Skip to main content Skip to office menu Skip to footer
Capital IconMinnesota Legislature

Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language


                         Laws of Minnesota 1989 

                        CHAPTER 170-H.F.No. 1354 
           An act relating to insurance; regulating cancellations 
          of insurance agency contracts; prohibiting insurance 
          companies from terminating agents who contact the 
          commerce department; amending Minnesota Statutes 1988, 
          sections 60A.172; and 72A.20, by adding a subdivision; 
          proposing coding for new law in Minnesota Statutes, 
          chapter 60A.  
     Section 1.  Minnesota Statutes 1988, section 60A.172, is 
amended to read: 
    (a) An insurer may not cancel a written agreement with an 
agent or, without the agent's written approval at the time of a 
reduction or restriction, reduce or restrict an agent's 
underwriting authority with respect to property or casualty 
insurance, based solely on the loss ratio experience on that 
agent's book of business, if:  the insurer required the agent to 
submit the application for underwriting approval, all material 
information on the application was fully completed, and the 
agent has not omitted or altered any information provided by the 
    (b) For purposes of this section, "loss ratio experience" 
means the ratio of premiums paid divided by the claims paid 
during the previous two-year period. 
    (c) This section applies only to agents who write insurance 
business exclusively 80 percent or more of their gross annual 
insurance business for one company or any or all of its 
subsidiaries, and are not in the direct employ of the company.  
    Sec. 2.  [60A.175] [AGENT COMMISSIONS.] 
    An insurer that cancels a written agreement with an agent 
under section 60A.171 or 60A.172 must pay to the agent 
terminated all commissions earned by that agent prior to or 
after termination. 
    Sec. 3.  Minnesota Statutes 1988, section 72A.20, is 
amended by adding a subdivision to read: 
    Subd. 20.  [CONTACT WITH DEPARTMENT.] An insurance company 
may not terminate or otherwise penalize an insurance agent 
solely because the agent contacted any government department or 
agency regarding a problem that the agent or an insured may be 
having with an insurance company. 
    Sec. 4.  [EFFECTIVE DATE.] 
    Sections 1, 2, and 3 are effective the day following final 
    Presented to the governor May 16, 1989 
    Signed by the governor May 17, 1989, 6:30 p.m.

Official Publication of the State of Minnesota
Revisor of Statutes