Minnesota Session Laws - 2012, Regular Session

CHAPTER 157--S.F.No. 2069

An act

relating to insurance; regulating the offer and dissemination of travel insurance;

amending Minnesota Statutes 2010, sections 60K.36, subdivision 2; 60K.38, subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 60K.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2010, section 60K.36, subdivision 2, is amended to read:

Subd. 2.

Examination not required.

A resident individual applying for a limited lines credit insurance, title insurance, travel deleted text begin baggage deleted text end insurance, or bail bonds license is not required to take a written examination.

Sec. 2.

Minnesota Statutes 2010, section 60K.38, subdivision 1, is amended to read:

Subdivision 1.

Issuance.

(a) Unless denied a license under section 60K.43, a person who has met the requirements of sections 60K.36 and 60K.37 must be issued an insurance producer license. An insurance producer may receive qualification for a license in one or more of the lines of authority in paragraphs (b) and (c).

(b) An individual insurance producer may receive qualification for a license in one or more of the following major lines:

(1) life insurance: coverage on human lives including benefits of endowment and annuities, and may include benefits in the event of death or dismemberment by accident and benefits for disability income;

(2) accident and health or sickness insurance: coverage for sickness, bodily injury, or accidental death, and may include benefits for disability income;

(3) property insurance: coverage for the direct or consequential loss or damage to property of every kind;

(4) casualty insurance: coverage against legal liability, including that for death, injury, or disability, or damage to real or personal property;

(5) variable life and variable annuity products insurance: coverage provided under variable life insurance contracts and variable annuities; and

(6) personal lines: property and casualty insurance coverage sold to individuals and families for primarily noncommercial purposes.

(c) An individual insurance producer may receive qualification for a license in one or more of the following limited lines:

(1) limited line credit insurance;

(2) farm property and liability insurance;

(3) title insurance;

(4) travel deleted text begin baggage deleted text end insurance; and

(5) bail bonds.

Sec. 3.

new text begin [60K.383] TRAVEL INSURANCE. new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) As used in this section, the terms in paragraphs (b) to (d) have the meanings given. new text end

new text begin (b) "Travel insurance" means insurance coverage for personal risks incident to planned travel, including, but not limited to: new text end

new text begin (1) interruption or cancellation of trip or event; new text end

new text begin (2) loss of baggage or personal effects; new text end

new text begin (3) damages to accommodations or rental vehicles; or new text end

new text begin (4) sickness, accident, disability, or death occurring during travel. new text end

new text begin Travel insurance does not include major medical plans, which provide comprehensive medical protection for travelers with trips lasting six months or longer, including those working overseas as an expatriate or military personnel being deployed. new text end

new text begin (c) "Travel insurance producer" means an insurer designee, such as a managing general underwriter, managing general agent, or licensed limited lines producer of travel insurance. new text end

new text begin (d) "Travel retailer" means a business entity that offers and disseminates travel insurance on behalf of and under the direction of a travel insurance producer. new text end

new text begin Subd. 2. new text end

new text begin Travel retailer license. new text end

new text begin A travel retailer may offer and disseminate travel insurance on behalf of and under a travel insurance producer business entity license only if the travel insurance producer holds a business entity license, and: new text end

new text begin (1) the licensed business entity is clearly identified as the licensed producer on marketing materials and fulfillment packages distributed by travel retailers to customers, identification shall include the entity's name and contact information; new text end

new text begin (2) the licensed business entity keeps a register of each travel retailer that offers travel insurance on the licensed business entity's behalf. The register must include the name and contact information of the travel retailer and an officer or person who directs or controls the travel retailer's operations, and the travel retailer's federal Employer Identification Number. The licensed business entity shall also certify that the travel retailer registered complies with United States Code, title 18, section 1033. The licensed business entity shall submit the register within 30 days upon request by the commissioner; new text end

new text begin (3) the licensed business entity has designated one of its employees as a licensed individual producer, a "designated responsible producer" or "DRP," responsible for the business entity's compliance with Minnesota insurance laws and rules; new text end

new text begin (4) the DRP, president, secretary, treasurer, and any other officer or person who directs or controls the licensed business entity's insurance operations comply with the fingerprinting requirements applicable to insurance producers in the resident state of the business entity; new text end

new text begin (5) the licensed business entity has paid all applicable insurance producer licensing fees as set forth in Minnesota state law; and new text end

new text begin (6) the licensed business entity requires each employee of the travel retailer whose duties include offering and disseminating travel insurance to receive a program of instruction or training, which may be subject to review by the commissioner. new text end

new text begin Subd. 3. new text end

new text begin Offer and dissemination of travel insurance; compensation. new text end

new text begin A travel retailer whose activities, and those of its employees, are limited to offering and disseminating travel insurance on behalf of and under the direction of a licensed business entity meeting the conditions stated in this section, is authorized to do so and receive related compensation, upon registration by the licensed business entity. For purposes of this section, "offering and disseminating" means providing general information, including a description of the coverage and price, as well as processing the application, collecting premiums, and performing other nonlicensable activities permitted by the state. new text end

new text begin Subd. 4. new text end

new text begin Insurer designee. new text end

new text begin As the insurer designee, the travel insurance producer is responsible for the acts of the travel retailer. new text end

Sec. 4.

new text begin EFFECTIVE DATE. new text end

new text begin Sections 1 to 3 are effective July 1, 2012. new text end

Presented to the governor April 3, 2012

Signed by the governor April 4, 2012, 09:27 a.m.