SF 2235

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

A bill for an act
relating to insurance; requiring certain disclosures
from insurance producers; amending Minnesota Statutes
2004, section 60K.46, by adding a subdivision.

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. new text end

new text begin Every insurance producer presenting
or delivering an insurance policy in the state must, either at
the time of application or upon delivery of the policy to a
policyholder, disclose in writing information similar to the
following:
new text end

new text begin (1) that the producer is a licensed producer and is
appointed to write, offer, and sell insurance products by one or
more insurance companies authorized by the Department of
Commerce to conduct insurance business in the state;
new text end

new text begin (2) that the producer will be compensated from placing
insurance by the insurance company and that this compensation
will be included in the premium paid by the policyholder or, if
applicable, that the producer may be compensated through a fee
paid by the policyholder;
new text end

new text begin (3) that the compensation received by the producer may
differ depending upon the insurance product or insurance
company; and
new text end

new text begin (4) that the producer may receive additional compensation
from the insurance company which may be based upon factors such
as the profitability of all the insurance business placed by the
agent with the company, retention of existing business, or the
aggregate premium volume placed with the company.
new text end

new text begin Any fee that is charged to a policyholder in addition to or
in lieu of compensation paid to the producer by an insurer must
be disclosed as required under section 60K.46, subdivision 2.
new text end