failure to meet the specified time limits does not affect the association, its members, or any 
42.14 	other person as to the person's duties and obligations.
42.15 	Nothing in this section supersedes other requirements of law.

42.16 	Sec. 26. Minnesota Statutes 2018, section 61B.28, subdivision 3, is amended to read:
42.17 		Subd. 3.Association as creditor. For the purpose of carrying out its obligations under 
42.18 	sections 61B.18 to 61B.32, the association is considered to be a creditor of the impaired or 
42.19 	insolvent insurer to the extent of assets attributable to covered policies, reduced by amounts 
42.20 	which the association recovers from the assets of the impaired or insolvent insurer as subrogee 
42.21 	under section 61B.23, subdivision 12. Recoveries by the association as subrogee under 
42.22 	section 61B.23, subdivision 12, from assets other than from assets of the impaired or insolvent 
42.23 	insurer shall not reduce or act as an offset to the association's claim as creditor of the impaired 
42.24 	or insolvent insurer. Assets of the impaired or insolvent insurer attributable to covered 
42.25 	policies or contracts must be used to continue all covered policies or contracts and pay all 
42.26 	contractual obligations of the impaired or insolvent insurer as required by sections 61B.18
42.27 	to 61B.32. Assets attributable to covered policies or contracts, as used in this subdivision, 
42.28 	are that proportion of the assets which the reserves that should have been established for 
42.29 	those policies bear to the reserves that should have been established for all policies of 
42.30 	insurance written by the impaired or insolvent insurer.

43.1 	Sec. 27. Minnesota Statutes 2018, section 61B.28, subdivision 3a, is amended to read:
43.2 		Subd. 3a.Association access to insolvent insurer's assets. As a creditor of the impaired 
43.3 	or insolvent insurer as established in subdivision 3 of this section and consistent with section 
43.4 	60B.46, the association and other similar associations is entitled to receive a disbursement 
43.5 	of assets out of the marshalled assets, from time to time as the assets become available to 
43.6 	reimburse it, as a credit against contractual obligations under sections 61B.18 to 61B.32. If 
43.7 	the liquidator has not, within 120 days of a final determination of insolvency of an a member
43.8 	insurer by the receivership court, made an application to the court for the approval of a 
43.9 	proposal to disburse assets out of marshalled assets to guaranty associations having 
43.10 	obligations because of the insolvency, then the association shall be entitled to make 
43.11 	application to the receivership court for approval of its own proposal to disburse these assets.

43.12 	Sec. 28. Minnesota Statutes 2018, section 61B.28, subdivision 4, is amended to read:
43.13 		Subd. 4.Prohibited sales practice. No person, including an a member insurer, agent, 
43.14 	or affiliate of ana member insurer, shall make, publish, disseminate, circulate, or place 
43.15 	before the public, or cause directly or indirectly, to be made, published, disseminated, 
43.16 	circulated, or placed before the public, in any newspaper, magazine, or other publication, 
43.17 	or in the form of a notice, circular, pamphlet, letter, or poster, or over any radio station or 
43.18 	television station, or in any other way, an advertisement, announcement, or statement, 
43.19 	written or oral, which uses the existence of the Minnesota Life and Health Insurance Guaranty 
43.20 	Association for the purpose of sales, solicitation, or inducement to purchase any form of 
43.21 	insurance or other coverage covered by sections 61B.18 to 61B.32. The notice required by 
43.22 	subdivision 8 is not a violation of this subdivision nor is it a violation of this subdivision 
43.23 	to explain verbally to an applicant or potential applicant the coverage provided by the 
43.24 	Minnesota Life and Health Insurance Guaranty Association at any time during the application 
43.25 	process or thereafter. This subdivision does not apply to the Minnesota Life and Health 
43.26 	Insurance Guaranty Association or an entity that does not sell or solicit insurance or coverage 
43.27 	by a health maintenance organization.

43.28 	Sec. 29. Minnesota Statutes 2018, section 61B.28, subdivision 6, is amended to read:
43.29 		Subd. 6.Reinstatement. No member insurer may be reinstated to do business in this 
43.30 	state until all payments of or on account of the impaired insurer's contractual obligations 
43.31 	by the guaranty association, along with all expenses thereof and interest on all such payments 
43.32 	and expenses, shall have been repaid to the guaranty association or a plan of repayment by 
43.33 	the impaired insurer shall have been approved by the association.

