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    Subdivision 1. Terms. Unless the language or context clearly indicates that a different
meaning is intended, the following terms shall, for the purposes of chapters 60A to 72A, 69, 70A
and 299F, have the meanings ascribed to them.
    Subd. 1a. Association or associations. (a) "Association" or "associations" means an
organized body of people who have some interest in common and that has at the onset a minimum
of 100 persons; is organized and maintained in good faith for purposes other than that of
obtaining insurance; and has a constitution and bylaws which provide that: (1) the association or
associations hold regular meetings not less frequently than annually to further purposes of the
members; (2) except for credit unions, the association or associations collect dues or solicit
contributions from members; (3) the members have voting privileges and representation on the
governing board and committees, which provide the members with control of the association
including the purchase and administration of insurance products offered to members; and (4) the
members are not, within the first 30 days of membership, directly solicited, offered, or sold an
insurance policy if the policy is available as an association benefit.
(b) An association may apply to the commissioner for a waiver of the 30-day waiting period
to that association. The commissioner may grant the waiver upon a finding of at least three of
the following: (1) the association is in full compliance with this subdivision; (2) sanctions have
not been imposed against the association as a result of significant disciplinary action by the
commissioner; (3) at least 80 percent of the association's income comes from dues, contributions,
or sources other than income from the sale of insurance; or (4) the association has been organized
and maintained for at least ten years.
    Subd. 2. Commissioner. "Commissioner" means the commissioner of commerce of the state
of Minnesota and, in the commissioner's absence or disability, a deputy or other person duly
designated to act in the commissioner's place.
    Subd. 2a. Continued. An insurance policy that is issued for a term in excess of one year or
that has no specified term or that is designated as being continuous is "continued" each year on
the anniversary date of the issuance of the policy.
    Subd. 2b. Filed. In cases where a law requires documents to be filed with the commissioner,
the documents will be considered filed when they are received by the Department of Commerce.
    Subd. 3. Insurance. (a) "Insurance" is any agreement whereby one party, for a consideration,
undertakes to indemnify another to a specified amount against loss or damage from specified
causes, or to do some act of value to the assured in case of such loss or damage. A program of
self-insurance, self-insurance revolving fund or pool established under section 471.981 is not
insurance for purposes of this subdivision.
(b) [Expired]
    Subd. 4. Company or insurance company. "Company" or "insurance company" includes
every insurer, corporation, business trust, or association engaged in insurance as principal, but for
purposes of this subdivision does not include a political subdivision providing self-insurance or
establishing a pool under section 471.981, subdivision 3.
    Subd. 4a. Mutual property and casualty insurance company. "Mutual property and
casualty insurance company" includes a property and casualty insurance company that was
converted to a stock company after December 31, 1987, and before January 1, 1994, if the
company was controlled on the date of conversion by a mutual life insurance company and so
long as the company continues to be controlled by a mutual life insurance company.
    Subd. 5. Domestic. "Domestic" shall designate those companies incorporated or organized in
this state.
    Subd. 6. Foreign. "Foreign," when used without limitations, shall designate those companies
incorporated or organized in any other state or country.
    Subd. 7. Insurance agent or insurance agency. An "insurance agent" or "insurance agency"
is an insurance producer licensed under sections 60K.30 to 60K.56 acting under express authority
from, and an appointment by, an insurer and on its behalf to solicit insurance, or to appoint
other insurance producers to solicit insurance, or to write and countersign policies of insurance,
or to collect premiums therefor within this state, or to exercise any or all these powers when
so authorized by the insurer. The term "person" includes a natural person, a partnership, a
corporation, or other entity, including an insurance agency.
    Subd. 8.[Repealed, 1981 c 307 s 22]
    Subd. 9. Net assets. "Net assets" means that portion of the excess of the entire assets of an
insurance company over its entire liabilities, exclusive of capital, and inclusive of policy liability,
available for the payment of its obligations, including capital stock in this state and including as
assets deferred premiums on policies written within three months and actually in force; and, in the
case of a mutual marine or fire and marine company, its subscription funds and premium notes
not more than 30 days past due and uncollected. In the case of a mutual fire insurance company,
there shall be included as assets premium notes absolutely payable within six months from date
and given for policies actually in force, when such notes are not more than 30 days overdue.
Unpaid guaranty fund subscriptions shall not be included as assets, and guaranty fund certificates
upon which there is no liability of the company until all of its other obligations and liabilities
are paid shall not be included as a liability.
    Subd. 10. Earned premiums. "Earned premiums" includes gross premiums charged on all
policies written, including all determined excess and additional premiums, less return premiums,
other than premiums returned to policyholders as dividends, and less reinsurance premiums
and premiums on policies canceled, and less unearned premiums on policies in force. Any
participating company which has charged in its premiums a loading solely for dividends shall not
be required to include such loading in its earned premiums; provided, a statement of the amount
of such loading has been filed and approved by the commissioner.
