SF 2794

1st Engrossment - 94th Legislature (2025 - 2026)

Posted on 04/08/2025 09:45 a.m.

A bill for an act
relating to financial institutions; modifying the maximum interest rate for certain
loans and contracts for deed; establishing group capital calculations for insurers;
requiring insurers to complete a NAIC liquidity stress test; requiring insurers to
file group capital calculations and results from the NAIC liquidity stress test;
requiring insurers to secure a deposit or bond; amending Minnesota Statutes 2024,
sections 47.20, subdivision 4a; 60D.09, by adding a subdivision; 60D.15,
subdivisions 4, 7, by adding subdivisions; 60D.16, subdivision 2; 60D.17,
subdivision 1; 60D.18, subdivision 3; 60D.19, subdivision 4, by adding
subdivisions; 60D.20, subdivision 1; 60D.217; 60D.22, subdivisions 1, 3, 6, by
adding a subdivision; 60D.24, subdivision 2; 60D.25; 62D.221, by adding a
subdivision; 334.01, subdivision 2; proposing coding for new law in Minnesota
Statutes, chapter 60D.

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

Section 1.

Minnesota Statutes 2024, section 47.20, subdivision 4a, is amended to read:

Subd. 4a.

Maximum interest rate.

(a) No conventional or cooperative apartment loan
or contract for deed shall be made at a rate of interest or loan yield in excess of a maximum
lawful interest rate in an amount equal to the deleted text begin Federal National Mortgage Association posted
yields on 30-year mortgage commitments for delivery within 60 days on standard
conventional fixed-rate mortgages published in the Wall Street Journal for the last business
day of the second preceding month deleted text end new text begin average prime offer rate, as defined in Code of Federal
Regulations, title 12, part 1026.35(a)(2), that applies to a comparable transaction, as most
recently published by the United States Consumer Financial Protection Bureau on the last
date the discounted interest rate for the transaction is set before consummation, new text end plus four
percentage points. new text begin If the index is not available, a substitute index may be adopted by a
commissioner order.
new text end

(b) The maximum lawful interest rate applicable to a cooperative apartment loan or
contract for deed at the time the loan or contract is made is the maximum lawful interest
rate for the term of the cooperative apartment loan or contract for deed. Notwithstanding
the provisions of section 334.01, a cooperative apartment loan or contract for deed may
provide, at the time the loan or contract is made, for the application of specified different
consecutive periodic interest rates to the unpaid principal balance, if no interest rate exceeds
the maximum lawful interest rate applicable to the loan or contract at the time the loan or
contract is made.

(c) The maximum interest rate that can be charged on a conventional loan or a contract
for deed, with a duration of ten years or less, for the purchase of real estate described in
section 83.20, subdivisions 11 and 13, is three percentage points above the rate permitted
under paragraph (a) or 15.75 percent per year, whichever is less. deleted text begin This paragraph is effective
August 1, 1992.
deleted text end

(d) Contracts for deed executed pursuant to a commitment for a contract for deed, or
conventional or cooperative apartment loans made pursuant to a borrower's interest rate
commitment or made pursuant to a borrower's loan commitment, or made pursuant to a
commitment for conventional or cooperative apartment loans made upon payment of a
forward commitment fee including a borrower's loan commitment issued pursuant to a
forward commitment, which commitment provides for consummation within some future
time following the issuance of the commitment may be consummated pursuant to the
provisions, including the interest rate, of the commitment notwithstanding the fact that the
maximum lawful rate of interest at the time the contract for deed or conventional or
cooperative apartment loan is actually executed or made is less than the commitment rate
of interest, provided the commitment rate of interest does not exceed the maximum lawful
interest rate in effect on the date the commitment was issued. The refinancing of: (1) an
existing conventional or cooperative apartment loan, (2) a loan insured or guaranteed by
the secretary of housing and urban development, the administrator of veterans affairs, or
the administrator of the Farmers Home Administration, or (3) a contract for deed by making
a conventional or cooperative apartment loan is deemed to be a new conventional or
cooperative apartment loan for purposes of determining the maximum lawful rate of interest
under this subdivision. The renegotiation of a conventional or cooperative apartment loan
or a contract for deed is deemed to be a new loan or contract for deed for purposes of
paragraph (b) and for purposes of determining the maximum lawful rate of interest under
this subdivision. A borrower's interest rate commitment or a borrower's loan commitment
is deemed to be issued on the date the commitment is hand delivered by the lender to, or
mailed to the borrower. A forward commitment is deemed to be issued on the date the
forward commitment is hand delivered by the lender to, or mailed to the person paying the
forward commitment fee to the lender, or to any one of them if there should be more than
one. A commitment for a contract for deed is deemed to be issued on the date the commitment
is initially executed by the contract for deed vendor or the vendor's authorized agent.

(e) A contract for deed executed pursuant to a commitment for a contract for deed, or a
loan made pursuant to a borrower's interest rate commitment, or made pursuant to a
borrower's loan commitment, or made pursuant to a forward commitment for conventional
or cooperative apartment loans made upon payment of a forward commitment fee including
a borrower's loan commitment issued pursuant to a forward commitment at a rate of interest
not in excess of the rate of interest authorized by this subdivision at the time the commitment
was made continues to be enforceable in accordance with its terms until the indebtedness
is fully satisfied.

Sec. 2.

Minnesota Statutes 2024, section 60D.09, is amended by adding a subdivision to
read:

new text begin Subd. 6. new text end

new text begin Other violations. new text end

new text begin If the commissioner believes a person has committed a
violation of section 60D.17 that prevents the full understanding of the enterprise risk to the
insurer by affiliates or by the insurance holding company system, the violation may serve
as an independent basis for disapproving dividends or distributions and for placing the
insurer under an order of supervision under chapter 60B.
new text end

Sec. 3.

Minnesota Statutes 2024, section 60D.15, subdivision 4, is amended to read:

Subd. 4.

Control.

The term "control," including the terms "controlling," "controlled
by," and "under common control with," means the possession, direct or indirect, of the
power to direct or cause the direction of the management and policies of a person, whether
through the ownership of voting securities, by contract other than a commercial contract
for goods or nonmanagement services, or otherwise, unless the power is the result of an
official position with deleted text begin , deleted text end new text begin or new text end corporate office held by deleted text begin , or court appointment of, deleted text end the person.
Control is presumed to exist if any person, directly or indirectly, owns, controls, holds with
the power to vote, or holds proxies representing, ten percent or more of the voting securities
of any other person. This presumption may be rebutted by a showing made in the manner
provided by section 60D.19, subdivision 11, that control does not exist in fact. The
commissioner may determine, after furnishing all persons in interest notice and opportunity
to be heard and making specific findings of fact to support deleted text begin such deleted text end new text begin the new text end determination, that
control exists in fact, notwithstanding the absence of a presumption to that effect.

Sec. 4.

Minnesota Statutes 2024, section 60D.15, is amended by adding a subdivision to
read:

new text begin Subd. 4c. new text end

new text begin Group capital calculation instructions. new text end

new text begin "Group capital calculation
instructions" means the group capital calculation instructions adopted by the NAIC and as
amended by the NAIC from time to time in accordance with procedures adopted by the
NAIC.
new text end

Sec. 5.