44.1 	Sec. 30. Minnesota Statutes 2018, section 61B.28, subdivision 7, is amended to read:
44.2 		Subd. 7.Notice concerning limitations and exclusions. (a) No person, including an a 
44.3 	member insurer, agent, or affiliate of ana member insurer or agent, shall offer for sale in 
44.4 	this state a covered life insurance, annuity, or health insurance policy or contract without 
44.5 	delivering, either at the time of application for that policy or contract or at the time of 
44.6 	delivery of the policy or contract, a notice in the form specified in subdivision 8, or in a 
44.7 	form approved by the commissioner under paragraph (b), relating to coverage provided by 
44.8 	the Minnesota Life and Health Insurance Guaranty Association. The notice may be part of 
44.9 	the application. A copy of the notice must be given to the applicant or the policyholder
44.10 	policy owner, contract owner, certificate holder, or enrollee. The person offering the policy 
44.11 	or contract shall document the fact that the notice was given at the time of application or 
44.12 	the fact that the notice was delivered at the time the policy or contract was delivered. This 
44.13 	does not require that the receipt of the notice be acknowledged by the applicant.
44.14 	(b) The association may prepare, and file with the commissioner for approval, a form 
44.15 	of notice as an alternative to the form of notice specified in subdivision 8 describing the 
44.16 	general purposes and limitations of this chapter. The form of notice shall:
44.17 	(1) state the name, address, and telephone number of the Minnesota Life and Health 
44.18 	Insurance Guaranty Association;
44.19 	(2) prominently warn the policy or owner, contract owner, certificate holder, or enrollee
44.20 	that the Minnesota Life and Health Insurance Guaranty Association may not cover the policy 
44.21 	or, if coverage is available, it will be subject to substantial limitations and exclusions and 
44.22 	conditioned on continued residence in the state;
44.23 	(3) state that the member insurer and its agents are prohibited by law from using the 
44.24 	existence of the Minnesota Life and Health Insurance Guaranty Association for the purpose 
44.25 	of sales, solicitation, or inducement to purchase any form of insurance or health maintenance 
44.26 	organization coverage;
44.27 	(4) emphasize that the policy or owner, contract, owner, certificate holder, or enrollee
44.28 	should not rely on coverage under the Minnesota Life and Health Insurance Guaranty 
44.29 	Association when selecting an insurer or health maintenance organization;
44.30 	(5) provide other information as directed by the commissioner. The commissioner may 
44.31 	approve any form of notice proposed by the association and, as to the approved form of 
44.32 	notice, the association may notify all member insurers by mail or other electronic means
44.33 	that the form of notice is available as an alternative to the notice specified in subdivision 8.
45.1 	(c) A policy or contract not covered by the Minnesota Life and Health Insurance Guaranty 
45.2 	Association or the Minnesota Insurance Guaranty Association must contain the following 
45.3 	notice in ten-point type, stamped in red ink or contrasting type on the policy or contract and 
45.4 	the application:
45.5 	"THIS POLICY OR CONTRACT IS NOT PROTECTED BY THE MINNESOTA LIFE 
45.6 	AND HEALTH INSURANCE GUARANTY ASSOCIATION OR THE MINNESOTA 
45.7 	INSURANCE GUARANTY ASSOCIATION. IN THE CASE OF INSOLVENCY, 
45.8 	PAYMENT OF CLAIMS IS NOT GUARANTEED. ONLY THE ASSETS OF THIS 
45.9 	INSURER OR HEALTH MAINTENANCE ORGANIZATION WILL BE AVAILABLE 
45.10 	TO PAY YOUR CLAIM."
45.11 	This section does not apply to fraternal benefit societies regulated under chapter 64B.

