HF 1853

1st Unofficial Engrossment - 86th Legislature (2009 - 2010) Posted on 12/26/2012 11:27pm

1.1A bill for an act

1.2relating to commerce; regulating various licenses, forms, certificates, coverages,
1.3claims practices, disclosures, notices, marketing practices, and records;
1.4classifying certain data; removing certain state regulation of telephone
1.5solicitations; regulating the use of prerecorded or synthesized voice messages;
1.6regulating debt management services providers; regulating business screening
1.7services; permitting a deceased professional's surviving spouse to retain
1.8ownership of a professional firm under certain circumstances; amending
1.9Minnesota Statutes 2008, sections 13.3215; 13.716, by adding a subdivision;
1.1045.011, subdivision 1; 45.0135, subdivision 7; 58.02, subdivision 17; 59B.01;
1.1160A.08, by adding a subdivision; 60A.198, subdivisions 1, 3; 60A.201,
1.12subdivision 3; 60A.205, subdivision 1; 60A.2085, subdivisions 1, 3, 7, 8; 60A.23,
1.13subdivision 8; 60A.235; 60A.32; 60K.46, by adding a subdivision; 62A.011,
1.14subdivision 3; 62A.136; 62A.17, by adding a subdivision; 62A.3099, subdivision
1.1518; 62A.31, subdivision 1, by adding a subdivision; 62A.315; 62A.316; 62L.02,
1.16subdivision 26; 62M.05, subdivision 3a; 65A.27, subdivision 1; 65A.29, by
1.17adding a subdivision; 65B.133, subdivisions 2, 3, 4; 65B.54, subdivision 1;
1.1867A.191, subdivision 2; 72A.20, subdivisions 15, 26; 72A.201, by adding a
1.19subdivision; 79A.04, subdivision 1; 79A.06, by adding a subdivision; 79A.24,
1.20subdivision 1, by adding a subdivision; 82.31, subdivision 4; 82B.08, by adding a
1.21subdivision; 82B.20, subdivision 2; 319B.02, by adding a subdivision; 319B.07,
1.22subdivision 1; 319B.08; 319B.09, subdivision 1; 325E.27; 332.70, subdivisions
1.231, 2, 3, 4; 332A.02, subdivision 13, as amended; 332A.14, as amended; Laws
1.242009, chapter 37, article 4, sections 19, subdivision 13; 20; 23; 26, subdivision
1.252; proposing coding for new law in Minnesota Statutes, chapters 60A; 62A;
1.2672A; 80A; 82B; 325E; repealing Minnesota Statutes 2008, sections 60A.201,
1.27subdivision 4; 70A.07; 79.56, subdivision 4.
1.28BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.29    Section 1. Minnesota Statutes 2008, section 13.3215, is amended to read:
1.3013.3215 UNIVERSITY OF MINNESOTA DATA.
1.31    Subdivision 1. Definitions. (a) For purposes of this section, the terms in this
1.32subdivision have the meanings given them.
2.1(b) "Business data" is data described in section 13.591, subdivision 1, and includes
2.2the funded amount of the University of Minnesota's commitment to the investment to
2.3date, if any; the market value of the investment by the University of Minnesota; and the
2.4age of the investment in years.
2.5(c) "Financial, business, or proprietary data" means data, as determined by the
2.6responsible authority for the University of Minnesota, that is of a financial, business, or
2.7proprietary nature, the release of which could cause competitive harm to the University
2.8of Minnesota, the legal entity in which the University of Minnesota has invested or has
2.9considered an investment, the managing entity of an investment, or a portfolio company in
2.10which the legal entity holds an interest.
2.11(d) "Investment" means the investments by the University of Minnesota in the
2.12following private capital:
2.13(1) venture capital and other private equity investment businesses through
2.14participation in limited partnerships, trusts, limited liability corporations, limited liability
2.15companies, limited liability partnerships, and corporations;
2.16(2) real estate ownership interests or loans secured by mortgages or deeds of trust or
2.17shares of real estate investment trusts through investment in limited partnerships; and
2.18(3) natural resource investments through limited partnerships, trusts, limited liability
2.19corporations, limited liability companies, limited liability partnerships, and corporations.
2.20    Subd. 2. Claims experience data. Claims experience and all related information
2.21received from carriers and claims administrators participating in a University of Minnesota
2.22group health, dental, life, or disability insurance plan or the University of Minnesota
2.23workers' compensation program, and survey information collected from employees or
2.24students participating in these plans and programs, except when the university determines
2.25that release of the data will not be detrimental to the plan or program, are classified as
2.26nonpublic data not on individuals pursuant to under section 13.02, subdivision 9.
2.27    Subd. 3. Private equity investment data. (a) Financial, business, or proprietary
2.28data collected, created, received, or maintained by the University of Minnesota in
2.29connection with investments are nonpublic data.
2.30(b) The following data shall be public:
2.31(1) the name of the general partners and the legal entity in which the University of
2.32Minnesota has invested;
2.33(2) the amount of the University's initial commitment, and any subsequent
2.34commitments;
2.35(3) quarterly reports which outline the aggregate investment performance achieved
2.36and the market value, and the fees and expenses paid in aggregate to general partner
3.1investment managers in each of the following specific asset classes: venture capital,
3.2private equity, distressed debt, private real estate, and natural resources;
3.3(4) a description of all of the types of industry sectors the University of Minnesota is
3.4or has invested in, in each specific private equity asset class; and
3.5(5) the portfolio performance of University of Minnesota investments overall,
3.6including the number of investments, the total amount of the University of Minnesota
3.7commitments, the total current market value, and the return on the total investment
3.8portfolio.
3.9EFFECTIVE DATE.This section is effective the day following final enactment.

3.10    Sec. 2. Minnesota Statutes 2008, section 13.716, is amended by adding a subdivision
3.11to read:
3.12    Subd. 8. Insurance filings data. Insurance filings data received by the
3.13commissioner of commerce are classified under section 60A.08, subdivision 15.

3.14    Sec. 3. Minnesota Statutes 2008, section 45.011, subdivision 1, is amended to read:
3.15    Subdivision 1. Scope. As used in chapters 45 to 83, 155A, 332, 332A, 345, and
3.16359, and sections 123A.21, subdivision 7, paragraph (a), clause (23); 123A.25; 325D.30 to
3.17325D.42 ,; 326B.802 to 326B.885, and; 386.61 to 386.78,; 471.617; and 471.982, unless
3.18the context indicates otherwise, the terms defined in this section have the meanings given
3.19them.

3.20    Sec. 4. Minnesota Statutes 2008, section 45.0135, subdivision 7, is amended to read:
3.21    Subd. 7. Assessment. Each insurer authorized to sell insurance in the state of
3.22Minnesota, including surplus lines carriers, and having Minnesota earned premium the
3.23previous calendar year shall remit an assessment to the commissioner for deposit in the
3.24insurance fraud prevention account on or before June 1 of each year. The amount of the
3.25assessment shall be based on the insurer's total assets and on the insurer's total written
3.26Minnesota premium, for the preceding fiscal year, as reported pursuant to section 60A.13.
3.27The assessment is calculated as follows to be an amount up to the following:

3.28		Total Assets	Assessment
3.29		Less than $100,000,000		$	200
3.30		$100,000,000 to $1,000,000,000		$	750
3.31		Over $1,000,000,000		$	2,000
3.32		Minnesota Written Premium	Assessment
3.33		Less than $10,000,000		$	200
4.1		$10,000,000 to $100,000,000		$	750
4.2		Over $100,000,000		$	2,000

4.3For purposes of this subdivision, the following entities are not considered to be
4.4insurers authorized to sell insurance in the state of Minnesota: risk retention groups; or
4.5township mutuals organized under chapter 67A.
4.6EFFECTIVE DATE.This section is effective January 1, 2010.

4.7    Sec. 5. Minnesota Statutes 2008, section 58.02, subdivision 17, is amended to read:
4.8    Subd. 17. Person in control. "Person in control" means any member of senior
4.9management, including owners or officers, and other persons who possess, directly
4.10or indirectly, the power to direct or cause the direction of the management policies of
4.11an applicant or licensee under this chapter, regardless of whether the person has any
4.12ownership interest in the applicant or licensee. Control is presumed to exist if a person,
4.13directly or indirectly, owns, controls, or holds with power to vote ten percent or more of
4.14the voting stock of an applicant or licensee or of a person who owns, controls, or holds
4.15with power to vote ten percent or more of the voting stock of an applicant or licensee.

4.16    Sec. 6. Minnesota Statutes 2008, section 59B.01, is amended to read:
4.1759B.01 SCOPE AND PURPOSE.
4.18    (a) The purpose of this chapter is to create a legal framework within which service
4.19contracts may be sold in this state.
4.20    (b) The following are exempt from this chapter:
4.21    (1) warranties;
4.22    (2) maintenance agreements;
4.23    (3) warranties, service contracts, or maintenance agreements offered by public
4.24utilities, as defined in section 216B.02, subdivision 4, or an entity or operating unit owned
4.25by or under common control with a public utility;
4.26    (4) service contracts sold or offered for sale to persons other than consumers;
4.27    (5) service contracts on tangible property where the tangible property for which the
4.28service contract is sold has a purchase price of $250 or less, exclusive of sales tax;
4.29    (6) service contracts for home security equipment installed by a licensed technology
4.30systems contractor; and
4.31    (7) motor club membership contracts that typically provide roadside assistance
4.32services to motorists stranded for reasons that include, but are not limited to, mechanical
4.33breakdown or adverse road conditions.
5.1    (c) The types of agreements referred to in paragraph (b) are not subject to chapters
5.260A to 79A, except as otherwise specifically provided by law.
5.3    (d) Service contracts issued by motor vehicle manufacturers covering private
5.4passenger automobiles are only subject to sections 59B.03, subdivision 5, 59B.05, and
5.559B.07 .
5.6    (e) All warranty service contracts are deemed to be made in Minnesota for the
5.7purpose of arbitration.

5.8    Sec. 7. Minnesota Statutes 2008, section 60A.08, is amended by adding a subdivision
5.9to read:
5.10    Subd. 15. Classification of insurance filings data. (1) All forms, rates, and related
5.11information filed with the commissioner under section 61A.02 shall be nonpublic data
5.12until the filing becomes effective.
5.13    (2) All forms, rates, and related information filed with the commissioner under
5.14section 62A.02 shall be nonpublic data until the filing becomes effective.
5.15    (3) All forms, rates, and related information filed with the commissioner under
5.16section 62C.14, subdivision 10, shall be nonpublic data until the filing becomes effective.
5.17    (4) All forms, rates, and related information filed with the commissioner under
5.18section 70A.06 shall be nonpublic data until the filing becomes effective.
5.19    (5) All forms, rates, and related information filed with the commissioner under
5.20section 79.56 shall be nonpublic data until the filing becomes effective.

5.21    Sec. 8. [60A.1755] AGENT ERRORS AND OMISSIONS INSURANCE; CHOICE
5.22OF SOURCE.
5.23An insurance company shall not require an insurance agent to maintain insurance
5.24coverage for the agent's errors and omissions from a specific insurance company. This
5.25section does not apply if the insurance producer is a captive producer or employee of the
5.26insurance company imposing the requirement, or if that insurance company or affiliated
5.27broker-dealer pays for or contributes to the premiums for the errors and omissions
5.28coverage. For purposes of this section, "captive producer" means a producer that writes
5.2980 percent or more of the producer's gross annual insurance business for that insurance
5.30company or any or all of its subsidiaries. Nothing in this section shall prohibit an insurance
5.31company from requiring an insurance producer to maintain errors and omissions coverage
5.32or requiring that errors and omissions coverage meet certain criteria.

5.33    Sec. 9. Minnesota Statutes 2008, section 60A.198, subdivision 1, is amended to read:
6.1    Subdivision 1. License required. A person, as defined in section 60A.02,
6.2subdivision 7 , shall not act in any other manner as an agent or broker in the transaction
6.3of surplus lines insurance unless licensed under sections 60A.195 to 60A.209. A surplus
6.4lines license is not required for a licensed resident agent who assists in the procurement
6.5placement of surplus lines insurance with a surplus lines licensee pursuant to sections
6.660A.195 to 60A.209.

6.7    Sec. 10. Minnesota Statutes 2008, section 60A.198, subdivision 3, is amended to read:
6.8    Subd. 3. Procedure for obtaining license. A person licensed as an agent in this
6.9state pursuant to other law may obtain a surplus lines license by doing the following:
6.10(a) filing an application in the form and with the information the commissioner
6.11may reasonably require to determine the ability of the applicant to act in accordance
6.12with sections 60A.195 to 60A.209;
6.13(b) maintaining an agent's license in this state;
6.14(c) registering with the association created pursuant to section 60A.2085;
6.15(c) (d) agreeing to file with the commissioner of revenue all returns required by
6.16chapter 297I and paying to the commissioner of revenue all amounts required under
6.17chapter 297I; and
6.18(e) agreeing to file all documents required pursuant to section 60A.2086 and to pay
6.19the stamping fee assessed pursuant to section 60A.2085, subdivision 7; and
6.20(d) (f) paying a fee as prescribed by section 60K.55.

6.21    Sec. 11. Minnesota Statutes 2008, section 60A.201, subdivision 3, is amended to read:
6.22    Subd. 3. Unavailability of other coverage; presumption. There shall be a
6.23rebuttable presumption that the following coverages are unavailable from a licensed
6.24insurer:
6.25    (a) coverages on a list of unavailable coverages maintained by the commissioner
6.26pursuant to subdivision 4;
6.27    (b) coverages where one portion of the risk is acceptable to licensed insurers but
6.28another portion of the same risk is not acceptable. The entire coverage may be placed with
6.29eligible surplus lines insurers if it can be shown that the eligible surplus lines insurer will
6.30accept the entire coverage but not the rejected portion alone; and
6.31    (c) (b) any coverage that the licensee is unable to procure after diligent search
6.32among licensed insurers.

6.33    Sec. 12. Minnesota Statutes 2008, section 60A.205, subdivision 1, is amended to read:
7.1    Subdivision 1. Authorization. A surplus lines licensee may be compensated by
7.2an eligible surplus lines insurer and the licensee may compensate a licensed resident
7.3agent in this state for obtaining surplus lines insurance business. A licensed resident
7.4agent authorized by the licensee may collect a premium on behalf of the licensee, and as
7.5between the insured and the licensee, the licensee shall be considered to have received the
7.6premium if the premium payment has been made to the agent.

7.7    Sec. 13. Minnesota Statutes 2008, section 60A.2085, subdivision 1, is amended to read:
7.8    Subdivision 1. Association created; duties. There is hereby created a nonprofit
7.9association to be known as the Surplus Lines Association of Minnesota. The association
7.10is not a state agency for purposes of chapter 16A, 16B, 16C, or 43A. All surplus lines
7.11licensees are members of this association. Section 60A.208, subdivision 5, does not apply
7.12to the association created pursuant to the provisions of this section. The association shall
7.13perform its functions under the plan of operation established under subdivision 3 and must
7.14exercise its powers through a board of directors established under subdivision 2 as set
7.15forth in the plan of operation. The association shall be authorized and have the duty to:
7.16    (1) receive, record, and stamp all surplus lines insurance documents that surplus
7.17lines licensees are required to file with the association;
7.18    (2) prepare and deliver monthly to the commissioners of revenue and commerce a
7.19report regarding surplus lines business. The report must include a list of all the business
7.20procured during the preceding month, in the form the commissioners prescribe;
7.21    (3) educate its members regarding the surplus lines law of this state including
7.22insurance tax responsibilities and the rules and regulations of the commissioners of
7.23revenue and commerce relative to surplus lines insurance;
7.24    (4) communicate with organizations of agents, brokers, and admitted insurers with
7.25respect to the proper use of the surplus lines market;
7.26    (5) employ and retain persons necessary to carry out the duties of the association;
7.27    (6) borrow money necessary to effect the purposes of the association and grant a
7.28security interest or mortgage in its assets, including the stamping fees charged pursuant to
7.29subdivision 7 in order to secure the repayment of any such borrowed money;
7.30    (7) enter contracts necessary to effect the purposes of the association;
7.31    (8) provide other services to its members that are incidental or related to the
7.32purposes of the association; and
7.33(9) form and organize itself as a nonprofit corporation under chapter 317A, with the
7.34powers set forth in section 317A.161 that are not otherwise limited by this section or in
7.35its articles, bylaws, or plan of operation;
8.1(10) file such applications and take such other action as necessary to establish and
8.2maintain the association as tax exempt pursuant to the federal income tax code;
8.3(11) recommend to the commissioner of commerce revisions to Minnesota law
8.4relating to the regulation of surplus lines insurance in order to improve the efficiency
8.5and effectiveness of that regulation; and
8.6    (9) (12) take other actions reasonably required to implement the provisions of this
8.7section.

