2007 Minnesota Statutes

62A.10 GROUP INSURANCE.
    Subdivision 1. Requirements. Group accident and health insurance may be issued to cover
groups of not less than two employees nor less than ten members, and which may include the
employee's or member's dependents, consisting of husband, wife, children, and actual dependents
residing in the household. The master policy may be issued to any governmental corporation,
unit, agency, or department thereof, or to any corporation, copartnership, individual, employer, to
a purchasing pool as described in section 62Q.17, to any association as defined by section 60A.02,
subdivision 1a , or to a multiple employer trust, or to the trustee of a fund, established or adopted by
two or more employers or maintained for the benefit of members of an association, where officers,
members, employees, or classes or divisions thereof, may be insured for their individual benefit.
    Subd. 2. Group accidental death and group disability income policies. Group accidental
death insurance and group disability income insurance policies may be issued in connection
with first real estate mortgage loans to cover groups of not less than ten debtors of a creditor
written under a master policy issued to a creditor to insure its debtors in connection with first
real estate mortgage loans, in amounts not to exceed the actual or scheduled amount of their
indebtedness. No other accident and health coverages may be issued in connection with first real
estate mortgage loans on a group basis to a debtor-creditor group.
    Subd. 3. Authority to issue. Any insurer authorized to write accident and health insurance in
this state shall have power to issue group accident and health policies.
    Subd. 4. Policy forms. No policy or certificate of group accident and health insurance may
be issued or delivered in this state unless the same has been approved by the commissioner in
accordance with section 62A.02, subdivisions 1 to 6. These forms shall contain the standard
provisions relating and applicable to health and accident insurance and shall conform with the
other requirements of law relating to the contents and terms of policies of accident and sickness
insurance insofar as they may be applicable to group accident and health insurance, and also
the following provisions:
(1) Entire contract. A provision that the policy and the application of the creditor, employer,
trustee, or executive officer or trustee of any association, and the individual applications, if any,
of the debtors, employees, or members, insured, shall constitute the entire contract between
the parties, and that all statements made by the creditor, employer, trustee, or any executive
officer or trustee on behalf of the group to be insured, shall, in the absence of fraud, be deemed
representations and not warranties, and that no such statement shall be used in defense to a claim
under the policy, unless it is contained in the written application;
(2) Master policy-certificates. A provision that the insurer will issue a master policy to the
creditor, employer, trustee, or to the executive officer or trustee of the association; and the insurer
shall also issue to the creditor, the employer, trustee, or to the executive officer or trustee of the
association, for delivery to the debtor, employee, or member, who is insured under the policy,
an individual certificate setting forth a statement as to the insurance protection to which the
debtor, employee, or member is entitled and to whom payable, together with a statement as to
when and where the master policy, or a copy thereof, may be seen for inspection by the individual
insured. The individual certificate may contain the names of, and insure the dependents of, the
employee, or member, as provided for herein;
(3) New insureds. A provision that to the group or class thereof originally insured may be
added, from time to time, all new employees of the employer, members of the association, or
debtors of the creditor eligible to and applying for insurance in that group or class and covered or
to be covered by the master policy.
(4) Conversion privilege. In the case of accidental death insurance and disability income
insurance issued to debtors of a creditor, the policy must contain a conversion privilege permitting
an insured debtor to convert, without evidence of insurability, to an individual policy within 30
days of the date the insured debtor's group coverage is terminated, and not replaced with other
group coverage, for any reason other than nonpayment of premiums. The individual policy must
provide the same amount of insurance and be subject to the same terms and conditions as the
group policy and the initial premium for the individual policy must be the same premium the
insured debtor was paying under the group policy. This provision does not apply to a group
policy which provides that the certificate holder may, upon termination of coverage under the
group policy for any reason other than nonpayment of premium, retain coverage provided under
the group policy by paying premiums directly to the insurer.
History: 1967 c 395 art 3 s 10; 1973 c 303 s 2; 1986 c 444; 1992 c 564 art 1 s 30; 1995
c 234 art 7 s 2,3; 1995 c 258 s 23