1998 Minnesota Statutes

CHAPTER 62G. Nonprofit legal service plan

     62G.01 Citation. 

    Sections 62G.01 to 62G.25 may be cited as the "Nonprofit 
 Legal Service Plan Act." 

    HIST: 1978 c 785 s 1 

     62G.02 Purpose. 

    It is the purpose of sections 62G.01 to 62G.25 to promote a 
 wider, more economical and timely availability of legal services 
 for the people of Minnesota, through nonprofit, prepaid legal 
 service plans and to regulate the formation, continuation, 
 operation, and termination of legal service plans by reasonable 
 and practical standards of administration, investment, surplus 
 and reserves. 

    HIST: 1978 c 785 s 2 

     62G.03 Scope. 

    Every foreign or domestic nonprofit corporation organized 
 for the purpose of establishing or operating a legal service 
 plan in Minnesota whereby legal services are provided to 
 subscribers to the plan under a contract with the corporation 
 are subject to sections 62G.01 to 62G.25 and are not subject to 
 the laws of this state relating to insurance, except as 
 otherwise specifically provided. 

    HIST: 1978 c 785 s 3 

     62G.04 Definitions. 

    Subdivision 1.  For the purpose of sections 62G.01 to 
 62G.25, the terms defined in this section have the meanings 
 given them. 

    Subd. 2.  "Commissioner" means the commissioner of commerce.

    Subd. 3.  "Legal service" means any professional service 
 rendered by, or under the direct supervision of, persons 
 licensed by the state to engage in the practice of law. 

    Subd. 4.  "Subscriber" means a person covered under a 
 subscriber contract for legal services to the extent therein 
 described. 

    Subd. 5.  "Provider" means an organization or person that 
 furnishes legal services. 

    Subd. 6.  "Legal service plan corporation" means a 
 nonprofit corporation which contracts for legal service or 
 payment therefor for subscribers pursuant to a legal service 
 plan, in exchange for periodic prepayments by or on behalf of 
 subscribers. 

    Subd. 7.  "Legal service plan" means a plan which provides 
 any method whereby a legal service plan corporation, for a 
 consideration, contracts for provision of legal service to 
 subscribers by providers who have entered legal service 
 agreements with the legal service plan corporation or which 
 provides for reimbursement to the subscriber for legal service 
 provided by providers who have not entered service agreements 
 with the legal service plan corporation. 

    Subd. 8.  "Legal service agreement" means an arrangement 
 between a legal service plan corporation and a provider under 
 which the provider agrees that when legal services are provided 
 to a subscriber the provider shall not make a direct charge 
 against the subscriber for those legal services or parts of 
 legal services which are covered by the subscribers contract, 
 but shall look to the legal service plan corporation for the 
 payment for covered legal services, to the extent they are 
 covered. 

    Subd. 9.  "Subscribers contract" means an arrangement 
 between a legal service plan corporation and its subscriber 
 establishing the terms and conditions under which legal service 
 is provided to the subscriber. 

    Subd. 10.  "Participating provider" means a provider who is 
 party to a legal service agreement with a legal service plan 
 corporation. 

    HIST: 1978 c 785 s 4; 1983 c 289 s 114 subd 1; 1984 c 655 art 
 1 s 92; 1986 c 444 

     62G.05 Legal service plan corporation authorized. 

    Subdivision 1.  A legal service plan corporation may be 
 organized to establish, maintain and operate a legal service 
 plan providing legal services in their entirety, or in part, 
 according to the subscribers contract.  No subscribers contract 
 shall provide for payment of cash indemnification by the 
 corporation to the subscriber or the subscriber's estate, except 
 as provided by sections 62G.01 to 62G.25, as they relate to 
 nonparticipating providers.  A subscriber who compensates the 
 provider for services received is subrogated to the provider's 
 right against the legal service plan. 

    Subd. 2.  A legal service plan corporation may enter other 
 contracts, arrangements, or agreements as provided by sections 
 62G.01 to 62G.25. 

    Subd. 3.  A legal service plan corporation may provide for 
 legal services by nonparticipating providers in cases of 
 emergency or expediency as determined by the legal service plan 
 corporation, or when selected in accordance with the subscribers 
 contract.  When legal service is provided out of state, the 
 provider must be duly licensed to provide the legal service 
 where provided. 