8.8    Sec. 14. Minnesota Statutes 2008, section 60A.2085, subdivision 3, is amended to read:
8.9    Subd. 3. Plan of operation. (a) The plan of operation shall provide for the
8.10formation, operation, and governance of the association as a nonprofit corporation
8.11under chapter 317A. The plan of operation must provide for the election of a board of
8.12directors by the members of the association. The board of directors shall elect officers as
8.13provided for in the plan of operation. The plan of operation shall establish the manner of
8.14voting and may weigh each member's vote to reflect the annual surplus lines insurance
8.15premium written by the member. Members employed by the same or affiliated employers
8.16may consolidate their premiums written and delegate an individual officer or partner
8.17to represent the member in the exercise of association affairs, including service on the
8.18board of directors.
8.19    (b) The plan of operation shall provide for an independent audit once each year of all
8.20the books and records of the association and a report of such independent audit shall be
8.21made to the board of directors, the commissioner of revenue, and the commissioner of
8.22commerce, with a copy made available to each member to review at the association office.
8.23    (c) The plan of operation and any amendments to the plan of operation shall be
8.24submitted to the commissioner and shall be effective upon approval in writing by the
8.25commissioner. The association and all members shall comply with the plan of operation or
8.26any amendments to it. Failure to comply with the plan of operation or any amendments
8.27shall constitute a violation for which the commissioner may issue an order requiring
8.28discontinuance of the violation.
8.29    (d) If the interim board of directors fails to submit a suitable plan of operation
8.30within 60 days following the creation of the interim board, or if at any time thereafter the
8.31association fails to submit required amendments to the plan, the commissioner may submit
8.32to the association a plan of operation or amendments to the plan, which the association
8.33must follow. The plan of operation or amendments submitted by the commissioner shall
8.34continue in force until amended by the commissioner or superseded by a plan of operation
8.35or amendment submitted by the association and approved by the commissioner. A plan
9.1of operation or an amendment submitted by the commissioner constitutes an order of
9.2the commissioner.

9.3    Sec. 15. Minnesota Statutes 2008, section 60A.2085, subdivision 7, is amended to read:
9.4    Subd. 7. Stamping fee. The services performed by the association shall be
9.5funded by a stamping fee assessed for each premium-bearing document submitted to
9.6the association. The stamping fee shall be established by the board of directors of the
9.7association from time to time. The stamping fee shall be paid by the insured to the surplus
9.8lines licensee and remitted electronically to the association by the surplus lines licensee in
9.9the manner established by the association.

9.10    Sec. 16. Minnesota Statutes 2008, section 60A.2085, subdivision 8, is amended to read:
9.11    Subd. 8. Data classification. Unless otherwise classified by statute, a temporary
9.12classification under section 13.06, or federal law, information obtained by the
9.13commissioner from the association is public, except that any data identifying insureds or
9.14the Social Security number of a licensee or any information derived therefrom is private
9.15data on individuals or nonpublic data as defined in section 13.02, subdivisions 9 and 12.

9.16    Sec. 17. Minnesota Statutes 2008, section 60A.23, subdivision 8, is amended to read:
9.17    Subd. 8. Self-insurance or insurance plan administrators who are vendors
9.18of risk management services. (1) Scope. This subdivision applies to any vendor of
9.19risk management services and to any entity which administers, for compensation, a
9.20self-insurance or insurance plan. This subdivision does not apply (a) to an insurance
9.21company authorized to transact insurance in this state, as defined by section 60A.06,
9.22subdivision 1, clauses (4) and (5) ; (b) to a service plan corporation, as defined by section
9.2362C.02, subdivision 6 ; (c) to a health maintenance organization, as defined by section
9.2462D.02, subdivision 4 ; (d) to an employer directly operating a self-insurance plan for
9.25its employees' benefits; (e) to an entity which administers a program of health benefits
9.26established pursuant to a collective bargaining agreement between an employer, or group
9.27or association of employers, and a union or unions; or (f) to an entity which administers a
9.28self-insurance or insurance plan if a licensed Minnesota insurer is providing insurance
9.29to the plan and if the licensed insurer has appointed the entity administering the plan as
9.30one of its licensed agents within this state.
9.31(2) Definitions. For purposes of this subdivision the following terms have the
9.32meanings given them.
10.1(a) "Administering a self-insurance or insurance plan" means (i) processing,
10.2reviewing or paying claims, (ii) establishing or operating funds and accounts, or (iii)
10.3otherwise providing necessary administrative services in connection with the operation of
10.4a self-insurance or insurance plan.
10.5(b) "Employer" means an employer, as defined by section 62E.02, subdivision 2.
10.6(c) "Entity" means any association, corporation, partnership, sole proprietorship,
10.7trust, or other business entity engaged in or transacting business in this state.
10.8(d) "Self-insurance or insurance plan" means a plan for the benefit of employees
10.9or members of an association providing life, medical or hospital care, accident, sickness
10.10or disability insurance for the benefit of employees or members of an association, or
10.11pharmacy benefits, or a plan providing liability coverage for any other risk or hazard,
10.12which is or is not directly insured or provided by a licensed insurer, service plan
10.13corporation, or health maintenance organization.
10.14(e) "Vendor of risk management services" means an entity providing for
10.15compensation actuarial, financial management, accounting, legal or other services for the
10.16purpose of designing and establishing a self-insurance or insurance plan for an employer.
10.17(3) License. No vendor of risk management services or entity administering a
10.18self-insurance or insurance plan may transact this business in this state unless it is licensed
10.19to do so by the commissioner. An applicant for a license shall state in writing the type of
10.20activities it seeks authorization to engage in and the type of services it seeks authorization
10.21to provide. The license may be granted only when the commissioner is satisfied that the
10.22entity possesses the necessary organization, background, expertise, and financial integrity
10.23to supply the services sought to be offered. The commissioner may issue a license subject
10.24to restrictions or limitations upon the authorization, including the type of services which
10.25may be supplied or the activities which may be engaged in. The license fee is $1,500
10.26for the initial application and $1,500 for each three-year renewal. All licenses are for
10.27a period of three years.
10.28(4) Regulatory restrictions; powers of the commissioner. To assure that
10.29self-insurance or insurance plans are financially solvent, are administered in a fair and
10.30equitable fashion, and are processing claims and paying benefits in a prompt, fair,
10.31and honest manner, vendors of risk management services and entities administering
10.32insurance or self-insurance plans are subject to the supervision and examination by the
10.33commissioner. Vendors of risk management services, entities administering insurance or
10.34self-insurance plans, and insurance or self-insurance plans established or operated by
10.35them are subject to the trade practice requirements of sections 72A.19 to 72A.30. In lieu
10.36of an unlimited guarantee from a parent corporation for a vendor of risk management
11.1services or an entity administering insurance or self-insurance plans, the commissioner
11.2may accept a surety bond in a form satisfactory to the commissioner in an amount equal to
11.3120 percent of the total amount of claims handled by the applicant in the prior year. If at
11.4any time the total amount of claims handled during a year exceeds the amount upon which
11.5the bond was calculated, the administrator shall immediately notify the commissioner.
11.6The commissioner may require that the bond be increased accordingly.
11.7No contract entered into after July 1, 2001, between a licensed vendor of risk
11.8management services and a group authorized to self-insure for workers' compensation
11.9liabilities under section 79A.03, subdivision 6, may take effect until it has been filed
11.10with the commissioner, and either (1) the commissioner has approved it or (2) 60 days
11.11have elapsed and the commissioner has not disapproved it as misleading or violative of
11.12public policy.
11.13(5) Rulemaking authority. To carry out the purposes of this subdivision, the
11.14commissioner may adopt rules pursuant to sections 14.001 to 14.69. These rules may:
11.15(a) establish reporting requirements for administrators of insurance or self-insurance
11.16plans;
11.17(b) establish standards and guidelines to assure the adequacy of financing, reinsuring,
11.18and administration of insurance or self-insurance plans;
11.19(c) establish bonding requirements or other provisions assuring the financial integrity
11.20of entities administering insurance or self-insurance plans; or
11.21(d) establish other reasonable requirements to further the purposes of this
11.22subdivision.

11.23    Sec. 18. Minnesota Statutes 2008, section 60A.235, is amended to read:
11.2460A.235 STANDARDS FOR DETERMINING WHETHER CONTRACTS
11.25ARE HEALTH PLAN CONTRACTS OR STOP LOSS CONTRACTS.
11.26    Subdivision 1. Findings and purpose. The purpose of this section is to establish
11.27a standard for the determination of whether an insurance policy or other evidence or
11.28coverage should be treated as a policy of accident and sickness insurance or a stop loss
11.29policy for the purpose of the regulation of the business of insurance. The laws regulating
11.30the business of insurance in Minnesota impose distinctly different requirements upon
11.31accident and sickness insurance policies and stop loss policies. In particular, the regulation
11.32of accident and sickness insurance in Minnesota includes measures designed to reform the
11.33health insurance market, to minimize or prohibit selective rating or rejection of employee
11.34groups or individual group members based upon health conditions, and to provide access
11.35to affordable health insurance coverage regardless of preexisting health conditions. The
12.1health care reform provisions enacted in Minnesota will only be effective if they are
12.2applied to all insurers and health carriers who in substance, regardless of purported form,
12.3engage in the business of issuing health insurance coverage to employees of an employee
12.4group. This section applies to insurance companies and health carriers and the policies or
12.5other evidence of coverage that they issue. This section does not apply to employers or the
12.6benefit plans they establish for their employees.
12.7    Subd. 2. Definitions. For purposes of this section, the terms defined in this
12.8subdivision have the meanings given.
12.9(a) "Attachment point" means the claims amount incurred by an insured group
12.10beyond which the insurance company or health carrier incurs a liability for payment.
12.11(b) "Direct coverage" means coverage under which an insurance company or health
12.12carrier assumes a direct obligation to an individual, under the policy or evidence of
12.13coverage, with respect to health care expenses incurred by the individual or a member
12.14of the individual's family.
12.15(c) "Expected claims" means the amount of claims that, in the absence of a stop loss
12.16policy or other insurance or evidence of coverage, are projected to be incurred under by an
12.17employer-sponsored plan covering health care expenses.
12.18(d) "Expected plan claims" means the expected claims less the projected claims in
12.19excess of the specific attachment point, adjusted to be consistent with the employer's
12.20aggregate contract period.
12.21(e) "Health plan" means a health plan as defined in section 62A.011 and includes
12.22group coverage regardless of the size of the group.
12.23(f) "Health carrier" means a health carrier as defined in section 62A.011.
12.24    Subd. 3. Health plan policies issued as stop loss coverage. (a) An insurance
12.25company or health carrier issuing or renewing an insurance policy or other evidence of
12.26coverage, that provides coverage to an employer for health care expenses incurred under
12.27an employer-sponsored plan provided to the employer's employees, retired employees,
12.28or their dependents, shall issue the policy or evidence of coverage as a health plan if the
12.29policy or evidence of coverage:
12.30(1) has a specific attachment point for claims incurred per individual that is lower
12.31than $10,000 $20,000; or
12.32(2) has an aggregate attachment point, for groups of 50 or fewer, that is lower than
12.33the sum greater of:
12.34(i) 140 percent of the first $50,000 of expected plan claims;
12.35(ii) 120 percent of the next $450,000 of expected plan claims; and
12.36(iii) 110 percent of the remaining expected plan claims.
13.1(i) $4,000 times the number of group members;
13.2(ii) 120 percent of expected claims; or
13.3(iii) $20,000; or
13.4(3) has an aggregate attachment point for groups of 51 or more that is lower than
13.5110 percent of expected claims.
13.6(b) An insurer shall determine the number of persons in a group, for the purposes
13.7of this section, on a consistent basis, at least annually. Where the insurance policy or
13.8evidence of coverage applies to a contract period of more than one year, the dollar
13.9amounts set forth in paragraph (a), clauses (1) and (2), must be multiplied by the length
13.10of the contract period expressed in years.
13.11(c) The commissioner may adjust the constant dollar amounts provided in paragraph
13.12(a), clauses (1) and, (2), and (3), on January 1 of any year, based upon changes in
13.13the medical component of the Consumer Price Index (CPI). Adjustments must be in
13.14increments of $100 and must not be made unless at least that amount of adjustment is
13.15required. The commissioner shall publish any change in these dollar amounts at least
13.16three six months before their effective date.
13.17(d) A policy or evidence of coverage issued by an insurance company or health
13.18carrier that provides direct coverage of health care expenses of an individual including a
13.19policy or evidence of coverage administered on a group basis is a health plan regardless of
13.20whether the policy or evidence of coverage is denominated as stop loss coverage.
13.21    Subd. 3a. Actuarial certification. An insurer shall file with the commissioner
13.22annually on or before March 15, an actuarial certification certifying that the insurer is in
13.23compliance with sections 60A.235 and 60A.236. The certification shall be in a form and
13.24manner, and shall contain information, specified by the commissioner. A copy of the
13.25certification shall be retained by the insurer at its principal place of business.
13.26    Subd. 4. Compliance. (a) An insurance company or health carrier that is required to
13.27issue a policy or evidence of coverage as a health plan under this section shall, even if the
13.28policy or evidence of coverage is denominated as stop loss coverage, comply with all the
13.29laws of this state that apply to the health plan, including, but not limited to, chapters 62A,
13.3062C, 62D, 62E, 62L, and 62Q.
13.31(b) With respect to an employer who had been issued a policy or evidence of
13.32coverage denominated as stop loss coverage before June 2, 1995 the effective date of this
13.33section, compliance with this section is required as of the first renewal date occurring on
13.34or after June 2, 1995 August 1, 2009, and applies to policies issued or renewed on or
13.35after that date.

14.1    Sec. 19. Minnesota Statutes 2008, section 60A.32, is amended to read:
14.260A.32 RATE FILING FOR CROP HAIL INSURANCE.
14.3    Subdivision 1. Authority. An insurer issuing policies of insurance against crop
14.4damage by hail in this state shall file its insurance rates with the commissioner using the
14.5expedited filing procedure under subdivision 2. The insurance rates must be filed before
14.6February 1 of the year in which a policy is issued.
14.7    Subd. 2. Compliance certifications. In addition to the proposed rates, an insurer
14.8shall file with the Department of Commerce on a form prescribed by the commissioner a
14.9written certification, signed by an officer of the insurer, that the rates comply with section
14.1070A.04. Rates filed under this procedure are effective upon the date of receipt or on a
14.11subsequent date requested by the insurer.
14.12    Subd. 3. Fee. In order to be effective, the filing must be accompanied by payment of
14.13the applicable filing fee.

