Minnesota Session Laws - 1995, Regular Session

                             CHAPTER 116-H.F.No. 68 
                  An act relating to insurance; requiring insurers to 
                  offer alternative methods for the payment of group 
                  life policy proceeds; amending Minnesota Statutes 
                  1994, section 61A.09, subdivision 1. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1994, section 61A.09, 
        subdivision 1, is amended to read: 
           Subdivision 1.  No group life insurance policy or group 
        annuity shall be issued for delivery in this state until the 
        form thereof and the form of any certificates issued thereunder 
        have been filed in accordance with and subject to the provisions 
        of section 61A.02.  Each person insured under such a group life 
        insurance policy (excepting policies which insure the lives of 
        debtors of a creditor or vendor to secure payment of 
        indebtedness) shall be furnished a certificate of insurance 
        issued by the insurer and containing the following: 
           (a) Name and location of the insurance company; 
           (b) A statement as to the insurance protection to which the 
        certificate holder is entitled, including any changes in such 
        protection depending on the age of the person whose life is 
        insured; 
           (c) Any and all provisions regarding the termination or 
        reduction of the certificate holder's insurance protection; 
           (d) A statement that the master group policy may be 
        examined at a reasonably accessible place; 
           (e) The maximum rate of contribution to be paid by the 
        certificate holder; 
           (f) Beneficiary and method required to change such 
        beneficiary; 
           (g) A statement that alternative methods for the payment of 
        group life policy proceeds must be offered to beneficiaries in 
        lieu of a lump sum distribution, at their request.  Alternative 
        payment methods which must be offered at the request of the 
        beneficiaries must include, but are not limited to, a life 
        income option, an income option for fixed amounts or fixed time 
        periods, and the option to select an interest-bearing account 
        with the company with the right to select another option at a 
        later date; 
           (h) In the case of a group term insurance policy if the 
        policy provides that insurance of the certificate holder will 
        terminate, in case of a policy issued to an employer, by reason 
        of termination of the certificate holder's employment, or in 
        case of a policy issued to an organization of which the 
        certificate holder is a member, by reason of termination of 
        membership, a provision to the effect that in case of 
        termination of employment or membership, or in case of 
        termination of the group policy, the certificate holder shall be 
        entitled to have issued by the insurer, without evidence of 
        insurability, upon application made to the insurer within 31 
        days after the termination, and upon payment of the premium 
        applicable to the class of risk to which that person belongs and 
        to the form and amount of the policy at that person's then 
        attained age, a policy of life insurance only, in any one of the 
        forms customarily issued by the insurer except term insurance, 
        in an amount equal to the amount of the life insurance 
        protection under such group insurance policy at the time of such 
        termination; and shall contain a further provision to the effect 
        that upon the death of the certificate holder during such 31-day 
        period and before any such individual policy has become 
        effective, the amount of insurance for which the certificate 
        holder was entitled to make application shall be payable as a 
        death benefit by the insurer.  
           This section applies to a policy, certificate of insurance, 
        or similar evidence of coverage issued to a Minnesota resident 
        or issued to provide coverage to a Minnesota resident.  This 
        section does not apply to a certificate of insurance or similar 
        evidence of coverage that meets the conditions of section 
        61A.093, subdivision 2. 
           Sec. 2.  [EFFECTIVE DATE.] 
           Section 1 is effective January 1, 1996, and applies to 
        policies issued or renewed to provide coverage for Minnesota 
        residents on or after that date. 
           Presented to the governor May 2, 1995 
           Signed by the governor May 3, 1995, 10:48 a.m.