    HIST: 1978 c 785 s 5; 1986 c 444 

     62G.06 Organization. 

    Except as otherwise expressly provided by sections 62G.01 
 to 62G.25, a legal service plan corporation shall be 
 incorporated under and subject to the provisions of chapter 
 317A, and in addition shall have, to the extent provided in its 
 articles of incorporation, all powers and duties provided by 
 sections 62G.01 to 62G.25, for legal service plan corporations.  
 A legal service plan corporation may be incorporated by not less 
 than three residents of this state. 

    No legal service plan corporation shall include within its 
 name the words "insurance," "casualty," "surety," "mutual," 
 "indemnity," or any other words descriptive of the insurance, 
 casualty, or surety business.  No legal service plan corporation 
 shall have a name, mark or symbol which is the same as, or 
 deceptively similar to, the name of any other domestic 
 corporation. 

    HIST: 1978 c 785 s 6; 1989 c 304 s 137 

     62G.07 Articles of incorporation; bylaws. 

    The articles of incorporation and bylaws of any legal 
 service plan and any amendments thereto shall conform to the 
 requirements of sections 62G.01 to 62G.25 and chapter 317A. 

    In addition to meeting the requirements of chapter 317A, 
 the articles of incorporation of a legal service plan 
 corporation shall clearly state: 

    (a) The purposes of the legal service plan corporation in 
 strict conformity with sections 62G.01 to 62G.25; 

    (b) That except as provided in section 62G.15, subdivision 
 4, subscribers contracts shall not restrict any subscriber's 
 freedom to select a provider in a particular class of providers; 
 and 

    (c) That there shall be no interference with the 
 provider-subscriber relationship. 

    HIST: 1978 c 785 s 7; 1989 c 304 s 137 

     62G.08 Approval of articles and bylaws. 

    Subdivision 1.  Articles of incorporation, bylaws or 
 amendments thereto must be approved by the commissioner. Failure 
 of the commissioner to approve or disapprove any article, bylaw 
 or amendment submitted for approval by an order transmitted to 
 the legal service plan corporation within 30 days of receipt and 
 stating the reasons for any disapproval, shall be deemed 
 approval. 

    Upon approval by the commissioner, the legal service plan 
 corporation shall file the articles of incorporation or 
 amendment of articles of incorporation with the secretary of 
 state, together with a copy of the order or an affidavit of an 
 officer of the legal service plan corporation that no order has 
 been issued and that more than 30 days have expired since 
 submission of the proposed articles of incorporation or 
 amendment of articles of incorporation. When the filing fees and 
 charges have been paid as required by law, and the secretary of 
 state determines that the articles of incorporation or 
 amendments of articles of incorporation are in acceptable form, 
 the secretary of state shall record them and take any other 
 action provided for by chapter 317A. 

    Subd. 2.  The existence of a legal service plan corporation 
 hereafter organized shall begin upon issuance of a certificate 
 of incorporation by the secretary of state.  Within 14 days 
 after issuance of the certificate, the legal service plan 
 corporation shall cause to be published in a qualified newspaper 
 in the county in which it has its registered office, a notice 
 stating the name of the legal service corporation, the date of 
 incorporation, the general nature of its business, the address 
 of its registered office, and the names and addresses of the 
 incorporators and directors. 

    HIST: 1978 c 785 s 8; 1986 c 444; 1989 c 304 s 137 

     62G.09 Directors; management. 

    Subdivision 1.  The articles of incorporation or the bylaws 
 of a legal service plan corporation shall provide that the 
 authority and responsibility for election of officers and proper 
 and lawful operation of the legal service plan corporation shall 
 be vested in a board of not less than 12 directors with powers 
 and authority to complete execution of the purposes of the legal 
 service corporation as provided by law, its articles and 
 bylaws.  The number of directors shall be fixed by the articles 
 or bylaws. 

    Subd. 2.  The directors shall be selected in accordance 
 with the bylaws provided that at least one-fourth but no more 
 than one-third of the directors shall be admitted to the 
 practice of law in this state. 

    HIST: 1978 c 785 s 9 

     62G.10 Certificate of authority. 

    Subdivision 1.  No legal service plan corporation shall 
 enter into subscribers contracts or solicit applications 
 therefor, until it has secured a certificate of authority from 
 the commissioner.  Application for a certificate of authority 
 shall be made upon forms prescribed by the commissioner. 

