60A.19 FOREIGN COMPANIES.
Subdivision 1. Requirements.
Any insurance company of another state, upon compliance
with all laws governing such corporations in general and with the foregoing provisions so far as
applicable and the following requirements, shall be admitted to do business in this state:
(1) It shall deposit with the commissioner a certified copy of its charter or certificate of
incorporation and its bylaws, and a statement showing its financial condition and business,
verified by its president and secretary or other proper officers;
(2) It shall furnish the commissioner satisfactory evidence of its legal organization and
authority to transact the proposed business and that its capital, assets, deposits with the proper
official of its own state, amount insured, number of risks, reserve and other securities, and
guaranties for protection of policyholders, creditors, and the public, comply with those required of
like domestic companies;
(3) By a duly executed instrument filed in the office of the commissioner, it shall appoint the
commissioner and successors in office its lawful attorneys in fact and therein irrevocably agree
that legal process in any action or proceeding against it may be served upon them with the same
force and effect as if personally served upon it, so long as any of its liability exists in this state;
(4) It shall appoint, as its agents in this state, residents thereof, and obtain from the
commissioner a license to transact business;
(5) Regardless of what lines of business an insurer of another state is seeking to write in this
state, the lines of business it is licensed to write in its state of incorporation shall be the basis for
establishing the financial requirements it must meet for admission in this state or for continuance
of its authority to write business in this state;
(6) No insurer of another state shall be admitted to do business in this state for a line of
business that it is not authorized to write in its state of incorporation, unless the statutes of that
state prohibit all insurers from writing that line of business.
Subd. 2. Service of garnishee process.
When garnishee process is served upon the
commissioner, as attorney for any insurance company, no garnishee fee shall be paid the
commissioner. After the receipt of copy of the process the insurance company may demand of the
attorney of the person making the garnishee the proper fees, and if the demand is not complied
with before the day fixed for the disclosure of the garnishee, the proceeding may be dismissed.
Subd. 3. Commissioner appointed attorney for service of process.
Before any corporation,
association, or company issuing policies of insurance of any character and not organized or
existing pursuant to the laws of this state is admitted to or authorized to transact the business of
insurance in this state, it shall, by a duly executed instrument to be filed in the office of the
commissioner, constitute and appoint the commissioner and successors in office its true and lawful
attorney, upon whom proofs of loss, any notice authorized or required by any contract with the
company to be served on it, summonses and all lawful processes in any action or legal proceeding
against it may be served, and that the authority thereof shall continue in force irrevocable so long
as any liability of the company remains outstanding in this state.
This instrument shall contain a provision and agreement declaring that the company,
association, or corporation desires to transact the business of insurance in this state, and that it
will accept a license therefor according to the laws of this state.
In case of the failure of any such insurance company to comply with any of the provisions
of this subdivision and subdivision 4, or if it shall violate any of the conditions or agreements
contained in the instrument filed, its right to transact insurance business in this state shall cease
and it shall be the duty of the commissioner to immediately declare its license revoked; and, in
case of revocation, the company shall not be again licensed to transact business in this state for
the period of one year from date of the revocation.
Subd. 4. Service of process.
The service of process authorized by this section shall be made
in compliance with section
45.028, subdivision 2
Subd. 5. Provision as to alien companies.
Such company of any foreign
country, except fraternal benefit societies, shall not be admitted until, besides complying with the
foregoing requirements, it has made a deposit with the commissioner in accordance with section
60A.10, subdivision 4
, or with the proper officer of some other state of the United States, of a
sum not less than the deposit required of a like company by the laws of this state and this deposit
shall be of the same class of securities and subject to the same limitations required for the deposit
of domestic companies that must by law maintain a deposit.
This deposit shall be in exclusive trust for all its policyholders and creditors in the United
States, and for all purposes of the insurance laws shall be deemed assets of the company.
(2) Trustees, investments and funds.
Any company of a foreign country may duly appoint
one or more citizens of the United States, approved by the commissioner, to hold funds or other
property for the benefit of its policyholders and creditors therein. A certified copy of their
appointment and of the instrument of trust shall be filed with the commissioner, who shall have
the same authority in the premises as in the case of the affairs of all companies. These funds shall
be invested in the same securities as required of other insurance companies and, together with
the deposits required, shall constitute the assets of the company in respect to its policyholders
and creditors in the United States.
Subd. 6. Retaliatory provisions.
(1) In the event that a domestic insurance company, after
complying with all reasonable laws and rulings of any other state or country, is refused permission
by that state or country to transact business therein after the commissioner of commerce of
Minnesota has determined that that company is solvent and properly managed and after the
commissioner has so certified to the proper authority of that other state or country, then, and in
every such case, the commissioner may forthwith suspend or cancel the certificate of authority of
every insurance company organized under the laws of that other state or country to the extent that
it insures, or seeks to insure, in this state against any of the risks or hazards which that domestic
company seeks to insure against in that other state or country. Without limiting the application
of the foregoing provision, it is hereby determined that any law or ruling of any other state or
country which prescribes to a Minnesota domestic insurance company the premium rate or rates
for life insurance issued or to be issued outside that other state or country shall not be reasonable.
(2) This section does not apply to insurance companies organized or domiciled in a state or
country, the laws of which do not impose retaliatory taxes, fines, deposits, penalties, licenses,
or fees or which grant, on a reciprocal basis, exemptions from retaliatory taxes, fines, deposits,
penalties, licenses, or fees to insurance companies domiciled in this state.
Subd. 7. Policy not invalidated by occurrence of hostilities.
No policy of insurance issued
to a resident of this state shall be invalidated by the occurrence of hostilities between any foreign
country and the United States.
Subd. 8. Insurance from unlicensed foreign companies.
Any person, firm, or corporation
desiring to obtain insurance upon any property, interests, or risks of any nature other than life
insurance in this state in companies not authorized to do business in the state must agree to file with
the commissioner of revenue all returns required under chapter 297I and pay to the commissioner
of revenue any amounts required to be paid under chapter 297I. Upon that agreement, the
commissioner of commerce shall issue a license, good for one year. Insurance procured under
the license is valid and the provisions of the policies are considered to be in accordance, and
construed as if identical in effect, with the standard policy prescribed by the laws of this state. The
insurers may enter the state to perform any act necessary or proper in the conduct of the business.
History: 1967 c 395 art 1 s 19; 1969 c 291 s 3; 1971 c 145 s 21; 1974 c 425 s 4; 1977 c
195 s 2; 1978 c 465 s 7; 1983 c 289 s 114 subd 1; 1984 c 592 s 38,39; 1984 c 609 s 3; 1984 c
655 art 1 s 92; 1986 c 444; 1Sp1989 c 1 art 10 s 4; 1991 c 291 art 9 s 2; 1992 c 511 art 7 s 2;
1992 c 564 art 1 s 54; art 2 s 3; 1994 c 485 s 10; 1994 c 632 art 4 s 24; 1999 c 177 s 16; 1999 c
243 art 7 s 1; 2000 c 394 art 2 s 4,5