45.12 	Sec. 31. Minnesota Statutes 2018, section 61B.28, subdivision 8, is amended to read:
45.13 		Subd. 8.Form. The form of notice referred to in subdivision 7, paragraph (a), is as 
45.14 	follows:
45.15 	"........................................
45.16 	.........................................
45.17 	.........................................
45.18 	(insert name, current address, and
45.19 	telephone number of member insurer)
45.20 	NOTICE CONCERNING POLICYHOLDER RIGHTS IN AN
45.21 	INSOLVENCY UNDER THE MINNESOTA LIFE AND HEALTH
45.22 	INSURANCE GUARANTY ASSOCIATION LAW
45.23 	If the insurer or health maintenance organization that issued your life, annuity, or health 
45.24 	insurance policy becomes impaired or insolvent, you are entitled to compensation for your 
45.25 	policy or contract from the assets of that insurer. The amount you recover will depend on 
45.26 	the financial condition of the insurer or health maintenance organization.
45.27 	In addition, residents of Minnesota who purchase life insurance, annuities, or health 
45.28 	insurance, or health maintenance organization coverage from insurance companies authorized 
45.29 	to do business in Minnesota are protected, SUBJECT TO LIMITS AND EXCLUSIONS, 
45.30 	in the event the insurer or health maintenance organization becomes financially impaired 
45.31 	or insolvent. This protection is provided by the Minnesota Life and Health Insurance 
45.32 	Guaranty Association.
46.1 	For purposes of this notice, the terms "insurance company" and "insurer" include health 
46.2 	maintenance organizations.
46.3 	Minnesota Life and Health Insurance Guaranty Association
46.4 	(insert current
46.5 	address and telephone number)
46.6 	The maximum amount the guaranty association will pay for all policies or contracts
46.7 	issued on one life by the same insurer or health maintenance organization is limited to 
46.8 	$500,000. Subject to this $500,000 limit, the guaranty association will pay up to $500,000 
46.9 	in life insurance death benefits, $130,000 in net cash surrender and net cash withdrawal 
46.10 	values for life insurance, $500,000 in health insurance, health maintenance organization, 
46.11 	and long-term care benefits, including any net cash surrender and net cash withdrawal 
46.12 	values, $500,000 in disability income insurance, $250,000 in annuity net cash surrender 
46.13 	and net cash withdrawal values, $410,000 in present value of annuity benefits for annuities 
46.14 	which are part of a structured settlement or for annuities in regard to which periodic annuity 
46.15 	benefits, for a period of not less than the annuitant's lifetime or for a period certain of not 
46.16 	less than ten years, have begun to be paid on or before the date of impairment or insolvency, 
46.17 	or if no coverage limit has been specified for a covered policy or benefit, the coverage limit 
46.18 	shall be $500,000 in present value. Unallocated annuity contracts issued to retirement plans, 
46.19 	other than defined benefit plans, established under section 401, 403(b), or 457 of the Internal 
46.20 	Revenue Code of 1986, as amended through December 31, 1992, are covered up to $250,000 
46.21 	in net cash surrender and net cash withdrawal values, for Minnesota residents covered by 
46.22 	the plan provided, however, that the association shall not be responsible for more than 
46.23 	$10,000,000 in claims from all Minnesota residents covered by the plan. If total claims 
46.24 	exceed $10,000,000, the $10,000,000 shall be prorated among all claimants. These are the 
46.25 	maximum claim amounts. Coverage by the guaranty association is also subject to other 
46.26 	substantial limitations and exclusions and requires continued residency in Minnesota. If 
46.27 	your claim exceeds the guaranty association's limits, you may still recover a part or all of 
46.28 	that amount from the proceeds of the liquidation of the insolvent insurer, if any exist. Funds 
46.29 	to pay claims may not be immediately available. The guaranty association assesses insurers
46.30 	and health maintenance organizations licensed to sell life and health insurance in Minnesota 
46.31 	after the insolvency occurs. Claims are paid from this assessment.
46.32 	Benefits provided by a long-term care rider to a life insurance policy or annuity contract 
46.33 	shall be considered the same type of benefits as the base life insurance policy or annuity 
46.34 	contract to which it relates.
47.1 	THE COVERAGE PROVIDED BY THE GUARANTY ASSOCIATION IS NOT A 
47.2 	SUBSTITUTE FOR USING CARE IN SELECTING INSURANCE COMPANIES THAT 
47.3 	ARE WELL MANAGED AND FINANCIALLY STABLE. IN SELECTING AN 
47.4 	INSURANCE COMPANY, CONTRACT, OR POLICY, YOU SHOULD NOT RELY ON 
47.5 	COVERAGE BY THE GUARANTY ASSOCIATION.
47.6 	THIS NOTICE IS REQUIRED BY MINNESOTA STATE LAW TO ADVISE 
47.7 	POLICYHOLDERS OF LIFE, ANNUITY, OR HEALTH INSURANCE, OR HEALTH 
47.8 	MAINTENANCE ORGANIZATION POLICIES AND CONTRACTS OF THEIR RIGHTS 
47.9 	IN THE EVENT THEIR INSURANCE CARRIER BECOMES FINANCIALLY IMPAIRED 
47.10 	OR INSOLVENT. THIS NOTICE IN NO WAY IMPLIES THAT THE COMPANY 
47.11 	CURRENTLY HAS ANY TYPE OF FINANCIAL PROBLEMS. ALL LIFE, ANNUITY, 
47.12 	AND HEALTH INSURANCE, AND HEALTH MAINTENANCE ORGANIZATION
47.13 	POLICIES AND CONTRACTS ARE REQUIRED TO PROVIDE THIS NOTICE."
47.14 	Additional language may be added to the notice if approved by the commissioner prior 
47.15 	to its use in the form. This section does not apply to fraternal benefit societies regulated 
47.16 	under chapter 64B.