    Subd. 2.  The commissioner shall grant a certificate of 
 authority after determining that the applicant is in compliance 
 with sections 62G.01 to 62G.25 with regard to the applicant's 
 stated purpose, its articles and bylaws and its financial 
 condition, that it has met the filing requirements of sections 
 62G.01 to 62G.25 relating to subscribers contracts and service 
 agreements and that the legal service plan corporation has 
 knowledgeable, responsible management. 

    Subd. 3.  A foreign legal service plan corporation applying 
 for a certificate of authority in this state shall be deemed to 
 be a legal service plan corporation which is organized under 
 sections 62G.01 to 62G.25.  A foreign legal service plan 
 corporation is required to meet the same requirements as an 
 existing domestic legal service plan corporation except that no 
 foreign legal service plan corporation shall be denied a 
 certificate of authority because its corporate powers exceed 
 those which are authorized by the laws of this state.  The 
 activities of a foreign legal service plan corporation in this 
 state may not exceed the powers of a domestic legal service plan 
 corporation. 

    Subd. 4.  No certificate of authority is required for a 
 foreign legal service plan corporation whose activities in this 
 state are limited to servicing members of covered groups whose 
 contracts have been issued in another state, or from a foreign 
 legal service plan corporation whose activities in this state 
 are conducted pursuant to a contract or agreement with a 
 licensed domestic legal service plan corporation, if the 
 contract or agreement is authorized by section 62G.15. 

    HIST: 1978 c 785 s 10; 1986 c 444 

     62G.11 Financial requirements. 

    Subdivision 1.  The commissioner shall not issue a 
 certificate of authority to any legal service plan corporation 
 unless the legal service plan corporation meets all legal 
 requirements and, if organized on a capital stock basis, has 
 paid up capital stock of not less than $50,000 and an initial 
 surplus of not less than $50,000 or, if organized on a 
 membership basis, has an initial surplus of not less than 
 $100,000. 

    Subd. 2.  A legal service plan corporation shall establish 
 and maintain records for claims in process, incomplete and 
 unreported claims, allowances for subscription charges received 
 from subscribers but not yet earned, and all other accrued 
 liabilities, in accordance with section 60A.12, as it relates to 
 accident and health insurance companies. 

    Subd. 3.  If organized on a capital stock basis, a legal 
 service plan corporation may not reduce its capital. Both 
 capital stock and membership corporations shall maintain a 
 surplus, in addition to all reserves established, of not less 
 than the greater of the initial surplus reduced by $25,000 or 
 16-2/3 percent of the sum of all legal service claims incurred, 
 and administrative expenses in connection therewith, during the 
 previous calendar year.  The surplus shall not exceed 50 percent 
 of the sum of all legal service claims incurred, and the 
 administrative expenses in connection therewith, during the 
 previous calendar year unless that amount is less than the 
 initial surplus reduced by $25,000.  The percentage amounts 
 shall be determined from a financial statement and certified 
 audit filed annually and subject to verification and examination 
 by the commissioner. 

    Subd. 4.  If the surplus is less than the required minimum 
 or more than the required maximum, or if a legal service plan 
 corporation does not have the required reserves or its reserves 
 are not properly computed, a written plan proposed by the legal 
 service corporation and approved by the commissioner shall be 
 followed to correct the condition. If a legal service plan 
 corporation does not within a reasonable time propose measures 
 to correct its reserve or surplus, if a legal service plan 
 corporation violates the plan which has been approved, or if 
 there is evidence that an improper reserve or surplus status 
 cannot be corrected within a reasonable time, the commissioner 
 may take action against the legal service plan corporation under 
 chapter 60B, or under the suspension and penalty provisions of 
 sections 62G.01 to 62G.25. 

    HIST: 1978 c 785 s 11 

     62G.12 Investment. 

    Funds of a legal service plan corporation subject to 
 sections 62G.01 to 62G.25 shall be invested only in securities 
 and property designated by law for investment by domestic life 
 insurance companies. 

    HIST: 1978 c 785 s 12 

     62G.13 Financial statements and examinations. 

