SF 2746

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

A bill for an act
relating to insurance; amending retaliatory
provisions; amending Minnesota Statutes 2004, sections
60A.14, subdivision 2; 297I.05, subdivision 11.

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

Section 1.

Minnesota Statutes 2004, section 60A.14,
subdivision 2, is amended to read:

Subd. 2.

Retaliatory provisions.

When, by the laws of
any other state or nation, any fines, penalties, licenses, or
fees additional to, or in excess of, those imposed deleted text begin by this
section upon foreign deleted text end new text begin on new text end insurance companies and their agents new text begin of
that state or nation new text end , are imposed upon insurance companies of
this state or their agents doing business in such state new text begin or
nation new text end , the deleted text begin same deleted text end fines, penalties, licenses, and fees deleted text begin shall be
deleted text end imposed upon all insurance companies of that state new text begin or nation new text end and
their agents doing business in this state new text begin shall be increased by
an amount equal to the difference between the amount imposed
upon insurance companies of this state by that state or nation,
and the amount imposed by that state or nation upon insurance
companies of that state or nation new text end , so long as such laws of such
other state new text begin or nation new text end remain in force. This subdivision does
not apply to agent appointment fees required under subdivision
1, clause (6).

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2004, section 297I.05,
subdivision 11, is amended to read:

Subd. 11.

Retaliatory provisions.

(a) If any other state
or country imposes any taxes, fines, deposits, penalties,
licenses, or fees upon any insurance companies of this state and
their agents doing business in deleted text begin another deleted text end new text begin that new text end state or country
that are in addition to or in excess of those imposed by the
laws of deleted text begin this deleted text end new text begin that new text end state new text begin or country new text end upon deleted text begin foreign deleted text end insurance
companies and their agents deleted text begin doing business in this deleted text end new text begin of that new text end state
new text begin or country new text end , the deleted text begin same deleted text end taxes, fines, deposits, penalties,
licenses, and fees new text begin that new text end are imposed upon deleted text begin every similar deleted text end insurance
deleted text begin company deleted text end new text begin companies new text end of that state or country and their agents
doing or applying to do business in this state new text begin shall be
increased by an amount equal to the difference between the
amount imposed upon insurance companies of this state and their
agents by that state or country, and the amount imposed by that
state or country upon insurance companies and their agents of
that state or country new text end .

(b) If any conditions precedent to the right to do business
in any other state or country are imposed by the laws of that
state or country, beyond those imposed upon deleted text begin foreign deleted text end companies deleted text begin by
the laws of this deleted text end new text begin of that new text end state, the same conditions precedent
are imposed upon every similar insurance company of that state
or country and their agents doing or applying to do business in
deleted text begin that deleted text end new text begin this new text end state.

(c) For purposes of this subdivision, "taxes, fines,
deposits, penalties, licenses, or fees" means an amount of money
that is deposited in the general revenue fund of the state or
other similar fund in another state or country and is not
dedicated to a special purpose or use or money deposited in the
general revenue fund of the state or other similar fund in
another state or country and appropriated to the commissioner of
commerce or insurance for the operation of the Department of
Commerce or other similar agency with jurisdiction over
insurance. Taxes, fines, deposits, penalties, licenses, or fees
do not include:

(1) special purpose obligations or assessments imposed in
connection with particular kinds of insurance, including but not
limited to assessments imposed in connection with residual
market mechanisms; or

(2) assessments made by the insurance guaranty association,
life and health guarantee association, or similar association.

(d) This subdivision applies to taxes imposed under
subdivisions 1, 3, 4, 6, and 12, paragraph (a), clauses (1) and
(2).

(e) This subdivision does not apply to insurance companies
organized or domiciled in a state or country, the laws of which
do not impose retaliatory taxes, fines, deposits, penalties,
licenses, or fees or which grant, on a reciprocal basis,
exemptions from retaliatory taxes, fines, deposits, penalties,
licenses, or fees to insurance companies domiciled in this state.

new text begin EFFECTIVE DATE. new text end

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