2004 Minnesota Statutes

CHAPTER 60K. Insurance producers

  60K.01 Repealed, 2001 c 117 art 1 s 28 

  60K.02 Repealed, 2001 c 117 art 1 s 28 

  60K.03 Repealed, 2001 c 117 art 1 s 28 

  60K.04 Repealed, 2001 c 117 art 1 s 28 

  60K.05 Repealed, 2001 c 117 art 1 s 28 

  60K.06 Repealed, 2001 c 117 art 1 s 28 

    60K.07 Subdivision 1.  Repealed, 1997 c 222 s 60; 
 2001 c 117 art 1 s 28 

    Subd. 2.  Repealed, 2001 c 117 art 1 s 28 

  60K.08 Repealed, 1999 c 177 s 88 

  60K.081 Repealed, 2001 c 117 art 1 s 28 

  60K.09 Repealed, 2001 c 117 art 1 s 28 

  60K.10 Repealed, 2001 c 117 art 1 s 28 

  60K.11 Repealed, 2001 c 117 art 1 s 28 

  60K.12 Repealed, 2001 c 177 art 1 s 28 

  60K.13 Repealed, 2001 c 117 art 1 s 28 

  60K.14 Repealed, 2001 c 117 art 1 s 28 

  60K.15 Repealed, 2001 c 117 art 1 s 28 

  60K.16 Repealed, 2001 c 117 art 1 s 28 

  60K.17 Repealed, 2001 c 117 art 1 s 28 

  60K.18 Repealed, 2001 c 117 art 1 s 28 

    60K.19 Subdivision 1.  Repealed, 2001 c 117 art 1 s 28 

    Subd. 2.  Repealed, 2001 c 117 art 1 s 28 

    Subd. 3.  Repealed, 2001 c 117 art 1 s 28 

    Subd. 4.  Repealed, 2001 c 117 art 1 s 28; 2001 c 161 s 
 58 

    Subd. 5.  Repealed, 2001 c 117 art 1 s 28 

    Subd. 6.  Repealed, 2001 c 117 art 1 s 28 

    Subd. 7.  Repealed, 2001 c 117 art 1 s 28 

    Subd. 8.  Repealed, 2001 c 117 art 1 s 28 

    Subd. 9.  Repealed, 2001 c 117 art 1 s 28 

    Subd. 10.  Repealed, 2001 c 117 art 1 s 28 

    Subd. 11.  Repealed, 2001 c 117 art 1 s 28 

  60K.20 Repealed, 2001 c 117 art 1 s 28 

     60K.30 Purpose and scope. 

    (a) Sections 60K.30 to 60K.56 govern the qualifications and 
 procedures for the licensing of insurance producers.  

    (b) Except as to the underlying requirement that a surplus 
 lines agent or broker obtain an insurance producer license, this 
 chapter does not apply to surplus lines agents or brokers 
 licensed under sections 60A.195 to 60A.209, except as provided 
 in sections 60K.39 and 60K.53, subdivision 2. 

    HIST: 2001 c 117 art 1 s 1 

     60K.31 Definitions. 

    Subdivision 1.    Scope.  For purposes of sections 
 60K.30 to 60K.56, the terms in subdivisions 2 to 18 have the 
 meanings given them.  The definitions in section 60A.02 are 
 applicable to terms not defined in this section, unless the 
 language or context clearly indicates that a different meaning 
 is intended. 

    Subd. 2.    Business entity.  "Business entity" means a 
 corporation, association, partnership, limited liability 
 company, limited liability partnership, or other legal entity. 

    Subd. 3.    Commissioner.  "Commissioner" means the 
 commissioner of commerce. 

    Subd. 4.    Home state.  "Home state" means the District 
 of Columbia and any state or territory of the United States in 
 which an insurance producer maintains the producer's principal 
 place of residence or principal place of business and is 
 licensed to act as an insurance producer. 

    Subd. 5.    Insurance.  "Insurance" means any of the 
 lines of authority in section 60A.06. 

    Subd. 6.    Insurance producer.  "Insurance producer" 
 means a person required to be licensed under the laws of this 
 state to sell, solicit, or negotiate insurance. 

    Subd. 7.    License.  "License" means a document issued 
 by the commissioner authorizing a person to act as an insurance 
 producer for the lines of authority specified in the document.  
 The license itself does not create any authority, actual, 
 apparent, or inherent, in the holder to represent or commit an 
 insurance carrier.  

    Subd. 8.    Limited line credit insurance.  "Limited 
 line credit insurance" includes credit life, credit disability, 
 credit property, credit unemployment, involuntary unemployment, 
 mortgage life, mortgage guaranty, mortgage disability, 
 guaranteed automobile protection insurance, and any other form 
 of insurance offered in connection with an extension of credit 
 that is limited to partially or wholly extinguishing that credit 
 obligation that the commissioner determines should be designated 
 a form of limited line credit insurance. 

    Subd. 9.    Limited line credit insurance producer.  
 "Limited line credit insurance producer" means a person who 
 sells, solicits, or negotiates one or more forms of limited line 
 credit insurance coverage to individuals through a master, 
 corporate, group, or individual policy. 

    Subd. 10.    Limited lines insurance.  "Limited lines 
 insurance" means those lines of insurance defined in section 
 60K.38, subdivision 1, paragraph (c), or any other line of 
 insurance that the commissioner considers necessary to recognize 
 for the purposes of complying with section 60K.39, subdivision 5.

    Subd. 11.    Limited lines producer.  "Limited lines 
 producer" means a person authorized by the commissioner to sell, 
 solicit, or negotiate limited lines insurance. 

    Subd. 12.    Negotiate.  "Negotiate" means the act of 
 conferring directly with or offering advice directly to a 
 purchaser or prospective purchaser of a particular contract of 
 insurance concerning any of the substantive benefits, terms, or 
 conditions of the contract if the person engaged in that act 
 either sells insurance or obtains insurance from insurers for 
 purchasers. 

    Subd. 13.    Person.  "Person" means an individual or a 
 business entity. 

    Subd. 14.    Sell.  "Sell" means to exchange a contract 
 of insurance by any means, for money or its equivalent, on 
 behalf of an insurance company. 

    Subd. 15.    Solicit.  "Solicit" means attempting to 
 sell insurance or asking or urging a person to apply for a 
 particular kind of insurance from a particular company. 

    Subd. 16.    Terminate.  "Terminate" means the 
 cancellation of the relationship between an insurance producer 
 and the insurer or the termination of a producer's authority to 
 transact insurance. 

    Subd. 17.    Uniform Business Entity Application.  
 "Uniform Business Entity Application" means the current version 
 of the Uniform Business Entity Application for resident and 
 nonresident business entities of the National Association of 
 Insurance Commissioners. 

    Subd. 18.    Uniform Application.  "Uniform Application" 
 means the current version of the Uniform Application for 
 resident and nonresident producer licensing of the National 
 Association of Insurance Commissioners. 

    HIST: 2001 c 117 art 1 s 2; 2002 c 379 art 1 s 19 

     60K.32 License required. 

    A person shall not sell, solicit, or negotiate insurance in 
 this state for any class or classes of insurance unless the 
 person is licensed for that line of authority under sections 
 60K.30 to 60K.56.  The license itself does not create any 
 authority, actual, apparent, or inherent, in the holder to 
 represent or commit an insurance carrier. 

    HIST: 2001 c 117 art 1 s 3; 2002 c 379 art 1 s 20 

     60K.33 Criminal penalty. 

    A person who acts or assumes to act as an insurance 
 producer without a license issued under this chapter is guilty 
 of a gross misdemeanor. 

