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SF 1027

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/26/2021 01:00pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to insurance; providing exemptions to certain insurance company
requirements; authorizing rulemaking; amending Minnesota Statutes 2020, sections
60A.01; 60A.205, by adding a subdivision; 60K.49, by adding a subdivision;
72A.03; 72A.15.

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

Section 1.

Minnesota Statutes 2020, section 60A.01, is amended to read:


60A.01 SCOPE.

new text begin (a) new text endThis chapter includes the provisions relating to administration in general and the
provisions applicable to insurance in general.

new text begin (b) Notwithstanding paragraph (a) and unless otherwise specified in this paragraph, this
chapter does not apply to surplus lines insurance, surplus lines insurers, or surplus lines
producers. Surplus lines insurance, surplus lines insurers, and surplus lines producers must
comply with sections 60A.195 to 60A.209; 60A.08, subdivision 13, paragraph (b), clause
(4); 60A.14, subdivision 1, paragraph (c), clause (8); and 60A.35.
new text end

Sec. 2.

Minnesota Statutes 2020, section 60A.205, is amended by adding a subdivision to
read:


new text begin Subd. 3. new text end

new text begin Standards. new text end

new text begin This section establishes when a risk has been assumed and when
premiums have been received. This section does not (1) establish conduct a surplus lines
insurer is prohibited from taking, or (2) authorize the commissioner to take enforcement
action against a surplus lines insurer or surplus lines producer.
new text end

Sec. 3.

Minnesota Statutes 2020, section 60K.49, is amended by adding a subdivision to
read:


new text begin Subd. 8. new text end

new text begin Application. new text end

new text begin As provided under section 60K.30, paragraph (b), this section
does not apply to surplus lines insurers or surplus lines producers.
new text end

Sec. 4.

Minnesota Statutes 2020, section 72A.03, is amended to read:


72A.03 AGENT OF INSURER; PROCURING PREMIUMS BY FRAUD.

Every insurance agent who acts for another in negotiating a contract of insurance by an
insurance company shall be held to be the company's agent for the purpose of collecting or
securing the premiums therefor, whatever conditions or stipulations may be contained in
the contract or policy. Any such agent who by fraudulent representations procures payment,
or an obligation for the payment, of an insurance premium shall be guilty, for the first
offense, of a misdemeanor, and for each subsequent offense, of a gross misdemeanor.new text begin This
section does not apply to surplus lines insurers or surplus lines producers.
new text end

Sec. 5.

Minnesota Statutes 2020, section 72A.15, is amended to read:


72A.15 PENALTY FOR VIOLATION OF LAW PROVIDING FOR INSURANCE
IN UNLICENSED COMPANIES.

Every person licensed to procure insurance in an unlicensed foreign company who fails
to file the affidavit and statement required in such case or who willfully makes a false
affidavit or statement shall forfeit the license and be guilty, for the first offense, of a
misdemeanor, and for each subsequent offense, of a gross misdemeanor.new text begin This section does
not apply to surplus lines insurers or surplus lines producers.
new text end

Sec. 6. new text beginEFFECT OF CERTAIN ADMINISTRATIVE RULES; APPLICATION.
new text end

new text begin (a) Minnesota Rules, chapter 2795, does not apply to surplus lines insurers or surplus
lines producers.
new text end

new text begin (b) The commissioner of commerce must adopt rules, as appropriate, to ensure Minnesota
Rules, chapter 2795, is consistent with this section. If rulemaking is necessary to comply
with this section, the commissioner of commerce may use the procedure established under
Minnesota Statutes, section 14.388, to adopt the needed administrative rule changes.
new text end