1999 Minnesota Statutes

     60K.03 License application. 

    Subdivision 1.    Procedure.  An application for a 
 license to act as an insurance agent shall be made to the 
 commissioner by the person who seeks to be licensed.  The 
 application for license shall be accompanied by a written 
 appointment from an admitted insurer authorizing the applicant 
 to act as its agent under one or both classes of license.  The 
 insurer must also submit its check payable to the state 
 treasurer for the amount of the appointment fee prescribed by 
 section 60A.14, subdivision 1, paragraph (c), clause (6), at the 
 time the agent becomes licensed.  The application and 
 appointment must be on forms prescribed by the commissioner.  

    If the applicant is a natural person, no license shall be 
 issued until that natural person has become qualified.  

    If the applicant is a partnership or corporation, no 
 license shall be issued until at least one natural person who is 
 a partner, director, officer, stockholder, or employee shall be 
 licensed as an insurance agent.  

    Subd. 2.    Resident agent.  The commissioner shall 
 issue a resident insurance agent's license to a qualified 
 resident of this state as follows:  

    (a) A person may qualify as a resident of this state if 
 that person resides in this state or the principal place of 
 business of that person is maintained in this state.  
 Application for a license claiming residency in this state for 
 licensing purposes constitutes an election of residency in this 
 state.  A license issued upon an application claiming residency 
 in this state is void if the licensee, while holding a resident 
 license in this state, also holds, or makes application for, a 
 resident license in, or thereafter claims to be a resident of, 
 any other state or jurisdiction or if the licensee ceases to be 
 a resident of this state; provided, however, if the applicant is 
 a resident of a community or trade area, the border of which is 
 contiguous with the state line of this state, the applicant may 
 qualify for a resident license in this state and at the same 
 time hold a resident license from the contiguous state. 

    (b) The commissioner shall subject each applicant who is a 
 natural person to a written examination as to the applicant's 
 competence to act as an insurance agent.  The examination must 
 be held at a reasonable time and place designated by the 
 commissioner. 

    (c) The examination shall be approved for use by the 
 commissioner and shall test the applicant's knowledge of the 
 lines of insurance, policies, and transactions to be handled 
 under the class of license applied for, of the duties and 
 responsibilities of the licensee, and pertinent insurance laws 
 of this state. 

    (d) The examination shall be given only after the applicant 
 has completed a program of classroom studies in a school, which 
 shall not include a school sponsored by, offered by, or 
 affiliated with an insurance company or its agents; except that 
 this limitation does not preclude a bona fide professional 
 association of agents, not acting on behalf of an insurer, from 
 offering courses.  The course of study shall consist of 30 hours 
 of classroom study devoted to the basic fundamentals of 
 insurance for those seeking a Minnesota license for the first 
 time, 15 hours devoted to specific life and health topics for 
 those seeking a life and health license, and 15 hours devoted to 
 specific property and casualty topics for those seeking a 
 property and casualty license.  Of the 30 hours of required 
 classroom study, at least three hours must be devoted to state 
 insurance laws, regulations, and rules.  The program of studies 
 or study course shall have been approved by the commissioner in 
 order to qualify under this paragraph.  If the applicant has 
 been previously licensed for the particular line of insurance in 
 the state of Minnesota, the requirement of a program of studies 
 or a study course shall be waived.  A certification of 
 compliance by the organization offering the course shall 
 accompany the applicant's license application.  This program of 
 studies in a school or a study course shall not apply to farm 
 property perils and farm liability applicants, or to agents 
 writing such other lines of insurance as the commissioner may 
 exempt from examination by order. 

    (e) The applicant must pass the examination with a grade 
 determined by the commissioner to indicate satisfactory 
 knowledge and understanding of the class or classes of insurance 
 for which the applicant seeks qualification.  The commissioner 
 shall inform the applicant as to whether or not the applicant 
 has passed.  Examination results are valid for a period of three 
 years from the date of the examination.  

    (f) An applicant who has failed to pass an examination may 
 take subsequent examinations.  Examination fees for subsequent 
 examinations shall not be waived. 

    (g) Any applicant for a license covering the same class or 
 classes of insurance for which the applicant was licensed under 
 a similar license in this state, other than a temporary license, 
 within the three years preceding the date of the application 
 shall be exempt from the requirement of a written examination, 
 unless the previous license was revoked or suspended by the 
 commissioner.  An applicant whose license is not renewed under 
 section 60K.12 is exempt from the requirement of a written 
 examination.  

    Subd. 3.    Nonresident agent.  The commissioner shall 
 issue a nonresident insurance agent's license to a qualified 
 person who is a resident of another state or country as follows: 

    (a) A person may qualify for a license under this section 
 as a nonresident only if that person holds a license in another 
 state, province of Canada, or other foreign country which, in 
 the opinion of the commissioner, qualifies that person for the 
 same activity as that for which a license is sought. 