    HIST: 2001 c 117 art 1 s 4 

     60K.34 Exceptions to licensing. 

    Subdivision 1.    License not required.  Nothing in 
 sections 60K.30 to 60K.56 requires an insurer to obtain an 
 insurance producer license.  In this section, the term "insurer" 
 does not include an insurer's officers, directors, employees, 
 subsidiaries, or affiliates. 

    Subd. 2.    Specific exceptions.  A license as an 
 insurance producer is not required of the following:  

    (1) a fraternal benefit society representative exempted 
 pursuant to section 60K.35; 

    (2) an officer, director, or employee of an insurer or of 
 an insurance producer if the officer, director, or employee does 
 not receive any commission on policies written or sold to insure 
 risks residing, located, or to be performed in this state and: 

    (i) the officer, director, or employee's activities are 
 executive, administrative, managerial, clerical, or a 
 combination of these, and are only indirectly related to the 
 sale, solicitation, or negotiation of insurance; 

    (ii) the officer, director, or employee's function relates 
 to underwriting, loss control, inspection, or the processing, 
 adjusting, investigating, or settling of a claim on a contract 
 of insurance; or 

    (iii) the officer, director, or employee is acting in the 
 capacity of a special agent or agency supervisor assisting 
 insurance producers where the person's activities are limited to 
 providing technical advice and assistance to licensed insurance 
 producers and do not include the sale, solicitation, or 
 negotiation of insurance; 

    (3) a person who secures and furnishes information for the 
 purpose of group life insurance, group property and casualty 
 insurance, group annuities, group or blanket accident and health 
 insurance; or for the purpose of enrolling individuals under 
 plans; issuing certificates under plans or otherwise assisting 
 in administering plans; or performs administrative services 
 related to mass-marketed property and casualty insurance; where 
 no commission is paid to the person for the service; 

    (4) an employer or association or its officers, directors, 
 employees, or the trustees of an employee trust plan, to the 
 extent that the employers, officers, employees, directors, or 
 trustees are engaged in the administration or operation of a 
 program of employee benefits for the employer's or association's 
 own employees or the employees of its subsidiaries or 
 affiliates, which program involves the use of insurance issued 
 by an insurer, as long as the employers, associations, officers, 
 directors, employees, or trustees are not in any manner 
 compensated, directly or indirectly, by the company issuing the 
 contracts; 

    (5) employees of insurers or organizations employed by 
 insurers who are engaging in the inspection, rating or 
 classification of risks, or in the supervision of the training 
 of insurance producers and who are not individually engaged in 
 the sale, solicitation, or negotiation of insurance; 

    (6) a person whose activities in this state are limited to 
 advertising without the intent to solicit insurance in this 
 state through communications in printed publications or other 
 forms of electronic mass media whose distribution is not limited 
 to residents of the state, if the person does not sell, solicit, 
 or negotiate insurance that would insure risks residing, 
 located, or to be performed in this state; 

    (7) a person who is not a resident of this state who sells, 
 solicits, or negotiates a contract of insurance for commercial 
 property and casualty risks to an insured with risks located in 
 more than one state insured under that contract, if the person 
 is otherwise licensed as an insurance producer to sell, solicit, 
 or negotiate that insurance in the state where the insured 
 maintains its principal place of business and the contract of 
 insurance insures risks located in that state; 

    (8) a salaried full-time employee who counsels or advises 
 the employee's employer relative to the insurance interests of 
 the employer or of the subsidiaries or business affiliates of 
 the employer if the employee does not sell or solicit insurance 
 or receive a commission; or 

    (9) rental vehicle companies and their employees in 
 connection with the offer of rental vehicle personal accident 
 insurance under section 72A.125. 

    HIST: 2001 c 117 art 1 s 5; 2002 c 379 art 1 s 21 

     60K.35 Fraternal benefit society representatives. 

    Representatives of fraternal benefit societies who solicit 
 and negotiate insurance contracts are considered to be insurance 
 producers and are subject to the licensing requirements of this 
 chapter, provided that no insurance producer's license is 
 required of: 

    (1) any officer, employee, or secretary of a fraternal 
 benefit society or of any subordinate lodge or branch who 
 devotes substantially all of that person's time to activities 
 other than the solicitation or negotiation of insurance 
 contracts and who receives no commission or other compensation 
 directly dependent upon the number or amount of contracts 
 solicited or negotiated; or 

    (2) any agent or representative of a fraternal benefit 
 society who devotes, or intends to devote, less than 50 percent 
 of that person's time to the solicitation and procurement of 
 insurance contracts for that society.  Any person who in the 
 preceding calendar year has solicited and procured life 
 insurance in excess of $50,000 face amount, or, in the case of 
 any other kinds of insurance that the society may write, on the 
 persons of more than 25 individuals, and who has received or 
 will receive a commission or other compensation in the total 
 amount of $1,000 or more, is presumed to be devoting, or 
 intending to devote, 50 percent of that person's time to the 
 solicitation or procurement of insurance contracts for that 
 society.  

    HIST: 2001 c 117 art 1 s 6 

     60K.36 Examinations. 

    Subdivision 1.    Requirement.  A resident individual 
 applying for an insurance producer license shall pass a written 
 examination unless exempt under subdivision 2 or section 
 60K.40.  The examination must test the knowledge of the 
 individual concerning the lines of authority for which the 
 application is made, the duties and responsibilities of an 
 insurance producer, and the insurance laws and rules of this 
 state.  Examinations required by this section must be approved 
 by the commissioner. 

    Subd. 2.    Examination not required.  A resident 
 individual applying for a limited lines credit insurance, title 
 insurance, travel baggage insurance, or bail bonds license is 
 not required to take a written examination. 

    Subd. 3.    Administration.  The commissioner may make 
 arrangements, including contracting with an outside testing 
 service, for administering examinations. 

    Subd. 4.    Course of study.  The examination must be 
 given only after the applicant has completed a program of 
 classroom studies in a school, which must not include a school 
 sponsored by, offered by, or affiliated with an insurance 
 company or its producers; except that this limitation does not 
 preclude a bona fide professional association of insurance 
 producers, not acting on behalf of an insurer, from offering 
 courses.  The course of study must consist of 30 hours of 
 classroom study devoted to the basic fundamentals of insurance 
 for those seeking a Minnesota license for the first time and 7.5 
 hours devoted to the line in which the producer seeks to be 
 licensed.  The program of studies or study course must have been 
 approved by the commissioner in order to qualify under this 
 subdivision.  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 must be 
 waived.  A certification of compliance by the organization 
 offering the course must accompany the applicant's license 
 application.  This program of studies in a school or a study 
 course does not apply to limited lines farm property liability 
 applicants or to variable life and variable annuity applicants. 

    Subd. 5.    Failure to appear or pass.  An individual 
 who fails to appear for the examination as scheduled or fails to 
 pass the examination shall reapply for an examination and remit 
 all required fees and forms before being rescheduled for another 
 examination. 

    Subd. 6.    Results; validity.  Examination results are 
 valid for three years from the date of the examination. 

    HIST: 2001 c 117 art 1 s 7 

     60K.37 Application for license. 

    Subdivision 1.    Resident insurance producer.  A person 
 is 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 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, obtains a resident license in, or claims to be a 
 resident of, any other state or jurisdiction or if the licensee 
 ceases to be a resident of this state.  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.  