14.14    Sec. 20. [60A.39] CERTIFICATES OF INSURANCE.
14.15    Subdivision 1. Issuance. A licensed insurer or insurance producer may provide to a
14.16third party a certificate of insurance which documents insurance coverage. The purpose
14.17of a certificate of insurance is to provide evidence of insurance coverage and the amount
14.18of insurance issued.
14.19    Subd. 2. Approval. An insurer or licensed producer shall not issue a certificate of
14.20insurance or other document or instrument that either affirmatively or negatively amends,
14.21extends, or alters the coverage provided by an approved policy, form, or endorsement
14.22without the written approval of the commissioner.
14.23    Subd. 3. Required statement. A certificate or memorandum of property or casualty
14.24insurance when issued to any person other than the policyholder must contain the following
14.25or similar statement: "This certificate or memorandum of insurance does not affirmatively
14.26or negatively amend, extend, or alter the coverage afforded by the insurance policy."
14.27    Subd. 4. Cancellation notice. A certificate provided to a third party must not
14.28provide for notice of cancellation that exceeds the statutory notice of cancellation provided
14.29to the policyholder.
14.30    Subd. 5. Filing. An insurer not using the standard ACORD or ISO form "Certificate
14.31of Insurance" shall file with the commissioner, prior to its use, the form of certificate or
14.32memorandum of insurance coverage that will be used by the insurer. Filed forms may not
14.33be amended at the request of a third party.
15.1    Subd. 6. Opinion letters. A licensed insurance producer may not issue, in lieu of a
15.2certificate, an agent's opinion letter or other correspondence that is inconsistent with
15.3this section.

15.4    Sec. 21. Minnesota Statutes 2008, section 60K.46, is amended by adding a subdivision
15.5to read:
15.6    Subd. 8. Certificates of insurance. An insurance producer shall not issue a
15.7certificate of insurance, or other evidence of insurance coverage that either affirmatively or
15.8negatively amends, extends, or alters the coverage as provided by the policy, or provides
15.9notice of cancellation to a third party that exceeds the statutory notice requirement to a
15.10policyholder.

15.11    Sec. 22. Minnesota Statutes 2008, section 62A.011, subdivision 3, is amended to read:
15.12    Subd. 3. Health plan. "Health plan" means a policy or certificate of accident and
15.13sickness insurance as defined in section 62A.01 offered by an insurance company licensed
15.14under chapter 60A; a subscriber contract or certificate offered by a nonprofit health
15.15service plan corporation operating under chapter 62C; a health maintenance contract or
15.16certificate offered by a health maintenance organization operating under chapter 62D; a
15.17health benefit certificate offered by a fraternal benefit society operating under chapter
15.1864B; or health coverage offered by a joint self-insurance employee health plan operating
15.19under chapter 62H. Health plan means individual and group coverage, unless otherwise
15.20specified. Health plan does not include coverage that is:
15.21(1) limited to disability or income protection coverage;
15.22(2) automobile medical payment coverage;
15.23(3) supplemental to liability insurance;
15.24(4) designed solely to provide payments on a per diem, fixed indemnity, or
15.25non-expense-incurred basis;
15.26(5) credit accident and health insurance as defined in section 62B.02;
15.27(6) designed solely to provide hearing, dental, or vision care;
15.28(7) blanket accident and sickness insurance as defined in section 62A.11;
15.29(8) accident-only coverage;
15.30(9) a long-term care policy as defined in section 62A.46 or 62S.01;
15.31(10) issued as a supplement to Medicare, as defined in sections 62A.3099 to
15.3262A.44 , or policies, contracts, or certificates that supplement Medicare issued by health
15.33maintenance organizations or those policies, contracts, or certificates governed by section
16.11833 or 1876 of the federal Social Security Act, United States Code, title 42, section
16.21395, et seq., as amended;
16.3(11) workers' compensation insurance; or
16.4(12) issued solely as a companion to a health maintenance contract as described in
16.5section 62D.12, subdivision 1a, so long as the health maintenance contract meets the
16.6definition of a health plan.

16.7    Sec. 23. Minnesota Statutes 2008, section 62A.136, is amended to read:
16.862A.136 HEARING, DENTAL, AND VISION PLAN COVERAGE.
16.9The following provisions do not apply to health plans as defined in section 62A.011,
16.10subdivision 3 , clause (6), providing hearing, dental, or vision coverage only: sections
16.1162A.041 ; 62A.0411; 62A.047; 62A.149; 62A.151; 62A.152; 62A.154; 62A.155; 62A.17,
16.12subdivision 6 ; 62A.21, subdivision 2b; 62A.26; 62A.28; 62A.285; 62A.30; 62A.304;
16.1362A.3093 ; and 62E.16.

16.14    Sec. 24. Minnesota Statutes 2008, section 62A.17, is amended by adding a subdivision
16.15to read:
16.16    Subd. 5b. Notices required by the American Recovery and Reinvestment Act of
16.172009 (ARRA). (a) An employer that maintains a group health plan that is not described in
16.18Internal Revenue Code, section 6432(b)(1) or (2), as added by section 3001(a)(12)(A) of
16.19the American Recovery and Reinvestment Act of 2009 (ARRA), must notify the health
16.20carrier of the termination of, or the layoff from, employment of a covered employee, and
16.21the name and last known address of the employee, within the later of ten days after the
16.22termination or layoff event, or June 8, 2009.
16.23(b) The health carrier for a group health plan that is not described in Internal Revenue
16.24Code, section 6432(b)(1) or (2), as added by section 3001(a)(12)(A) of the ARRA,
16.25must provide the notice of extended election rights which is required by subdivision
16.265a, paragraph (a), as well as any other notice that is required by the ARRA regarding
16.27the availability of premium reduction rights, to the individual within 30 days after the
16.28employer notifies the health carrier as required by paragraph (a).
16.29(c) The notice responsibilities set forth in this subdivision end when the premium
16.30reduction provisions under ARRA expire.
16.31EFFECTIVE DATE.This section is effective the day following final enactment.

17.1    Sec. 25. Minnesota Statutes 2008, section 62A.3099, subdivision 18, is amended to
17.2read:
17.3    Subd. 18. Medicare supplement policy or certificate. "Medicare supplement
17.4policy or certificate" means a group or individual policy of accident and sickness insurance
17.5or a subscriber contract of hospital and medical service associations or health maintenance
17.6organizations, other than those policies or certificates covered by section 1833 of the
17.7federal Social Security Act, United States Code, title 42, section 1395, et seq., or an issued
17.8policy under a demonstration project specified under amendments to the federal Social
17.9Security Act, which is advertised, marketed, or designed primarily as a supplement to
17.10reimbursements under Medicare for the hospital, medical, or surgical expenses of persons
17.11eligible for Medicare or as a supplement to Medicare Advantage Plans established under
17.12Medicare Part C. "Medicare supplement policy" does not include Medicare Advantage
17.13plans established under Medicare Part C, outpatient prescription drug plans established
17.14under Medicare Part D, or any health care prepayment plan that provides benefits under an
17.15agreement under section 1833(a)(1)(A) of the Social Security Act.

17.16    Sec. 26. Minnesota Statutes 2008, section 62A.31, subdivision 1, is amended to read:
17.17    Subdivision 1. Policy requirements. No individual or group policy, certificate,
17.18subscriber contract issued by a health service plan corporation regulated under chapter
17.1962C, or other evidence of accident and health insurance the effect or purpose of which
17.20is to supplement Medicare coverage, including to supplement coverage under Medicare
17.21Advantage Plans established under Medicare Part C, issued or delivered in this state
17.22or offered to a resident of this state shall be sold or issued to an individual covered by
17.23Medicare unless the requirements in subdivisions 1a to 1u are met.

17.24    Sec. 27. Minnesota Statutes 2008, section 62A.31, is amended by adding a subdivision
17.25to read:
17.26    Subd. 8. Prohibition against use of genetic information and requests for genetic
17.27information. This subdivision applies to all policies with policy years beginning on or
17.28after May 21, 2009.
17.29    (a) An issuer of a Medicare supplement policy or certificate:
17.30    (1) shall not deny or condition the issuance or effectiveness of the policy or
17.31certificate, including the imposition of any exclusion of benefits under the policy based
17.32on a preexisting condition, on the basis of the genetic information with respect to such
17.33individual; and
18.1    (2) shall not discriminate in the pricing of the policy or certificate, including the
18.2adjustment of premium rates, of an individual on the basis of the genetic information
18.3with respect to such individual.
18.4    (b) Nothing in paragraph (a) shall be construed to limit the ability of an issuer, to the
18.5extent otherwise permitted by law, from:
18.6    (1) denying or conditioning the issuance or effectiveness of the policy or certificate
18.7or increasing the premium for a group based on the manifestation of a disease or disorder
18.8of an insured or applicant; or
18.9    (2) increasing the premium for any policy issued to an individual based on the
18.10manifestation of a disease or disorder of an individual who is covered under the policy.
18.11In such case, the manifestation of a disease or disorder in one individual cannot also
18.12be used as genetic information about other group members and to further increase the
18.13premium for the group.
18.14    (c) An issuer of a Medicare supplement policy or certificate shall not request or
18.15require an individual or a family member of such individual to undergo a genetic test.
18.16    (d) Paragraph (c) shall not be construed to preclude an issuer of a Medicare
18.17supplement policy or certificate from obtaining and using the results of a genetic test in
18.18making a determination regarding payment, as defined for the purposes of applying the
18.19regulations promulgated under Part C of title XI and section 264 of the Health Insurance
18.20Portability and Accountability Act of 1996 as they may be revised from time to time,
18.21and consistent with paragraph (a).
18.22    (e) For purposes of carrying out paragraph (d), an issuer of a Medicare supplement
18.23policy or certificate may request only the minimum amount of information necessary to
18.24accomplish the intended purpose.
18.25    (f) Notwithstanding paragraph (c), an issuer of a Medicare supplement policy may
18.26request, but not require, that an individual or a family member of such individual undergo
18.27a genetic test if each of the following conditions are met:
18.28    (1) The request is made pursuant to research that complies with Code of Federal
18.29Regulations title 45, part 46, or equivalent federal regulations, and any applicable state or
18.30local law or regulations for the protection of human subjects in research.
18.31    (2) The issuer clearly indicates to each individual, or in the case of a minor child, to
18.32the legal guardian of such child, to whom the request is made that:
18.33    (i) compliance with the request is voluntary; and
18.34    (ii) noncompliance will have no effect on enrollment status or premium or
18.35contribution amounts.
19.1    (3) No genetic information collected or acquired under this paragraph shall be used
19.2for underwriting, determination of eligibility to enroll or maintain enrollment status,
19.3premium rates, or the issuance, renewal, or replacement of a policy or certificate.
19.4    (4) The issuer notifies the secretary in writing that the issuer is conducting activities
19.5pursuant to the exception provided for under this paragraph, including a description of
19.6the activities conducted.
19.7    (5) The issuer complies with such other conditions as the secretary may by regulation
19.8require for activities under this paragraph.
19.9    (g) An issuer of a Medicare supplement policy or certificate shall not request,
19.10require, or purchase genetic information for underwriting purposes.
19.11    (h) An issuer of a Medicare supplement policy or certificate shall not request,
19.12require, or purchase genetic information with respect to any individual prior to such
19.13individual's enrollment under the policy in connection with such enrollment.
19.14    (i) An issuer of a Medicare supplement policy or certificate that obtains genetic
19.15information incidental to the requesting, requiring, or purchasing of other information
19.16concerning any individual, such request, requirement, or purchase shall not be considered
19.17a violation of paragraph (h) if such request, requirement, or purchase is not in violation of
19.18paragraph (g).
19.19    (j) For purposes of this subdivision only:
19.20    (1) "Family member" means, with respect to an individual, any other individual who
19.21is a first-degree, second-degree, third-degree, or fourth-degree relative of such individual.
19.22    (2) "Genetic information" means, with respect to any individual, information about
19.23such individual's genetic tests, the genetic test of family members of such individual,
19.24and the manifestation of a disease or disorder in family members of such individual.
19.25Such terms includes, with respect to any individual, any request for, or receipt of, genetic
19.26services, or participation in clinical research that includes genetic services, by such
19.27individual or any family member of such individual. Any reference to genetic information
19.28concerning an individual or family member of an individual who is a pregnant woman,
19.29includes genetic information of any fetus carried by such pregnant woman, or with respect
19.30to an individual or family member utilizing reproductive technology, includes genetic
19.31information of any embryo legally held by an individual or family member. The term
19.32genetic information does not include information about the sex or age of any individual.
19.33    (3) "Genetic services" means a genetic test or genetic counseling, including
19.34obtaining, interpreting, or assessing genetic information or genetic education.
19.35    (4) "Genetic test" means an analysis of human DNA, RNA, chromosomes, proteins,
19.36or metabolites, that detect genotypes, mutations, or chromosomal changes. The term
20.1genetic test does not mean an analysis of proteins or metabolites that does not detect
20.2genotypes, mutations, or chromosomal changes; or an analysis of proteins or metabolites
20.3that is directly related to a manifested disease, disorder, or pathological condition that
20.4could reasonably be detected by a health care professional with appropriate training and
20.5expertise in the field of medicine involved.
20.6    (5) "Issuer of a Medicare supplement policy or certificate" includes a third-party
20.7administrator or other person acting for or on behalf of such issuer.
20.8    (6) "Underwriting purposes" means:
20.9    (i) rules for, or determination of, eligibility including enrollment and continued
20.10eligibility, for benefits under the policy;
20.11    (ii) the computation of premium or contribution amounts under the policy;
20.12    (iii) the application of any preexisting condition exclusion under the policy; and
20.13    (iv) other activities related to the creation, renewal, or replacement of a contract of
20.14health insurance or health benefits.