Minnesota Statutes 2024, section 60D.15, is amended by adding a subdivision to
read:

new text begin Subd. 6b. new text end

new text begin NAIC. new text end

new text begin "NAIC" means the National Association of Insurance Commissioners.
new text end

Sec. 6.

Minnesota Statutes 2024, section 60D.15, is amended by adding a subdivision to
read:

new text begin Subd. 6c. new text end

new text begin NAIC liquidity stress test framework. new text end

new text begin "NAIC liquidity stress test framework"
means a NAIC publication which includes a history of the NAIC's development of regulatory
liquidity stress testing, the scope criteria applicable for a specific data year, and the liquidity
stress test instructions and reporting templates for a specific data year, scope criteria,
instructions, and reporting template being adopted by the NAIC, and as amended by the
NAIC from time to time in accordance with the procedures adopted by the NAIC.
new text end

Sec. 7.

Minnesota Statutes 2024, section 60D.15, subdivision 7, is amended to read:

Subd. 7.

Person.

A "person" is an individual, a corporation, new text begin a limited liability company, new text end
a partnership, an association, a joint stock company, a trust, an unincorporated organization,
any similar entity or any combination of the foregoing acting in concert, but does not include
any joint venture partnership exclusively engaged in owning, managing, leasing, or
developing real or tangible personal property.

Sec. 8.

Minnesota Statutes 2024, section 60D.15, is amended by adding a subdivision to
read:

new text begin Subd. 7a. new text end

new text begin Scope criteria. new text end

new text begin "Scope criteria," as detailed in the NAIC liquidity stress test
framework, means the designated exposure bases along with minimum magnitudes of the
designated exposure bases for the specified data year that are used to establish a preliminary
list of insurers considered scoped into the NAIC liquidity stress test framework for that data
year.
new text end

Sec. 9.

Minnesota Statutes 2024, section 60D.16, subdivision 2, is amended to read:

Subd. 2.

Additional investment authority.

In addition to investments in common stock,
preferred stock, debt obligations, and other securities otherwise permitted new text begin under this chapter new text end ,
a domestic insurer may also:

(a) Invest, in common stock, preferred stock, debt obligations, and other securities of
one or more subsidiaries, amounts that do not exceed the lesser of ten percent of the insurer's
assets or 50 percent of the insurer's surplus as regards policyholders, provided that after the
investments, the insurer's surplus as regards policyholders deleted text begin will be deleted text end new text begin is new text end reasonable in relation
to the insurer's outstanding liabilities and adequate to its financial needs. In calculating the
amount of these investments, investments in domestic or foreign insurance subsidiaries new text begin and
health maintenance organizations new text end must be excluded, and there must be included:

(1) total net money or other consideration expended and obligations assumed in the
acquisition or formation of a subsidiary, including all organizational expenses and
contributions to capital and surplus of the subsidiary whether or not represented by the
purchase of capital stock or issuance of other securities; and

(2) all amounts expended in acquiring additional common stock, preferred stock, debt
obligations, and other securities new text begin ; new text end and all contributions to the capital or surplus deleted text begin , deleted text end of a subsidiary
subsequent to its acquisition or formation.

(b) Invest any amount in common stock, preferred stock, debt obligations, and other
securities of one or more subsidiaries engaged or organized to engage exclusively in the
ownership and management of assets authorized as investments for the insurer provided
that the subsidiary agrees to limit its investments in any asset so that the investments deleted text begin will deleted text end new text begin
do new text end not cause the amount of the total investment of the insurer to exceed any of the investment
limitations specified in paragraph (a) or other statutes applicable to the insurer. For the
purpose of this paragraph, "the total investment of the insurer" includes:

(1) any direct investment by the insurer in an asset; and

(2) the insurer's proportionate share of any investment in an asset by any subsidiary of
the insurer, which must be calculated by multiplying the amount of the subsidiary's
investment by the percentage of the ownership of the subsidiary.

(c) With the approval of the commissioner, invest any greater amount in common stock,
preferred stock, debt obligations, or other securities of one or more subsidiaries, if after the
investment the insurer's surplus as regards policyholders deleted text begin will be deleted text end new text begin is new text end reasonable in relation to
the insurer's outstanding liabilities and adequate to its financial needs.

Sec. 10.

Minnesota Statutes 2024, section 60D.17, subdivision 1, is amended to read:

Subdivision 1.

Filing requirements.

(a) No person other than the issuer shall: (1) make
a tender offer for or a request or invitation for tenders of, or enter into any agreement to
exchange securities deleted text begin or deleted text end new text begin for new text end , seek to acquire, or acquire, in the open market or otherwise, any
voting security of a domestic insurer if, after the consummation thereof, the person would,
directly or indirectly, or by conversion or by exercise of any right to acquire, be in control
of the insurer; or (2) enter into an agreement to merge with or otherwise to acquire control
of a domestic insurer or any person controlling a domestic insurer unless, at the time the
offer, request, or invitation is made or the agreement is entered into, or before the acquisition
of the securities if no offer or agreement is involved, the person has filed with the
commissioner and has sent to the insurer, a statement containing the information required
by this section and the offer, request, invitation, agreement, or acquisition has been approved
by the commissioner in the manner prescribed in this section.

(b) For purposes of this section, a controlling person of a domestic insurer seeking to
divest its controlling interest in the domestic insurer, in any manner, shall file with the
commissioner, with a copy to the insurer, confidential notice of its proposed divestiture at
least 30 days before the cessation of control. The commissioner shall determine those
instances in which the party or parties seeking to divest or to acquire a controlling interest
in an insurer will be required to file for and obtain approval of the transaction. new text begin The
information must remain confidential until the conclusion of the transaction unless the
commissioner, in the commissioner's discretion, determines that confidential treatment
interferes with the enforcement of this section. This paragraph does not apply if the statement
referred to in paragraph (a) is otherwise filed.
new text end

(c) With respect to a transaction subject to this section, the acquiring person must also
file a preacquisition notification with the commissioner, which must contain the information
set forth in section 60D.18, subdivision 3, paragraph (b). A failure to file the notification
may be subject to penalties specified in section 60D.18, subdivision 5.

(d) For purposes of this section, a domestic insurer includes a person controlling a
domestic insurer unless the person new text begin , new text end as determined by the commissioner new text begin , new text end is either directly
or through its affiliates primarily engaged in business other than the business of insurance.
For the purposes of this section, "person" does not include any securities broker holding,
in the usual and customary deleted text begin brokers deleted text end new text begin broker's new text end function, less than 20 percent of the voting
securities of an insurance company or of any person that controls an insurance company.

deleted text begin (e) The statement filed with the commissioner pursuant to subdivisions 1 and 2 must
remain confidential until the transaction is approved by the commissioner, except that all
attachments filed with the statement remain confidential after the approval unless the
commissioner, in the commissioner's discretion, determines that confidential treatment of
any of this information will interfere with enforcement of this section.
deleted text end

Sec. 11.

Minnesota Statutes 2024, section 60D.18, subdivision 3, is amended to read:

Subd. 3.