    Subdivision 1.  A legal service plan corporation shall 
 annually on or before the last day of March, file with the 
 commissioner a financial statement, in the form prescribed by 
 the commissioner, verified by not less than two of the 
 corporation's principal officers, showing the financial 
 condition of the legal service plan corporation as of December 
 31 of the preceding year.  The statement shall include an audit 
 report certified by an independent certified public accountant 
 and reconciled and adjusted to conform to the financial 
 statement. 

    Subd. 2.  The commissioner shall examine a legal service 
 plan corporation to ascertain its financial condition, its 
 ability to fulfill its obligations, and its compliance with 
 sections 62G.01 to 62G.25, when expedient for protection of the 
 public, but not less than once every three years.  The 
 commissioner shall have access at all reasonable times to all 
 books and records of the legal service plan corporation, and may 
 summon the officers and employees and examine them under oath as 
 to any matter pertinent to sections 62G.01 to 62G.25. 

    Subd. 3.  The commissioner shall visit and examine each 
 legal service plan corporation within the first six months after 
 it begins doing business, and thereafter once during each of the 
 next three years.  Thereafter the commissioner shall visit and 
 examine the corporation at least once every three years. 

    Subd. 4.  Any examination or audit conducted by or at the 
 request of the commissioner shall be at the expense of the legal 
 service plan corporation. 

    Subd. 5.  The commissioner shall notify the governor 
 whenever examinations required by this section have not been 
 made and inform the governor of the reasons therefor. 

    HIST: 1978 c 785 s 13; 1986 c 444 

     62G.14 Suspension. 

    A legal service plan corporation is subject to section 
 60A.052, relating to the denial, suspension or revocation of a 
 certificate of authority, and to the provisions of chapter 60B.  
 The commissioner also may suspend or revoke a certificate for 
 any violation or noncompliance with sections 62G.01 to 62G.25, 
 following a hearing under procedures established by the rules of 
 the commissioner.  The commissioner may suspend or revoke the 
 certification of authority of a foreign legal service plan 
 corporation for the same reasons for which a domestic legal 
 service corporation's certificate may be suspended or revoked.  
 The commissioner may also revoke or suspend the certificate of a 
 foreign legal service plan if its activities outside the state 
 of Minnesota impair its solvency or its ability to meet its 
 obligations in this state. 

    HIST: 1978 c 785 s 14; 1986 c 444; 1993 c 13 art 2 s 1 

     62G.15 Authorized contracts and agreements. 

    Subdivision 1.  A legal service plan corporation may act 
 for, or as agent of, a provider and may contract with 
 subscribers and others to render or provide legal services for 
 the benefit of subscribers.  It may enter into service 
 agreements.  A subscribers contract may provide for payment to, 
 or reimbursement of, a subscriber for expenses incurred for 
 covered legal services when rendered or furnished by 
 nonparticipating providers. 

    Subd. 2.  A legal service plan corporation may contract or 
 make other arrangements with any agency, instrumentality or 
 political subdivision of the United States, or this state, and 
 may accept and administer funds, directly or indirectly, made 
 available thereby if the agency, instrumentality or political 
 subdivision is authorized by law to make such contracts or 
 arrangements.  It may subcontract with any organization which 
 has contracted with an agency, instrumentality or political 
 subdivision of the United States, or this state, for the 
 administration or furnishing of legal services or any publicly 
 supported legal service plan. 

    Subd. 3.  A legal service plan corporation may enter into 
 contracts or other arrangements with similar organizations or 
 corporations domiciled in this or any other state or country, 
 for transfer of subscribers, reciprocal or joint benefits, or 
 for other joint undertakings approved by its board and not 
 inconsistent with the purposes of sections 62G.01 to 62G.25.  In 
 no event shall a legal service plan corporation enter into any 
 contract, arrangement or undertaking which would have the effect 
 of relieving the legal service plan corporation of its duties 
 and obligations to any subscriber unless the legal service plan 
 corporation has received the prior written consent of the 
 affected subscriber, or a qualified agent or representative of 
 the subscriber. 

