Minnesota Session Laws - 1990, Regular Session

  

                         Laws of Minnesota 1990 

                        CHAPTER 507-S.F.No. 2424 
           An act relating to insurance; life; regulating 
          policies with accelerated benefits; modifying the 
          application of certain provisions; prescribing a 
          penalty; amending Minnesota Statutes 1989 Supplement, 
          section 61A.072, subdivision 3, and by adding a 
          subdivision. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1989 Supplement, section 
61A.072, subdivision 3, is amended to read: 
    Subd. 3.  [PROHIBITION.] (a) No contract or supplemental 
contract providing for the payment of accelerated benefits may 
be offered or sold to an individual over the age of 65 years.  
     (b) This prohibition does not apply to a supplemental 
contract offered for no additional cost if the offer is made not 
less than one year after the effective date of the contract 
being supplemented.  Further, when the original contract is 
offered or sold, no mention may be made of the availability of 
the supplemental contract.  A supplemental contract offered 
under this paragraph must meet all other applicable requirements 
of this section.  Violation of the terms of this paragraph is an 
unfair trade practice in the business of insurance and subjects 
the violator to the penalties provided by sections 72A.17 to 
72A.32 in addition to any other penalty provided by law. 
     Sec. 2.  Minnesota Statutes 1989 Supplement, section 
61A.072, is amended by adding a subdivision to read: 
    Subd. 5.  [EXCLUSION.] Subdivision 4 does not apply to 
contracts or supplemental contracts granting the right to 
receive accelerated benefits if (1) one of the options for 
payment provides for lump-sum payment; (2) no conditions or 
restrictions are imposed on the use of the funds by the insured; 
and (3) the offeree or insured is given written notice at the 
time the contract or supplemental contract is offered or sold 
that (i) Minnesota law sets minimum requirements for life 
insurance contracts where the right to receive accelerated 
benefits is contingent upon the insured receiving long-term care 
services, and (ii) the contract or supplemental contract being 
offered or sold does not meet those minimum requirements. 
    Presented to the governor April 24, 1990 
    Signed by the governor April 24, 1990, 10:12 p.m.