47.17 	Sec. 32. [61B.33] RIGHTS AND OBLIGATIONS OF ASSOCIATION.
47.18 	Notwithstanding any other provision of law, the provisions of the Minnesota Life and 
47.19 	Health Insurance Guaranty Association Act in effect on the date the association first becomes 
47.20 	obligated for the policies or contracts of an insolvent or impaired member insurer govern 
47.21 	the association's rights or obligations to the policy owners, contract owners, or enrollees of 
47.22 	the insolvent or impaired member insurer.

47.23 	Sec. 33. Minnesota Statutes 2018, section 62D.18, subdivision 1, is amended to read:
47.24 		Subdivision 1.Commissioner of health; order. The commissioner of health may apply 
47.25 	by verified petition to the district court of Ramsey County or the county in which the principal 
47.26 	office of the health maintenance organization is located for an order directing the 
47.27 	commissioner of health to rehabilitate or liquidate a health maintenance organization. The 
47.28 	rehabilitation or liquidation of a health maintenance organization shall be conducted under 
47.29 	the supervision of the commissioner of health under the procedures, and with the powers 
47.30 	granted to a rehabilitator or liquidator, in chapter 60B, except to the extent that the nature 
47.31 	of health maintenance organizations renders the procedures or powers clearly inappropriate 
47.32 	and as provided in this subdivision or in chapter 60B. A health maintenance organization 
47.33 	shall be considered an insurance company for the purposes of rehabilitation or liquidation 
48.1 	as provided in subdivisions 4, 6, and 7. For health maintenance organizations that will be 
48.2 	liquidated on or after August 1, 2020, chapters 60B and 61B apply.