    Subd. 4.  A legal service plan corporation may enter into 
 contracts or other arrangements with providers or with any 
 agency, instrumentality or political subdivision of the United 
 States or any state or country or with any nonprofit health 
 service plan corporation organized under chapter 62C, or with 
 any other organization for the provision of administrative, 
 accounting, marketing, record keeping, data processing, or 
 planning services or facilities or any service related to the 
 rendering or furnishing of legal services or the implementation 
 of a legal service plan.  A nonprofit health service plan 
 corporation organized under chapter 62C, may in accordance with 
 this subdivision provide any of the services or facilities 
 specified in this subdivision.  A subscribers contract with a 
 corporation organized under chapter 62C, shall provide for 
 payment to, or reimbursement of, a subscriber for expenses 
 incurred for covered legal services when rendered or furnished 
 by nonparticipating providers. 

    Subd. 5.  Sections 62G.01 to 62G.25 do not require a legal 
 service plan corporation to contract with any provider, 
 subscriber or group of subscribers. 

    HIST: 1978 c 785 s 15 

     62G.16 Subscribers contracts. 

    Subdivision 1.    Copy to subscriber.  A legal service 
 plan corporation shall deliver to every subscriber, except those 
 covered as a spouse or dependent of another subscriber, a copy 
 of the subscribers contract or a certificate evidencing that the 
 subscriber is covered by a group subscribers contract. 

    Subd. 2.    Statement of terms and conditions.  The 
 subscribers contract shall state in a clear and understandable 
 manner all legal services to be provided, in whole or in part, 
 to the subscriber and all terms, conditions, limitations and 
 exceptions under which the legal services shall be provided or 
 paid for, including any provisions for coordination of benefits 
 or subrogation, and including any provisions or conditions under 
 which services from participating providers are not covered. 

    Subd. 3.    Free choice preserved.  Except as provided 
 in section 62G.15, subdivision 4, nothing in the subscribers 
 contract shall deny the subscriber free choice of the provider 
 within a particular class of providers who is to serve the 
 subscriber, and there shall be no interference with a 
 provider-subscriber relationship. 

    Subd. 4.    Required disclosures.  Except for group 
 contracts or certificates, a subscribers contract or other 
 writing furnished to the subscriber with the contract, shall 
 state the periodic subscription charge, the effective date, the 
 expiration date or period of renewal, and the terms upon which 
 the contract may be terminated, canceled, continued, or renewed. 

    Subd. 5.    Documents constituting contract.  A 
 subscribers contract or certificate shall state that it and all 
 riders and endorsements, together with any application if signed 
 by the subscriber, identification issued, and the applicable 
 benefit schedules on file at the home office of the legal 
 service plan corporation and with the commissioner, shall 
 constitute the entire contract between the legal service plan 
 corporation and the subscriber. 

    Subd. 6.    Payments regulated.  Except as otherwise 
 provided by this subdivision, no subscribers contract shall 
 provide for the payment of any cash or other material benefit to 
 the subscriber or the subscriber's estate.  A subscribers 
 contract may provide for the payment for legal services rendered 
 or furnished by a nonparticipating provider to the extent such 
 legal services are covered by the contract.  A subscriber who is 
 compensated by the provider for services received is subrogated 
 to the provider's right against the legal service plan. 

    Subd. 7.    Limits on subscriber contract liability.  
 Every subscribers contract or certificate shall provide in 
 substance that the subscriber has no personal liability to the 
 provider rendering legal services, except for those services or 
 parts of service not covered by the subscribers contract. 

    Subd. 8.    Filing.  No legal service plan corporation 
 shall deliver or issue for delivery in this state any 
 subscribers contract, endorsement, rider, amendment or 
 application until a copy of the form thereof has been filed with 
 the commissioner, subject to disapproval by the commissioner. 
 The commissioner also may, by rule, exempt from filing those 
 subscribers contracts issued to groups upon such reasonable 
 conditions and restrictions as the commissioner may require. 

    Subd. 9.    Disapproval.  All forms received by the 
 commissioner shall be deemed filed 60 days after received unless 
 disapproved by order transmitted to the legal service plan 
 corporation stating that the form used in a specified respect is 
 contrary to law, contains a provision or provisions which are 
 unfair, inequitable, misleading, inconsistent or ambiguous, or 
 is in part illegible.  It shall be unlawful to issue or use a 
 document disapproved by the commissioner. 

    Subd. 10.    Hearing.  An order of disapproval shall 
 state that a hearing will be granted within 20 days upon written 
 request.  The commissioner shall conduct the hearing within 20 
 days after receipt of the request and shall give not less than 
 ten days' written notice of the time and place and matters to be 
 considered.  Within 15 days after the hearing, the commissioner 
 shall affirm, reverse, or modify previous action in writing, 
 specifying the reasons therefor.  Pending the hearing and 
 decision thereon, the commissioner may postpone the effective 
 date of the previous action. 

