SF 964

as introduced - 89th Legislature (2015 - 2016) Posted on 02/20/2015 09:18am

A bill for an act
relating to insurance; regulating the sale of group health policies to school
organizations; proposing coding for new law in Minnesota Statutes, chapter 60K.

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

Section 1.

new text begin [60K.382] SALE OF GROUP HEALTH INSURANCE POLICY TO
SCHOOL ORGANIZATION.
new text end

new text begin Subdivision 1. new text end

new text begin School organization. new text end

new text begin For the purposes of this section "school
organization" means a school district, charter school, or teacher cooperative.
new text end

new text begin Subd. 2. new text end

new text begin Disclosures. new text end

new text begin An insurance producer that sells, solicits, or negotiates a
group health insurance policy with a school organization shall disclose, prior to completion
of the sale, all commissions, services fees, brokerage, or other valuable consideration the
insurance producer may receive for all insurance sold to the school organization.
new text end

new text begin Subd. 3. new text end

new text begin Fiduciary duty. new text end

new text begin While the insurance producer sells, solicits, or negotiates
a group health insurance policy with the school organization, the insurance producer shall
act in a fiduciary capacity on behalf of the school organization.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2015.
new text end