2000 Minnesota Statutes

     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