    Subd. 11.    Appeal.  An order or decision of the 
 commissioner under this section shall be subject to appeal in 
 accordance with chapter 14. 

    Subd. 12.    Construction.  All subscribers contracts 
 covering subscribers resident in this state shall be deemed to 
 have been made in this state and shall be construed pursuant to 
 Minnesota law when the position or rights of a Minnesota 
 subscriber or covered group member are at issue.  It is unlawful 
 for any legal service plan corporation to solicit or make any 
 subscriber contract in violation of the provisions of sections 
 62G.01 to 62G.25. 

    HIST: 1978 c 785 s 16; 1983 c 247 s 33; 1986 c 444; 1986 c 455 
 s 19 

     62G.17 Other insurance or benefits. 

    A subscribers contract may provide that legal services 
 otherwise covered under the contract will not be covered to the 
 extent that the subscriber is eligible for free legal services 
 under any public defender or public assistance program. 

    HIST: 1978 c 785 s 17 

     62G.18 Subscription charges. 

    Subdivision 1.  A legal service plan corporation shall 
 establish and adjust from time to time subscription charges to 
 be paid by or on behalf of its subscribers.  The charges shall 
 be reasonable, and not unfairly discriminatory, in relation to 
 the benefits, considering actuarial projection of the cost of 
 providing or paying for the legal services, considering costs of 
 administration, and in relation to reserves and surplus required 
 by law. 

    Subd. 2.  No legal service plan corporation shall deliver, 
 issue for delivery, extend, continue, or renew any form of 
 nongroup subscribers contract until schedules of charges 
 applicable thereto, including any endorsement, rider, amendment 
 or application which is a part thereof, have been filed with the 
 commissioner.  No legal service plan corporation shall deliver, 
 issue for delivery, extend, continue or renew any form of group 
 subscribers contract until a schedule of the rating structures 
 and formulas applicable thereto, including any endorsement, 
 rider, amendment or application which is a part thereof, has 
 been filed with the commissioner.  The filing for a nongroup 
 subscribers contract shall include the actuarial data needed to 
 justify any increase in subscriber charges.  The commissioner 
 may disapprove the schedule of charges for any group or nongroup 
 subscribers contract if: 

    (a) The unencumbered reserve or surplus is less than the 
 required minimum or more than the required maximum; or 

    (b) The schedule charges meet the criteria specified in 
 section 62A.02, subdivision 3. 

    Subd. 3.  If subscription charges become subject to 
 disapproval, the commissioner shall, within 30 days of filing, 
 render an order either disapproving the charges or extending 
 time for review to a specified date, or the charges shall be 
 deemed approved.  An order disapproving a charge shall state the 
 reasons therefor and shall be subject to the notice, hearing, 
 and appeal provisions of section 62G.16.  The burden of proving 
 and actuarially demonstrating that the charges are not 
 inadequate or excessive is on the legal service plan corporation.

    Subd. 4.  It is unlawful for a legal service plan 
 corporation to deliver or issue a subscribers contract with 
 charges which have been disapproved by the commissioner. 

    HIST: 1978 c 785 s 18 

     62G.19 Legal service agreements. 

    Subdivision 1.  Legal service plan corporations, as agents 
 for providers, may enter into legal service agreements only with 
 providers licensed to practice law in this state or the state or 
 foreign country in which the provider is located. 

    Subd. 2.  A legal service plan corporation shall enforce 
 its legal service agreements, including agreements of providers 
 to accept payment from the legal service corporation as 
 compensation for legal service rendered or provided to 
 subscribers who have prepaid for the legal service.  Provisions 
 for review of claims shall be a part of each service agreement. 

    Subd. 3.  Each type of legal service agreement shall be 
 filed with the commissioner, prior to its use. 

    Subd. 4.  Notwithstanding any law or rule of court to the 
 contrary, any attorney licensed to practice law in this state 
 may solicit a contract or submit a bid to contract with any 
 legal service plan corporation to provide legal services as 
 provided in this section. 

    HIST: 1978 c 785 s 19 

     62G.20 License for solicitor or agent. 

