Minnesota Session Laws - 1992, Regular Session

  

                         Laws of Minnesota 1992 

                        CHAPTER 483-H.F.No. 1948 
           An act relating to life insurance; authorizing 
          policies for the benefit of a charity; authorizing 
          policies for the benefit of a corporation or a 
          trustee; proposing coding for new law in Minnesota 
          Statutes, chapters 61A; and 309. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
     Section 1.  [61A.073] [LIFE INSURANCE FOR THE BENEFIT OF 
CHARITY.] 
    Subdivision 1.  [CHARITABLE BENEFICIARY OR OWNER 
PERMITTED.] Subject to the terms of the policy, an organization 
described in section 170(c) of the Internal Revenue Code of 
1986, as amended through December 31, 1991, shall have an 
insurable interest in the life of an individual insured under a 
life insurance policy, if the organization: 
    (1) has become the beneficiary or owner of a previously 
issued policy insuring the life of the individual; or 
    (2) is the original beneficiary or original owner of a 
newly issued policy insuring the life of the individual, if the 
individual signs the application or consents in writing to the 
issuance of the policy. 
    Subd. 2.  [APPLICABILITY.] This section applies to life 
insurance policies issued by life companies and fraternal 
benefit societies. 
    Sec. 2.  [61A.074] [INSURABLE INTERESTS.] 
    Subdivision 1.  [CORPORATION OR TRUSTEE.] A corporation or 
the trustee of a trust providing life, health, disability, 
retirement, or similar benefits to employees of one or more 
corporations, and acting in a fiduciary capacity with respect to 
the employees, retired employees, or their dependents or 
beneficiaries, has an insurable interest in the lives of 
employees for whom the benefits are to be provided.  The written 
consent of the insured is required if the insurance purchased 
under this subdivision is payable to the corporation or to the 
trustee. 
    Subd. 2.  [OTHER INSURABLE INTERESTS.] Subdivision 1 does 
not limit the right of a corporation or trustee to insure the 
life of an individual that is otherwise insurable under common 
law or any statute.  This section shall not be interpreted as in 
any way modifying the common law doctrine of insurable interest, 
except as expressly provided in subdivision 1. 
    Sec. 3.  [309.72] [ACQUISITION OF INTERESTS IN INSURANCE.] 
    An organization described in section 170(c) of the Internal 
Revenue Code of 1986, as amended through December 31, 1991, may 
purchase, accept, or otherwise acquire an interest in a life 
insurance policy as beneficiary or owner, as provided in section 
61A.073. 
    Sec. 4.  [EFFECTIVE DATE.] 
    Sections 1 and 3 are effective the day following final 
enactment and are intended to clarify and confirm the effect and 
intent of prior law.  Section 2 is effective the day following 
final enactment. 
    Presented to the governor April 15, 1992 
    Signed by the governor April 17, 1992, 5:20 p.m.