Preacquisition notification; waiting period.

(a) An acquisition covered by
subdivision 2 may be subject to an order pursuant to subdivision deleted text begin 4 deleted text end new text begin 5 new text end unless the acquiring
person files a preacquisition notification and the waiting period has expired. The acquired
person may file a preacquisition notification. The commissioner shall give confidential
treatment to information submitted under this section in the same manner as provided in
section 60D.22.

(b) The preacquisition notification must be in the form and contain the information as
prescribed by the National Association of Insurance Commissioners relating to those markets
that, under subdivision 2, paragraph (b), clause deleted text begin (5) deleted text end new text begin (4) new text end , cause the acquisition not to be
exempted from the provisions of this section. The commissioner may require deleted text begin the deleted text end additional
material and information as the commissioner deems necessary to determine whether the
proposed acquisition, if consummated, would violate the competitive standard of subdivision
4. The required information may include an opinion of an economist as to the competitive
impact of the acquisition in this state accompanied by a summary of the education and
experience of the person indicating that person's ability to render an informed opinion.

(c) The waiting period required begins on the date of receipt of the commissioner of a
preacquisition notification and ends on the earlier of the 30th day after the date of its receipt,
or termination of the waiting period by the commissioner. Before the end of the waiting
period, the commissioner on a onetime basis may require the submission of additional
needed information relevant to the proposed acquisition, in which event the waiting period
shall end on the earlier of the 30th day after receipt of the additional information by the
commissioner or termination of the waiting period by the commissioner.

Sec. 12.

Minnesota Statutes 2024, section 60D.19, subdivision 4, is amended to read:

Subd. 4.

Materiality.

No information need be disclosed on the registration statement
filed pursuant to subdivision 2 if the information is not material for the purposes of this
section. Unless the commissioner by rule or order provides otherwise; sales, purchases,
exchanges, loans or extensions of credit, investments, or guarantees involving one-half of
one percent or less of an insurer's admitted assets as of the 31st day of December next
preceding shall not be deemed material for purposes of this section. new text begin The definition of
materiality provided in this subdivision does not apply for purposes of the group capital
calculation or the NAIC liquidity stress test framework.
new text end

Sec. 13.

Minnesota Statutes 2024, section 60D.19, is amended by adding a subdivision to
read:

new text begin Subd. 11b. new text end

new text begin Group capital calculation. new text end

new text begin (a) Except as otherwise provided in this paragraph,
the ultimate controlling person of every insurer subject to registration must concurrently
file with the registration an annual group capital calculation as directed by the lead state
insurance commissioner. The report must be completed in accordance with the NAIC group
capital calculation instructions, which may permit the lead state insurance commissioner
to allow a controlling person that is not the ultimate controlling person to file the group
capital calculation. The report must be filed with the lead state insurance commissioner of
the insurance holding company system, as determined by the commissioner in accordance
with the procedures within the Financial Analysis Handbook adopted by the NAIC. The
following insurance holding company systems are exempt from filing the group capital
calculation:
new text end

new text begin (1) an insurance holding company system that (i) has only one insurer within the insurance
holding company system's holding company structure, (ii) only writes business and is only
licensed in the insurance holding company system's domestic state, and (iii) assumes no
business from any other insurer;
new text end

new text begin (2) an insurance holding company system that is required to perform a group capital
calculation specified by the United States Federal Reserve Board. The lead state insurance
commissioner must request the calculation from the Federal Reserve Board under the terms
of information sharing agreements in effect. If the Federal Reserve Board is unable to share
the calculation with the lead state insurance commissioner, the insurance holding company
system is not exempt from the group capital calculation filing;
new text end

new text begin (3) an insurance holding company system whose non-United States groupwide supervisor
is located within a reciprocal jurisdiction as described in section 60A.092, subdivision 10b,
that recognizes the United States state regulatory approach to group supervision and group
capital; or
new text end

new text begin (4) an insurance holding company system:
new text end

new text begin (i) that provides information to the lead state insurance commissioner that meets the
requirements for accreditation under the NAIC financial standards and accreditation program,
either directly or indirectly through the groupwide supervisor, that has determined the
information is satisfactory to allow the lead state insurance commissioner to comply with
the NAIC group supervision approach, as detailed in the NAIC Financial Analysis Handbook;
and
new text end

new text begin (ii) whose non-United States groupwide supervisor that is not in a reciprocal jurisdiction
recognizes and accepts, as specified by the commissioner in an administrative rule, the
group capital calculation as the worldwide group capital assessment for United States
insurance groups that operate in that jurisdiction.
new text end

new text begin (b) Notwithstanding paragraph (a), clauses (3) and (4), a lead state insurance
commissioner must require the group capital calculation for the United States operations
of any non-United States based insurance holding company system where, after any necessary
consultation with other supervisors or officials, requiring the group capital calculation is
deemed appropriate by the lead state insurance commissioner for prudential oversight and
solvency monitoring purposes or for ensuring the competitiveness of the insurance
marketplace.
new text end

new text begin (c) Notwithstanding the exemptions from filing the group capital calculation under
paragraph (a), the lead state insurance commissioner may exempt the ultimate controlling
person from filing the annual group capital calculation or accept a limited group capital
filing or report in accordance with criteria specified by the commissioner in an administrative
rule.
new text end

new text begin (d) If the lead state insurance commissioner determines that an insurance holding company
system no longer meets one or more of the requirements for an exemption from filing the
group capital calculation under this subdivision, the insurance holding company system
must file the group capital calculation at the next annual filing date unless given an extension
by the lead state insurance commissioner based on reasonable grounds shown.
new text end

Sec. 14.

Minnesota Statutes 2024, section 60D.19, is amended by adding a subdivision to
read:

new text begin Subd. 11c. new text end

new text begin Liquidity stress test. new text end

new text begin (a) The ultimate controlling person of every insurer
subject to registration and also scoped into the NAIC liquidity stress test framework must
file the results of a specific year's liquidity stress test. The filing must be made to the lead
state insurance commissioner of the insurance holding company system, as determined by
the procedures within the Financial Analysis Handbook adopted by the NAIC.
new text end

new text begin (b) The NAIC liquidity stress test framework includes scope criteria applicable to a
specific data year. The scope criteria must be reviewed at least annually by the NAIC
Financial Stability Task Force or the NAIC Financial Stability Task Force's successor. Any
change made to the NAIC liquidity stress test framework or to the data year for which the
scope criteria must be measured is effective January 1 of the year following the calendar
year in which the change is adopted. An insurer meeting at least one threshold of the scope
criteria is scoped into the NAIC liquidity stress test framework for the specified data year
unless the lead state insurance commissioner, in consultation with the NAIC Financial
Stability Task Force or the NAIC Financial Stability Task Force's successor, determines
the insurer should not be scoped into the framework for that data year. An insurer that does
not trigger at least one threshold of the scope criteria is scoped out of the NAIC liquidity
stress test framework for the specified data year unless the lead state insurance commissioner,
in consultation with the NAIC Financial Stability Task Force or the NAIC Financial Stability
Task Force's successor, determines the insurer should be scoped into the framework for the
specified data year.
new text end

new text begin (c) The commissioner and other state insurance commissioners must avoid scoping
insurers in and out of the NAIC liquidity stress test framework on a frequent basis. The lead
state insurance commissioner, in consultation with the NAIC Financial Stability Task Force
or the NAIC Financial Stability Task Force's successor, must assess irregular scope status
as part of an insurer's determination.
new text end

new text begin (d) The performance of and filing of the results from a specific year's liquidity stress
test must comply with (1) the NAIC liquidity stress test framework's instructions and
reporting templates for the specific year, and (2) any lead state insurance commissioner
determinations, in consultation with the NAIC Financial Stability Task Force or the NAIC
Financial Stability Task Force's successor, provided within the framework.
new text end