20.15    Sec. 28. Minnesota Statutes 2008, section 62A.315, is amended to read:
20.1662A.315 EXTENDED BASIC MEDICARE SUPPLEMENT PLAN;
20.17COVERAGE.
20.18The extended basic Medicare supplement plan must have a level of coverage so that
20.19it will be certified as a qualified plan pursuant to section 62E.07, and will provide:
20.20(1) coverage for all of the Medicare Part A inpatient hospital deductible and
20.21coinsurance amounts, and 100 percent of all Medicare Part A eligible expenses for
20.22hospitalization not covered by Medicare;
20.23(2) coverage for the daily co-payment amount of Medicare Part A eligible expenses
20.24for the calendar year incurred for skilled nursing facility care;
20.25(3) coverage for the coinsurance amount or in the case of hospital outpatient
20.26department services paid under a prospective payment system, the co-payment amount, of
20.27Medicare eligible expenses under Medicare Part B regardless of hospital confinement, and
20.28the Medicare Part B deductible amount;
20.29(4) 80 percent of the usual and customary hospital and medical expenses and
20.30supplies described in section 62E.06, subdivision 1, not to exceed any charge limitation
20.31established by the Medicare program or state law, the usual and customary hospital
20.32and medical expenses and supplies, described in section 62E.06, subdivision 1, while
20.33in a foreign country; and prescription drug expenses, not covered by Medicare. An
20.34outpatient prescription drug benefit must not be included for sale or issuance in a Medicare
20.35supplement policy or certificate issued on or after January 1, 2006;
21.1(5) coverage for the reasonable cost of the first three pints of blood, or equivalent
21.2quantities of packed red blood cells as defined under federal regulations under Medicare
21.3Parts A and B, unless replaced in accordance with federal regulations;
21.4(6) 100 percent of the cost of immunizations not otherwise covered under Part
21.5D of the Medicare program and routine screening procedures for cancer, including
21.6mammograms and pap smears;
21.7(7) preventive medical care benefit: coverage for the following preventive health
21.8services not covered by Medicare:
21.9(i) an annual clinical preventive medical history and physical examination that may
21.10include tests and services from clause (ii) and patient education to address preventive
21.11health care measures;
21.12(ii) preventive screening tests or preventive services, the selection and frequency of
21.13which is determined to be medically appropriate by the attending physician.
21.14Reimbursement shall be for the actual charges up to 100 percent of the
21.15Medicare-approved amount for each service as if Medicare were to cover the service as
21.16identified in American Medical Association current procedural terminology (AMA CPT)
21.17codes to a maximum of $120 annually under this benefit. This benefit shall not include
21.18payment for any procedure covered by Medicare;
21.19(8) at-home recovery benefit: coverage for services to provide short-term at-home
21.20assistance with activities of daily living for those recovering from an illness, injury, or
21.21surgery:
21.22(i) for purposes of this benefit, the following definitions shall apply:
21.23(A) "activities of daily living" include, but are not limited to, bathing, dressing,
21.24personal hygiene, transferring, eating, ambulating, assistance with drugs that are normally
21.25self-administered, and changing bandages or other dressings;
21.26(B) "care provider" means a duly qualified or licensed home health aide/homemaker,
21.27personal care aide, or nurse provided through a licensed home health care agency or
21.28referred by a licensed referral agency or licensed nurses registry;
21.29(C) "home" means a place used by the insured as a place of residence, provided
21.30that the place would qualify as a residence for home health care services covered by
21.31Medicare. A hospital or skilled nursing facility shall not be considered the insured's
21.32place of residence;
21.33(D) "at-home recovery visit" means the period of a visit required to provide at-home
21.34recovery care, without limit on the duration of the visit, except each consecutive four
21.35hours in a 24-hour period of services provided by a care provider is one visit;
21.36(ii) coverage requirements and limitations:
22.1(A) at-home recovery services provided must be primarily services that assist in
22.2activities of daily living;
22.3(B) the insured's attending physician must certify that the specific type and frequency
22.4of at-home recovery services are necessary because of a condition for which a home care
22.5plan of treatment was approved by Medicare;
22.6(C) coverage is limited to:
22.7(I) no more than the number and type of at-home recovery visits certified as
22.8medically necessary by the insured's attending physician. The total number of at-home
22.9recovery visits shall not exceed the number of Medicare-approved home health care visits
22.10under a Medicare-approved home care plan of treatment;
22.11(II) the actual charges for each visit up to a maximum reimbursement of $100 per
22.12visit;
22.13(III) $4,000 per calendar year;
22.14(IV) seven visits in any one week;
22.15(V) care furnished on a visiting basis in the insured's home;
22.16(VI) services provided by a care provider as defined in this section;
22.17(VII) at-home recovery visits while the insured is covered under the policy or
22.18certificate and not otherwise excluded;
22.19(VIII) at-home recovery visits received during the period the insured is receiving
22.20Medicare-approved home care services or no more than eight weeks after the service date
22.21of the last Medicare-approved home health care visit;
22.22(iii) coverage is excluded for:
22.23(A) home care visits paid for by Medicare or other government programs; and
22.24(B) care provided by unpaid volunteers or providers who are not care providers.
22.25(8) coverage of cost sharing for all Medicare Part A eligible hospice care and respite
22.26care expenses; and
22.27(9) coverage for cost sharing for Medicare Part A or B home health care services
22.28and medical supplies.

22.29    Sec. 29. Minnesota Statutes 2008, section 62A.316, is amended to read:
22.3062A.316 BASIC MEDICARE SUPPLEMENT PLAN; COVERAGE.
22.31(a) The basic Medicare supplement plan must have a level of coverage that will
22.32provide:
22.33(1) coverage for all of the Medicare Part A inpatient hospital coinsurance amounts,
22.34and 100 percent of all Medicare part A eligible expenses for hospitalization not covered
22.35by Medicare, after satisfying the Medicare Part A deductible;
23.1(2) coverage for the daily co-payment amount of Medicare Part A eligible expenses
23.2for the calendar year incurred for skilled nursing facility care;
23.3(3) coverage for the coinsurance amount, or in the case of outpatient department
23.4services paid under a prospective payment system, the co-payment amount, of Medicare
23.5eligible expenses under Medicare Part B regardless of hospital confinement, subject to
23.6the Medicare Part B deductible amount;
23.7(4) 80 percent of the hospital and medical expenses and supplies incurred during
23.8travel outside the United States as a result of a medical emergency;
23.9(5) coverage for the reasonable cost of the first three pints of blood, or equivalent
23.10quantities of packed red blood cells as defined under federal regulations under Medicare
23.11Parts A and B, unless replaced in accordance with federal regulations;
23.12(6) 100 percent of the cost of immunizations not otherwise covered under Part D of
23.13the Medicare program and routine screening procedures for cancer screening including
23.14mammograms and pap smears; and
23.15(7) 80 percent of coverage for all physician prescribed medically appropriate and
23.16necessary equipment and supplies used in the management and treatment of diabetes
23.17not otherwise covered under Part D of the Medicare program. Coverage must include
23.18persons with gestational, type I, or type II diabetes. Coverage under this clause is subject
23.19to section 62A.3093, subdivision 2.;
23.20(8) coverage of cost sharing for all Medicare Part A eligible hospice care and respite
23.21care expenses; and
23.22(9) coverage for cost sharing for Medicare Part A or B home health care services and
23.23medical supplies subject to the Medicare Part B deductible amount.
23.24(b) Only The following optional benefit riders may be added to must be offered
23.25with this plan:
23.26(1) coverage for all of the Medicare Part A inpatient hospital deductible amount;
23.27(2) a minimum of 80 percent of eligible medical expenses and supplies not covered
23.28by Medicare Part B 100 percent of the Medicare Part B excess charges coverage for
23.29all of the difference between the actual Medicare Part B charges as billed, not to
23.30exceed any charge limitation established by the Medicare program or state law, and the
23.31Medicare-approved Part B charge;
23.32(3) coverage for all of the Medicare Part B annual deductible; and
23.33(4) coverage for at least 50 percent, or the equivalent of 50 percent, of usual and
23.34customary prescription drug expenses. An outpatient prescription drug benefit must not
23.35be included for sale or issuance in a Medicare policy or certificate issued on or after
23.36January 1, 2006;
24.1    (5) (4) preventive medical care benefit coverage for the following preventative
24.2health services not covered by Medicare:
24.3(i) an annual clinical preventive medical history and physical examination that may
24.4include tests and services from clause (ii) and patient education to address preventive
24.5health care measures;
24.6(ii) preventive screening tests or preventive services, the selection and frequency of
24.7which is determined to be medically appropriate by the attending physician.
24.8Reimbursement shall be for the actual charges up to 100 percent of the
24.9Medicare-approved amount for each service, as if Medicare were to cover the service as
24.10identified in American Medical Association current procedural terminology (AMA CPT)
24.11codes, to a maximum of $120 annually under this benefit. This benefit shall not include
24.12payment for a procedure covered by Medicare;.
24.13(6) coverage for services to provide short-term at-home assistance with activities of
24.14daily living for those recovering from an illness, injury, or surgery:
24.15(i) For purposes of this benefit, the following definitions apply:
24.16(A) "activities of daily living" include, but are not limited to, bathing, dressing,
24.17personal hygiene, transferring, eating, ambulating, assistance with drugs that are normally
24.18self-administered, and changing bandages or other dressings;
24.19(B) "care provider" means a duly qualified or licensed home health aide/homemaker,
24.20personal care aid, or nurse provided through a licensed home health care agency or
24.21referred by a licensed referral agency or licensed nurses registry;
24.22(C) "home" means a place used by the insured as a place of residence, provided
24.23that the place would qualify as a residence for home health care services covered by
24.24Medicare. A hospital or skilled nursing facility shall not be considered the insured's
24.25place of residence;
24.26(D) "at-home recovery visit" means the period of a visit required to provide at-home
24.27recovery care, without limit on the duration of the visit, except each consecutive four
24.28hours in a 24-hour period of services provided by a care provider is one visit;
24.29(ii) Coverage requirements and limitations:
24.30(A) at-home recovery services provided must be primarily services that assist in
24.31activities of daily living;
24.32(B) the insured's attending physician must certify that the specific type and frequency
24.33of at-home recovery services are necessary because of a condition for which a home care
24.34plan of treatment was approved by Medicare;
24.35(C) coverage is limited to:
25.1(I) no more than the number and type of at-home recovery visits certified as
25.2necessary by the insured's attending physician. The total number of at-home recovery
25.3visits shall not exceed the number of Medicare-approved home care visits under a
25.4Medicare-approved home care plan of treatment;
25.5(II) the actual charges for each visit up to a maximum reimbursement of $40 per visit;
25.6(III) $1,600 per calendar year;
25.7(IV) seven visits in any one week;
25.8(V) care furnished on a visiting basis in the insured's home;
25.9(VI) services provided by a care provider as defined in this section;
25.10(VII) at-home recovery visits while the insured is covered under the policy or
25.11certificate and not otherwise excluded;
25.12(VIII) at-home recovery visits received during the period the insured is receiving
25.13Medicare-approved home care services or no more than eight weeks after the service date
25.14of the last Medicare-approved home health care visit;
25.15(iii) Coverage is excluded for:
25.16(A) home care visits paid for by Medicare or other government programs; and
25.17(B) care provided by family members, unpaid volunteers, or providers who are
25.18not care providers;
25.19(7) coverage for at least 50 percent, or the equivalent of 50 percent, of usual and
25.20customary prescription drug expenses to a maximum of $1,200 paid by the issuer annually
25.21under this benefit. An issuer of Medicare supplement insurance policies that elects to
25.22offer this benefit rider shall also make available coverage that contains the rider specified
25.23in clause (4). An outpatient prescription drug benefit must not be included for sale or
25.24issuance in a Medicare policy or certificate issued on or after January 1, 2006.

25.25    Sec. 30. [62A.3163] MEDICARE SUPPLEMENT PLAN WITH 50 PERCENT
25.26PART A DEDUCTIBLE COVERAGE.
25.27The Medicare supplement plan with 50 percent Part A deductible coverage must
25.28have a level of coverage that will provide:
25.29(1) 100 percent of Medicare Part A hospitalization coinsurance plus coverage for
25.30365 days after Medicare benefits end;
25.31(2) coverage for 50 percent of the Medicare Part A inpatient hospital deductible
25.32amount per benefit period;
25.33(3) coverage for the coinsurance amount for each day used from the 21st through
25.34the 100th day in a Medicare benefit period for post-hospital skilled nursing care eligible
25.35under Medicare Part A;
26.1(4) coverage for cost sharing for all Medicare Part A eligible hospice and respite
26.2care expenses;
26.3(5) coverage under Medicare Part A or B for the reasonable cost of the first three
26.4pints of blood, or equivalent quantities of packed red blood cells, as defined under federal
26.5regulations;
26.6(6) coverage for 100 percent of the cost sharing otherwise applicable under Medicare
26.7Part B, after the policyholder pays the Medicare Part B deductible;
26.8(7) coverage of 100 percent of the cost sharing for Medicare Part B preventive
26.9services and diagnostic procedures for cancer screening described in section 62A.30 after
26.10the policyholder pays the Medicare Part B deductible;
26.11(8) coverage of 80 percent of the hospital and medical expenses and supplies
26.12incurred during travel outside of the United States as a result of a medical emergency; and
26.13(9) coverage for 100 percent of the Medicare Part A or B home health care services
26.14and medical supplies after the policyholder pays the Medicare Part B deductible.

26.15    Sec. 31. [62A.3164] MEDICARE SUPPLEMENT PLAN WITH $20 AND $50
26.16CO-PAYMENT MEDICARE PART B COVERAGE.
26.17The Medicare supplement plan with $20 and $50 co-payment Medicare Part B
26.18coverage must have a level of coverage that will provide:
26.19(1) 100 percent of Medicare Part A hospitalization coinsurance plus coverage for
26.20365 days after Medicare benefits end;
26.21(2) coverage for the Medicare Part A inpatient hospital deductible amount per
26.22benefit period;
26.23(3) coverage for the coinsurance amount for each day used from the 21st through
26.24the 100th day in a Medicare benefit period for post-hospital skilled nursing care eligible
26.25under Medicare Part A;
26.26(4) coverage for the cost sharing for all Medicare Part A eligible hospice and respite
26.27care expenses;
26.28(5) coverage for Medicare Part A or B of the reasonable cost of the first three pints
26.29of blood, or equivalent quantities of packed red blood cells, as defined under federal
26.30regulations, unless replaced according to federal regulations;
26.31(6) coverage for 100 percent of the cost sharing otherwise applicable under Medicare
26.32Part B except for the lesser of $20 or the Medicare Part B coinsurance or co-payment
26.33for each covered health care provider office visit and the lesser of $50 or the Medicare
26.34Part B coinsurance or co-payment for each covered emergency room visit; however, this
27.1co-payment shall be waived if the insured is admitted to any hospital and the emergency
27.2visit is subsequently covered as a Medicare Part A expense;
27.3(7) coverage of 100 percent of the cost sharing for Medicare Part B preventive
27.4services and diagnostic procedures for cancer screening described in section 62A.30 after
27.5the policyholder pays the Medicare Part B deductible;
27.6(8) coverage of 80 percent of the hospital and medical expenses and supplies
27.7incurred during travel outside of the United States as a result of a medical emergency; and
27.8(9) coverage for Medicare Part A or B home health care services and medical
27.9supplies after the policyholder pays the Medicare Part B deductible.

27.10    Sec. 32. [62A.3165] MEDICARE SUPPLEMENT PLAN WITH HIGH
27.11DEDUCTIBLE COVERAGE.
27.12The Medicare supplement plan will pay 100 percent coverage upon payment of the
27.13annual high deductible. The annual deductible shall consist of out-of-pocket expenses,
27.14other than premiums, for services covered. This plan must have a level of coverage that
27.15will provide:
27.16(1) 100 percent of Medicare Part A hospitalization coinsurance plus coverage for
27.17365 days after Medicare benefits end;
27.18(2) coverage for 100 percent of the Medicare Part A inpatient hospital deductible
27.19amount per benefit period;
27.20(3) coverage for 100 percent of the coinsurance amount for each day used from the
27.2121st through the 100th day in a Medicare benefit period for post-hospital skilled nursing
27.22care eligible under Medicare Part A;
27.23(4) coverage for 100 percent of cost sharing for all Medicare Part A eligible
27.24expenses and respite care;
27.25(5) coverage for 100 percent, under Medicare Part A or B, of the reasonable cost of
27.26the first three pints of blood, or equivalent quantities of packed red blood cells, as defined
27.27under federal regulations, unless replaced according to federal regulations;
27.28(6) except for coverage provided in this clause, coverage for 100 percent of the cost
27.29sharing otherwise applicable under Medicare Part B;
27.30(7) coverage of 100 percent of the cost sharing for Medicare Part B preventive
27.31services and diagnostic procedures for cancer screening described in section 62A.30 after
27.32the policyholder pays the Medicare Part B deductible;
27.33(8) coverage of 100 percent of the hospital and medical expenses and supplies
27.34incurred during travel outside of the United States as a result of a medical emergency;
28.1(9) coverage for 100 percent of Medicare Part A and B home health care services
28.2and medical supplies; and
28.3(10) the basis for the deductible shall be $1,860 and shall be adjusted annually from
28.42010 by the secretary of the United States Department of Health and Human Services to
28.5reflect the change in the Consumer Price Index for all urban consumers for the 12-month
28.6period ending with August of the preceding year, and rounded to the nearest multiple of
28.7$10.