    Subd. 11. Unearned premiums, insurance reserve, net value policies, and premium
reserve. "Unearned premiums," "insurance reserve," "net value policies," and "premium reserve"
severally refer to the liability of an insurance company upon its insurance contracts other than
accrued claims computed by rules on valuation herein established.
    Subd. 12. Profits. "Profits" of a mutual insurance company means that portion of its net
earnings not required for payment of losses and expenses, nor set apart for any lawful purposes.
    Subd. 13. Loss payments and loss expense payments. The terms "loss payments" and
"loss expense payments" include all payments to claimants, including payments for medical and
surgical attendance, legal expense, salaries and expenses of investigators, adjusters, and field
representatives, rents, stationery, telegraph and telephone charges, postage, salaries and expenses
of office employees, home office expenses, and all other payments made on account of claims,
whether such payments shall be allocated to specific claims or unallocated.
    Subd. 14. Compensation. The term "compensation" relates to all insurance effected by
virtue of statutes providing compensation to employees for personal injuries irrespective of
fault of the employer.
    Subd. 15. Liability. The term "liability" relates to all insurance, except compensation
insurance, against loss or damage from accident to or injuries suffered by an employee or other
person and for which the insured is liable.
    Subd. 16. Department of Commerce. "Department of Commerce" of the state of Minnesota
also means Department of Commerce or commissioner of commerce.
    Subd. 17. Leasehold estate. The term "leasehold estate" means an estate in land which
includes the ground lease covering the land and any improvements thereon.
    Subd. 18. State. "State" means any state of the United States of America, the District of
Columbia, the Commonwealth of Puerto Rico and any other possessions of the United States.
    Subd. 19. Alien. "Alien" means an insurer domiciled outside of the United States, but
conducting business within the United States.
    Subd. 20. Assume. "Assume" means to accept all or part of a ceding company's insurance or
reinsurance on a risk or exposure.
    Subd. 21. Cede. "Cede" means to pass on to another insurer all or part of the insurance
written by an insurer for the purpose of reducing the possible liability of the insurer.
    Subd. 22. Cession. "Cession" means the unit of insurance passed to a reinsurer by an insurer
which issued a policy to the insured.
    Subd. 23. Facultative reinsurance. "Facultative reinsurance" means the reinsurance of part
or all of the insurance provided by a single policy, with separate negotiation for each cession.
    Subd. 24. Reinsurer. "Reinsurer" means an insurer which assumes the liability of another
insurer through reinsurance.
    Subd. 25. Retrocession. "Retrocession" means a transaction in which a reinsurer cedes to
another reinsurer all or part of the reinsurance that the reinsurer had previously assumed.
    Subd. 26. United States branch. "United States branch" means the business unit through
which business is transacted within the United States by an alien insurer.
    Subd. 27. Admitted assets. "Admitted assets" means the assets as shown by the company's
annual statement on December 31 valued according to valuation regulations prescribed by the
National Association of Insurance Commissioners and procedures adopted by the National
Association of Insurance Commissioners' financial condition Ex 4 subcommittee if not addressed
in another section, unless the commissioner requires or finds another method of valuation
reasonable under the circumstances.
    Subd. 28. Group insurance. "Group insurance" means that form of insurance coverage
sponsored by:
(1) an employer covering not less than two employees and which may include the
employees' dependents, consisting of husband, wife, children, and actual dependents residing
in the household, written under a master policy issued to any employer, or group of employers
who have joined into an arrangement for the purposes of providing the employees insurance for
their individual benefit. Employees' dependents, consisting of husband, wife, children, and actual
dependents residing in the same household, are not employees for purposes of this definition
except for a spouse employed on a regular full-time basis by the same employer. This clause does
not apply to chapter 62L;
(2) an association to provide insurance to its members; or
(3) a creditor to provide life insurance to insure its debtors in connection with real estate
mortgage loans, in an amount not to exceed the actual or scheduled amount of their indebtedness.
    Subd. 29. Multiple employer trust. "Multiple employer trust" means a trust organized for
the benefit of two or more employers for the purpose of providing health insurance coverage to
employees and dependents.
History: 1967 c 395 art 1 s 2; 1969 c 494 s 1,2; 1971 c 24 s 9; 1980 c 529 s 1,2; 1981 c
307 s 1; 1983 c 289 s 114 subd 1; 1983 c 328 s 1; 1984 c 655 art 1 s 92; 1Sp1985 c 10 s 49;
1986 c 444; 1989 c 260 s 1; 1991 c 325 art 1 s 1-9; art 10 s 1; 1992 c 564 art 1 s 13; art 3 s
1; 1994 c 485 s 4; 1994 c 587 art 1 s 1; 1994 c 625 art 8 s 1; 1995 c 234 art 7 s 1; 1999 c 177
s 1,2; 2001 c 117 art 2 s 3

Official Publication of the State of Minnesota
Revisor of Statutes