    Subd. 2.    Individuals.  A person applying for a 
 resident insurance producer license shall make application to 
 the commissioner on the Uniform Application and declare under 
 penalty of refusal, suspension, or revocation of the license 
 that the statements made in the application are true, correct, 
 and complete to the best of the individual's knowledge and 
 belief.  Before approving the application, the commissioner 
 shall find that the individual: 

    (1) is at least 18 years of age; 

    (2) has not committed any act that is a ground for denial, 
 suspension, or revocation set forth in section 60K.43; 

    (3) has completed, where required by the commissioner, a 
 prelicensing course of study for the lines of authority for 
 which the person has applied; 

    (4) has paid the fees set forth in section 60K.55; and 

    (5) has successfully passed the examinations for the lines 
 of authority for which the person has applied. 

    Subd. 3.    Businesses.  (a) A business entity acting as 
 an insurance producer is required to obtain an insurance 
 producer license.  Application must be made using the Uniform 
 Business Entity Application.  Before approving the application, 
 the commissioner shall find that: 

    (1) the business entity has paid the fees set forth in 
 section 60K.55; and 

    (2) the business entity has designated an individual 
 licensed producer responsible for the business entity's 
 compliance with the insurance laws and rules of this state. 

    (b) A business entity insurance producer license does not 
 grant authority to any individual officer, director, partner, 
 member, or employee to act as an insurance producer. 

    Subd. 4.    Service of process.  Application for a 
 license under this chapter constitutes appointment of the 
 commissioner as the person's agent for service of process under 
 section 45.028. 

    Subd. 5.    Additional documentation.  The commissioner 
 may require any documents reasonably necessary to verify the 
 information contained in an application. 

    Subd. 6.    Limited line credit insurance instruction.  
 An insurer that sells, solicits, or negotiates any form of 
 limited line credit insurance shall provide to each individual 
 whose duties will include selling, soliciting, or negotiating 
 limited line credit insurance a program of instruction that may 
 be approved by the commissioner. 

    Subd. 7.    Variable life and variable annuity.  A 
 resident individual applying for a variable life and variable 
 annuity license shall demonstrate that the applicant holds a 
 current license as a life insurance producer. 

    HIST: 2001 c 117 art 1 s 8 

     60K.38 License. 

    Subdivision 1.    Issuance.  (a) Unless denied a license 
 under section 60K.43, a person who has met the requirements of 
 sections 60K.36 and 60K.37 must be issued an insurance producer 
 license.  An insurance producer may receive qualification for a 
 license in one or more of the lines of authority in paragraphs 
 (b) and (c). 

    (b) An individual insurance producer may receive 
 qualification for a license in one or more of the following 
 major lines: 

    (1) life insurance:  coverage on human lives including 
 benefits of endowment and annuities, and may include benefits in 
 the event of death or dismemberment by accident and benefits for 
 disability income; 

    (2) accident and health or sickness insurance:  coverage 
 for sickness, bodily injury, or accidental death, and may 
 include benefits for disability income; 

    (3) property insurance:  coverage for the direct or 
 consequential loss or damage to property of every kind; 

    (4) casualty insurance:  coverage against legal liability, 
 including that for death, injury, or disability, or damage to 
 real or personal property; 

    (5) variable life and variable annuity products insurance:  
 coverage provided under variable life insurance contracts and 
 variable annuities; and 

    (6) personal lines:  property and casualty insurance 
 coverage sold to individuals and families for primarily 
 noncommercial purposes. 

    (c) An individual insurance producer may receive 
 qualification for a license in one or more of the following 
 limited lines: 

    (1) limited line credit insurance; 

    (2) farm property and liability insurance; 

    (3) title insurance; 

    (4) travel baggage insurance; 

    (5) bail bonds; and 

    (6) any other line of insurance permitted under state laws 
 or rules. 

    Subd. 2.    Period of effectiveness.  An insurance 
 producer license remains in effect unless revoked or suspended 
 as long as the fee set forth in section 60K.55 is paid, 
 continuing education requirements for resident individual 
 producers are met, and all additional documentation required by 
 the commissioner is provided by the renewal date. 

    Subd. 3.    Lapsed license.  An individual insurance 
 producer who allows the license to lapse may, within 12 months 
 from the due date of the renewal fee, reinstate the license 
 without the necessity of passing a written examination.  
 However, a penalty in the amount of twice the unpaid renewal fee 
 must be paid by the individual for any renewal fee received 
 after the due date. 

    Subd. 4.    Waivers.  A licensed insurance producer who 
 is unable to comply with license renewal procedures due to 
 military service or some other extenuating circumstance, such as 
 a long-term medical disability, may request a waiver of those 
 procedures.  The producer may also request a waiver of any 
 examination requirement or any other fine or sanction imposed 
 for failure to comply with renewal procedures. 

    Subd. 5.    Contents.  The license must contain the 
 licensee's name, address, producer license number, and the date 
 of issuance, the lines of authority, the expiration date, and 
 any other information the commissioner considers necessary. 

    Subd. 6.    Name or address changes.  Licensees shall 
 inform the commissioner, by any means acceptable to the 
 commissioner, of a change of name or address within ten days of 
 the change.  

    Subd. 7.    Administrative assistance to commissioner. 
  In order to assist in the performance of the commissioner's 
 duties, the commissioner may contract with nongovernmental 
 entities, including the National Association of Insurance 
 Commissioners (NAIC) or any affiliates or subsidiaries that the 
 NAIC oversees, to perform any ministerial functions, including 
 the collection of fees, related to producer licensing that the 
 commissioner and the nongovernmental entity consider appropriate.

    HIST: 2001 c 117 art 1 s 9 

     60K.39 Nonresident licensing. 

    Subdivision 1.    Issuance.  Unless denied a license 
 under section 60K.43, a nonresident person shall receive a 
 nonresident producer license if: 

    (1) the person is currently licensed as a resident and in 
 good standing in the person's home state; 

    (2) the person has submitted the proper request for 
 licensure and has paid the fees required by section 60K.55; 

    (3) the person has submitted or transmitted to the 
 commissioner the application for licensure that the person 
 submitted to the person's home state, or in lieu of the same, a 
 completed Uniform Application; and 

    (4) the person's home state awards nonresident producer 
 licenses to residents of this state on the same basis. 

    Subd. 2.    Verification of licensing status.  The 
 commissioner may verify the producer's licensing status through 
 the producer database maintained by the National Association of 
 Insurance Commissioners, its affiliates, or subsidiaries. 

    Subd. 3.    Change of address.  A nonresident producer 
 who moves from one state to another state or a resident producer 
 who moves from this state to another state shall file a change 
 of address and provide certification from the new resident state 
 within ten days of the change of legal residence.  No fee or 
 license application is required. 

    Subd. 4.    Termination; resident license.  A 
 nonresident producer license terminates automatically when the 
 person's resident license is terminated for any reason. 

    Subd. 5.    Surplus lines producers.  (a) 
 Notwithstanding any other provision of sections 60K.30 to 
 60K.56, a person licensed as a surplus lines producer in the 
 person's home state shall receive a nonresident surplus lines 
 producer license under subdivision 1.  Except as to subdivision 
 1, nothing in this section otherwise amends or supersedes any 
 provision of sections 60A.195 to 60A.209. 

    (b) No surplus lines agent or broker licensed under 
 sections 60A.195 to 60A.209 may do business in this state unless 
 the agent or broker has complied with the requirements set forth 
 in section 60A.198, subdivision 3, paragraphs (b) to (d). 

    Subd. 6.    Limited lines producer.  Notwithstanding any 
 other provision of sections 60K.30 to 60K.56, a person licensed 
 as a limited line credit insurance or other type of limited 
 lines producer in the person's home state shall receive a 
 nonresident limited lines producer license, under subdivision 1, 
 granting the same scope of authority as granted under the 
 license issued by the producer's home state.  For the purposes 
 of this subdivision, limited line insurance is any authority 
 granted by the home state that restricts the authority of the 
 license to less than the total authority prescribed in the 
 associated major lines pursuant to section 60K.38, subdivision 
 1, clauses (1) to (6). 