28.8    Sec. 33. Minnesota Statutes 2008, section 62L.02, subdivision 26, is amended to read:
28.9    Subd. 26. Small employer. (a) "Small employer" means, with respect to a calendar
28.10year and a plan year, a person, firm, corporation, partnership, association, or other entity
28.11actively engaged in business in Minnesota, including a political subdivision of the state,
28.12that employed an average of no fewer than two nor more than 50 current employees on
28.13business days during the preceding calendar year and that employs at least two current
28.14employees on the first day of the plan year. If an employer has only one eligible employee
28.15who has not waived coverage, the sale of a health plan to or for that eligible employee
28.16is not a sale to a small employer and is not subject to this chapter and may be treated as
28.17the sale of an individual health plan. A small employer plan may be offered through a
28.18domiciled association to self-employed individuals and small employers who are members
28.19of the association, even if the self-employed individual or small employer has fewer than
28.20two current employees. Entities that are treated as a single employer under subsection (b),
28.21(c), (m), or (o) of section 414 of the federal Internal Revenue Code are considered a single
28.22employer for purposes of determining the number of current employees. Small employer
28.23status must be determined on an annual basis as of the renewal date of the health benefit
28.24plan. The provisions of this chapter continue to apply to an employer who no longer meets
28.25the requirements of this definition until the annual renewal date of the employer's health
28.26benefit plan. If an employer was not in existence throughout the preceding calendar year,
28.27the determination of whether the employer is a small employer is based upon the average
28.28number of current employees that it is reasonably expected that the employer will employ
28.29on business days in the current calendar year. For purposes of this definition, the term
28.30employer includes any predecessor of the employer. An employer that has more than 50
28.31current employees but has 50 or fewer employees, as "employee" is defined under United
28.32States Code, title 29, section 1002(6), is a small employer under this subdivision.
28.33(b) Where an association, as defined in section 62L.045, comprised of employers
28.34contracts with a health carrier to provide coverage to its members who are small employers,
28.35the association and health benefit plans it provides to small employers, are subject to
29.1section 62L.045, with respect to small employers in the association, even though the
29.2association also provides coverage to its members that do not qualify as small employers.
29.3(c) If an employer has employees covered under a trust specified in a collective
29.4bargaining agreement under the federal Labor-Management Relations Act of 1947,
29.5United States Code, title 29, section 141, et seq., as amended, or employees whose health
29.6coverage is determined by a collective bargaining agreement and, as a result of the
29.7collective bargaining agreement, is purchased separately from the health plan provided
29.8to other employees, those employees are excluded in determining whether the employer
29.9qualifies as a small employer. Those employees are considered to be a separate small
29.10employer if they constitute a group that would qualify as a small employer in the absence
29.11of the employees who are not subject to the collective bargaining agreement.

29.12    Sec. 34. Minnesota Statutes 2008, section 62M.05, subdivision 3a, is amended to read:
29.13    Subd. 3a. Standard review determination. (a) Notwithstanding subdivision 3b, an
29.14initial determination on all requests for utilization review must be communicated to the
29.15provider and enrollee in accordance with this subdivision within ten business days of the
29.16request, provided that all information reasonably necessary to make a determination on the
29.17request has been made available to the utilization review organization.
29.18(b) When an initial determination is made to certify, notification must be provided
29.19promptly by telephone to the provider. The utilization review organization shall send
29.20written notification to the provider or shall maintain an audit trail of the determination
29.21and telephone notification. For purposes of this subdivision, "audit trail" includes
29.22documentation of the telephone notification, including the date; the name of the person
29.23spoken to; the enrollee; the service, procedure, or admission certified; and the date of
29.24the service, procedure, or admission. If the utilization review organization indicates
29.25certification by use of a number, the number must be called the "certification number."
29.26For purposes of this subdivision, notification may also be made by facsimile to a verified
29.27number or by electronic mail to a secure electronic mailbox. These electronic forms of
29.28notification satisfy the "audit trail" requirement of this paragraph.
29.29(c) When an initial determination is made not to certify, notification must be
29.30provided by telephone, by facsimile to a verified number, or by electronic mail to a
29.31secure electronic mailbox within one working day after making the determination to
29.32the attending health care professional and hospital and a written as applicable. Written
29.33notification must also be sent to the hospital, as applicable and attending health care
29.34professional, and enrollee if notification occurred by telephone. For purposes of this
29.35subdivision, notification may be made by facsimile to a verified number or by electronic
30.1mail to a secure electronic mailbox. Written notification must be sent to the enrollee and
30.2may be sent by United States mail, facsimile to a verified number, or by electronic mail to
30.3a secure mailbox. The written notification must include the principal reason or reasons
30.4for the determination and the process for initiating an appeal of the determination. Upon
30.5request, the utilization review organization shall provide the provider or enrollee with the
30.6criteria used to determine the necessity, appropriateness, and efficacy of the health care
30.7service and identify the database, professional treatment parameter, or other basis for the
30.8criteria. Reasons for a determination not to certify may include, among other things,
30.9the lack of adequate information to certify after a reasonable attempt has been made to
30.10contact the provider or enrollee.
30.11(d) When an initial determination is made not to certify, the written notification must
30.12inform the enrollee and the attending health care professional of the right to submit an
30.13appeal to the internal appeal process described in section 62M.06 and the procedure
30.14for initiating the internal appeal.

30.15    Sec. 35. Minnesota Statutes 2008, section 65A.27, subdivision 1, is amended to read:
30.16    Subdivision 1. Scope. For purposes of sections 65A.27 to 65A.30 65A.302, the
30.17following terms have the meanings given.

30.18    Sec. 36. Minnesota Statutes 2008, section 65A.29, is amended by adding a subdivision
30.19to read:
30.20    Subd. 13. Notice of possible cancellation. (a) A written notice must be
30.21provided to all applicants for homeowners' insurance, at the time the application is
30.22submitted, containing the following language in bold print: "THE INSURER MAY
30.23ELECT TO CANCEL COVERAGE AT ANY TIME DURING THE FIRST 60 DAYS
30.24FOLLOWING ISSUANCE OF THE COVERAGE FOR ANY REASON WHICH IS
30.25NOT SPECIFICALLY PROHIBITED BY STATUTE."
30.26(b) If the insurer provides the notice on the insurer's Web site, the insurer or agent
30.27may advise the applicant orally or in writing of its availability for review on the insurer's
30.28Web site in lieu of providing a written notice, if the insurer advises the applicant of the
30.29availability of a written notice upon the applicant's request. The insurer shall provide the
30.30notice in writing if requested by the applicant. An oral notice shall be presumed delivered
30.31if the agent or insurer makes a contemporaneous notation in the applicant's record of
30.32the notice having been delivered or if the insurer or agent retains an audio recording of
30.33the notification provided to the applicant.
30.34EFFECTIVE DATE.This section is effective January 1, 2010.

31.1    Sec. 37. Minnesota Statutes 2008, section 65B.133, subdivision 2, is amended to read:
31.2    Subd. 2. Disclosure to applicants. Before accepting the initial premium payment,
31.3an insurer or its agent shall provide a surcharge disclosure statement to any person who
31.4applies for a policy which is effective on or after January 1, 1983. If the insurer provides
31.5the surcharge disclosure statement on the insurer's website, the insurer or agent may notify
31.6the applicant orally or in writing of its availability for review on the insurer's website
31.7prior to accepting the initial payment, in lieu of providing a disclosure statement to the
31.8applicant in writing, if the insurer so notifies the applicant of the availability of a written
31.9version of this statement upon the applicant's request. The insurer shall provide the
31.10surcharge disclosure statement in writing if requested by the applicant. An oral notice
31.11shall be presumed delivered if the agent or insurer makes a contemporaneous notation in
31.12the applicant's record of the notice having been delivered or if the insurer or agent retains
31.13an audio recording of the notification provided to the applicant.

31.14    Sec. 38. Minnesota Statutes 2008, section 65B.133, subdivision 3, is amended to read:
31.15    Subd. 3. Disclosure to policyholders. An insurer or its agent shall mail or deliver
31.16a surcharge disclosure statement or written notice of the statement's availability on the
31.17insurer's website to the named insured either before or with the first notice to renew a
31.18policy on or after January 1, 1983. If a surcharge disclosure statement or written website
31.19notice has been provided pursuant to subdivision 2, no surcharge disclosure statement is
31.20required to be mailed or delivered to the same named insured pursuant to subdivision 3.

31.21    Sec. 39. Minnesota Statutes 2008, section 65B.133, subdivision 4, is amended to read:
31.22    Subd. 4. Notification of change. No insurer may change its surcharge plan unless
31.23a surcharge disclosure statement or written website notice is mailed or delivered to the
31.24named insured before the change is made. A surcharge disclosure statement disclosing a
31.25change applicable on the renewal of a policy, may be mailed with an offer to renew the
31.26policy. Surcharges cannot be applied to accidents or traffic violations that occurred prior
31.27to a change in a surcharge plan except to the extent provided under the prior plan.

31.28    Sec. 40. Minnesota Statutes 2008, section 65B.54, subdivision 1, is amended to read:
31.29    Subdivision 1. Payment of basic economic loss benefits. Basic economic loss
31.30benefits are payable monthly as loss accrues. Loss accrues not when injury occurs, but as
31.31income loss, replacement services loss, survivor's economic loss, survivor's replacement
31.32services loss, or medical or funeral expense is incurred. Benefits are overdue if not
31.33paid within 30 days after the reparation obligor receives reasonable proof of the fact
32.1and amount of loss realized, unless the reparation obligor elects to accumulate claims
32.2for periods not exceeding 31 days and pays them within 15 days after the period of
32.3accumulation. If reasonable proof is supplied as to only part of a claim, and the part
32.4totals $100 or more, the part is overdue if not paid within the time provided by this
32.5section. Medical or funeral expense benefits may be paid by the reparation obligor
32.6directly to persons supplying products, services, or accommodations to the claimant.
32.7Claims by a health provider defined in section 62J.03, subdivision 8, for medical expense
32.8benefits covered by this chapter shall be submitted to the reparation obligor pursuant to
32.9the uniform electronic transaction standards required by section 62J.536 and the rules
32.10promulgated under that section. Payment of benefits for such claims for medical expense
32.11benefits are not due if the claim is not received by the reparation obligor pursuant to
32.12those electronic transaction standards and rules. Notwithstanding any such submission,
32.13a reparation obligor may require additional reasonable proof regarding the fact and the
32.14amount of loss realized regarding such a claim. A health care provider cannot directly
32.15bill an insured for the amount of any such claim not remitted pursuant to the transaction
32.16standards required by section 62J.536 if the reparation obligor is acting in compliance
32.17with these standards in receiving or paying such a claim.

32.18    Sec. 41. Minnesota Statutes 2008, section 67A.191, subdivision 2, is amended to read:
32.19    Subd. 2. Homeowner's risks. A township mutual fire insurance company may issue
32.20policies known as "homeowner's insurance" as defined in section 65A.27, subdivision
32.214 , only in combination with a policy issued by an insurer authorized to sell property
32.22and casualty insurance in this state. All portions of the combination policy providing
32.23homeowner's insurance, including those issued by a township mutual insurance company,
32.24shall be are subject to the provisions of chapter 65A and sections 72A.20 and 72A.201.

32.25    Sec. 42. Minnesota Statutes 2008, section 72A.20, subdivision 15, is amended to read:
32.26    Subd. 15. Practices not held to be discrimination or rebates. Nothing in
32.27subdivision 8, 9, or 10, or in section 72A.12, subdivisions 3 and 4, shall be construed as
32.28including within the definition of discrimination or rebates any of the following practices:
32.29(1) in the case of any contract of life insurance or annuity, paying bonuses to
32.30policyholders or otherwise abating their premiums in whole or in part out of surplus
32.31accumulated from nonparticipating insurance, provided that any bonuses or abatement
32.32of premiums shall be fair and equitable to policyholders and for the best interests of the
32.33company and its policyholders;
33.1(2) in the case of life insurance policies issued on the industrial debit plan, making
33.2allowance, to policyholders who have continuously for a specified period made premium
33.3payments directly to an office of the insurer, in an amount which fairly represents the
33.4saving in collection expense;
33.5(3) readjustment of the rate of premium for a group insurance policy based on the
33.6loss or expense experienced thereunder, at the end of the first or any subsequent policy
33.7year of insurance thereunder, which may be made retroactive only for such policy year;
33.8(4) in the case of an individual or group health insurance policy, the payment of
33.9differing amounts of reimbursement to insureds who elect to receive health care goods
33.10or services from providers designated by the insurer, provided that each insurer shall on
33.11or before August 1 of each year file with the commissioner summary data regarding the
33.12financial reimbursement offered to providers so designated.; and
33.13Any insurer which proposes to offer an arrangement authorized under this clause
33.14shall disclose prior to its initial offering and on or before August 1 of each year thereafter
33.15as a supplement to its annual statement submitted to the commissioner pursuant to section
33.1660A.13, subdivision 1, the following information:
33.17(a) the name which the arrangement intends to use and its business address;
33.18(b) the name, address, and nature of any separate organization which administers the
33.19arrangement on the behalf of the insurers; and
33.20(c) the names and addresses of all providers designated by the insurer under this
33.21clause and the terms of the agreements with designated health care providers.
33.22The commissioner shall maintain a record of arrangements proposed under this
33.23clause, including a record of any complaints submitted relative to the arrangements.
33.24    (5) in the case of an individual or group health insurance policy, offering incentives
33.25to individuals for taking part in preventive health care services, medical management
33.26incentive programs, or activities designed to improve the health of the individual.
33.27If the commissioner requests copies of contracts with a provider under this clause (4)
33.28and the provider requests a determination, all information contained in the contracts that
33.29the commissioner determines may place the provider or health care plan at a competitive
33.30disadvantage is nonpublic data.

33.31    Sec. 43. Minnesota Statutes 2008, section 72A.20, subdivision 26, is amended to read:
33.32    Subd. 26. Loss experience. An insurer shall without cost to the insured provide an
33.33insured with the loss or claims experience of that insured for the current policy period and
33.34for the two policy periods preceding the current one for which the insurer has provided
33.35coverage, within 30 days of a request for the information by the policyholder. Whenever
34.1reporting loss experience data, actual claims paid on behalf of the insured must be reported
34.2separately from claims incurred but not paid, pooling charges for catastrophic claim
34.3protection, and any other administrative fees or charges that may be charged as an incurred
34.4claim expense. Claims experience data must be provided to the insured in accordance with
34.5state and federal requirements regarding the confidentiality of medical data. The insurer
34.6shall not be responsible for providing information without cost more often than once in
34.7a 12-month period. The insurer is not required to provide the information if the policy
34.8covers the employee of more than one employer and the information is not maintained
34.9separately for each employer and not all employers request the data.
34.10    An insurer, health maintenance organization, or a third-party administrator may not
34.11request more than three years of loss or claims experience as a condition of submitting an
34.12application or providing coverage.
34.13    This subdivision only applies to group life policies and group health policies.
34.14EFFECTIVE DATE.This section is effective for policy renewal proposals
34.15delivered on or after August 1, 2010.

34.16    Sec. 44. Minnesota Statutes 2008, section 72A.201, is amended by adding a
34.17subdivision to read:
34.18    Subd. 14. Uniform electronic transaction standards. Claims for medical
34.19expenses under a property and casualty insurance policy subject to the uniform electronic
34.20transaction standards required by section 62J.536 shall be submitted to an insurer by a
34.21health care provider subject to that section pursuant to the uniform electronic transaction
34.22standards and rules promulgated under that section. The exchange of information related
34.23to such claims pursuant to the electronic transaction standards by an insurer shall not be
34.24the sole basis for a finding that the insurer is not in compliance with the requirements of
34.25this section, section 72A.20, and any rules promulgated under these sections.