48.3 	Sec. 34. Minnesota Statutes 2018, section 297I.20, subdivision 1, is amended to read:
48.4 		Subdivision 1.Guaranty association assessment offsets. (a) An insurance company 
48.5 	or health maintenance organization may offset against its premium tax liability to this state 
48.6 	any amount paid for assessments made for insolvencies which occur after July 31, 1994,
48.7 	under sections 60C.01 to 60C.22; and any amount paid for assessments made after July 31, 
48.8 	1994, under Minnesota Statutes 1992, sections 61B.01 to 61B.16, or under sections 61B.18
48.9 	to 61B.32 as follows:
48.10 	(1) Each such assessment shall give rise to an amount of offset equal to 20 percent of 
48.11 	the amount of the assessment for each of the five calendar years following the year in which 
48.12 	the assessment was paid.
48.13 	(2) The amount of offset initially determined for each taxable year is the sum of the 
48.14 	amounts determined under clause (1) for that taxable year.
48.15 	(b)(1) Each year the commissioner shall compare total guaranty association assessments 
48.16 	levied over the preceding five calendar years to the sum of all premium tax and corporate 
48.17 	franchise tax revenues collected from insurance companies and health maintenance 
48.18 	organizations, without reduction for any guaranty association assessment offset in the 
48.19 	preceding calendar year, referred to in this subdivision as "preceding year insurance tax 
48.20 	revenues."
48.21 	(2) If total guaranty association assessments levied over the preceding five years exceed 
48.22 	the preceding year insurance tax revenues, insurance companies and health maintenance 
48.23 	organizations must be allowed only a proportionate part of the premium tax offset calculated 
48.24 	under paragraph (a) for the current calendar year.
48.25 	(3) The proportionate part of the premium tax offset allowed in the current calendar year 
48.26 	is determined by multiplying the amount calculated under paragraph (a) by a fraction. The 
48.27 	numerator of the fraction equals the preceding year insurance tax revenues, and its 
48.28 	denominator equals total guaranty association assessments levied over the preceding five-year 
48.29 	period.
48.30 	(4) The proportionate part of the premium tax offset that is not allowed must be carried 
48.31 	forward to subsequent tax years and added to the amount of premium tax offset calculated 
48.32 	under paragraph (a) prior to application of the limitation imposed by this paragraph.
49.1 	(5) Any amount carried forward from prior years must be allowed before allowance of 
49.2 	the offset for the current year calculated under paragraph (a).
49.3 	(6) The premium tax offset limitation must be calculated separately for (i) insurance 
49.4 	companies subject to assessment under sections 60C.01 to 60C.22, and (ii) insurance 
49.5 	companies or health maintenance organizations subject to assessment under Minnesota 
49.6 	Statutes 1992, sections 61B.01 to 61B.16, or 61B.18 to 61B.32.
49.7 	(7) When the premium tax offset is limited by this provision, the commissioner shall 
49.8 	notify affected insurance companies or health maintenance organizations on a timely basis 
49.9 	for purposes of completing premium and corporate franchise tax returns.
49.10 	(8) The guaranty associations created under sections 60C.01 to 60C.22, Minnesota 
49.11 	Statutes 1992, sections61B.01 to 61B.16, and 61B.18 to 61B.32, shall provide the 
49.12 	commissioner with the necessary information on guaranty association assessments.
49.13 	(c)(1) If the offset determined by the application of paragraphs (a) and (b) exceeds the 
49.14 	insurance company's or health maintenance organization's premium tax liability under this 
49.15 	section prior to allowance of the credit for premium taxes, then the insurance company or 
49.16 	health maintenance organization may carry forward the excess, referred to in this subdivision 
49.17 	as the "carryforward credit" to subsequent taxable years.
49.18 	(2) The carryforward credit is allowed as an offset against premium tax liability for the 
49.19 	first succeeding year to the extent that the premium tax liability for that year exceeds the 
49.20 	amount of the allowable offset for the year determined under paragraphs (a) and (b).
49.21 	(3) The carryforward credit must be reduced, but not below zero, by the amount of the 
49.22 	carryforward credit allowed as an offset against the premium tax under this paragraph. The 
49.23 	remainder, if any, of the carryforward credit must be carried forward to succeeding taxable 
49.24 	years until the entire carryforward credit has been credited against the insurance company's
49.25 	or health maintenance organization's liability for premium tax under this chapter if applicable 
49.26 	for that taxable year.
49.27 	(d) When an insurer or health maintenance organization has offset against taxes its 
49.28 	payment of an assessment of the Minnesota Life and Health Guaranty Association, and the 
49.29 	association pays the insurer or health maintenance organization a refund with respect to the 
49.30 	assessment under Minnesota Statutes 1992, section 61B.07, subdivision 6, or 61B.24, 
49.31 	subdivision 6, then the refund reduces the insurer's or health maintenance organization's 
49.32 	carryforward credit under paragraph (c). If the refund exceeds the amount of the carryforward 
49.33 	credit, the excess amount must be repaid to the state by the insurers or health maintenance 
49.34 	organizations to the extent of the offset in the manner the commissioner requires.