Sec. 15.

new text begin [60D.195] GROUP CAPITAL CALCULATION.
new text end

new text begin Subdivision 1. new text end

new text begin Annual group capital calculation; exemption permitted. new text end

new text begin The lead
state insurance commissioner may exempt the ultimate controlling person from filing the
annual group capital calculation if the lead state insurance commissioner makes a
determination that the insurance holding company system meets the following criteria:
new text end

new text begin (1) has annual direct written and unaffiliated assumed premium, including international
direct and assumed premium but excluding premiums reinsured with the Federal Crop
Insurance Corporation and Federal Flood Program, of less than $1,000,000,000;
new text end

new text begin (2) has no insurers within the insurance holding company's structure that are domiciled
outside of the United States or a United States territory;
new text end

new text begin (3) has no banking, depository, or other financial entity that is subject to an identified
regulatory capital framework within the insurance holding company's structure;
new text end

new text begin (4) attests that no material changes in the transactions between insurers and noninsurers
in the group have occurred since the last annual group capital filing; and
new text end

new text begin (5) the noninsurers within the holding company system do not pose a material financial
risk to the insurer's ability to honor policyholder obligations.
new text end

new text begin Subd. 2. new text end

new text begin Limited group capital filing. new text end

new text begin The lead state insurance commissioner may
accept a limited group capital filing in lieu of the group capital calculation if:
new text end

new text begin (1) the insurance holding company system has annual direct written and unaffiliated
assumed premium, including international direct and assumed premium but excluding
premiums reinsured with the Federal Crop Insurance Corporation and Federal Flood Program,
of less than $1,000,000,000; and
new text end

new text begin (2) the insurance holding company system:
new text end

new text begin (i) has no insurers within the insurance holding company's structure that are domiciled
outside of the United States or a United States territory;
new text end

new text begin (ii) does not include a banking, depository, or other financial entity that is subject to an
identified regulatory capital framework; and
new text end

new text begin (iii) attests that no material changes in transactions between insurers and noninsurers in
the group have occurred and the noninsurers within the holding company system do not
pose a material financial risk to the insurer's ability to honor policyholder obligations.
new text end

new text begin Subd. 3. new text end

new text begin Previous exemption; required filing. new text end

new text begin For an insurance holding company that
has previously met an exemption with respect to the group capital calculation under
subdivision 1 or 2, the lead state insurance commissioner may at any time require the ultimate
controlling person to file an annual group capital calculation, completed in accordance with
the NAIC group capital calculation instructions, if:
new text end

new text begin (1) an insurer within the insurance holding company system is in a risk-based capital
action level event under section 60A.62 or a similar standard for a non-United States insurer;
new text end

new text begin (2) an insurer within the insurance holding company system meets one or more of the
standards of an insurer deemed to be in hazardous financial condition, as defined under
section 60E.02, subdivision 5; or
new text end

new text begin (3) an insurer within the insurance holding company system otherwise exhibits qualities
of a troubled insurer, as determined by the lead state insurance commissioner based on
unique circumstances, including but not limited to the type and volume of business written,
ownership and organizational structure, federal agency requests, and international supervisor
requests.
new text end

new text begin Subd. 4. new text end

new text begin Non-United States jurisdictions; recognition and acceptance. new text end

new text begin A non-United
States jurisdiction is deemed to recognize and accept the group capital calculation if the
non-United States jurisdiction:
new text end

new text begin (1) with respect to section 60D.19, subdivision 11b, paragraph (a), clause (4):
new text end

new text begin (i) recognizes the United States state regulatory approach to group supervision and group
capital by providing confirmation by a competent regulatory authority in the non-United
States jurisdiction that insurers and insurance groups whose lead state is accredited by the
NAIC under the NAIC accreditation program: (A) are subject only to worldwide prudential
insurance group supervision, including worldwide group governance, solvency and capital,
and reporting, as applicable, by the lead state; and (B) are not subject to group supervision,
including worldwide group governance, solvency and capital, and reporting, at the level of
the worldwide parent undertaking of the insurance or reinsurance group by the non-United
States jurisdiction; or
new text end

new text begin (ii) if no United States insurance group operates in the non-United States jurisdiction,
indicates formally in writing to the lead state with a copy to the International Association
of Insurance Supervisors that the group capital calculation is an acceptable international
capital standard. The formal indication under this item serves as the documentation otherwise
required under item (i); and
new text end

new text begin (2) provides confirmation by a competent regulatory authority in the non-United States
jurisdiction that information regarding an insurer and the insurer's parent, subsidiary, or
affiliated entities, if applicable, must be provided to the lead state insurance commissioner
in accordance with a memorandum of understanding or similar document between the
commissioner and the non-United States jurisdiction, including but not limited to the
International Association of Insurance Supervisors Multilateral Memorandum of
Understanding or other multilateral memoranda of understanding coordinated by the NAIC.
The commissioner must determine, in consultation with the NAIC committee process, if
the information sharing agreement requirements are effective.
new text end

new text begin Subd. 5. new text end

new text begin Non-United States jurisdiction; publication. new text end

new text begin (a) A list of non-United States
jurisdictions that recognize and accept the group capital calculation under section 60D.19,
subdivision 11b, paragraph (a), clause (4), must be published through the NAIC committee
process to assist the lead state insurance commissioner determine what insurers must file
an annual group capital calculation. The list must clarify the situations in which a jurisdiction
is exempt from filing under section 60D.19, subdivision 11b, paragraph (a), clause (4). To
assist with a determination under section 60D.19, subdivision 11b, paragraph (b), the list
must also identify whether a jurisdiction that is exempt under section 60D.19, subdivision
11b, paragraph (a), clause (3) or (4), requires a group capital filing for any United States
insurance group's operations in the non-United States jurisdiction.
new text end

new text begin (b) For a non-United States jurisdiction where no United States insurance group operates,
the confirmation provided to comply with subdivision 4, clause (1), item (ii), serves as
support for a recommendation to be published that the non-United States jurisdiction is a
jurisdiction that recognizes and accepts the group capital calculation pursuant to the NAIC
committee process.
new text end

new text begin (c) If the lead state insurance commissioner makes a determination pursuant to section
60D.19, subdivision 11b, that differs from the NAIC list, the lead state insurance
commissioner must provide thoroughly documented justification to the NAIC and other
states.
new text end

new text begin (d) Upon a determination by the lead state insurance commissioner that a non-United
States jurisdiction no longer meets one or more of the requirements to recognize and accept
the group capital calculation, the lead state insurance commissioner may provide a
recommendation to the NAIC that the non-United States jurisdiction be removed from the
list of jurisdictions that recognize and accept the group capital calculation.
new text end

Sec. 16.

