language to be deleted (2) new language
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:
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.
Presented to the governor May 9, 2013
Signed by the governor May 13, 2013, 2:51 p.m.