34.26    Sec. 45. [72A.204] PROHIBITED USES OF SENIOR-SPECIFIC
34.27CERTIFICATIONS AND PROFESSIONAL DESIGNATIONS.
34.28    Subdivision 1. Purpose and scope. The purpose of this section is to set forth
34.29standards to protect consumers from misleading and fraudulent marketing practices with
34.30respect to the use of senior-specific certifications and professional designations in:
34.31(1) the solicitation, sale, or purchase of a life insurance or annuity product; or
34.32(2) the provision of advice in connection with the solicitation, sale, or purchase of a
34.33life insurance or annuity product.
35.1    Subd. 2. Insurance producer. For purposes of this section, "insurance producer"
35.2means a person required to be licensed under the laws of this state to sell, solicit, or
35.3negotiate insurance, including annuities.
35.4    Subd. 3. Prohibited uses of senior-specific certifications and professional
35.5designations. (a) It is an unfair and deceptive act or practice in the business of insurance
35.6for an insurance producer to use a senior-specific certification or professional designation
35.7that indicates or implies in such a way as to mislead a client or prospective client that the
35.8insurance producer has special certification or training in advising or servicing seniors in
35.9connection with the solicitation, sale, or purchase of a life insurance or annuity product or
35.10in the provision of advice as to the value of or the advisability of purchasing or selling a
35.11life insurance or annuity product, either directly or indirectly, including the provision of
35.12advice through publications or writings or by issuing or promulgating analyses or reports
35.13related to a life insurance or annuity product.
35.14(b) The prohibited use of senior-specific certifications or professional designations
35.15includes, but is not limited to, the following:
35.16(1) use of a certification or professional designation by an insurance producer who
35.17has not actually earned or is otherwise ineligible to use such certification or designation;
35.18(2) use of a nonexistent or self-conferred certification or professional designation;
35.19(3) use of a certification or professional designation that indicates or implies a level
35.20of occupational qualifications obtained through education, training, or experience that the
35.21insurance producer using the certification or designation does not have; and
35.22(4) use of a certification or professional designation that was obtained from a
35.23certifying or designating organization that:
35.24(i) is primarily engaged in the business of instruction in sales or marketing;
35.25(ii) does not have reasonable standards or procedures for ensuring the competency of
35.26its certificants or designees;
35.27(iii) does not have reasonable standards or procedures for monitoring and
35.28disciplining its certificants or designees for improper or unethical conduct; or
35.29(iv) does not have reasonable continuing education requirements for its certificants
35.30or designees in order to maintain the certificate or designation.
35.31(c) There is a rebuttable presumption that a certifying or designating organization is
35.32not disqualified solely for the purposes of paragraph (b), clause (4), when the certification
35.33or designation issued from the organization does not primarily apply to sales or marketing
35.34and when the organization or the certification or designation in question has been
35.35accredited by:
35.36(1) the American National Standards Institute (ANSI);
36.1(2) the National Commission for Certifying Agencies; or
36.2(3) any organization that is on the United States Department of Education list
36.3entitled "Accrediting Agencies Recognized for Title IV Purposes."
36.4(d) In determining whether a combination of words or an acronym standing for a
36.5combination of words constitutes a certification or professional designation indicating or
36.6implying that a person has special certification or training in advising or servicing seniors,
36.7factors to be considered must include:
36.8(1) use of one or more words such as "senior," "retirement," "elder," or like words
36.9combined with one or more words such as "certified," "registered," "chartered," "adviser,"
36.10"specialist," "consultant," "planner," or like words, in the name of the certification or
36.11professional designation; and
36.12(2) the manner in which those words are combined.
36.13(e) For purposes of this section, a job title within an organization that is licensed or
36.14registered by a state or federal financial services regulatory agency is not a certification or
36.15professional designation, unless it is used in a manner that would confuse or mislead a
36.16reasonable consumer, when the job title:
36.17(1) indicates seniority or standing within the organization; or
36.18(2) specifies an individual's area of specialization within the organization.
36.19(f) For purposes of paragraph (e), "financial services regulatory agency" includes,
36.20but is not limited to, an agency that regulates insurers, insurance producers, broker-dealers,
36.21investment advisers, or investment companies as defined under the Investment Company
36.22Act of 1940.

36.23    Sec. 46. Minnesota Statutes 2008, section 79A.04, subdivision 1, is amended to read:
36.24    Subdivision 1. Annual securing of liability. Each year every private self-insuring
36.25employer shall secure incurred liabilities for the payment of compensation and the
36.26performance of its obligations and the obligations of all self-insuring employers imposed
36.27under chapter 176 by renewing the prior year's security deposit or by making a new
36.28deposit of security. If a new deposit is made, it must be posted within 60 days of the filing
36.29of the self-insured employer's annual report with the commissioner, but in no event later
36.30than July 1 in the following manner: within 60 days of the filing of the annual report, the
36.31security posting for all prior years plus one-third of the posting for the current year; by
36.32July 31, one-third of the posting for the current year; by October 31, the final one-third of
36.33the posting for the current year.

37.1    Sec. 47. Minnesota Statutes 2008, section 79A.06, is amended by adding a subdivision
37.2to read:
37.3    Subd. 7. Insolvency of a self-insurance group insurer. In the event of the
37.4insolvency of the insurer of a self-insurance group issued a policy under section 79A.06,
37.5subdivision 5, including a policy covering only a portion of the period of self-insurance,
37.6eligibility for chapter 60C coverage under the policy shall be determined by applying the
37.7requirements of section 60C.09, subdivision 2, clause (3), to each self-insurance group
37.8member, rather than to the net worth of the self-insurance group entity or the aggregate net
37.9worth of all members of the self-insurance group entity.

37.10    Sec. 48. Minnesota Statutes 2008, section 79A.24, subdivision 1, is amended to read:
37.11    Subdivision 1. Annual securing of liability. Each year every commercial
37.12self-insurance group shall secure its estimated future liability for the payment of
37.13compensation and the performance of the obligations of its membership imposed under
37.14chapter 176. A new deposit must be posted within 30 days of the filing of the commercial
37.15self-insurance group's annual actuarial report with the commissioner in the following
37.16manner: within 30 days of the filing of the annual report, the security posting for all prior
37.17years plus one-third of the posting for the current year; by July 31, one-third of the posting
37.18for the current year; by October 31, the final one-third of the posting for the current year.

37.19    Sec. 49. Minnesota Statutes 2008, section 79A.24, is amended by adding a subdivision
37.20to read:
37.21    Subd. 2a. Exceptions. Notwithstanding the requirements of subdivisions 1
37.22and 2, the commissioner may, until the next annual securing of liability, adjust this
37.23required security deposit for the portion attributable to the current year only, if, in the
37.24commissioner's judgment, the self-insurer will be able to meet its obligations under this
37.25chapter until the next annual securing of liability.

37.26    Sec. 50. [80A.91] AGENT ERRORS AND OMISSIONS INSURANCE; CHOICE
37.27OF SOURCE.
37.28A broker-dealer shall not require an agent to maintain insurance coverage for the
37.29agent's errors and omissions from a specific insurance company. This section does not
37.30apply if the agent is an employee of that broker-dealer, or if the broker-dealer or affiliated
37.31insurance company contributes to the premiums for the errors and omissions coverage.
37.32Nothing in this section shall prohibit a broker-dealer from requiring an agent to maintain
38.1errors and omissions coverage or requiring that the errors and omissions coverage meet
38.2certain criteria.

38.3    Sec. 51. Minnesota Statutes 2008, section 82.31, subdivision 4, is amended to read:
38.4    Subd. 4. Corporate and partnership licenses. (a) A corporation applying for
38.5a license shall have at least one officer individually licensed to act as broker for the
38.6corporation. The corporation broker's license shall extend no authority to act as broker
38.7to any person other than the corporate entity. Each officer who intends to act as a broker
38.8shall obtain a license.
38.9(b) A partnership applying for a license shall have at least one partner individually
38.10licensed to act as broker for the partnership. Each partner who intends to act as a broker
38.11shall obtain a license.
38.12(c) Applications for a license made by a corporation shall be verified by the president
38.13and one other officer. Applications made by a partnership shall be verified by at least
38.14two partners.
38.15(d) Any partner or officer who ceases to act as broker for a partnership or corporation
38.16shall notify the commissioner upon said termination. The individual licenses of all
38.17salespersons acting on behalf of a corporation or partnership, are automatically ineffective
38.18upon the revocation or suspension of the license of the partnership or corporation.
38.19The commissioner may suspend or revoke the license of an officer or partner without
38.20suspending or revoking the license of the corporation or partnership.
38.21(e) The application of all officers of a corporation or partners in a partnership who
38.22intend to act as a broker on behalf of a corporation or partnership shall accompany the
38.23initial license application of the corporation or partnership. Officers or partners intending
38.24to act as brokers subsequent to the licensing of the corporation or partnership shall procure
38.25an individual real estate broker's license prior to acting in the capacity of a broker. No
38.26corporate officer, or partner, who maintains a salesperson's license may exercise any
38.27authority over any trust account administered by the broker nor may they be vested with
38.28any supervisory authority over the broker.
38.29(f) The corporation or partnership applicant shall make available upon request, such
38.30records and data required by the commissioner for enforcement of this chapter.
38.31(g) The commissioner may require further information, as the commissioner deems
38.32appropriate, to administer the provisions and further the purposes of this chapter.

38.33    Sec. 52. [82B.071] RECORDS.
39.1    Subdivision 1. Examination of records. The commissioner may make examinations
39.2within or without this state of each real estate appraiser's records at such reasonable time
39.3and in such scope as is necessary to enforce the provisions of this chapter.
39.4    Subd. 2. Retention. Licensees shall keep a separate work file for each appraisal
39.5assignment, which is to include copies of all contracts engaging his or her services for
39.6the real estate appraisal, appraisal reports, and all data, information, and documentation
39.7assembled and formulated by the appraiser to support the appraiser's opinions and
39.8conclusions and to show compliance with USPAP, for a period of five years after
39.9preparation, or at least two years after final disposition of any judicial proceedings in
39.10which the appraiser provided testimony or was the subject of litigation related to the
39.11assignment, whichever period expires last. Appropriate work file access and retrieval
39.12arrangements must be made between any trainee and supervising appraiser if only one
39.13party maintains custody of the work file.

39.14    Sec. 53. Minnesota Statutes 2008, section 82B.08, is amended by adding a subdivision
39.15to read:
39.16    Subd. 3a. Initial application. The initial application for licensing of a trainee
39.17real property appraiser must identify the name and address of the supervisory appraiser
39.18or appraisers. Trainee real property appraisers licensed prior to the effective date of this
39.19provision must identify the name and address of their supervisory appraiser or appraisers
39.20at the time of license renewal. A trainee must notify the commissioner in writing within
39.21ten days of terminating or changing their relationship with any supervisory appraiser.
39.22The initial application for licensing of a certified residential real property appraiser
39.23and certified general real property appraiser who intends to act in the capacity of a
39.24supervisory appraiser must identify the name and address of the trainee real property
39.25appraiser or appraisers they intend to supervise. A certified residential real property
39.26appraiser and certified general real property appraiser licensed and acting in the capacity
39.27of a supervisory appraiser prior to the effective date of this provision must, at the time of
39.28license renewal, identify the name and address of any trainee real property appraiser or
39.29appraisers under their supervision.

39.30    Sec. 54. [82B.093] TRAINEE REAL PROPERTY APPRAISER.
39.31(a) A trainee real property appraiser shall be subject to direct supervision by a
39.32certified residential real property appraiser or certified general real property appraiser in
39.33good standing.
40.1(b) A trainee real property appraiser is permitted to have more than one supervising
40.2appraiser.
40.3(c) The scope of practice for the trainee real property appraiser classification is the
40.4appraisal of those properties which the supervising appraiser is permitted by his or her
40.5current credential and that the supervising appraiser is qualified and competent to appraise.
40.6(d) A trainee real property appraiser must have a supervisor signature on each
40.7appraisal that he or she signs, or must be named in the appraisal as providing significant
40.8real property appraisal assistance to receive credit for experience hours on his or her
40.9experience log.
40.10(e) The trainee real property appraiser must maintain copies of appraisal reports he
40.11or she signed or copies of appraisal reports where he or she was named as providing
40.12significant real property appraisal assistance.
40.13(f) The trainee real property appraiser must maintain copies of work files relating to
40.14appraisal reports he or she signed.
40.15(g) Separate appraisal logs must be maintained for each supervising appraiser.

40.16    Sec. 55. [82B.094] SUPERVISION OF TRAINEE REAL PROPERTY
40.17APPRAISERS.
40.18(a) A certified residential real property appraiser or a certified general real property
40.19appraiser, in good standing, may engage a trainee real property appraiser to assist in the
40.20performance of real estate appraisals, provided that the certified residential real property
40.21appraiser or a certified general real property appraiser:
40.22(1) has not been the subject of any license or certificate suspension or revocation or
40.23has not been prohibited from supervising activities in this state or any other state within
40.24the previous two years;
40.25(2) has no more than three trainee real property appraisers working under supervision
40.26at any one time;
40.27(3) actively and personally supervises the trainee real property appraiser, which
40.28includes ensuring that research of general and specific data has been adequately conducted
40.29and properly reported, application of appraisal principles and methodologies has been
40.30properly applied, that the analysis is sound and adequately reported, and that any analyses,
40.31opinions, or conclusions are adequately developed and reported so that the appraisal
40.32report is not misleading;
40.33(4) discusses with the trainee real property appraiser any necessary and appropriate
40.34changes that are made to a report, involving any trainee appraiser, before it is transmitted
40.35to the client. Changes not discussed with the trainee real property appraiser that are made
41.1by the supervising appraiser must be provided in writing to the trainee real property
41.2appraiser upon completion of the appraisal report;
41.3(5) accompanies the trainee real property appraiser on the inspections of the subject
41.4properties and drive-by inspections of the comparable sales on all appraisal assignments
41.5for which the trainee will perform work until the trainee appraiser is determined to be
41.6competent, in accordance with the competency rule of USPAP for the property type;
41.7(6) accepts full responsibility for the appraisal report by signing and certifying
41.8that the report complies with USPAP; and
41.9(7) reviews and signs the trainee real property appraiser's appraisal report or reports
41.10or if the trainee appraiser is not signing the report, states in the appraisal the name of the
41.11trainee and scope of the trainee's significant contribution to the report.
41.12(b) The supervising appraiser must review and sign the applicable experience log
41.13required to be kept by the trainee real property appraiser.
41.14(c) The supervising appraiser must notify the commissioner within ten days when
41.15the supervision of a trainee real property appraiser has terminated or when the trainee
41.16appraiser is no longer under the supervision of the supervising appraiser.
41.17(d) The supervising appraiser must maintain a separate work file for each appraisal
41.18assignment.
41.19(e) The supervising appraiser must verify that any trainee real property appraiser that
41.20is subject to supervision is properly licensed and in good standing with the commissioner.