Minnesota Statutes 2024, section 60D.20, subdivision 1, is amended to read:

Subdivision 1.

Transactions within an insurance holding company system.

(a)
Transactions within an insurance holding company system to which an insurer subject to
registration is a party are subject to the following standards:

(1) the terms shall be fair and reasonable;

(2) agreements for cost-sharing services and management shall include the provisions
required by rule issued by the commissioner;

(3) charges or fees for services performed shall be reasonable;

(4) expenses incurred and payment received shall be allocated to the insurer in conformity
with customary insurance accounting practices consistently applied;

(5) the books, accounts, and records of each party to all such transactions shall be so
maintained as to clearly and accurately disclose the nature and details of the transactions
including this accounting information as is necessary to support the reasonableness of the
charges or fees to the respective parties; deleted text begin and
deleted text end

(6) the insurer's surplus as regards policyholders following any dividends or distributions
to shareholder affiliates shall be reasonable in relation to the insurer's outstanding liabilities
and adequate to its financial needs deleted text begin . deleted text end new text begin ;
new text end

new text begin (7) if the commissioner determines an insurer subject to this chapter is in a hazardous
financial condition, as defined under section 60E.02, subdivision 5, or a condition that would
be grounds for supervision, conservation, or a delinquency proceeding, the commissioner
may require the insurer to secure and maintain either a deposit, held by the commissioner,
or a bond, as determined by the insurer at the insurer's discretion, to protect the insurer for
the duration of the contract, agreement, or the existence of the condition for which the
commissioner required the deposit or bond. When determining whether a deposit or bond
is required, the commissioner must consider whether concerns exist with respect to the
affiliated person's ability to fulfill the contract or agreement if the insurer entered into
liquidation. Once the insurer is deemed to be in a hazardous financial condition or a condition
that would be grounds for supervision, conservation, or a delinquency proceeding, and a
deposit or bond is necessary, the commissioner may determine the amount of the deposit
or bond, not to exceed the value of the contract or agreement in any one year, and whether
the deposit or bond is required for a single contract, multiple contracts, or a contract only
with a specific person or persons;
new text end

new text begin (8) all of an insurer's records and data held by an affiliate are and remain the property
of the insurer, are subject to control of the insurer, are identifiable, and are segregated or
readily capable of segregation, at no additional cost to the insurer, from all other persons'
records and data. For purposes of this clause, records and data include all records and data
that are otherwise the property of the insurer in whatever form maintained, including but
not limited to claims and claim files, policyholder lists, application files, litigation files,
premium records, rate books, underwriting manuals, personnel records, financial records,
or similar records within the affiliate's possession, custody, or control. At the request of the
insurer, the affiliate must provide that the receiver may (i) obtain a complete set of all records
of any type that pertain to the insurer's business, (ii) obtain access to the operating systems
on which the data are maintained, (iii) obtain the software that runs the operating systems
either through assumption of licensing agreements or otherwise, and (iv) restrict the use of
the data by the affiliate if the affiliate is not operating the insurer's business. The affiliate
must provide a waiver of any landlord lien or other encumbrance to provide the insurer
access to all records and data in the event the affiliate defaults under a lease or other
agreement; and
new text end

new text begin (9) premiums or other funds belonging to the insurer that are collected or held by an
affiliate are the exclusive property of the insurer and are subject to the control of the insurer.
Any right of offset in the event an insurer is placed into receivership is subject to chapter
576.
new text end

(b) The following transactions involving a domestic insurer and any person in its
insurance holding company system, including amendments or modifications of affiliate
agreements previously filed pursuant to this section, which are subject to any materiality
standards contained in clauses (1) to (7), may not be entered into unless the insurer has
notified the commissioner in writing of its intention to enter into the transaction at least 30
days prior thereto, or a shorter period the commissioner permits, and the commissioner has
not disapproved it within this period. The notice for amendments or modifications must
include the reasons for the change and the financial impact on the domestic insurer. Informal
notice must be reported, within 30 days after a termination of a previously filed agreement,
to the commissioner for determination of the type of filing required, if any:

(1) sales, purchases, exchanges, loans or extensions of credit, guarantees, or investments
provided the transactions are equal to or exceed: (i) with respect to nonlife insurers, the
lesser of three percent of the insurer's admitted assets, or 25 percent of surplus as regards
policyholders; (ii) with respect to life insurers, three percent of the insurer's admitted assets;
each as of the 31st day of December next preceding;

(2) loans or extensions of credit to any person who is not an affiliate, where the insurer
makes the loans or extensions of credit with the agreement or understanding that the proceeds
of the transactions, in whole or in substantial part, are to be used to make loans or extensions
of credit to, to purchase assets of, or to make investments in, any affiliate of the insurer
making such loans or extensions of credit provided the transactions are equal to or exceed:
(i) with respect to nonlife insurers, the lesser of three percent of the insurer's admitted assets
or 25 percent of surplus as regards policyholders; (ii) with respect to life insurers, three
percent of the insurer's admitted assets; each as of the 31st day of December next preceding;

(3) reinsurance agreements or modifications to those agreements, including: (i) all
reinsurance pooling agreements; and (ii) agreements in which the reinsurance premium or
a change in the insurer's liabilities, or the projected reinsurance premium or a change in the
insurer's liabilities in any of the next three years, equals or exceeds five percent of the
insurer's surplus as regards policyholders, as of the 31st day of December next preceding,
including those agreements which may require as consideration the transfer of assets from
an insurer to a nonaffiliate, if an agreement or understanding exists between the insurer and
nonaffiliate that any portion of deleted text begin such deleted text end new text begin the new text end assets will be transferred to one or more affiliates
of the insurer;

(4) all management agreements, service contracts, tax allocation agreements, guarantees,
and all cost-sharing arrangements;

(5) guarantees when made by a domestic insurer; provided, however, that a guarantee
which is quantifiable as to amount is not subject to the notice requirements of this paragraph
unless it exceeds the lesser of one-half of one percent of the insurer's admitted assets or ten
percent of surplus as regards policyholders as of the 31st day of December next preceding.
Further, all guarantees which are not quantifiable as to amount are subject to the notice
requirements of this paragraph;

(6) direct or indirect acquisitions or investments in a person that controls the insurer or
in an affiliate of the insurer in an amount which, together with its present holdings in the
investments, exceeds 2-1/2 percent of the insurer's surplus to policyholders. Direct or indirect
acquisitions or investments in subsidiaries acquired pursuant to section 60D.16, new text begin as otherwise
authorized under this chapter, new text end or in nonsubsidiary insurance affiliates that are subject to the
provisions of sections 60D.15 to 60D.29, are exempt from this requirement; and

(7) any material transactions, specified by regulation, which the commissioner determines
may adversely affect the interests of the insurer's policyholders.

