SF 2527

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

A bill for an act
relating to town mutual insurance companies; clarifying an exception to
restriction on insuring property in second class cities; amending Minnesota
Statutes 2004, section 67A.14, subdivision 5.

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

Section 1.

Minnesota Statutes 2004, section 67A.14, subdivision 5, is amended to read:

Subd. 5.

What may not be insured; property outside designated territory;
exceptions.

(a) No township mutual insurance company shall insure any property in
cities of the first or second class.

(b) If by annexation or other growth in population a city, town, township or
unorganized territory or any portion thereof is reclassified into a city of the second class, a
township mutual insurance company may deleted text begin continue to deleted text end do business in that portion of the
city in which it was authorized to do business prior to the reclassification.

(c) A township mutual insurance company may insure any real or personal property,
including qualified or secondary property, subject to the limitations in subdivision 1,
paragraph (b), located outside of the limits of the territory in which the company is
authorized by its certificate or articles of incorporation to transact business, if the company
is already covering qualified property belonging to the insured, inside the limits of the
company's territory.

(d) A township mutual fire insurance company may insure property temporarily
outside of the authorized territory of the township mutual insurance company.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end