1.1 	A bill for an act
1.2 	relating to insurance; requiring certain disclosures
1.3 	from insurance producers; amending Minnesota Statutes
1.4 	2004, section 60K.46, by adding a subdivision.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2004, section 60K.46, is
1.7 	amended by adding a subdivision to read:
1.8 		Subd. 8.Disclosure. Every insurance producer presenting
1.9 	or delivering an insurance policy in the state must, either at
1.10 	the time of application or upon delivery of the policy to a
1.11 	policyholder, disclose in writing information similar to the
1.12 	following:
1.13 	(1) that the producer is a licensed producer and is
1.14 	appointed to write, offer, and sell insurance products by one or
1.15 	more insurance companies authorized by the Department of
1.16 	Commerce to conduct insurance business in the state;
1.17 	(2) that the producer will be compensated from placing
1.18 	insurance by the insurance company and that this compensation
1.19 	will be included in the premium paid by the policyholder or, if
1.20 	applicable, that the producer may be compensated through a fee
1.21 	paid by the policyholder;
1.22 	(3) that the compensation received by the producer may
1.23 	differ depending upon the insurance product or insurance
1.24 	company; and 
1.25 	(4) that the producer may receive additional compensation
2.1 	from the insurance company which may be based upon factors such
2.2 	as the profitability of all the insurance business placed by the
2.3 	agent with the company, retention of existing business, or the
2.4 	aggregate premium volume placed with the company.
2.5 	Any fee that is charged to a policyholder in addition to or
2.6 	in lieu of compensation paid to the producer by an insurer must
2.7 	be disclosed as required under section 60K.46, subdivision 2.