as introduced - 88th Legislature (2013 - 2014) Posted on 05/16/2014 06:33pm
A bill for an act
relating to insurance; regulating sales of insurance coverage to governmental
entities; amending Minnesota Statutes 2012, section 60K.46, by adding a
subdivision.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Minnesota Statutes 2012, section 60K.46, is amended by adding a
subdivision to read:
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An insurance broker who
provides insurance coverage to governmental entities must not:
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(1) receive and retain an overriding commission in connection with the sale. For
purposes of this subdivision, an overriding commission is a portion of the proceeds of a
sale of insurance that is earned by an agent of the broker, rather than by the broker, but
which the broker retains as income for the broker;
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(2) fail to disclose all compensation to the broker or agents from any potential sale
of insurance to the governmental entity; or
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(3) fail to initiate and maintain a fiduciary responsibility to the governmental entity.
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This section is effective July 1, 2014.
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