SF 748

as introduced - 88th Legislature (2013 - 2014) Posted on 03/14/2013 03:21pm

A bill for an act
relating to commerce; regulating preneed funeral insurance; amending
Minnesota Statutes 2012, sections 60A.02, subdivision 28; 61A.258, by adding a
subdivision; 72A.207.

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

Section 1.

Minnesota Statutes 2012, section 60A.02, subdivision 28, is amended to read:

Subd. 28.

Group insurance.

"Group insurance" means that form of insurance
coverage sponsored by new text begin or issued to new text end :

(1) an employer covering not less than two employees and which may include the
employees' dependents, consisting of husband, wife, children, and actual dependents
residing in the household, written under a master policy issued to any employer, or group
of employers who have joined into an arrangement for the purposes of providing the
employees insurance for their individual benefit. Employees' dependents, consisting of
husband, wife, children, and actual dependents residing in the same household, are not
employees for purposes of this definition except for a spouse employed on a regular
full-time basis by the same employer. This clause does not apply to chapter 62L;

(2) an association to provide insurance to its members; deleted text begin or
deleted text end

(3) a creditor to provide life insurance to insure its debtors in connection with
real estate mortgage loans, in an amount not to exceed the actual or scheduled amount
of their indebtedness deleted text begin . deleted text end new text begin ; or
new text end

new text begin (4) a trust, including a trust established by the insurance company, for a group of
individuals for the payment of future funeral expenses.
new text end

Sec. 2.

Minnesota Statutes 2012, section 61A.258, is amended by adding a subdivision
to read:

new text begin Subd. 5. new text end

new text begin Exception. new text end

new text begin A policy providing preneed insurance or designed to cover,
in whole or in part, the goods and services described in subdivision 1, clause (3), is not
subject to section 72A.207.
new text end

Sec. 3.

Minnesota Statutes 2012, section 72A.207, is amended to read:

72A.207 GRADED DEATH BENEFITS.

For the purpose of this section, a graded death benefit is a provision within a life
insurance policy in which the death benefit, in the early years of the policy, is less than the
face amount of the policy, but which increases with the passage of time.

No policy of life insurance paying a graded death benefit may be issued in this state
unless the graded death benefit is equal to at least four times the first year premium. This
section does not prohibit the return of premiums or premiums plus interest in connection
with the voluntary or judicially ordered rescission of the policy, or according to the terms
of the exclusions from coverage for suicide, aviation, or war risk.

new text begin A policy providing preneed insurance as defined in section 61A.258, or designed
to cover, in whole or in part, the goods and services described in section 61A.258,
subdivision 1, clause (3), is not subject to this section.
new text end