1.1 	A bill for an act
1.2 	relating to insurance; providing protection for
1.3 	insurance policyholders; requiring agents, when acting
1.4 	as risk managers, to disclose compensation and quotes
1.5 	from insurance companies; amending Minnesota Statutes
1.6 	2004, sections 60K.46, by adding subdivisions; 60K.49,
1.7 	subdivision 1.
1.8 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.9 	Section 1. Minnesota Statutes 2004, section 60K.46, is
1.10 	amended by adding a subdivision to read:
1.11 		Subd. 8.Disclosure of quotes. An insurance producer
1.12 	shall disclose to a customer, in writing, the identity of all
1.13 	insurance companies from which the producer obtained quotes for
1.14 	insurance coverage on behalf of the customer.  The insurance
1.15 	producer shall also disclose to the customer, in writing, the
1.16 	amount of premium and the amount of coverage quoted by each
1.17 	insurance company.  The disclosure must be made before the
1.18 	customer's purchase of an insurance policy or, in the case of
1.19 	the renewal of an existing policy, before the customer renews a
1.20 	policy.  Any person who violates this subdivision is subject to
1.21 	the penalties and remedies provided in section 8.31.

1.22 	Sec. 2. Minnesota Statutes 2004, section 60K.46, is
1.23 	amended by adding a subdivision to read:
1.24 		Subd. 9.Disclosure of compensation. A risk manager
1.25 	shall disclose, in writing, any compensation the risk manager
1.26 	has received over the previous year from an insurer providing a
2.1 	quote to the risk manager for insurance to the policyholder.
2.2 	For purposes of this subdivision, a risk manager is any person
2.3 	paid by a policyholder to advise the policyholder on the
2.4 	suitability and price of insurance products.  Any person who
2.5 	violates this subdivision is subject to the penalties and
2.6 	remedies provided in section 8.31.

2.7 	Sec. 3. Minnesota Statutes 2004, section 60K.49,
2.8 	subdivision 1, is amended to read:
2.9 		Subdivision 1.Agent of insurer.  A person performing
2.10 	acts requiring a producer license under this chapter is at all
2.11 	times the agent of the insurer and not the insured. Even though
2.12 	the person is the agent of the insurer, a producer must serve
2.13 	with objectivity and complete loyalty the interests of the
2.14 	client and render to the client such information, counsel, and
2.15 	service that, within the knowledge, understanding, and opinion
2.16 	in good faith of the producer, best serves the client's
2.17 	insurance needs and interests.  A producer may not use knowledge
2.18 	gained as a result of the insurance relationship with the client
2.19 	for the producer's own personal gain, other than permissible
2.20 	fees and commissions.