CHAPTER 60K. INSURANCE PRODUCERS
Table of Sections
|60K.01||Repealed, 2001 c 117 art 1 s 28
|60K.02||Repealed, 2001 c 117 art 1 s 28
|60K.03||Repealed, 2001 c 117 art 1 s 28
|60K.04||Repealed, 2001 c 117 art 1 s 28
|60K.05||Repealed, 2001 c 117 art 1 s 28
|60K.06||Repealed, 2001 c 117 art 1 s 28
|60K.08||Repealed, 1999 c 177 s 88
|60K.081||Repealed, 2001 c 117 art 1 s 28
|60K.09||Repealed, 2001 c 117 art 1 s 28
|60K.10||Repealed, 2001 c 117 art 1 s 28
|60K.11||Repealed, 2001 c 117 art 1 s 28
|60K.12||Repealed, 2001 c 177 art 1 s 28
|60K.13||Repealed, 2001 c 117 art 1 s 28
|60K.14||Repealed, 2001 c 117 art 1 s 28
|60K.15||Repealed, 2001 c 117 art 1 s 28
|60K.16||Repealed, 2001 c 117 art 1 s 28
|60K.17||Repealed, 2001 c 117 art 1 s 28
|60K.18||Repealed, 2001 c 117 art 1 s 28
|60K.20||Repealed, 2001 c 117 art 1 s 28
|60K.30||PURPOSE AND SCOPE.|
|60K.34||EXCEPTIONS TO LICENSING.|
|60K.35||FRATERNAL BENEFIT SOCIETY REPRESENTATIVES.|
|60K.37||APPLICATION FOR LICENSE.|
|60K.40||INDIVIDUALS LICENSED IN ANOTHER STATE; EXEMPTION FROM EXAMINATION.|
|60K.43||LICENSE DENIAL, NONRENEWAL, OR REVOCATION.|
|60K.44||TAX CLEARANCE CERTIFICATE.|
|60K.45||SURRENDER OF LICENSE.|
|60K.46||REQUIRED AND PROHIBITED ACTS.|
|60K.47||LIABILITY FOR PLACING INSURANCE IN UNAUTHORIZED COMPANY.|
|60K.50||LIMITATION ON APPOINTMENTS.|
|60K.51||NOTIFICATION TO COMMISSIONER OF TERMINATION.|
|60K.52||USE AND SHARING OF LICENSING AND INVESTIGATIVE DATA.|
|60K.54||REPORTING OF ACTIONS.|
|60K.56||CONTINUING INSURANCE EDUCATION.|
Subdivision 1.[Repealed, 2001 c 117 art 1 s 28
Subd. 2.[Repealed, 2001 c 117 art 1 s 28
Subd. 3.[Repealed, 2001 c 117 art 1 s 28
Subd. 4.[Repealed, 2001 c 117 art 1 s 28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Subd. 5.[Repealed, 2001 c 117 art 1 s 28
Subd. 6.[Repealed, 2001 c 117 art 1 s 28
Subd. 7.[Repealed, 2001 c 117 art 1 s 28
Subd. 8.[Repealed, 2001 c 117 art 1 s 28
Subd. 9.[Repealed, 2001 c 117 art 1 s 28
Subd. 10.[Repealed, 2001 c 117 art 1 s 28
Subd. 11.[Repealed, 2001 c 117 art 1 s 28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.30 PURPOSE AND SCOPE.
govern the qualifications and procedures for the licensing of
(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
, except as provided in sections
History: 2001 c 117 art 1 s 1
Subdivision 1. Scope.
For purposes of sections
, the terms in subdivisions
2 to 18 have the meanings given them. The definitions in section
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
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
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.
History: 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
. The license itself does not create any authority, actual, apparent, or inherent, in the holder
to represent or commit an insurance carrier.
History: 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.
History: 2001 c 117 art 1 s 4
60K.34 EXCEPTIONS TO LICENSING.
Subdivision 1. License not required.
Nothing in sections
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
(1) a fraternal benefit society representative exempted pursuant to section
(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
(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
(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
History: 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;
(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.