50.1 	Sec. 35. EFFECTIVE DATE.
 50.2 	Sections 1 to 34 are effective the day following final enactment.

APPENDIX 

Repealed Minnesota Statutes: S4091-1 

53B.27 MONEY TRANSMITTERS; COOPERATION REQUIRED IN COMBATTING FRAUD.Subd. 3.No transmit list. 
(a) The commissioner shall create and maintain an electronic list of individuals for whom money transmitters may not make money transmissions. The commissioner may contract with a third-party vendor to create and maintain the list. The electronic list must include sufficient identifying information about individuals on the list to allow for money transmitters to match names on the "No Transmit List" with the names of individuals seeking to utilize the money transmitter's services to make money transmissions. 

(b) The "No Transmit List" shall be populated in the following ways: 

(1) an individual may request that the commissioner put the individual's name on the "No Transmit List;" 

(2) persons with the legal authority to act on behalf of an individual may request that the commissioner put the individual's name on the "No Transmit List;" 

(3) money transmitters shall request that the commissioner put the names of individuals on the "No Transmit List" that the money transmitter, their employees, their authorized delegates, or their authorized delegates' employees have detected are victims of a scheme to defraud and the names of individuals they have detected are participants in a scheme to defraud individuals residing in Minnesota; 

(4) state and local law enforcement agencies and departments may request that the commissioner put the names of individuals residing in Minnesota who have been victims of a scheme to defraud on the "No Transmit List"; and 

(5) money transmitters shall request that the commissioner put the names of individuals on the "No Transmit List" who have made a request directly to the money transmitter to be prohibited from making or receiving money transmissions. 

(c) An individual on the "No Transmit List" shall remain on the list for a minimum of one year. After the expiration of one year, the individual may at any time request that his or her name be removed from the "No Transmit List," otherwise the name will remain on the list. An individual whose name was put on the "No Transmit List" by a person authorized to act on an individual's behalf shall remain on the list for a minimum of one year. After the expiration of one year, the person authorized to act on the individual's behalf may at any time request that the commissioner remove the individual's name from the "No Transmit List," otherwise the name will remain on the list. 

(d) An individual who requests that the individual's name be put on the "No Transmit List" may indicate at the time of the request that the name shall not be removed from the "No Transmit List" unless both the individual and at least one of two designated individuals requests the individual's name be removed from the list. 

(e) The commissioner shall create request forms and establish procedures for submission of requests under this subdivision. The commissioner's forms and procedures shall include necessary requirements for verifying the identity and authority of individuals submitting requests. All requests must be submitted to the commissioner on the forms created by the commissioner and in accordance with the procedures established by the commissioner. 

(f) Except as otherwise provided in this paragraph, data on individuals in the "No Transmit List" and in requests to have names put on or removed from the list are private data on individuals as defined in section 13.02, subdivision 12. The name of an individual on the "No Transmit List" may be provided to the individual or a person authorized to act on the individual's behalf and shall be provided to a money transmitter through a matching process for the purpose of determining whether it may initiate a money transmission. Data classified under this paragraph may be disclosed to requesting law enforcement agencies for law enforcement purposes or to other government agencies for purposes related to the regulation of money transmissions. 

Subd. 4.Suspicious activity report. 
Each time a money transmitter requests that the commissioner put the name of an individual on the "No Transmit List" pursuant to subdivision 3, paragraph (b), clause (3), the money transmitter shall also submit a suspicious activity report pursuant to the federal Bank Secrecy Act. 

60A.07 AUTHORIZATION AND REQUIREMENTS.Subd. 1a.Filing. 
The certificate of an insurance corporation must be filed for record with the secretary of state. If the secretary of state finds that it conforms to law and that the required fee has been paid, the secretary of state must record it and certify that fact on it. The secretary of state may not accept a certificate for filing unless the certificate also contains the endorsement of the commissioner of commerce. 

72B.14 VIOLATIONS.
A person who violates sections 72B.01 to 72B.14, or the terms of any license or permit under sections 72B.01 to 72B.14, or any lawful order of the commissioner in accordance with sections 72B.01 to 72B.14, shall be subject to a fine imposed by the commissioner, not in excess of $500, which may be imposed in addition to the penalties prescribed in the provisions dealing with the suspension or revocation of licenses or permits.