    HIST: 2001 c 117 art 1 s 10; 2002 c 379 art 1 s 22,23; 2003 c 
 2 art 1 s 6 

     60K.40 Individuals licensed in another state; exemption 
  from examination. 

    Subdivision 1.    Availability.  An individual who 
 applies for an insurance producer license in this state who was 
 previously licensed for the same lines of authority in another 
 state is not required to complete any prelicensing education or 
 examination.  This exemption is only available if the person is 
 currently licensed in that state or if the application is 
 received within 90 days of the cancellation of the applicant's 
 previous license and if the prior state issues a certification 
 that, at the time of cancellation, the applicant was in good 
 standing in that state or the state's Producer Database records, 
 maintained by the National Association of Insurance 
 Commissioners, its affiliates, or subsidiaries, indicate that 
 the producer is or was licensed in good standing for the line of 
 authority requested. 

    Subd. 2.    Required application.  If a person licensed 
 as an insurance producer in another state who moves to this 
 state makes application within 90 days of establishing legal 
 residence to become a resident licensee under section 60K.37, no 
 prelicensing education or examination is required of that person 
 to obtain any line of authority previously held in the prior 
 state. 

    HIST: 2001 c 117 art 1 s 11 

     60K.41 Assumed names. 

    An insurance producer doing business under any name other 
 than the producer's legal name shall provide the commissioner 
 with documentation that the assumed name has been properly filed 
 with the secretary of state before using the assumed name. 

    HIST: 2001 c 117 art 1 s 12 

     60K.42 Temporary licensing. 

    Subdivision 1.    Commissioner's authority to grant.  
 The commissioner may issue a temporary insurance producer 
 license for a period not to exceed 180 days without requiring an 
 examination if the commissioner considers the temporary license 
 necessary for the servicing of an insurance business in the 
 following cases: 

    (1) to the surviving spouse or court-appointed personal 
 representative of a licensed insurance producer who dies or 
 becomes mentally or physically disabled to allow adequate time 
 for the sale of the insurance business owned by the producer or 
 for the recovery or return of the producer to the business or to 
 provide for the training and licensing of new personnel to 
 operate the producer's business; 

    (2) to a member or employee of a business entity licensed 
 as an insurance producer, upon the death or disability of an 
 individual designated in the business entity application or the 
 license; 

    (3) to the designee of a licensed insurance producer 
 entering active service in the armed forces of the United States 
 of America; or 

    (4) in any other circumstance where the commissioner 
 considers that the public interest will best be served by the 
 issuance of this license. 

    Subd. 2.    Limitations.  The commissioner may by order 
 limit the authority of any temporary licensee in any way 
 considered necessary to protect insureds and the public.  The 
 commissioner may require the temporary licensee to have a 
 suitable sponsor who is a licensed producer or insurer and who 
 assumes responsibility for all acts of the temporary licensee 
 and may impose other similar requirements designed to protect 
 insureds and the public.  The commissioner may by order revoke a 
 temporary license if the interests of insureds or the public are 
 endangered.  A temporary license may not continue after the 
 owner or the personal representative disposes of the business. 

    HIST: 2001 c 117 art 1 s 13 

     60K.43 License denial, nonrenewal, or revocation. 

    Subdivision 1.    Causes.  The commissioner may, by 
 order, restrict, censure, suspend, revoke, or refuse to issue or 
 renew an insurance producer's license or may levy a civil 
 penalty under section 45.027 or any combination of actions, for 
 any one or more of the following causes: 

    (1) providing incorrect, misleading, incomplete, or 
 materially untrue information in the licensing application; 

    (2) violating any insurance laws, including chapter 45 or 
 chapters 60A to 72A, or violating any regulation, subpoena, or 
 order of the commissioner or of another state's insurance 
 commissioner; 

    (3) obtaining or attempting to obtain a license through 
 misrepresentation or fraud; 

    (4) improperly withholding, misappropriating, or converting 
 any money or properties received in the course of doing 
 insurance business; 

    (5) misrepresenting the terms of an actual or proposed 
 insurance contract or application for insurance; 

    (6) having pled guilty, with or without explicitly 
 admitting guilt, pled nolo contendere, or been convicted of a 
 felony, gross misdemeanor, or misdemeanor involving moral 
 turpitude, including, but not limited to, assault or similar 
 conduct; 

    (7) having admitted or been found to have committed any 
 insurance unfair trade practice or fraud; 

    (8) using fraudulent, coercive, or dishonest practices, or 
 demonstrating incompetence, untrustworthiness, or financial 
 irresponsibility whether or not involving the business of 
 insurance in this state or elsewhere; 

    (9) having an insurance producer license, or its 
 equivalent, denied, suspended, or revoked, or having been the 
 subject of a fine or any other discipline in any other state, 
 province, district, or territory; 

    (10) forging another's name to an application for insurance 
 or to any document, whether or not related to an insurance 
 transaction; 

    (11) improperly using notes or any other reference material 
 to complete an examination for an insurance license; 

    (12) knowingly accepting insurance business from an 
 individual who is not licensed; 

    (13) failing to comply with an administrative or court 
 order imposing a child support obligation; 

    (14) failing to pay state income tax or comply with any 
 administrative or court order directing payment of state income 
 tax; 

    (15) being permanently or temporarily enjoined by any court 
 of competent jurisdiction from engaging in or continuing any 
 conduct or practice involving any aspect of the insurance 
 business; 

    (16) making any communication to a potential buyer that 
 gives the impression that the producer is acting on behalf of a 
 government agency; or 

    (17) while performing residential mortgage activity 
 regulated under chapter 58, violating any notification, 
 disclosure, or record-keeping requirement, or any standard of 
 conduct imposed by chapter 58. 

    Subd. 2.    Hearing rights.  (a) If the commissioner 
 determines that the producer is in violation of this section, 
 the commissioner may issue an order requiring a licensee to show 
 cause why any or all of the following should not occur: 

    (1) the revocation or suspension of the license; 

    (2) the censuring of the licensee; or 

    (3) the imposition of a civil penalty.  

    The order must be calculated to give reasonable notice of 
 the time and place for hearing on the matter and must state the 
 reasons for the entry of the order.  The commissioner may, by 
 order, summarily suspend a license pending final determination 
 of any order to show cause.  If a license is suspended pending 
 final determination of an order to show cause, a hearing on the 
 merits must be held within 30 days of the issuance of the order 
 of suspension.  All hearings must be conducted in accordance 
 with the provisions of chapter 14.  After the hearing, the 
 commissioner shall enter an order disposing of the matter as the 
 facts require.  If the licensee fails to appear at a hearing 
 after having been duly notified of it, the licensee shall be 
 considered in default, and the proceeding may be determined 
 against the licensee upon consideration of the order to show 
 cause, the allegations of which may be considered to be true.  

    (b) In the event that the action by the commissioner is to 
 nonrenew or to deny an application for a license, the 
 commissioner shall notify the applicant or licensee and advise, 
 in writing, the applicant or licensee of the reason for the 
 denial or nonrenewal of the applicant's or licensee's license.  
 The applicant or licensee may make written demand upon the 
 commissioner within 30 days for a hearing to determine the 
 reasonableness of the commissioner's action.  The hearing must 
 be held within 30 days and must be held pursuant to the 
 contested case provisions of chapter 14.  If no hearing is 
 requested within 30 days of service of the notice of nonrenewal 
 or denial, the nonrenewal or denial becomes final. 

