SF 2928

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act
  1.2             relating to insurance; prohibiting affiliates of 
  1.3             insurance companies from engaging in rebating that is 
  1.4             illegal for insurance companies; amending Minnesota 
  1.5             Statutes 1996, section 72A.08, subdivisions 1, 2, and 
  1.6             3. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1996, section 72A.08, 
  1.9   subdivision 1, is amended to read: 
  1.10     Subdivision 1.  [REBATE DEFINED AND PROHIBITED.] No 
  1.11  insurance company or association, however constituted or 
  1.12  entitled, including any affiliate of the insurance company or 
  1.13  association, doing business in this state, nor any officer, 
  1.14  agent, subagent, solicitor, employee, intermediary, or 
  1.15  representative thereof, shall make or permit any advantage or 
  1.16  distinction in favor of any insured individual, firm, 
  1.17  corporation, or association with respect to the amount of 
  1.18  premium named in, or to be paid on, any policy of insurance, or 
  1.19  shall offer to pay or allow directly or indirectly or by means 
  1.20  of any device or artifice, as inducements to insurance, any 
  1.21  rebate or premium payable on the policy, or any special favor or 
  1.22  advantage in the dividends or other profit to accrue thereon, or 
  1.23  any valuable consideration or inducement not specified in the 
  1.24  policy contract of insurance, or give, sell, or purchase, offer 
  1.25  to give, sell or purchase, as inducement to insure or in 
  1.26  connection therewith, any stocks, bonds, or other securities of 
  2.1   any insurance company or other corporation, association, 
  2.2   partnership, or individual, or any dividends or profits accrued 
  2.3   or to accrue thereon, or anything of value, not specified in the 
  2.4   policy.  For purposes of this section, "affiliate" has the 
  2.5   meaning given in section 60D.15, subdivision 2. 
  2.6      Sec. 2.  Minnesota Statutes 1996, section 72A.08, 
  2.7   subdivision 2, is amended to read: 
  2.8      Subd. 2.  [INSURED PROHIBITED FROM RECEIVING REBATES.] No 
  2.9   person shall receive or accept from any such company or 
  2.10  association, including any affiliate of the insurance company or 
  2.11  association, or from any of its officers, agents, subagents, 
  2.12  solicitors, employees, intermediaries, or representatives, or 
  2.13  any other person any such rebate of premium payable on the 
  2.14  policy, or any special favor or advantage in the dividends or 
  2.15  other financial profits accrued, or to accrue, thereon, or any 
  2.16  valuable consideration or inducement not specified in the policy 
  2.17  of insurance.  No person shall be excused from testifying, or 
  2.18  from producing any books, papers, contracts, agreements, or 
  2.19  documents, at the trial of any other person, copartnership, 
  2.20  association, or company charged with violation of any provision 
  2.21  of this section on the ground that the testimony or evidence may 
  2.22  tend to incriminate; but no person shall be prosecuted for any 
  2.23  act concerning which the person shall be compelled to so testify 
  2.24  or produce evidence, documentary or otherwise, except for 
  2.25  perjury committed in so testifying.  
  2.26     Sec. 3.  Minnesota Statutes 1996, section 72A.08, 
  2.27  subdivision 3, is amended to read: 
  2.28     Subd. 3.  [PENALTY FOR REBATE.] Any company, association, 
  2.29  or individual violating any provisions of this section, whether 
  2.30  the violation be in the giving or accepting of anything herein 
  2.31  prohibited, shall be punished by a fine of not less than $60 nor 
  2.32  more than $200.  In the case of a violation by an affiliate or 
  2.33  by an individual on behalf of an affiliate, this subdivision 
  2.34  applies to the insurance company or association. 
  2.35     Sec. 4.  [EFFECTIVE DATE.] 
  2.36     Sections 1 to 3 are effective August 1, 1998.