Nothing contained in this section authorizes or permits any transactions that, in the case
of an insurer not a member of the same insurance holding company system, would be
otherwise contrary to law.

(c) A domestic insurer may not enter into transactions which are part of a plan or series
of like transactions with persons within the insurance holding company system if the purpose
of those separate transactions is to avoid the statutory threshold amount and thus avoid the
review that would occur otherwise. If the commissioner determines that the separate
transactions were entered into over any 12-month period for the purpose, the commissioner
may exercise the authority under section 60D.25.

(d) The commissioner, in reviewing transactions pursuant to paragraph (b), shall consider
whether the transactions comply with the standards set forth in paragraph (a), and whether
they may adversely affect the interests of policyholders.

(e) The commissioner shall be notified within 30 days of any investment of the domestic
insurer in any one corporation if the total investment in the corporation by the insurance
holding company system exceeds ten percent of the corporation's voting securities.

new text begin (f) An affiliate that is party to an agreement or contract with a domestic insurer that is
subject to paragraph (b), clause (4), is subject to the jurisdiction of any supervision, seizure,
conservatorship, or receivership proceedings against the insurer and to the authority of a
supervisor, conservator, rehabilitator, or liquidator for the insurer appointed pursuant to
chapters 60B and 576 for the purpose of interpreting, enforcing, and overseeing the affiliate's
obligations under the agreement or contract to perform services for the insurer that are: (1)
an integral part of the insurer's operations, including but not limited to management,
administrative, accounting, data processing, marketing, underwriting, claims handling,
investment, or any other similar functions; or (2) essential to the insurer's ability to fulfill
the insurer's obligations under insurance policies. The commissioner may require that an
agreement or contract pursuant to paragraph (b), clause (4), to provide the services described
in clauses (1) and (2) must specify that the affiliate consents to the jurisdiction as provided
under this paragraph.
new text end

Sec. 17.

Minnesota Statutes 2024, section 60D.217, is amended to read:

60D.217 GROUPWIDE SUPERVISION OF INTERNATIONALLY ACTIVE
INSURANCE GROUPS.

(a) The commissioner is authorized to act as the groupwide supervisor for any
internationally active insurance group in accordance with the provisions of this section.
However, the commissioner may otherwise acknowledge another regulatory official as the
groupwide supervisor where the internationally active insurance group:

(1) does not have substantial insurance operations in the United States;

(2) has substantial insurance operations in the United States, but not in this state; or

(3) has substantial insurance operations in the United States and this state, but the
commissioner has determined pursuant to the factors set forth in deleted text begin subsections deleted text end new text begin paragraphs new text end (b)
and (f) that the other regulatory official is the appropriate groupwide supervisor.

An insurance holding company system that does not otherwise qualify as an internationally
active insurance group may request that the commissioner make a determination or
acknowledgment as to a groupwide supervisor pursuant to this section.

(b) In cooperation with other state, federal, and international regulatory agencies, the
commissioner deleted text begin will deleted text end new text begin must new text end identify a single groupwide supervisor for an internationally active
insurance group. The commissioner may determine that the commissioner is the appropriate
groupwide supervisor for an internationally active insurance group that conducts substantial
insurance operations concentrated in this state. However, the commissioner may acknowledge
that a regulatory official from another jurisdiction is the appropriate groupwide supervisor
for the internationally active insurance group. The commissioner shall consider the following
factors when making a determination or acknowledgment under this deleted text begin subsection deleted text end new text begin paragraph new text end :

(1) the place of domicile of the insurers within the internationally active insurance group
that hold the largest share of the group's written premiums, assets, or liabilities;

(2) the place of domicile of the top-tiered deleted text begin insurer(s) deleted text end new text begin insurer or insurers new text end in the insurance
holding company system of the internationally active insurance group;

(3) the location of the executive offices or largest operational offices of the internationally
active insurance group;

(4) whether another regulatory official is acting or is seeking to act as the groupwide
supervisor under a regulatory system that the commissioner determines to be:

(i) substantially similar to the system of regulation provided under the laws of this state;
or

(ii) otherwise sufficient in terms of providing for groupwide supervision, enterprise risk
analysis, and cooperation with other regulatory officials; and

(5) whether another regulatory official acting or seeking to act as the groupwide
supervisor provides the commissioner with reasonably reciprocal recognition and cooperation.

However, a commissioner identified under this section as the groupwide supervisor may
determine that it is appropriate to acknowledge another supervisor to serve as the groupwide
supervisor. The acknowledgment of the groupwide supervisor shall be made after
consideration of the factors listed in clauses (1) to (5), and shall be made in cooperation
with and subject to the acknowledgment of other regulatory officials involved with
supervision of members of the internationally active insurance group, and in consultation
with the internationally active insurance group.

(c) Notwithstanding any other provision of law, when another regulatory official is acting
as the groupwide supervisor of an internationally active insurance group, the commissioner
shall acknowledge that regulatory official as the groupwide supervisor. However, in the
event of a material change in the internationally active insurance group that results in:

(1) the internationally active insurance group's insurers domiciled in this state holding
the largest share of the group's premiums, assets, or liabilities; or

(2) this state being the place of domicile of the top-tiered deleted text begin insurer(s) deleted text end new text begin insurer or insurers new text end
in the insurance holding company system of the internationally active insurance group,

the commissioner shall make a determination or acknowledgment as to the appropriate
groupwide supervisor for such an internationally active insurance group pursuant to
deleted text begin subsection deleted text end new text begin paragraph new text end (b).

(d) Pursuant to section 60D.21, the commissioner is authorized to collect from any
insurer registered pursuant to section 60D.19 all information necessary to determine whether
the commissioner may act as the groupwide supervisor of an internationally active insurance
group or if the commissioner may acknowledge another regulatory official to act as the
groupwide supervisor. Prior to issuing a determination that an internationally active insurance
group is subject to groupwide supervision by the commissioner, the commissioner shall
notify the insurer registered pursuant to section 60D.19 and the ultimate controlling person
within the internationally active insurance group. The internationally active insurance group
shall have not less than 30 days to provide the commissioner with additional information
pertinent to the pending determination. The commissioner shall publish in the State Register
and on the department's website the identity of internationally active insurance groups that
the commissioner has determined are subject to groupwide supervision by the commissioner.