    Subd. 3.    Actions against business entity.  The 
 license of a business entity may be suspended, revoked, or 
 refused if the commissioner finds, after hearing, that an 
 individual licensee's violation was known or should have been 
 known by one or more of the partners, officers, or managers 
 acting on behalf of the partnership or corporation and the 
 violation was not reported to the commissioner in a timely 
 manner. 

    Subd. 4.    Fine.  In addition to or in lieu of any 
 applicable denial, suspension, or revocation of a license, a 
 person may, after hearing, be subject to a civil fine according 
 to section 45.027, subdivision 6. 

    Subd. 5.    Other authority of the commissioner.  If a 
 license lapses, is surrendered, withdrawn, terminated, or 
 otherwise becomes ineffective, the commissioner may institute a 
 proceeding under this subdivision within two years after the 
 license was last effective and enter a revocation or suspension 
 order as of the last date on which the license was in effect, or 
 impose a civil penalty as provided for in section 45.027, 
 subdivision 6.  

    Subd. 6.    Conditions for relicensure.  A revocation of 
 a license prohibits the licensee from making a new application 
 for a license for at least two years from the effective date of 
 the revocation.  Further, the commissioner shall, as a condition 
 of reapplication, require the applicant to obtain a performance 
 bond issued by an insurer authorized to transact business in 
 this state in the amount of $20,000 or a greater amount the 
 commissioner considers appropriate for the protection of 
 citizens of this state in the event the commissioner grants the 
 application.  The bond must be filed with the commissioner, with 
 the state of Minnesota as obligee, conditioned for the prompt 
 payment to any aggrieved person entitled to payment of any 
 amounts received by the licensee or to protect any aggrieved 
 person from loss resulting from fraudulent, deceptive, 
 dishonest, or other prohibited practices arising out of any 
 transaction when the licensee was licensed or performed acts for 
 which a license is required under this chapter.  The bond 
 remains operative for as long as that licensee is licensed.  The 
 bond required by this subdivision must provide coverage for all 
 matters arising during the period of licensure.  

    HIST: 2001 c 117 art 1 s 14 

     60K.44 Tax clearance certificate. 

    Subdivision 1.    Requirement for issuance or renewal of 
 license.  In addition to the provisions of section 60K.43, the 
 commissioner may not issue or renew a license if the 
 commissioner of revenue notifies the commissioner and the 
 licensee or applicant for a license that the licensee or 
 applicant owes the state delinquent taxes in the amount of $500 
 or more.  The commissioner may issue or renew the license only 
 if:  

    (1) the commissioner of revenue issues a tax clearance 
 certificate; and 

    (2) the commissioner of revenue or the licensee or 
 applicant forwards a copy of the clearance certificate to the 
 commissioner.  

 The commissioner of revenue may issue a clearance certificate 
 only if the licensee or applicant does not owe the state any 
 uncontested delinquent taxes. 

    Subd. 2.    Definitions.  For purposes of this section, 
 the following terms have the meanings given them: 

    (1) "taxes" are all taxes payable to the commissioner of 
 revenue, including penalties and interest due on those taxes; 
 and 

    (2) "delinquent taxes" do not include a tax liability if (i)
 an administrative or court action that contests the amount or 
 validity of the liability has been filed or served, (ii) the 
 appeal period to contest the tax liability has not expired, or 
 (iii) the licensee or applicant has entered into a payment 
 agreement to pay the liability and is current with the payments. 

    Subd. 3.    Contested case hearing.  In lieu of the 
 notice and hearing requirements of section 60K.43, when a 
 licensee or applicant is required to obtain a clearance 
 certificate under this section, a contested case hearing must be 
 held if the licensee or applicant requests a hearing in writing 
 to the commissioner of revenue within 30 days of the date of the 
 notice provided in subdivision 1.  The hearing must be held 
 within 45 days of the date the commissioner of revenue refers 
 the case to the Office of Administrative Hearings.  
 Notwithstanding any law to the contrary, the licensee or 
 applicant must be served with 20 days' notice in writing 
 specifying the time and place of the hearing and the allegations 
 against the licensee or applicant.  The notice may be served 
 personally or by mail. 

    Subd. 4.    Identification required.  The commissioner 
 shall require all licensees or applicants to provide their 
 Social Security number and Minnesota business identification 
 number on all license applications.  Upon request of the 
 commissioner of revenue, the commissioner must provide to the 
 commissioner of revenue a list of all licensees and applicants, 
 including the name and address, Social Security number, and 
 business identification number.  The commissioner of revenue may 
 request a list of the licensees and applicants no more than once 
 each calendar year.  

    HIST: 2001 c 117 art 1 s 15 

     60K.45 Surrender of license. 

    The commissioner shall promptly notify the licensee and all 
 appointing insurers, where applicable, of any suspension, 
 revocation, or termination of the licensee's producer license by 
 the commissioner.  Upon receipt of the notice of suspension or 
 revocation of a license, the licensee shall immediately deliver 
 it to the commissioner. 

    HIST: 2001 c 117 art 1 s 16 

     60K.46 Required and prohibited acts. 

    Subdivision 1.    Personal solicitation of insurance 
 sales.  (a) For the purpose of this section, "personal 
 solicitation" means any contact by a producer, or any person 
 acting on behalf of a producer, made for the purpose of selling 
 or attempting to sell insurance, when either the producer or the 
 person acting for the producer contacts the buyer in person, by 
 telephone, or by electronic means, except:  

    (1) an attempted sale in which the buyer personally knows 
 the identity of the producer, the name of the general agency, if 
 any, which the producer represents, and the fact that the 
 producer is an insurance producer; 

    (2) an attempted sale in which the prospective purchaser of 
 insurance initiated the contact; or 

    (3) a personal contact which takes place at the producer's 
 place of business. 

    (b) Before a personal solicitation, the producer or person 
 acting for a producer shall, at the time of initial personal 
 contact with the potential buyer, clearly and expressly disclose 
 in writing: 

    (1) the name of the person making the contact; 

    (2) the name of the producer, general agency, or insurer 
 that the person represents; and 

    (3) the fact that the producer, agency, or insurer is in 
 the business of selling insurance.  

    If the initial personal contact is made by telephone, the 
 disclosures required by this subdivision need not be made in 
 writing.  

    Subd. 2.    Fees for services.  No person shall charge a 
 fee for any services rendered in connection with the 
 solicitation, negotiation, or servicing of any insurance 
 contract unless: 

    (1) before rendering the services, a written statement is 
 provided disclosing: 

    (i) the services for which fees are charged; 

    (ii) the amount of the fees; 

    (iii) that the fees are charged in addition to premiums; 
 and 

    (iv) that premiums include a commission; and 

    (2) all fees charged are reasonable in relation to the 
 services rendered.  

    Subd. 3.    Commissions or compensation.  A duly 
 licensed producer may pay commissions or assign or direct that 
 commissions be paid to a partnership of which the producer is a 
 member, employee, or agent, or to a corporation of which the 
 producer is an officer, employee, or agent. 

    Subd. 4.    Suitability of insurance.  In recommending 
 the purchase of any life, endowment, individual accident and 
 sickness, long-term care, annuity, life-endowment, or Medicare 
 supplement insurance to a customer, a producer must have 
 reasonable grounds for believing that the recommendation is 
 suitable for the customer and must make reasonable inquiries to 
 determine suitability.  The suitability of a recommended 
 purchase of insurance will be determined by reference to the 
 totality of the particular customer's circumstances, including, 
 but not limited to, the customer's income, the customer's need 
 for insurance, and the values, benefits, and costs of the 
 customer's existing insurance program, if any, when compared to 
 the values, benefits, and costs of the recommended policy or 
 policies.  This subdivision does not apply to limited lines 
 insurance under section 60K.38, subdivision 1, paragraph (c). 

