297I.06 SURCHARGES ON FIRE SAFETY PREMIUMS.
Subdivision 1. Insurance policies surcharge.
(a) Except as otherwise provided in
subdivision 2, each insurer engaged in writing policies of homeowner's insurance authorized
in section 60A.06, subdivision 1, clause (1)(c), or commercial fire policies or commercial
nonliability policies shall collect a surcharge equal to 0.65 percent of the gross premiums and
assessments, less return premiums, on direct business received by the company, or by its agents
for it, for homeowner's insurance policies, commercial fire policies, and commercial nonliability
insurance policies in this state.
(b) The surcharge amount collected under paragraph (a) may not be considered premium
for any other purpose. The surcharge amount must be separately stated on either a billing or
policy declaration sent to an insured.
(c) Amounts collected by the commissioner under this section must be deposited in the fire
safety account established pursuant to subdivision 3.
Subd. 2. Exemptions.
(a) This section does not apply to a farmers' mutual fire insurance
company or township mutual fire insurance company in Minnesota organized under chapter 67A.
(b) An insurer described in section 297I.05, subdivisions 3 and 4, authorized to transact
business in Minnesota shall elect to remit to the Department of Revenue for deposit in the fire
safety account either (1) the surcharge amount collected under this section, or (2) a surcharge
of one-half of one percent on the gross fire premiums and assessments, less return premiums,
on all direct business received by the insurer or agents of the insurer in Minnesota, in cash or
otherwise, during the year.
(c) For purposes of this subdivision, "gross fire premiums and assessments" includes
premiums on policies covering fire risks only on automobiles, whether written or under floater
form or otherwise.
Subd. 3. Fire safety account, annual transfers, allocation.
A special account, to be known
as the fire safety account, is created in the state treasury. The account consists of the proceeds
under subdivisions 1 and 2. $468,000 in fiscal year 2008 and $2,268,000 in each year thereafter is
transferred from the fire safety account in the special revenue fund to the general fund to offset the
loss of revenue caused by the repeal of the one-half of one percent tax on fire insurance premiums.
The general fund base appropriation for the fire marshal program is reduced by $2,832,000 in
fiscal year 2008 and each year thereafter. The base funding for the fire marshal program from
the fire safety account in the special revenue fund shall be $2,832,000 in fiscal year 2008 and
each year thereafter.
History: 2006 c 217 s 1
NOTE: This section, as added by Laws 2006, chapter 217, section 1, is effective July 1, 2007,
and applies to policies written or renewed on or after that date. Laws 2006, chapter 217, section 5.