HF 387

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to insurance; providing protection for
insurance policyholders; requiring agents, when acting
as risk managers, to disclose compensation and quotes
from insurance companies; amending Minnesota Statutes
2004, sections 60K.46, by adding subdivisions; 60K.49,
subdivision 1.

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

Section 1.

Minnesota Statutes 2004, section 60K.46, is
amended by adding a subdivision to read:

new text begin Subd. 8. new text end

new text begin Disclosure of quotes. new text end

new text begin An insurance producer
shall disclose to a customer, in writing, the identity of all
insurance companies from which the producer obtained quotes for
insurance coverage on behalf of the customer. The insurance
producer shall also disclose to the customer, in writing, the
amount of premium and the amount of coverage quoted by each
insurance company. The disclosure must be made before the
customer's purchase of an insurance policy or, in the case of
the renewal of an existing policy, before the customer renews a
policy. Any person who violates this subdivision is subject to
the penalties and remedies provided in section 8.31.
new text end

Sec. 2.

Minnesota Statutes 2004, section 60K.46, is
amended by adding a subdivision to read:

new text begin Subd. 9. new text end

new text begin Disclosure of compensation. new text end

new text begin A risk manager
shall disclose, in writing, any compensation the risk manager
has received over the previous year from an insurer providing a
quote to the risk manager for insurance to the policyholder.
For purposes of this subdivision, a risk manager is any person
paid by a policyholder to advise the policyholder on the
suitability and price of insurance products. Any person who
violates this subdivision is subject to the penalties and
remedies provided in section 8.31.
new text end

Sec. 3.

Minnesota Statutes 2004, section 60K.49,
subdivision 1, is amended to read:

Subdivision 1.

Agent of insurer.

A person performing
acts requiring a producer license under this chapter is at all
times the agent of the insurer and not the insured. new text begin Even though
the person is the agent of the insurer, a producer must serve
with objectivity and complete loyalty the interests of the
client and render to the client such information, counsel, and
service that, within the knowledge, understanding, and opinion
in good faith of the producer, best serves the client's
insurance needs and interests. A producer may not use knowledge
gained as a result of the insurance relationship with the client
for the producer's own personal gain, other than permissible
fees and commissions.
new text end