    Subd. 5.    Premiums.  All premiums or other money 
 received by a producer from an insured or applicant for 
 insurance must be promptly deposited directly in a business 
 checking, savings, or other similar account maintained by the 
 producer or agency, unless the money is forwarded directly to 
 the designated insurer. 

    Subd. 6.    Privacy of insured.  Except as otherwise 
 provided by law, no insurance producer may disclose or cause to 
 be disclosed to any other person the identity of a person 
 insured through the producer without the consent of the insured. 

    Subd. 7.    Altering existing policies; written binders 
 required.  An insurance producer having express authority to 
 bind coverage, who orally agrees on behalf of an insurer to 
 provide insurance coverage, or to alter an existing insurance 
 agreement, shall execute and deliver a written memorandum or 
 binder containing the terms of the oral agreement to the insured 
 within three business days from the time the oral agreement is 
 entered. 

    HIST: 2001 c 117 art 1 s 17 

     60K.47 Liability for placing insurance in unauthorized 
  company. 

    Any person, whether or not licensed as an insurance 
 producer, who participates in any manner in the sale of any 
 insurance policy or certificate, or any other contract providing 
 benefits, for or on behalf of any company that is required to 
 be, but that is not authorized to engage in the business of 
 insurance in this state, other than pursuant to sections 60A.195 
 to 60A.209, is personally liable for all premiums, whether 
 earned or unearned, paid by the insured, and the premiums may be 
 recovered by the insured.  In addition, that person is 
 personally liable for any loss the insured has sustained or may 
 sustain if the loss is one resulting from a risk or hazard 
 covered in the issued policy, certificate, or contract, or which 
 would have been covered if the policy, certificate, or contract 
 had been issued to the purchaser of the insurance. 

    HIST: 2001 c 117 art 1 s 18 

     60K.48 Commissions. 

    Subdivision 1.    Payment prohibited.  An insurance 
 company or insurance producer shall not pay a commission, 
 service fee, brokerage, or other valuable consideration to a 
 person for selling, soliciting, or negotiating insurance in this 
 state if that person is required to be licensed under sections 
 60K.30 to 60K.56 and is not so licensed.  

    Subd. 2.    Acceptance prohibited.  A person shall not 
 accept a commission, service fee, brokerage, or other valuable 
 consideration for selling, soliciting, or negotiating insurance 
 in this state if that person is required to be licensed under 
 sections 60K.30 to 60K.56 and is not so licensed. 

    Subd. 3.    Exceptions.  (a) Renewal or other deferred 
 commissions may be paid to a person for selling, soliciting, or 
 negotiating insurance in this state if the person was required 
 to be licensed under sections 60K.30 to 60K.56 at the time of 
 the sale, solicitation, or negotiation and was so licensed at 
 that time. 

    (b) An insurer or insurance producer may pay or assign 
 commissions, service fees, brokerages, or other valuable 
 consideration to an insurance agency or to persons who do not 
 sell, solicit, or negotiate insurance in this state, unless the 
 payment would constitute an illegal rebate or otherwise violate 
 section 72A.20, subdivision 10.  A duly licensed producer may 
 pay commissions or assign or direct that commissions be paid to 
 a partnership of which the producer is a member, employee, or 
 agent, or to a corporation of which the agent is an officer, 
 employee, or agent. 

    HIST: 2001 c 117 art 1 s 19; 2002 c 379 art 1 s 24 

     60K.49 Appointments. 

    Subdivision 1.    Agent of insurer.  A person performing 
 acts requiring a producer license under this chapter is at all 
 times the agent of the insurer and not the insured. 

    Subd. 2.    Requirements.  Except as described in 
 subdivision 3, a licensed insurance producer shall not engage in 
 the business of insurance with an insurer unless the producer 
 either: 

    (1) has been appointed by that insurer; or 

    (2) has the permission of the insurer to transact business 
 on its behalf and obtains an appointment from the insurer within 
 15 days after the first application is submitted to the insurer. 

    Subd. 3.    Exception.  A licensed insurance producer 
 may, in response to the needs of a customer, procure insurance 
 in a class of insurance for which the producer is licensed from 
 an insurer by which the producer is not appointed, if the 
 transaction is consummated through an appointed agent of the 
 insurer. 

    Subd. 4.    Procedure.  To appoint a producer as its 
 agent, the appointing insurer shall file, in a format approved 
 by the commissioner, a notice of appointment within 15 days from 
 the date the agency contract is executed or the first insurance 
 application is submitted.  An insurer may also elect to appoint 
 a producer to all or some insurers within the insurer's holding 
 company system or group by the filing of a single appointment 
 request.  No insurer shall appoint a producer until the producer 
 obtains a license under this chapter.  

    Subd. 5.    Eligibility.  Upon receipt of the notice of 
 appointment, the commissioner shall verify within a reasonable 
 time not to exceed 30 days that the insurance producer is 
 eligible for appointment.  If the insurance producer is 
 determined to be ineligible for appointment, the commissioner 
 shall notify the insurer within five days of its determination. 

    Subd. 6.    Fees.  An insurer shall pay an appointment 
 fee, in the amount and method of payment set forth in section 
 60A.14, subdivision 1, for each insurance producer appointed by 
 the insurer.  

    Subd. 7.    Period of effectiveness.  Appointments shall 
 remain in force until voluntarily terminated by the insurer or 
 the producer, or until the license of the producer has been 
 terminated for any reason.  An insurer may terminate the 
 appointment at any time by notifying the commissioner and the 
 producer under section 60K.51.  If the insurer does not specify 
 an effective date, the termination is effective on the date the 
 notice is received by the commissioner.  Within 30 days after 
 the insurer gives notice to the commissioner, the insurer shall 
 furnish the producer with a current statement of the producer's 
 commission account.  

    HIST: 2001 c 117 art 1 s 20 

     60K.50 Limitation on appointments. 

    No insurer or representative of an insurer shall knowingly 
 appoint a producer who is known to the insurer or representative 
 to have engaged in any of the activities in section 60K.43 or to 
 be otherwise unqualified or unfit.  Upon discovery by the 
 insurer or a representative of the insurer that an appointed 
 producer has engaged in any of the activities in section 60K.43 
 or is otherwise unqualified or unfit, the insurer shall 
 immediately terminate the appointment and notify the 
 commissioner as set forth in section 60K.51.  No insurer shall 
 employ a producer whose license has been revoked. 

    HIST: 2001 c 117 art 1 s 21 

     60K.51 Notification to commissioner of termination. 

    Subdivision 1.    Termination for cause.  An insurer or 
 authorized representative of the insurer that terminates the 
 appointment, employment, contract, or other insurance business 
 relationship with a producer shall notify the commissioner 
 within 30 days following the effective date of the termination, 
 using a format acceptable to the commissioner, if the reason for 
 termination is one of the reasons set forth in section 60K.43 or 
 the insurer has knowledge that the producer was found by a 
 court, government body, or self-regulatory organization 
 authorized by law to have engaged in any of the activities in 
 section 60K.43.  Upon the written request of the commissioner, 
 the insurer shall provide additional information, documents, 
 records, or other data pertaining to the termination or activity 
 of the producer. 

    Subd. 2.    Termination without cause.  An insurer or 
 authorized representative of the insurer that terminates the 
 appointment, employment, or contract with a producer for any 
 reason not set forth in section 60K.43 shall notify the 
 commissioner within 30 days following the effective date of the 
 termination, using a format acceptable to the commissioner.  
 Upon written request of the commissioner, the insurer shall 
 provide additional information, documents, records, or other 
 data pertaining to the termination. 