41.21    Sec. 56. Minnesota Statutes 2008, section 82B.20, subdivision 2, is amended to read:
41.22    Subd. 2. Conduct prohibited. No person may:
41.23(1) obtain or try to obtain a license under this chapter by knowingly making a
41.24false statement, submitting false information, refusing to provide complete information
41.25in response to a question in an application for license, or through any form of fraud or
41.26misrepresentation;
41.27(2) fail to meet the minimum qualifications established by this chapter;
41.28(3) be convicted, including a conviction based upon a plea of guilty or nolo
41.29contendere, of a crime that is substantially related to the qualifications, functions, and
41.30duties of a person developing real estate appraisals and communicating real estate
41.31appraisals to others;
41.32(4) engage in an act or omission involving dishonesty, fraud, or misrepresentation
41.33with the intent to substantially benefit the license holder or another person or with the
41.34intent to substantially injure another person;
42.1(5) engage in a violation of any of the standards for the development or
42.2communication of real estate appraisals as provided in this chapter;
42.3(6) fail or refuse without good cause to exercise reasonable diligence in developing
42.4an appraisal, preparing an appraisal report, or communicating an appraisal;
42.5(7) engage in negligence or incompetence in developing an appraisal, in preparing
42.6an appraisal report, or in communicating an appraisal;
42.7(8) willfully disregard or violate any of the provisions of this chapter or the rules of
42.8the commissioner for the administration and enforcement of the provisions of this chapter;
42.9(9) accept an appraisal assignment when the employment itself is contingent upon
42.10the appraiser reporting a predetermined estimate, analysis, or opinion, or where the fee
42.11to be paid is contingent upon the opinion, conclusion, or valuation reached, or upon the
42.12consequences resulting from the appraisal assignment;
42.13(10) violate the confidential nature of governmental records to which the person
42.14gained access through employment or engagement as an appraiser by a governmental
42.15agency;
42.16(11) offer, pay, or give, and no person shall accept, any compensation or other thing
42.17of value from a real estate appraiser by way of commission-splitting, rebate, finder's fee,
42.18or otherwise in connection with a real estate appraisal. This prohibition does not apply
42.19to transactions among persons licensed under this chapter if the transactions involve
42.20appraisals for which the license is required;
42.21(12) engage or authorize a person, except a person licensed under this chapter, to act
42.22as a real estate appraiser on the appraiser's behalf;
42.23(13) violate standards of professional practice;
42.24(14) make an oral appraisal report without also making a written report within a
42.25reasonable time after the oral report is made;
42.26(15) represent a market analysis to be an appraisal report;
42.27(16) give an appraisal in any circumstances where the appraiser has a conflict of
42.28interest, as determined under rules adopted by the commissioner; or
42.29(17) engage in other acts the commissioner by rule prohibits.
42.30No person, including a mortgage originator, appraisal management company, real
42.31estate broker or salesperson, appraiser, or other licensee, registrant, or certificate holder
42.32regulated by the commissioner may improperly influence or attempt to improperly
42.33influence the development, reporting, result, or review of a real estate appraisal. Prohibited
42.34acts include blacklisting, boycotting, intimidation, coercion, and any other means that
42.35impairs or may impair the independent judgment of the appraiser, including but not
42.36limited to the withholding or threatened withholding of payment for an appraisal fee, or
43.1the conditioning of the payment of any appraisal fee upon the opinion, conclusion, or
43.2valuation to be reached, or a request that the appraiser report a predetermined opinion,
43.3conclusion, or valuation, or the desired valuation of any person, or withholding or
43.4threatening to withhold future work in order to obtain a desired value on a current or
43.5proposed appraisal assignment.

43.6    Sec. 57. Minnesota Statutes 2008, section 319B.02, is amended by adding a
43.7subdivision to read:
43.8    Subd. 21a. Surviving spouse. "Surviving spouse" means a surviving spouse of a
43.9deceased professional as an individual, as the personal representative of the estate of the
43.10decedent, as the trustee of an inter vivos or testamentary trust created by the decedent, or
43.11as the sole heir or beneficiary of an estate or trust of which the personal representative or
43.12trustee is a bank or other institution that has trust powers.
43.13EFFECTIVE DATE.This section is effective the day following final enactment
43.14and applies to surviving spouses of professionals who die on or after that date.

43.15    Sec. 58. Minnesota Statutes 2008, section 319B.07, subdivision 1, is amended to read:
43.16    Subdivision 1. Ownership of interests restricted. Ownership interests in a
43.17professional firm may not be owned or held, either directly or indirectly, except by any of
43.18the following:
43.19(1) professionals who, with respect to at least one category of the pertinent
43.20professional services, are licensed and not disqualified;
43.21(2) general partnerships, other than limited liability partnerships, authorized to
43.22furnish at least one category of the professional firm's pertinent professional services;
43.23(3) other professional firms authorized to furnish at least one category of the
43.24professional firm's pertinent professional services;
43.25(4) a voting trust established with respect to some or all of the ownership interests
43.26in the professional firm, if (i) the professional firm's generally applicable governing law
43.27permits the establishment of voting trusts, and (ii) all the voting trustees and all the holders
43.28of beneficial interests in the trust are professionals licensed to furnish at least one category
43.29of the pertinent professional services; and
43.30(5) an employee stock ownership plan as defined in section 4975(e)(7) of the
43.31Internal Revenue Code of 1986, as amended, if (i) all the voting trustees of the plan are
43.32professionals licensed to furnish at least one category of the pertinent professional services,
43.33and (ii) the ownership interests are not directly issued to anyone other than professionals
43.34licensed to furnish at least one category of the pertinent professional services; and
44.1(6) sole ownership by a surviving spouse of a deceased professional who was the
44.2sole owner of the professional firm at the time of the professional's death, but only during
44.3the period of time ending one year after the death of the professional.
44.4EFFECTIVE DATE.This section is effective the day following final enactment
44.5and applies to surviving spouses of professionals who die on or after that date.

44.6    Sec. 59. Minnesota Statutes 2008, section 319B.08, is amended to read:
44.7319B.08 EFFECT OF DEATH OR DISQUALIFICATION OF OWNER.
44.8    Subdivision 1. Acquisition of interests or automatic loss of professional
44.9firm status. (a) If an owner dies or becomes disqualified to practice all the pertinent
44.10professional services, then either:
44.11(1) within 90 days after the death or the beginning of the disqualification, all of
44.12that owner's ownership interest must be acquired by the professional firm, by persons
44.13permitted by section 319B.07 to own the ownership interest, or by some combination; or
44.14(2) at the end of the 90-day period, the firm's election under section 319B.03,
44.15subdivision 2 , or 319B.04, subdivision 2, is automatically rescinded, the firm loses
44.16its status as a professional firm, and the authority created by that election and status
44.17terminates.
44.18An acquisition satisfies clause (1) if all right and title to the deceased or disqualified
44.19owner's interest are acquired before the end of the 90-day period, even if some or all of
44.20the consideration is paid after the end of the 90-day period. However, payment cannot be
44.21secured in any way that violates sections 319B.01 to 319B.12.
44.22(b) If automatic rescission does occur under paragraph (a), the firm must immediately
44.23and accordingly update its organizational document, certificate of authority, or statement
44.24of foreign qualification. Even without that updating, however, the rescission, loss of
44.25status, and termination of authority provided by paragraph (a) occur automatically at the
44.26end of the 90-day period.
44.27    Subd. 2. Terms of acquisition. (a) If:
44.28(1) an owner dies or becomes disqualified to practice all the pertinent professional
44.29services;
44.30(2) the professional firm has in effect a mechanism, valid according to the
44.31professional firm's generally applicable governing law, to effect a purchase of the deceased
44.32or disqualified owner's ownership interest so as to satisfy subdivision 1, paragraph (a),
44.33clause (1); and
45.1(3) the professional firm does not agree with the disqualified owner or the
45.2representative of the deceased owner to set aside the mechanism,
45.3then that mechanism applies.
45.4(b) If:
45.5(1) an owner dies or becomes disqualified to practice all the pertinent professional
45.6services;
45.7(2) the professional firm has in effect no mechanism as described in paragraph (a), or
45.8has agreed as mentioned in paragraph (a), clause (3), to set aside that mechanism; and
45.9(3) consistent with its generally applicable governing law, the professional firm
45.10agrees with the disqualified owner or the representative of the deceased owner, before
45.11the end of the 90-day period, to an arrangement to effect a purchase of the deceased
45.12or disqualified owner's ownership interest so as to satisfy subdivision 1, paragraph (a),
45.13clause (1),
45.14then that arrangement applies.
45.15(c) If:
45.16(1) an owner of a Minnesota professional firm dies or becomes disqualified to
45.17practice all the pertinent professional services;
45.18(2) the Minnesota professional firm does not have in effect a mechanism as described
45.19in paragraph (a);
45.20(3) the Minnesota professional firm does not make an arrangement as described in
45.21paragraph (b); and
45.22(4) no provision or tenet of the Minnesota professional firm's generally applicable
45.23governing law and no provision of any document or agreement authorized by the
45.24Minnesota professional firm's generally applicable governing law expressly precludes an
45.25acquisition under this paragraph,
45.26then the firm may acquire the deceased or disqualified owner's ownership interest as
45.27stated in this paragraph. To act under this paragraph, the Minnesota professional firm
45.28must within 90 days after the death or beginning of the disqualification tender to the
45.29representative of the deceased owner's estate or to the disqualified owner the fair value
45.30of the owner's ownership interest, as determined by the Minnesota professional firm's
45.31governance authority. That price must be at least the book value, as determined in
45.32accordance with the Minnesota professional firm's regular method of accounting, as of the
45.33end of the month immediately preceding the death or loss of license. The tender must be
45.34unconditional and may not attempt to have the recipient waive any rights provided in this
45.35section. If the Minnesota professional firm tenders a price under this paragraph within
46.1the 90-day period, the deceased or disqualified owner's ownership interest immediately
46.2transfers to the Minnesota professional firm regardless of any dispute as to the fairness
46.3of the price. A disqualified owner or representative of the deceased owner's estate who
46.4disputes the fairness of the tendered price may take the tendered price and bring suit
46.5in district court seeking additional payment. The suit must be commenced within one
46.6year after the payment is tendered. A Minnesota professional firm may agree with a
46.7disqualified owner or the representative of a deceased owner's estate to delay all or part
46.8of the payment due under this paragraph, but all right and title to the owner's ownership
46.9interests must be acquired before the end of the 90-day period and payment may not be
46.10secured in any way that violates sections 319B.01 to 319B.12.
46.11    Subd. 3. Expiration of firm-issued option on death or disqualification of holder.
46.12If the holder of an option issued under section 319B.07, subdivision 3, paragraph (a),
46.13clause (1), dies or becomes disqualified, the option automatically expires.
46.14    Subd. 4. One-year period for surviving spouse of sole owner. For purposes
46.15of this section, each mention of "90 days," "90-day period," or similar term shall be
46.16interpreted as one year after the death of a professional who was the sole owner of the
46.17professional firm if the surviving spouse of the deceased professional owns and controls
46.18the firm after the death.
46.19EFFECTIVE DATE.This section is effective the day following final enactment
46.20and applies to surviving spouses of professionals who die on or after that date.

46.21    Sec. 60. Minnesota Statutes 2008, section 319B.09, subdivision 1, is amended to read:
46.22    Subdivision 1. Governance authority. (a) Except as stated in paragraph (b), a
46.23professional firm's governance authority must rest with:
46.24(1) one or more professionals, each of whom is licensed to furnish at least one
46.25category of the pertinent professional services; or
46.26(2) a surviving spouse of a deceased professional who was the sole owner of the
46.27professional firm, while the surviving spouse owns and controls the firm, but only during
46.28the period of time ending one year after the death of the professional.
46.29(b) In a Minnesota professional firm organized under chapter 317A and in a foreign
46.30professional firm organized under the nonprofit corporation statute of another state, at least
46.31one individual possessing governance authority must be a professional licensed to furnish
46.32at least one category of the pertinent professional services.
46.33(c) Individuals who possess governance authority within a professional firm may
46.34delegate administrative and operational matters to others. No decision entailing the
47.1exercise of professional judgment may be delegated or assigned to anyone who is not a
47.2professional licensed to practice the professional services involved in the decision.
47.3(d) An individual whose license to practice any pertinent professional services is
47.4revoked or suspended may not, during the time the revocation or suspension is in effect,
47.5possess or exercise governance authority, hold a position with governance authority,
47.6or take part in any decision or other action constituting an exercise of governance
47.7authority. Nothing in this chapter prevents a board from further terminating, restricting,
47.8limiting, qualifying, or imposing conditions on an individual's governance role as board
47.9disciplinary action.
47.10(e) A professional firm owned and controlled by a surviving spouse must comply
47.11with all requirements of this chapter, except those clearly inapplicable to a firm owned
47.12and governed by a surviving spouse who is not a professional of the same type as the
47.13surviving spouse's decedent.
47.14EFFECTIVE DATE.This section is effective the day following final enactment
47.15and applies to surviving spouses of professionals who die on or after that date.

47.16    Sec. 61. Minnesota Statutes 2008, section 325E.27, is amended to read:
47.17325E.27 USE OF PRERECORDED OR SYNTHESIZED VOICE MESSAGES.
47.18A caller shall not use or connect to a telephone line an automatic dialing-announcing
47.19device unless: (1) the subscriber has knowingly or voluntarily requested, consented
47.20to, permitted, or authorized receipt of the message; or (2) the message is immediately
47.21preceded by a live operator who obtains the subscriber's consent before the message is
47.22delivered. This section and section 325E.30 do not apply to (1) messages from school
47.23districts to students, parents, or employees, (2) messages to subscribers with whom the
47.24caller has a current business or personal relationship, or (3) messages advising employees
47.25of work schedules. This section does not apply to messages from a nonprofit tax-exempt
47.26charitable organization sent solely for the purpose of soliciting voluntary donations of
47.27clothing to benefit disabled United States military veterans and containing no request for
47.28monetary donations or other solicitations of any kind.

47.29    Sec. 62. [325E.3161] TELEPHONE SOLICITATIONS; EXPIRATION
47.30PROVISION.
47.31    Sections 325E.311 to 325E.316 expire December 31, 2012.

48.1    Sec. 63. [325E.66] INSURANCE CLAIMS FOR RESIDENTIAL ROOFING
48.2GOODS AND SERVICES.
48.3    Subdivision 1. Payment or rebate of insurance deductible. A residential roofer as
48.4defined in section 326B.802, subdivision 14, providing goods and services to be paid by an
48.5insured from the proceeds of a property or casualty insurance policy, shall not advertise or
48.6promise to pay or rebate all or part of any applicable insurance deductible. If a residential
48.7roofer violates this section, the insurer to whom the insured tendered the claim shall not be
48.8obligated to consider the estimate prepared by the residential roofer.
48.9    Subd. 2. Violation. If a residential roofer violates subdivision 1, the insured or
48.10the applicable insurer may bring an action against the roofer in a court of competent
48.11jurisdiction for damages sustained by the insured or insurer as a consequence of the
48.12residential roofer's violation.

48.13    Sec. 64. Minnesota Statutes 2008, section 332.70, subdivision 1, is amended to read:
48.14    Subdivision 1. Definitions. For purposes of this section:
48.15    (a) "Business screening service" means a person regularly engaged in the business of
48.16collecting, assembling, evaluating, or disseminating criminal record information records
48.17on individuals for a fee. Business screening service does not include a government entity,
48.18as defined in section 13.02, or the news media.
48.19    (b) "Conviction" has the meaning given in section 609.02, subdivision 5.
48.20    (c) "Criminal record" means a public record of an arrest, citation, prosecution,
48.21criminal proceeding, or conviction. "Criminal proceeding" does not include a written
48.22court opinion.
48.23(d) "Government entity" has the meaning given in section 13.02.
48.24EFFECTIVE DATE.This section is effective July 1, 2009.

48.25    Sec. 65. Minnesota Statutes 2008, section 332.70, subdivision 2, is amended to read:
48.26    Subd. 2. Criminal records. A business screening service must not disseminate a
48.27criminal record unless the record has been updated within the previous month 90 days.
48.28EFFECTIVE DATE.This section is effective July 1, 2009.

48.29    Sec. 66. Minnesota Statutes 2008, section 332.70, subdivision 3, is amended to read:
48.30    Subd. 3. Correction and deletion of records. (a) If the completeness or accuracy
48.31of a criminal record maintained by a business screening service is disputed by the
48.32individual who is the subject of the record, the screening service shall, without charge,
49.1investigate the disputed record. In conducting an investigation, the business screening
49.2service shall review and consider all relevant information submitted by the subject of the
49.3record with respect to the disputed record to determine whether the record maintained by
49.4the business screening service accurately reflects the content of the record maintained by
49.5the government entity or the court.
49.6    (b) If the disputed record is found to be inaccurate or incomplete, the business
49.7screening service shall promptly correct the record If, upon investigation, the business
49.8screening service determines that the record does not accurately reflect the content of the
49.9record maintained by the government entity or the court, the business screening service
49.10shall correct the disputed record to accurately reflect the content of that record. If the
49.11disputed record is found to be sealed, expunged, or the subject of a pardon, the business
49.12screening service shall promptly delete the record.
49.13    (c) A business screening service may terminate an investigation of a disputed record
49.14if the business screening agency reasonably determines that the dispute is frivolous, which
49.15may be based on the failure of the subject of the record to provide sufficient information to
49.16investigate the disputed record. Upon making a determination that the dispute is frivolous,
49.17the business screening service shall inform the subject of the record of the specific reasons
49.18why it has determined that the dispute is frivolous and provide a description of any
49.19information required to investigate the disputed record.
49.20    (d) The business screening service shall notify the subject of the disputed record
49.21of the correction or deletion of the record or of the termination or completion of the
49.22investigation related to the record within 30 days of the date when the agency receives
49.23notice of the dispute from the subject of the record.
49.24EFFECTIVE DATE.This section is effective July 1, 2009.

