Minnesota Session Laws - 2013, Regular Session

CHAPTER 53--S.F.No. 748

An act

relating to commerce; regulating preneed funeral insurance;

amending Minnesota Statutes 2012, sections 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 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. 2.

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

Presented to the governor May 9, 2013

Signed by the governor May 13, 2013, 2:51 p.m.