    Subdivision 1.  No person shall act as a solicitor or agent 
 for solicitation of subscribers on behalf of a legal service 
 plan corporation, except an officer of the corporation, before 
 obtaining a license from the commissioner.  The license shall be 
 granted to qualified persons only upon request of the legal 
 service plan corporation.  The commissioner may establish by 
 rule reasonable standards of qualification. 

    Subd. 2.  Applications for license shall be submitted to 
 the commissioner on forms provided.  Except as provided in 
 subdivision 3, the applicant must pass a written examination 
 reasonably designed to determine whether the applicant is 
 qualified to be licensed as an agent or solicitor.  The 
 examination shall be pertinent to the contracts and coverage 
 furnished by the legal service plan corporation.  Prior to 
 examination or reexamination, and prior to issuance or renewal 
 of a license, the applicant shall pay to the commissioner the 
 fees required for examination or reexamination for, and issuance 
 or renewal of, an insurance agent's license for one line of 
 insurance.  The license shall expire May 31 of each year unless 
 renewed by written request with payment of the renewal fees.  
 The license shall not authorize a person to act as an insurance 
 agent or solicitor. 

    Subd. 3.  The commissioner may at any time after a hearing 
 pursuant to sections 14.001 to 14.69, revoke or suspend a 
 license if satisfied that the licensee is not qualified.  An 
 application for a new license or for reinstatement may be 
 entertained one year after revocation or suspension, upon filing 
 of a bond in the amount of $5,000 approved by the commissioner 
 for protection of the public for a period of five years, or a 
 lesser amount and period as the commissioner may prescribe.  The 
 commissioner shall revoke or suspend a license upon written 
 request by the legal service plan corporation or agent for which 
 the licensee is licensed to act.  The request shall include a 
 statement of the specific facts constituting cause for 
 termination.  Information contained in a request is confidential 
 and privileged and is not admissible, in whole or in part, in 
 any action or proceeding without the written consent of the 
 party submitting the request. 

    Subd. 4.  A person is not qualified for a license if upon 
 examination or reexamination it is determined that the person is 
 incompetent to act as an agent or solicitor; has acted in any 
 manner which would disqualify a person to hold a license as an 
 insurance agent or solicitor under section 60A.l7, subdivision 
 6; fails to produce documents lawfully subpoenaed by the 
 commissioner; or fails to appear at a hearing to which that 
 person is a party or has been lawfully subpoenaed. 

    HIST: 1978 c 785 s 20; 1982 c 424 s 130; 1986 c 444; 1987 c 
 384 art 2 s 1; 1990 c 422 s 10 

     62G.21 No personal liability. 

    No provider has any right of action against a subscriber 
 for compensation for legal services which the provider has 
 rendered, except to the extent that the subscribers contract 
 does not provide coverage for the legal services or part of the 
 legal services rendered. 

    HIST: 1978 c 785 s 21 

     62G.22 Unfair trade practices. 

    Legal service plan corporations are subject to the 
 provisions of sections 72A.17 to 72A.30, regarding regulation of 
 trade practices, and to all rules promulgated by the 
 commissioner regarding advertisements for and the marketing of 
 legal service plans. 

    HIST: 1978 c 785 s 22 

     62G.23 Practice not authorized. 

    Nothing in sections 62G.01 to 62G.25 authorizes any person, 
 association or corporation to engage, in any manner, in the 
 practice of a profession required by this state to be licensed. 

    HIST: 1978 c 785 s 23 

     62G.24 Penalties. 

    If a legal service plan corporation violates any provision 
 of sections 62G.01 to 62G.25 or other applicable law, the 
 commissioner may by order suspend or revoke its certificate of 
 authority, and impose a penalty not to exceed $5,000 for each 
 offense.  The order shall be subject to the notice, hearing and 
 appeal provided as to an order disapproving a subscribers 
 contract. 

    HIST: 1978 c 785 s 24; 1986 c 444 

     62G.25 Rules. 

    For the purpose of implementing and enforcing sections 
 62G.01 to 62G.25, the commissioner may adopt, amend, suspend and 
 repeal rules pursuant to the provisions of sections 14.001 to 
 14.69. 

    HIST: 1978 c 785 s 25; 1982 c 424 s 130; 1987 c 384 art 2 s 1; 
 1990 c 422 s 10