49.25    Sec. 67. Minnesota Statutes 2008, section 332.70, subdivision 4, is amended to read:
49.26    Subd. 4. Date and notice required. If a business screening service that disseminates
49.27a criminal record that is collected on or after July 1, 2009, it must include the date when
49.28the record was collected and by the business screening service. A business screening
49.29service that disseminates a criminal record must include a notice that the information may
49.30include criminal records that have been expunged, sealed, or otherwise have become
49.31inaccessible to the public since that date.
49.32EFFECTIVE DATE.This section is effective July 1, 2009.

50.1    Sec. 68. Minnesota Statutes 2008, section 332A.02, subdivision 13, as amended by
50.2Laws 2009, chapter 37, article 4, section 12, is amended to read:
50.3    Subd. 13. Debt settlement services provider. "Debt settlement services provider"
50.4has the meaning given in section 332B.02, subdivision 11 13.

50.5    Sec. 69. Minnesota Statutes 2008, section 332A.14, as amended by Laws 2009, chapter
50.637, article 4, section 17, is amended to read:
50.7332A.14 PROHIBITIONS.
50.8    No debt management services provider shall:
50.9    (1) purchase from a creditor any obligation of a debtor;
50.10    (2) use, threaten to use, seek to have used, or seek to have threatened the use of any
50.11legal process, including but not limited to garnishment and repossession of personal
50.12property, against any debtor while the debt management services agreement between the
50.13registrant and the debtor remains executory;
50.14    (3) advise, counsel, or encourage a debtor to stop paying a creditor, or imply, infer,
50.15encourage, or in any other way indicate, that it is advisable to stop paying a creditor;
50.16(4) sanction or condone the act by a debtor of ceasing payments to a creditor or
50.17imply, infer, or in any manner indicate that the act of ceasing payments to a creditor is
50.18advisable or beneficial to the debtor;
50.19    (5) require as a condition of performing debt management services the purchase of
50.20any services, stock, insurance, commodity, or other property or any interest therein either
50.21by the debtor or the registrant;
50.22    (6) compromise any debts unless the prior written or contractual approval of the
50.23debtor has been obtained to such compromise and unless such compromise inures solely
50.24to the benefit of the debtor;
50.25    (7) receive from any debtor as security or in payment of any fee a promissory note
50.26or other promise to pay or any mortgage or other security, whether as to real or personal
50.27property;
50.28    (8) lend money or provide credit to any debtor if any interest or fee is charged,
50.29or directly or indirectly collect any fee for referring, advising, procuring, arranging, or
50.30assisting a consumer in obtaining any extension of credit or other debtor service from a
50.31lender or debt management services provider;
50.32    (9) structure a debt management services agreement that would result in negative
50.33amortization of any debt in the plan;
50.34    (10) engage in any unfair, deceptive, or unconscionable act or practice in connection
50.35with any service provided to any debtor;
51.1    (11) offer, pay, or give any material cash fee, gift, bonus, premium, reward, or other
51.2compensation to any person for referring any prospective customer to the registrant or for
51.3enrolling a debtor in a debt management services plan, or provide any other incentives
51.4for employees or agents of the debt management services provider to induce debtors to
51.5enter into a debt management services plan;
51.6    (12) receive any cash, fee, gift, bonus, premium, reward, or other compensation
51.7from any person other than the debtor or a person on the debtor's behalf in connection
51.8with activities as a registrant, provided that this paragraph does not apply to a registrant
51.9which is a bona fide nonprofit corporation duly organized under chapter 317A or under
51.10the similar laws of another state;
51.11    (13) enter into a contract with a debtor unless a thorough written budget analysis
51.12indicates that the debtor can reasonably meet the requirements of the financial adjustment
51.13plan and will be benefited by the plan;
51.14    (14) in any way charge or purport to charge or provide any debtor credit insurance in
51.15conjunction with any contract or agreement involved in the debt management services
51.16plan;
51.17    (15) operate or employ a person who is an employee or owner of a collection agency
51.18or process-serving business; or
51.19    (16) solicit, demand, collect, require, or attempt to require payment of a sum that
51.20the registrant states, discloses, or advertises to be a voluntary contribution to a debt
51.21management services provider or designee from the debtor.

51.22    Sec. 70. Laws 2009, chapter 37, article 4, section 19, subdivision 13, is amended to
51.23read:
51.24    Subd. 13. Debt settlement services provider. "Debt settlement services provider"
51.25means any person offering or providing debt settlement services to a debtor domiciled
51.26in this state, regardless of whether or not a fee is charged for the services and regardless
51.27of whether the person maintains a physical presence in the state. The term includes any
51.28person to whom debt settlement duties services are delegated. The term shall not include
51.29persons listed in section 332A.02, subdivision 8, clauses (1) to (10), or a debt management
51.30services provider.

51.31    Sec. 71. Laws 2009, chapter 37, article 4, section 20, is amended to read:
51.32    Sec. 20. 332B.03 REQUIREMENT OF REGISTRATION.
51.33On or after August 1, 2009, it is unlawful for any person, whether or not located
51.34in this state, to operate as a debt settlement services provider or provide debt settlement
52.1services including, but not limited to, offering, advertising, or executing or causing to be
52.2executed any debt settlement services or debt settlement services agreement, except as
52.3authorized by law, without first becoming registered as provided in this chapter. Debt
52.4settlement services providers may continue to provide debt settlement services without
52.5complying with this chapter to those debtors who entered into a contract to participate
52.6in a debt settlement services plan prior to August 1, 2009, but may not enter into a debt
52.7settlement services agreement with a debt debtor on or after August 1, 2009, without
52.8complying with this chapter.

52.9    Sec. 72. Laws 2009, chapter 37, article 4, section 23, is amended to read:
52.10    Sec. 23. 332B.06 WRITTEN DEBT SETTLEMENT SERVICES
52.11AGREEMENT; DISCLOSURES; TRUST ACCOUNT.
52.12    Subdivision 1. Written agreement required. (a) A debt settlement services
52.13provider may not perform, or impose any charges or receive any payment for, any debt
52.14settlement services until the provider and the debtor have executed a debt settlement
52.15services agreement that contains all terms of the agreement between the debt settlement
52.16services provider and the debtor, and the provider complies with all the applicable
52.17requirements of this chapter.
52.18(b) A debt settlement services agreement must:
52.19(1) be in writing, dated, and signed by the debt settlement services provider and
52.20the debtor;
52.21(2) conspicuously indicate whether or not the debt settlement services provider is
52.22registered with the Minnesota Department of Commerce and include any registration
52.23number; and
52.24(3) be written in the debtor's primary language if the debt settlement services
52.25provider advertises in that language.
52.26(c) The registrant must furnish the debtor with a copy of the signed contract upon
52.27execution.
52.28    Subd. 2. Actions prior to executing a written agreement. No person may provide
52.29debt settlement services for a debtor or execute a debt settlement services agreement
52.30unless the person first has:
52.31(1) informed the debtor, in writing, that debt settlement is not appropriate for all
52.32debtors and that there are other ways to deal with debt, including using credit counseling
52.33or debt management services, or filing bankruptcy;
52.34(2) prepared in writing and provided to the debtor, in a form the debtor may keep,
52.35an individualized financial analysis of the debtor's financial circumstances, including
53.1income and liabilities, and made a determination supported by the individualized financial
53.2analysis that:
53.3(i) the debt settlement plan proposed for addressing the debt is suitable for the
53.4individual debtor;
53.5(ii) the debtor can reasonably meet the requirements of the proposed debt settlement
53.6services plan; and
53.7(iii) based on the totality of the circumstances, there is a net tangible benefit to the
53.8debtor of entering into the proposed debt settlement services plan; and
53.9(3) provided, on a document separate from any other document, the total amount and
53.10an itemization of fees, including any origination fees, monthly fees, and settlement fees
53.11reasonably anticipated to be paid by the debtor over the term of the agreement.
53.12    Subd. 3. Determination concerning creditor participation. (a) Before executing a
53.13debt settlement services agreement or providing any services, a debt settlement services
53.14provider must make a determination, supported by sufficient bases, which creditors listed
53.15by the debtor are reasonably likely, and which are not reasonably likely, to participate in
53.16the debt settlement services plan set forth in the debt settlement services agreement.
53.17(b) A debt settlement services provider has a defense against a claim that no
53.18sufficient basis existed to make a determination that a creditor was likely to participate if
53.19the debt settlement services provider can produce:
53.20(1) written confirmation from the creditor that, at the time the determination was
53.21made, the creditor and the debt settlement services provider were engaged in negotiations
53.22to settle a debt for another debtor; or
53.23(2) evidence that the provider and the creditor had entered into a settlement of a debt
53.24for another debtor within the six months prior to the date of the determination.
53.25(c) The debt settlement services provider must notify the debtor as soon as
53.26practicable after the provider has made a determination of the likelihood of participation
53.27or nonparticipation of all the creditors listed for inclusion in the debt settlement services
53.28agreement or debt settlement services plan. If not all creditors listed in the debt settlement
53.29services agreement are reasonably likely to participate in the debt settlement services plan,
53.30the debt settlement services provider must obtain the written authorization from the debtor
53.31to proceed with the debt settlement services agreement without the likely participation of
53.32all listed creditors.
53.33    Subd. 4. Disclosures. (a) A person offering to provide or providing debt settlement
53.34services must disclose both orally and in writing whether or not the person is registered
53.35with the Minnesota Department of Commerce and any registration number.
54.1(b) No person may provide debt settlement services unless the person first has
54.2provided, both orally and in writing, on a single sheet of paper, separate from any other
54.3document or writing, the following verbatim notice:
54.4CAUTION
54.5We CANNOT GUARANTEE that you will successfully reduce or eliminate your
54.6debt.
54.7If you stop paying your creditors, there is a strong likelihood some or all of the
54.8following may happen:
54.9• YOUR WAGES OR BANK ACCOUNT MAY STILL BE GARNISHED.
54.10• YOU MAY STILL BE CONTACTED BY CREDITORS.
54.11• YOU MAY STILL BE SUED BY CREDITORS for the money you owe.
54.12• FEES, INTEREST, AND OTHER CHARGES WILL CONTINUE TO MOUNT
54.13UP DURING THE (INSERT NUMBER) MONTHS THIS PLAN IS IN EFFECT.
54.14Even if we do settle your debt, YOU MAY STILL HAVE TO PAY TAXES on
54.15the amount forgiven.
54.16Your credit rating may be adversely affected.
54.17(c) The heading, "CAUTION," must be in bold, underlined, 28-point type, and the
54.18remaining text must be in 14-point type, with a double space between each statement.
54.19(d) The disclosures and notices required under this subdivision must be provided
54.20in the debtor's primary language if the debt settlement services provider advertises in
54.21that language.
54.22    Subd. 5. Required terms. (a) Each debt settlement services agreement must contain
54.23on the front page of the agreement, segregated by bold lines from all other information
54.24on the page and disclosed prominently and clearly in bold print, the total amount and an
54.25itemization of fees, including any origination fees, monthly fees, and settlement fees
54.26reasonably anticipated to be paid by the debtor over the term of the agreement.
54.27(b) Each debt settlement services agreement must also contain the following:
54.28(1) a prominent statement describing the terms upon which the debtor may cancel
54.29the contract as set forth in section 332B.07;
54.30(2) a detailed description of all services to be performed by the debt settlement
54.31services provider for the debtor;
54.32(3) the debt settlement services provider's refund policy;
54.33(4) the debt settlement services provider's principal business address, which must
54.34not be a post office box, and the name and address of its agent in this state authorized to
54.35receive service of process; and
55.1(5) the name of each creditor the debtor has listed and the aggregate debt owed to
55.2each creditor that will be the subject of settlement.
55.3    Subd. 6. Prohibited terms. A debt settlement services agreement may not contain
55.4any of the terms prohibited under section 332A.10, subdivision 4.
55.5    Subd. 7. New debt settlement services agreements; modifications of existing
55.6agreements. (a) Separate and additional debt settlement services agreements that comply
55.7with this chapter may be entered into by the debt settlement services provider and the
55.8debtor, provided that no additional origination fee may be charged by the debt settlement
55.9services provider.
55.10(b) Any modification of an existing debt settlement services agreement, including
55.11any increase in the number or amount of debts included in the debt settlement services
55.12agreement, must be in writing and signed by both parties. No fee may be charged to
55.13modify an existing agreement.
55.14    Subd. 8. Funds held in trust. Debtor funds may be held in trust for the purpose
55.15of writing exchange checks for no longer than 42 days. If the registrant holds debtor
55.16funds, the registrant must maintain a separate trust account, except that the registrant may
55.17commingle debtor funds with the registrant's own funds, in the form of an imprest fund,
55.18to the extent necessary to ensure maintenance of a minimum balance, if the financial
55.19institution at which the trust account is held requires a minimum balance to avoid the
55.20assessment of fees or penalties for failure to maintain a minimum balance.

55.21    Sec. 73. Laws 2009, chapter 37, article 4, section 26, subdivision 2, is amended to read:
55.22    Subd. 2. Fees as a percentage of debt. (a) The total amount of the fees claimed,
55.23demanded, charged, collected, or received under this subdivision shall be calculated as
55.2415 percent of the aggregate debt. A debt settlement services provider that calculates
55.25fees as a percentage of debt may:
55.26(1) charge an origination fee, which may be designated by the debt settlement
55.27services provider as nonrefundable, of:
55.28(i) $200 on aggregate debt of less than $20,000; or
55.29(ii) $400 on aggregate debt of $20,000 or more;
55.30(2) charge a monthly fee of:
55.31(i) no greater than $50 per month on aggregate debt of less than $40,000; and
55.32(ii) no greater than $60 per month on aggregate debt of $40,000 or more; and
55.33(3) charge a settlement fee for the remainder of the allowable fees, which may be
55.34demanded and collected no earlier than upon delivery to the debt settlement services
55.35provider by a creditor of a bona fide written settlement offer consistent with the terms of
56.1the debt settlement services agreement. A settlement fee may be assessed for each debt
56.2settled, but the sum total of the origination fee, the monthly fee, and the settlement fee
56.3may not exceed 15 percent of the aggregate debt.
56.4(b) When a settlement offer is obtained by a debt settlement services provider from a
56.5creditor, the collection of any monthly fees shall cease beginning the month following
56.6the month in which the settlement offer was obtained by the debt settlement services
56.7provider The collection of monthly fees shall cease under this subdivision when the total
56.8monthly fees and the origination fee equals 40 percent of the total fees allowable under
56.9this subdivision.
56.10(c) In no event may more than 40 percent of the total amount of fees allowable be
56.11claimed, demanded, charged, collected, or received by a debt settlement services provider
56.12any earlier than upon delivery to the debt settlement services provider by a creditor of
56.13a bona fide written settlement offer consistent with the terms of the debt settlement
56.14services agreement.

56.15    Sec. 74. REPEALER.
56.16Minnesota Statutes 2008, sections 60A.201, subdivision 4; 70A.07; and 79.56,
56.17subdivision 4, are repealed.

56.18    Sec. 75. EFFECTIVE DATE.
56.19(a) Section 27 is effective for all policies with policy years beginning on or after
56.20May 21, 2009.
56.21(b) Sections 28 to 32 apply to plans and certificates with an effective date for
56.22coverage on or after June 1, 2010.
56.23(c) Sections 46 to 49 are effective the day following final enactment.