(e) If the commissioner is the groupwide supervisor for an internationally active insurance
group, the commissioner is authorized to engage in any of the following groupwide
supervision activities:

(1) assess the enterprise risks within the internationally active insurance group to ensure
that:

(i) the material financial condition and liquidity risks to the members of the internationally
active insurance group that are engaged in the business of insurance are identified by
management; and

(ii) reasonable and effective mitigation measures are in place; or

(2) request, from any member of an internationally active insurance group subject to the
commissioner's supervision, information necessary and appropriate to assess enterprise risk,
including but not limited to information about the members of the internationally active
insurance group regarding:

(i) governance, risk assessment, and management;

(ii) capital adequacy; and

(iii) material intercompany transactions;

(3) coordinate and, through the authority of the regulatory officials of the jurisdictions
where members of the internationally active insurance group are domiciled, compel
development and implementation of reasonable measures designed to ensure that the
internationally active insurance group is able to timely recognize and mitigate enterprise
risks to members of deleted text begin such deleted text end new text begin the new text end internationally active insurance group that are engaged in the
business of insurance;

(4) communicate with other state, federal and international regulatory agencies for
members within the internationally active insurance group and share relevant information
subject to the confidentiality provisions of section 60D.22, through supervisory colleges as
set forth in section 60D.215 or otherwise;

(5) enter into agreements with or obtain documentation from any insurer registered under
section 60D.19, any member of the internationally active insurance group, and any other
state, federal, and international regulatory agencies for members of the internationally active
insurance group, providing the basis for or otherwise clarifying the commissioner's role as
groupwide supervisor, including provisions for resolving disputes with other regulatory
officials. deleted text begin Such deleted text end Agreements or documentation new text begin under this clause new text end shall not serve as evidence
in any proceeding that any insurer or person within an insurance holding company system
not domiciled or incorporated in this state is doing business in this state or is otherwise
subject to jurisdiction in this state; and

(6) other groupwide supervision activities, consistent with the authorities and purposes
enumerated above, as considered necessary by the commissioner.

(f) If the commissioner acknowledges that another regulatory official from a jurisdiction
that is not accredited by the NAIC is the groupwide supervisor, the commissioner is
authorized to reasonably cooperate, through supervisory colleges or otherwise, with
groupwide supervision undertaken by the groupwide supervisor, provided that:

(1) the commissioner's cooperation is in compliance with the laws of this state; and

(2) the regulatory official acknowledged as the groupwide supervisor also recognizes
and cooperates with the commissioner's activities as a groupwide supervisor for other
internationally active insurance groups where applicable. Where deleted text begin such deleted text end recognition and
cooperation new text begin by the groupwide supervisor new text end is not reasonably reciprocal, the commissioner is
authorized to refuse recognition and cooperation.

(g) The commissioner is authorized to enter into agreements with or obtain documentation
from any insurer registered under section 60D.19, any affiliate of the insurer, and other
state, federal, and international regulatory agencies for members of the internationally active
insurance group, that provide the basis for or otherwise clarify a regulatory official's role
as groupwide supervisor.

(h) A registered insurer subject to this section shall be liable for and shall pay the
reasonable expenses of the commissioner's participation in the administration of this section,
including the engagement of attorneys, actuaries, and any other professionals and all
reasonable travel expenses.

Sec. 18.

Minnesota Statutes 2024, section 60D.22, subdivision 1, is amended to read:

Subdivision 1.

Classification protection and use of information by commissioner.

new text begin (a)
new text end Documents, materials, or other information in the possession or control of the department
that are obtained by or disclosed to the commissioner or any other person in the course of
an examination or investigation made pursuant to section 60D.21 and all information reported
pursuant to sections 60D.17, except as provided in section 60D.17, subdivision 1, paragraph
(e); deleted text begin 60D.18; deleted text end 60D.19; deleted text begin and deleted text end 60D.20 deleted text begin , deleted text end new text begin ; and 60D.217, new text end are classified as confidential or protected
nonpublic or both, are not subject to subpoena, and are not subject to discovery or admissible
in evidence in a private civil action. However, the commissioner may use the documents,
materials, or other information in the furtherance of any regulatory or legal action brought
as a part of the commissioner's official duties. The commissioner shall not otherwise make
the documents, materials, or other information public without the prior written consent of
the insurer to which it pertains unless the commissioner, after giving the insurer and its
affiliates who would be affected by this action notice and opportunity to be heard, determines
that the interest of policyholders, shareholders, or the public deleted text begin will be deleted text end new text begin is new text end served by the
publication of it, in which event the commissioner may publish all or any part in the manner
the commissioner deems appropriate.

new text begin (b) For purposes of the information reported and provided to the department pursuant
to section 60D.19, subdivision 11b, the commissioner must maintain the confidentiality of
the group capital calculation and group capital ratio produced within the calculation and
any group capital information received from an insurance holding company supervised by
the Federal Reserve Board or any United States groupwide supervisor.
new text end

new text begin (c) For purposes of the information reported and provided to the department pursuant
to section 60D.19, subdivision 11c, the commissioner must maintain the confidentiality of
the liquidity stress test results and supporting disclosures and any liquidity stress test
information received from an insurance holding company supervised by the Federal Reserve
Board and non-United States groupwide supervisors.
new text end

Sec. 19.

Minnesota Statutes 2024, section 60D.22, subdivision 3, is amended to read:

Subd. 3.

Sharing of information.

In order to assist in the performance of the
commissioner's duties, the commissioner:

(1) may share documents, materials, or other information, including the confidential,
protected nonpublic, and privileged documents, materials, or information subject to this
section, new text begin including proprietary and trade secret documents and materials, new text end with new text begin : (i) new text end other state,
federal, and international regulatory agencies deleted text begin , with deleted text end new text begin ; (ii) new text end the NAIC deleted text begin and its affiliates and
subsidiaries, deleted text end new text begin ; (iii) any third-party consultants designated by the commissioner; new text end and deleted text begin with deleted text end new text begin
(iv) new text end state, federal, and international law enforcement authorities, including members of any
supervisory college described in section 60D.215, provided that the recipient agrees in
writing to maintain the confidentiality and privileged status of the document, material, or
other information, and has verified in writing the legal authority to maintain confidentiality;

(2) notwithstanding clause (1), may only share confidential, protected nonpublic, and
privileged documents, materials, or information reported pursuant to section 60D.19 new text begin ,
subdivision 11a, new text end with commissioners of states having statutes or regulations substantially
similar to subdivision 1 and who have agreed in writing not to disclose this information;

(3) may receive documents, materials, or information, including otherwise confidential
and privileged documents, materials, or information from the NAIC and deleted text begin its deleted text end new text begin the NAIC's new text end
affiliates and subsidiaries and from regulatory and law enforcement officials of other foreign
or domestic jurisdictions, and shall maintain as confidential, protected nonpublic, or
privileged any document, material, or information received with notice or the understanding
that it is confidential or privileged under the laws of the jurisdiction that is the source of the
document, material, or information; and

(4) shall enter into written agreements with the NAIC new text begin and a third-party consultant
designated by the commissioner new text end governing sharing and use of information provided pursuant
to sections 60D.15 to 60D.29 consistent with this clause that shall:

(i) specify procedures and protocols regarding the confidentiality and security of
information shared with the NAIC deleted text begin and its affiliates and subsidiaries deleted text end new text begin or a third-party consultant
designated by the commissioner new text end pursuant to sections 60D.15 to 60D.29, including procedures
and protocols for sharing by the NAIC with other state, federal, or international regulators new text begin .
The agreement must provide that the recipient agrees in writing to maintain the confidentiality
and privileged status of the documents, materials, or other information, and has verified in
writing the legal authority to maintain confidentiality new text end ;

