60A.18 SALE BY VENDING MACHINES; SCOPE AND REQUIREMENTS.
Subdivision 1. General requirement.
No insurance shall be offered for sale, issued or sold
by or from any vending machine or appliance or any other medium, device or object designed or
used for vending purposes, herein called a device, except as provided in this section.
Subd. 2. Conditions.
Resident insurance agents and solicitors licensed under this section
to solicit for and to sell policies of personal travel accident insurance providing benefits for
accidental bodily injury or accidental death may also solicit applications for and issue or sell such
insurance by means of devices supervised by them and placed in locations for convenience of the
traveling public, upon the following conditions only:
(1) that each policy to be sold by or from a device is reasonably suited for sale and issuance
through a device, and that use of such device therefor in a particular proposed location would be
of material convenience to the traveling public;
(2) that the type of device proposed to be used is reasonably suitable and practical for the
(3) that reasonable means, as determined by the commissioner, are provided for informing
the prospective purchaser of any such policy of the benefits, limitations and exclusions of the
policy, the premium rates therefor, the name and address of the agent and the name and home
office address of the insuring company;
(4) that such device shall be so constructed and operated that it shall retain, or shall be
provided with a suitable place for deposit and safe keeping of, a copy of the application, which
shall show the date of the application, name and address of the applicant and the beneficiary,
and the amount of insurance;
(5) that no policy of insurance sold by or from a device shall be for a period of time longer
than the duration of a specified one-way trip or round trip of not to exceed 180 days;
(6) that such device shall have provided on it or immediately adjacent thereto, in a prominent
location, adequate envelopes for use of purchasers in mailing policies vended through such
device, or that the policy itself, if designed to permit such procedure, may be mailed without an
envelope; provided, however, the commissioner may in writing delivered to the agent modify or
waive these requirements;
(7) that each such device shall be supervised, inspected and tested by the agent with such
frequency as may reasonably be necessary or as may reasonably be required by the commissioner,
and should any device not be in good working condition the agent shall promptly cause a notice to
be displayed thereon that the same is out of order, and cause said device to be promptly removed
from service until it is in proper working order;
(8) that prompt refund by the agent is provided to each applicant or prospective applicant
of money deposited in any defective device and for which no insurance, or a less amount than
paid for, is actually received;
(9) in addition to, and without limiting the general powers of the commissioner to regulate
and supervise insurance business in this state, the commissioner may establish such other and
additional rules for types and locations of devices authorized hereunder, their maintenance and
operation and the methods to be used by the agent in the solicitation and sale of insurance by
means of such devices as shall be reasonable and necessary.
Subd. 3. License, application, contents.
The application for a license for each device to be
used shall be made by the agent in such form and with such information as shall be prescribed by
the commissioner. A fee of $20 for each device shall be paid at the time of making application.
Upon approval of the application, the commissioner shall issue to the agent a special vending
machine license. The license shall apply to a specific device or to any device of identical type
which, after written notice by the agent to the commissioner, is substituted for it. The license shall
specify the name and address of the agent, the name and home office address of the insuring
company, the name or other identifying information of the policy or policies to be sold, the
serial number or other identification of the device and the address, including the location on the
premises, where the device is to be in operation; provided, however, that a device for which a
license has been issued for operation at a specific address may be transferred to a different address
during the license year upon written notice to the commissioner at the time of such transfer. The
license for each device shall expire on May 31st of each year, but may be renewed from year to
year by the commissioner upon approval of the application by the agent and the furnishing of such
information as shall be requested by the commissioner, and the payment of $20 for each license
year or part thereof for each device. Proof of the existence of a subsisting license shall be displayed
on or about each such device in use in such manner as the commissioner may reasonably require.
Subd. 4. Suspension or revocation of license.
The license for each device shall be subject to
expiration, suspension or revocation coincidentally with that of the agent or the insuring company.
The commissioner also may suspend or revoke the license as to any device concerning which
the commissioner finds any conditions upon which the device was licensed as referred to in
subdivision 2 have been violated, or no longer exist, or that the device is being used or operated
by the agent in violation of the laws of this state; provided, that before suspending or revoking
a license for a device, the commissioner shall conduct a hearing in the manner prescribed in
chapter 72A, and shall make a determination upon the basis of the standards, conditions and
requirements of this section.
History: 1967 c 395 art 1 s 18; 1984 c 592 s 37; 1985 c 248 s 70; 1986 c 444