    (b) The commissioner shall not issue a license to a 
 nonresident applicant until that person files with the 
 commissioner a designation of the commissioner and the 
 commissioner's successors in office as the applicant's true and 
 lawful attorney upon whom may be served all lawful process in an 
 action, suit, or proceeding instituted by or on behalf of an 
 interested person arising out of the applicant's insurance 
 business in this state.  This designation constitutes an 
 agreement that this service of process is of the same legal 
 force and validity as personal service of process in this state 
 upon that applicant.  

    Service of process upon a licensee in an action or 
 proceeding begun in a court of competent jurisdiction of this 
 state may be made in compliance with section 45.028, subdivision 
 2.  

    (c) A nonresident agent shall be held to the same knowledge 
 of state insurance law, regulations, and rules as that required 
 of a resident agent according to subdivision 2, paragraph (d). 

    (d) A nonresident license terminates automatically when the 
 resident license for that class of license in the state, 
 province, or foreign country in which the licensee is a resident 
 is terminated for any reason.  

    Subd. 4.    Term.  All licenses issued pursuant to this 
 section remain in force until voluntarily terminated by the 
 licensee, not renewed as prescribed in section 60K.06, or until 
 suspended or revoked by the commissioner.  A voluntary 
 termination occurs when the license is surrendered to the 
 commissioner with the request that it be terminated or when the 
 licensee dies, or when the licensee is dissolved or its 
 existence is terminated.  In the case of a nonresident license, 
 a voluntary termination also occurs upon the happening of the 
 event described in subdivision 3, paragraph (c).  

    Every licensed agent shall notify the commissioner within 
 30 days of a change of name, address, or information contained 
 in the application. 

    Subd. 5.    Subsequent appointments.  A person who holds 
 a valid agent's license from this state may solicit applications 
 for insurance on behalf of an admitted insurer with which the 
 licensee does not have a valid appointment on file with the 
 commissioner; provided that the licensee has permission from the 
 insurer to solicit insurance on its behalf and, provided 
 further, that the insurer upon receipt of the application for 
 insurance submits a written notice of appointment to the 
 commissioner accompanied by its check payable to the state 
 treasurer in the amount of the appointment fee prescribed by 
 section 60A.14, subdivision 1, paragraph (c), clause (6).  The 
 notice of appointment must be on a form prescribed by the 
 commissioner.  

    Subd. 6.    Amendment of license.  An application to the 
 commissioner to amend a license to reflect a change of name, or 
 to include an additional class of license, or for any other 
 reason, shall be on forms provided by the commissioner and shall 
 be accompanied by the applicant's surrendered license and a 
 check payable to the state treasurer for the amount of fee 
 specified in section 60K.06, subdivision 2, paragraph (a).  

    An applicant who surrenders an insurance license pursuant 
 to this subdivision retains licensed status until an amended 
 license is received.  

    Subd. 7.    Exceptions.  The following are exempt from 
 the general licensing requirements prescribed by this section:  

    (1) agents of township mutuals who are exempted pursuant to 
 section 60K.04; 

    (2) fraternal benefit society representatives exempted 
 pursuant to section 60K.05; 

    (3) any regular salaried officer or employee of a licensed 
 insurer, without license or other qualification, may act on 
 behalf of that licensed insurer in the negotiation of insurance 
 for that insurer, provided that a licensed agent must 
 participate in the sale of the insurance; 

    (4) employers and their officers or employees, and the 
 trustees or employees of any trust plan, to the extent that the 
 employers, officers, employees, or trustees are engaged in the 
 administration or operation of any program of employee benefits 
 for the employees of the employers or employees of their 
 subsidiaries or affiliates involving the use of insurance issued 
 by a licensed insurance company; provided that the activities of 
 the officers, employees and trustees are incidental to clerical 
 or administrative duties and their compensation does not vary 
 with the volume of insurance or applications for insurance; 

    (5) employees of a creditor who enroll debtors for credit 
 life, credit accident and health, or credit involuntary 
 unemployment insurance; provided the employees receive no 
 commission or fee for it; 

    (6) clerical or administrative employees of an insurance 
 agent who take insurance applications or receive premiums in the 
 office of their employer, if the activities are incidental to 
 clerical or administrative duties and the employee's 
 compensation does not vary with the volume of the applications 
 or premiums; 

    (7) rental vehicle companies and their employees in 
 connection with the offer of insurance authorized under section 
 72A.125; 

    (8) employees of a retailer who enroll purchasers for 
 credit insurance associated with a retail purchase; provided the 
 employees receive no commission, fee, bonus, or other form of 
 compensation for it; and 

    (9) representatives of prepaid legal service plans in 
 connection with the sale and marketing of these plans. 

    HIST: 1992 c 564 art 3 s 5; 1993 c 343 s 6; 1994 c 632 art 4 s 
 27-29; 1995 c 258 s 13; 1996 c 446 art 1 s 8; 1999 c 177 s 
 30,31; 1999 c 236 s 1