    Subd. 3.    Ongoing notification requirement.  The 
 insurer or the authorized representative of the insurer shall 
 promptly notify the commissioner in a format acceptable to the 
 commissioner if, upon further review or investigation, the 
 insurer discovers additional information that would have been 
 reportable to the commissioner under subdivision 1 had the 
 insurer then known of its existence. 

    Subd. 4.    Copy of notification to be provided to 
 producer.  (a) Within 15 days after making the notification 
 required by subdivisions 1 to 3, the insurer shall mail a copy 
 of the notification to the producer at the producer's last known 
 address.  If the producer is terminated for cause for any of the 
 reasons listed in section 60K.43, the insurer shall provide a 
 copy of the notification to the producer at the producer's last 
 known address by certified mail, return receipt requested, 
 postage prepaid, or by overnight delivery using a nationally 
 recognized carrier. 

    (b) Within 30 days after the producer has received the 
 original or additional notification, the producer may file 
 written comments concerning the substance of the notification 
 with the commissioner.  The producer shall, by the same means, 
 simultaneously send a copy of the comments to the reporting 
 insurer.  The comments become a part of the commissioner's file 
 and must accompany every copy of a report distributed or 
 disclosed for any reason about the producer as permitted under 
 subdivision 6. 

    Subd. 5.    Immunities.  (a) In the absence of actual 
 malice, an insurer, the authorized representative of the 
 insurer, a producer, the commissioner, or an organization of 
 which the commissioner is a member and that compiles the 
 information and makes it available to other insurance 
 commissioners or regulatory or law enforcement agencies is not 
 subject to civil liability, and no civil cause of action arises 
 against these entities or their respective agents or employees, 
 as a result of any statement or information required by or 
 provided pursuant to this section or any information relating to 
 any statement that may be requested in writing by the 
 commissioner, from an insurer or producer.  The immunity granted 
 in this subdivision extends to a statement by a terminating 
 insurer or producer to an insurer or producer limited solely and 
 exclusively to whether a termination for cause under subdivision 
 1 was reported to the commissioner, provided that the propriety 
 of any termination for cause under subdivision 1 is certified in 
 writing by an officer or authorized representative of the 
 insurer or producer terminating the relationship. 

    (b) In any action brought against a person that may have 
 immunity under paragraph (a) for making any statement required 
 by this section or providing any information relating to any 
 statement that may be requested by the commissioner, the party 
 bringing the action shall plead specifically in any allegation 
 that paragraph (a) does not apply because the person making the 
 statement or providing the information did so with actual malice.

    (c) Paragraph (a) or (b) does not abrogate or modify any 
 existing statutory or common law privileges or immunities. 

    Subd. 6.    Classification of investigative data.  Any 
 documents, materials, or other information in the control or 
 possession of the Department of Commerce that is furnished by an 
 insurer, producer, or an employee or agent of an insurer or 
 producer acting on behalf of the insurer or producer, or 
 obtained by the commissioner in an investigation pursuant to 
 this section is classified as confidential data pursuant to 
 section 13.41, subdivision 4, or private data pursuant to 
 section 13.41, subdivision 2. 

    HIST: 2001 c 117 art 1 s 22; 2002 c 379 art 1 s 25 

     60K.52 Use and sharing of licensing and investigative 
  data. 

    Subdivision 1.    Commissioner's authority.  In order to 
 assist in the performance of the commissioner's duties under 
 sections 60K.30 to 60K.56, the commissioner: 

    (1) may share licensing data or any active or inactive 
 investigative data with other state, federal, and international 
 regulatory agencies, with the National Association of Insurance 
 Commissioners, its affiliates or subsidiaries, and with state, 
 federal, and international law enforcement authorities if the 
 recipient agrees to maintain the data in a manner consistent 
 with its data classification; 

    (2) may receive documents, materials, or information, 
 including otherwise confidential and privileged documents, 
 materials, or information, from the National Association of 
 Insurance Commissioners, its affiliates or subsidiaries, and 
 from regulatory and law enforcement officials of other foreign 
 or domestic jurisdictions, and shall maintain as confidential or 
 privileged any document, material, or information received with 
 notice or the understanding that it is confidential or 
 privileged under the laws of the jurisdiction that is the source 
 of the document, material, or information; and 

    (3) may enter into agreements governing sharing and use of 
 information consistent with this subdivision. 

    No waiver of any applicable privilege or claim of 
 confidentiality in the documents, materials, or information 
 occurs as a result of disclosure to the commissioner under this 
 section or as a result of sharing as authorized in this 
 subdivision. 

    Nothing in sections 60K.30 to 60K.56 prohibits the 
 commissioner from releasing information concerning final, 
 adjudicated actions, including for-cause terminations, to a 
 database or other clearinghouse service maintained by the 
 National Association of Insurance Commissioners, its affiliates, 
 or subsidiaries of the National Association of Insurance 
 Commissioners. 

    Subd. 2.    Penalties for failing to report.  An 
 insurer, the authorized representative of the insurer, or a 
 producer that fails to report as required under this section or 
 that is found to have reported with actual malice by a court of 
 competent jurisdiction may, after notice and hearing, have its 
 license or certificate of authority suspended or revoked and may 
 be fined in accordance with section 45.027. 

    HIST: 2001 c 117 art 1 s 23; 2002 c 379 art 1 s 26 

     60K.53 Reciprocity. 

    Subdivision 1.    Nonresident license waiver.  The 
 commissioner shall waive any requirements for a nonresident 
 license applicant with a valid license from the applicant's home 
 state, except the requirements imposed by section 60K.39, if the 
 applicant's home state awards nonresident licenses to residents 
 of this state on the same basis. 

    Subd. 2.    Continuing education requirements.  A 
 nonresident producer's satisfaction of that person's home 
 state's continuing education requirements for licensed insurance 
 producers constitutes satisfaction of this state's continuing 
 education requirements if the nonresident producer's home state 
 recognizes the satisfaction of its continuing education 
 requirements imposed upon producers from this state on the same 
 basis. 

    HIST: 2001 c 117 art 1 s 24 

     60K.54 Reporting of actions. 

    Subdivision 1.    Administrative actions.  A producer 
 shall report to the commissioner any administrative action taken 
 against the producer in another jurisdiction or by another 
 governmental agency in this state within 30 days of the final 
 disposition of the matter.  This report must include a copy of 
 the order, consent to order, or other relevant legal documents. 

    Subd. 2.    Criminal prosecutions.  Within 30 days of 
 the initial pretrial hearing date, a producer shall report to 
 the commissioner any criminal prosecution of the producer taken 
 in any jurisdiction.  The report must include a copy of the 
 initial complaint filed, the order resulting from the hearing, 
 and any other relevant legal documents.  In addition, a producer 
 shall report to the commissioner within ten days any conviction, 
 guilty plea, or plea of nolo contendere to any felony or gross 
 misdemeanor.  

    HIST: 2001 c 117 art 1 s 25 

     60K.55 Fees. 

    Subdivision 1.    Renewal fees.  Each producer licensed 
 under this chapter shall pay a renewal fee as prescribed by 
 subdivision 2. 

    Subd. 2.    Licensing fees.  (a) In addition to fees 
 provided for examinations, each insurance producer licensed 
 under this chapter shall pay to the commissioner a fee of: 

    (1) $40 for an initial life, accident and health, property, 
 or casualty license issued to an individual insurance producer, 
 and a fee of $40 for each renewal; 

    (2) $75 for an initial variable life and variable annuity 
 license issued to an individual insurance producer, and a fee of 
 $50 for each renewal; 

    (3) $80 for an initial personal lines license issued to an 
 individual insurance producer, and a fee of $80 for each 
 renewal; 

    (4) $80 for an initial limited lines license issued to an 
 individual insurance producer, and a fee of $80 for each 
 renewal; 

    (5) $200 for an initial license issued to a business 
 entity, and a fee of $150 for each renewal; and 

    (6) $500 for an initial surplus lines license, and a fee of 
 $500 for each renewal. 