(ii) specify that ownership of information shared with the NAIC deleted text begin and its affiliates and
subsidiaries deleted text end new text begin or a third-party consultant new text end pursuant to sections 60D.15 to 60D.29 remains with
the commissioner and the NAIC's new text begin or a third-party consultant's, as designated by the
commissioner, new text end use of the information is subject to the direction of the commissioner;

new text begin (iii) excluding documents, material, or information reported pursuant to section 60D.19,
subdivision 11c, prohibit the NAIC or a third-party consultant designated by the
commissioner from storing the information shared pursuant to sections 60D.15 to 60D.29
in a permanent database after the underlying analysis is completed;
new text end

deleted text begin (iii) deleted text end new text begin (iv) new text end require prompt notice to be given to an insurer whose confidential or protected
nonpublic information in the possession of the NAIC new text begin or a third-party consultant designated
by the commissioner new text end pursuant to sections 60D.15 to 60D.29 is subject to a request or
subpoena to the NAIC new text begin or a third-party consultant designated by the commissioner new text end for
disclosure or production; deleted text begin and
deleted text end

deleted text begin (iv) deleted text end new text begin (v) new text end require the NAIC deleted text begin and its affiliates and subsidiaries deleted text end new text begin or a third-party consultant
designated by the commissioner new text end to consent to intervention by an insurer in any judicial or
administrative action in which the NAIC deleted text begin and its affiliates and subsidiaries deleted text end new text begin or a third-party
consultant designated by the commissioner new text end may be required to disclose confidential or
protected nonpublic information about the insurer shared with the NAIC deleted text begin and its affiliates
and subsidiaries deleted text end new text begin or a third-party consultant designated by the commissioner new text end pursuant to
sections 60D.15 to 60D.29 deleted text begin . deleted text end new text begin ; and
new text end

new text begin (vi) for documents, material, or information reported pursuant to section 60D.19,
subdivision 11c, in the case of an agreement involving a third-party consultant, provide for
notification of the identity of the consultant to the applicable insurers.
new text end

Sec. 20.

Minnesota Statutes 2024, section 60D.22, subdivision 6, is amended to read:

Subd. 6.

Classification protection and use by others.

Documents, materials, or other
information in the possession or control of the NAIC new text begin or a third-party consultant designated
by the commissioner new text end pursuant to sections 60D.15 to 60D.29 are confidential, protected
nonpublic, or privileged, are not subject to subpoena, and are not subject to discovery or
admissible in evidence in a private civil action.

Sec. 21.

Minnesota Statutes 2024, section 60D.22, is amended by adding a subdivision to
read:

new text begin Subd. 7. new text end

new text begin Certain disclosures or publication prohibited. new text end

new text begin (a) The group capital calculation
and resulting group capital ratio required under section 60D.19, subdivision 11b, and the
liquidity stress test along with the liquidity stress test's results and supporting disclosures
required under section 60D.19, subdivision 11c, are regulatory tools to assess group risks
and capital adequacy and group liquidity risks, respectively, and are not intended as a means
to rank insurers or insurance holding company systems generally.
new text end

new text begin (b) Except as otherwise required under sections 60D.09 to 60D.29, making, publishing,
disseminating, circulating, or placing before the public, or causing directly or indirectly to
be made, published, disseminated, circulated, or placed before the public in a newspaper,
magazine, or other publication, or in the form of a notice, circular, pamphlet, letter, or poster,
or over any radio, television station, or any electronic means of communication available
to the public, or in any other way as an advertisement, announcement, or statement containing
a representation or statement with regard to the group capital calculation, group capital ratio,
the liquidity stress test results, or supporting disclosures for the liquidity stress test of any
insurer or any insurer group, or of any component derived in the calculation by any insurer,
broker, or other person engaged in any manner in the insurance business is misleading and
is prohibited.
new text end

new text begin (c) Notwithstanding paragraph (b), an insurer may publish an announcement in a written
publication if any materially false statement with respect to the group capital calculation,
resulting group capital ratio, an inappropriate comparison of any amount to an insurer's or
insurance group's group capital calculation or resulting group capital ratio, liquidity stress
test result, supporting disclosures for the liquidity stress test, or an inappropriate comparison
of any amount to an insurer's or insurance group's liquidity stress test result or supporting
disclosures is published in any written publication and the insurer is able to demonstrate to
the commissioner with substantial proof the statement's falsity or inappropriateness. The
sole purpose of an announcement under this paragraph must be to rebut the materially false
statement.
new text end

Sec. 22.

Minnesota Statutes 2024, section 60D.24, subdivision 2, is amended to read:

Subd. 2.

Voting of securities; when prohibited.

No security that is the subject of any
agreement or arrangement regarding acquisition, or that is acquired or to be acquired, in
contravention of the provisions of this chapter or of any rule or order issued by the
commissioner may be voted at any shareholder's meeting, or may be counted for quorum
purposes, and any action of shareholders requiring the affirmative vote of a percentage of
shares may be taken as though the securities were not issued and outstanding. No action
taken at the meeting shall be invalidated by the voting of the securities, unless the action
would materially affect control of the insurer or unless the courts of this state have so
ordered. If an insurer or the commissioner has reason to believe that any security of the
insurer has been or is about to be acquired in contravention of the provisions of this chapter
or of any rule or order issued by the commissioner, the insurer or the commissioner may
apply to the district court for the county in which the insurer has its principal place of
business to enjoin any offer, request, invitation, agreement, or acquisition made in
contravention of section deleted text begin 60D.16 deleted text end new text begin 60D.17 new text end or any rule or order issued by the commissioner
to enjoin the voting of any security so acquired, to void any vote of the security already cast
at any meeting of shareholders and for other equitable relief as the nature of the case and
the interest of the insurer's policyholders or the public requires.

Sec. 23.

Minnesota Statutes 2024, section 60D.25, is amended to read:

60D.25 RECEIVERSHIP.

Whenever it appears to the commissioner that any person has committed a violation of
this chapter that so impairs the financial condition of a domestic insurer as to threaten
insolvency or make the further transaction of business by it hazardous to its policyholders new text begin ,
creditors, shareholders, new text end or the public, deleted text begin then deleted text end the commissioner may proceed as provided in
chapter 60B to take possessions of the property of the domestic insurer and to conduct the
business of deleted text begin that deleted text end new text begin the domestic new text end insurer.

Sec. 24.

Minnesota Statutes 2024, section 62D.221, is amended by adding a subdivision
to read:

new text begin Subd. 3. new text end

new text begin Exception. new text end

new text begin Notwithstanding subdivision 1, health maintenance organizations
are not subject to oversight under this section with respect to section 60D.20, subdivision
1, paragraph (a), clauses (7) to (9), and paragraph (f).
new text end

Sec. 25.

Minnesota Statutes 2024, section 334.01, subdivision 2, is amended to read:

Subd. 2.

Contracts of $100,000 or more.

Notwithstanding any law to the contrary,
except as stated in section 58.137, and with respect to deleted text begin contracts deleted text end new text begin a conventional loan or
contract new text end for deed, section 47.20, subdivision 4a, no limitation on the rate or amount of
interest, points, finance charges, fees, or other charges applies to a loan, mortgage, credit
sale, or advance made under a written contract, signed by the debtor, for the extension of
credit to the debtor in the amount of $100,000 or more, or any written extension and other
written modification of the written contract. The written contract, written extension, and
written modification are exempt from the other provisions of this chapter.