History: 2001 c 117 art 1 s 6
Subdivision 1. Requirement.
A resident individual applying for an insurance producer
license shall pass a written examination unless exempt under subdivision 2 or section
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, mobile telephone 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
History: 2001 c 117 art 1 s 7; 2005 c 100 s 3
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.
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
(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
(5) has successfully passed the examinations for the lines of authority for which the person
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
(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
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.
History: 2001 c 117 art 1 s 8; 2005 c 100 s 4
Subdivision 1. Issuance.
(a) Unless denied a license under section
, a person who
has met the requirements of sections
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
(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) mobile telephone insurance; and
(6) bail bonds.
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
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
History: 2001 c 117 art 1 s 9; 2005 c 100 s 5
60K.39 NONRESIDENT LICENSING.
Subdivision 1. Issuance.
Unless denied a license under section
, 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
(2) the person has submitted the proper request for licensure and has paid the fees required
(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
(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 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
, 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
(b) No surplus lines agent or broker licensed under sections
business in this state unless the agent or broker has complied with the requirements set forth in
60A.198, subdivision 3
, paragraphs (b) to (d).
Subd. 6. Limited lines producer.
Notwithstanding any other provision of sections
, 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
, clauses (1) to (6).
History: 2001 c 117 art 1 s 10; 2002 c 379 art 1 s 22,23; 2003 c 2 art 1 s 6; 2005 c 100 s 6
60K.40 INDIVIDUALS LICENSED IN ANOTHER STATE; EXEMPTION FROM
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
, no prelicensing education or examination is
required of that person to obtain any line of authority previously held in the prior state.
History: 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.
History: 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
(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.
History: 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
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
(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
(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
(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
(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,
(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
(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
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.
History: 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
, 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
(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
, 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.
History: 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.
History: 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
(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 forward
a memorandum or binder containing the terms of the oral agreement to the insured within
five business days from the time the oral agreement is entered, unless the insurer forwards the
information. The memorandum of coverage or binder may be forwarded by mail, facsimile, or
electronically. The memorandum of coverage or binder must be forwarded by mail, unless the
insured authorizes facsimile or electronic transmission of it. A memorandum of coverage or
binder must be provided by the insurer to the policyholder upon request.
History: 2001 c 117 art 1 s 17; 2005 c 74 s 8
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
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.
History: 2001 c 117 art 1 s 18
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
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
and is not
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
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.
History: 2001 c 117 art 1 s 19; 2002 c 379 art 1 s 24
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
. 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.
History: 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
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
otherwise unqualified or unfit, the insurer shall immediately terminate the appointment and notify
the commissioner as set forth in section
. No insurer shall employ a producer whose
license has been revoked.
History: 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
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
. 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
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
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
, 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
13.41, subdivision 2
History: 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
, 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
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
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
History: 2001 c 117 art 1 s 23; 2002 c 379 art 1 s 26
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
, 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.
History: 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.
History: 2001 c 117 art 1 s 25
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) $50 for an initial life, accident and health, property, or casualty license issued to an
individual insurance producer, and a fee of $50 for each renewal;
(2) $50 for an initial variable life and variable annuity license issued to an individual
insurance producer, and a fee of $50 for each renewal;
(3) $50 for an initial personal lines license issued to an individual insurance producer, and a
fee of $50 for each renewal;
(4) $50 for an initial limited lines license issued to an individual insurance producer, and a
fee of $50 for each renewal;
(5) $200 for an initial license issued to a business entity, and a fee of $200 for each renewal;
(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.
History: 2001 c 117 art 1 s 26; 1Sp2005 c 1 art 4 s 5
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
(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 sales promotion; or
(3) in motivation, the art of selling, or psychology.
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. A licensee may obtain up to five
hours of the credit hours per licensing period from classes in the area of professional development
including, but not limited to, best practices, ethics, privacy protection, customer/client, personal
and safety awareness, software applications, agency management, claims settlement, business
perpetuation, and disaster planning. 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.
History: 2001 c 117 art 1 s 27; 2002 c 330 s 4-6; 2006 c 204 s 7,8