    (b) Initial licenses issued under this chapter are valid 
 for a period not to exceed 24 months and expire on October 31 of 
 the renewal year assigned by the commissioner.  Each renewal 
 insurance producer license is valid for a period of 24 months.  
 Licensees who submit renewal applications postmarked or 
 delivered on or before October 15 of the renewal year may 
 continue to transact business whether or not the renewal license 
 has been received by November 1.  Licensees who submit 
 applications postmarked or delivered after October 15 of the 
 renewal year must not transact business after the expiration 
 date of the license until the renewal license has been received. 

    (c) All fees are nonreturnable, except that an overpayment 
 of any fee may be refunded upon proper application.  

    HIST: 2001 c 117 art 1 s 26 

     60K.56 Continuing insurance education. 

    Subdivision 1.    Definition.  For the purposes of this 
 section, "course" means a course, program of instruction, or 
 seminar of continuing insurance education.  A "professional 
 designation examination" means a written, proctored, and graded 
 examination the passage of which leads to a bona fide insurance 
 or financial planning professional designation used by insurance 
 producers.  

    Subd. 2.    Applicability.  This section applies to all 
 natural persons licensed by this state to sell lines of 
 insurance for which licensing examinations are required.  

    Subd. 3.    Exemptions.  This section does not apply to 
 persons soliciting or selling solely on behalf of companies 
 organized and operating according to chapter 67A. 

    Subd. 4.    Powers of the commissioner.  (a) The 
 commissioner shall make the final determination as to 
 accreditation and assignment of credit hours for courses.  

    (b) The commissioner shall adopt procedures for reporting 
 compliance with the minimum education requirement.  

    (c) The commissioner shall adopt rules according to chapter 
 14 to carry out the purposes of this section.  

    Subd. 5.    Criteria for course accreditation.  (a) The 
 commissioner may accredit a course only to the extent it is 
 designed to impart substantive and procedural knowledge of the 
 insurance field.  The burden of demonstrating that the course 
 satisfies this requirement is on the individual or organization 
 seeking accreditation.  The commissioner shall approve any 
 educational program approved by Minnesota Continuing Legal 
 Education relating to the insurance field.  The commissioner is 
 authorized to establish a procedure for renewal of course 
 accreditation. 

    (b) The commissioner shall approve or disapprove 
 professional designation examinations that are recommended for 
 approval by the advisory task force.  In order for an insurance 
 producer to receive full continuing education credit for a 
 professional designation examination, the producer must pass the 
 examination.  A producer may not receive credit for classroom 
 instruction preparing for the professional designation 
 examination and also receive continuing education credit for 
 passing the professional designation examination. 

    (c) The commissioner may not accredit a course:  

    (1) that is designed to prepare students for a license 
 examination; 

    (2) in mechanical office or business skills, including 
 typing, speedreading, use of calculators, or other machines or 
 equipment; 

    (3) in sales promotion, including meetings held in 
 conjunction with the general business of the licensed agent; or 

    (4) in motivation, the art of selling, psychology, or time 
 management. 

    Subd. 6.    Minimum education requirement.  Each person 
 subject to this section shall complete a minimum of 30 credit 
 hours of courses accredited by the commissioner during each 
 24-month licensing period.  Any person whose initial licensing 
 period extends more than six months shall complete 15 hours of 
 courses accredited by the commissioner during the initial 
 license period.  Any person teaching or lecturing at an 
 accredited course qualifies for three times the number of credit 
 hours that would be granted to a person completing the 
 accredited course.  No more than one-half of the credit hours 
 per licensing period required under this section may be credited 
 to a person for attending any combination of courses either 
 sponsored by, offered by, or affiliated with an insurance 
 company or its agents; or offered using new delivery technology, 
 including computer, interactive technology, and the Internet.  
 Courses sponsored by, offered by, or affiliated with an 
 insurance company or agent may restrict its students to agents 
 of the company or agency. 

    Subd. 7.    Waiver of requirements.  (a) The 
 commissioner may grant a waiver or an extension of time up to 90 
 days to complete the minimum education requirement to an 
 individual upon a showing of good cause.  It is the licensed 
 person's responsibility to request a waiver or extension on a 
 form prescribed by the commissioner.  As of the day the licensed 
 person properly files a request for a waiver or extension, the 
 license remains in effect until the commissioner notifies the 
 licensed person of the commissioner's decision.  The 
 commissioner may approve a waiver or extension subject to any 
 reasonable conditions.  The person's license remains in effect 
 during the compliance period determined by the commissioner.  If 
 the licensed person fails to comply with any reasonable 
 conditions imposed by the commissioner, the commissioner shall 
 terminate the license.  If the request for a waiver or extension 
 is denied by the commissioner, the licensed person shall have 30 
 days within which to satisfy the minimum education requirement 
 involved in the request for a waiver or extension.  If the 
 minimum education requirement is not satisfied within the 
 compliance period, the commissioner shall terminate the person's 
 license.  

    (b) Upon application on a form prescribed by the 
 commissioner, the commissioner may grant a waiver of the minimum 
 education requirement to a licensee who is no longer actively 
 engaged in the solicitation and sale of insurance.  A licensed 
 person seeking a waiver from the requirements of this section 
 may be required to submit information to the commissioner that 
 substantiates the person's retirement or inactive status.  A 
 licensed person receiving a waiver from the commissioner may 
 maintain and renew a license but may not solicit or sell new 
 insurance business while this waiver is in effect.  A licensee 
 may, for a fee, continue to service an insurance policy for 
 which the licensee is the producer of record, if the policy is 
 in force at the time the waiver is granted.  An insurer may not 
 terminate a service contract or refuse to pay compensation 
 because the waiver does not allow the licensee to solicit or 
 sell new insurance.  

    For the purposes of receiving renewal commissions and other 
 benefits or compensation from insurers, an agent receiving a 
 waiver under this paragraph is considered to be the holder of a 
 valid insurance producer license in this state.  

    Subd. 8.    Reporting.  (a) After completing the minimum 
 education requirement, each person subject to this section shall 
 file or cause to be filed a compliance report in accordance with 
 the procedures adopted by the commissioner.  A producer must not 
 claim credit for continuing education not actually completed at 
 the date of filing the report. 

    (b) An institution offering an accredited course shall 
 comply with the procedure for reporting compliance adopted by 
 the commissioner.  

    (c) If a person subject to this section completes a 
 nonaccredited course, that person may submit an application of 
 the commissioner for approval of the course accompanied by a fee 
 of not more than $10 payable to the state of Minnesota for 
 deposit in the general fund.  Upon a determination that the 
 course satisfies the criteria for course accreditation, the 
 commissioner may approve the nonaccredited course and shall so 
 inform the person.  

    Subd. 9.    Enforcement.  If a person subject to this 
 section fails to complete the minimum education or reporting 
 requirement or to pay the prescribed fees for any licensing 
 period, no license may be renewed or continued in force for that 
 person for any class of insurance beginning November 1 of the 
 year due and that person may not act as an insurance producer 
 until the person has demonstrated to the satisfaction of the 
 commissioner that all requirements of this section have been 
 complied with or that a waiver or extension has been obtained.  

    HIST: 2001 c 117 art 1 s 27; 2002 c 330 s 4-6