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66A.07 MEMBERSHIP; MEETINGS; NOTICES; VOTING.
    Subdivision 1. Property/casualty companies. Every policyholder in a mutual insurance
company, other than a life insurance company, shall be a member thereof while the policy is in
force, entitled to one vote for each policy held, and notified of the time and place of holding its
meetings either personally or by imprint upon the front or back of every policy, or in the premium
notice, receipt or certificate of renewal, substantially as follows:
"NOTICE OF ANNUAL MEETING
The policyholder named herein is hereby notified: while this policy is in force you are by
virtue thereof a member of the (name of company) and that the annual meeting of said company is
held at its home office at (address) on the ..... day of ..... each year at ..... o'clock ...... m."
Notice given in this manner is deemed to comply with the requirements of section 302A.435.
    Subd. 2. Life insurance companies. (a) Unless otherwise approved by the commissioner of
commerce, a domestic mutual life insurance company member is any person who is listed on
the records of the company as the owner of an in-force policy, and each member is entitled to
one vote regardless of the number of policies owned by the member or the amounts of coverage
provided to the member. For purposes of this section, "policy" means a policy or contract of
insurance, including an annuity contract issued by the company, but excluding individual
noncontributory insurance policies for which the premiums are paid by a financial institution,
association, employer, or other institutional entity. Except as otherwise provided in the company's
certificate or bylaws, a person covered under a group policy is not a member by virtue of such
coverage, except that a person insured under a group life insurance policy is a member if: (1) the
person is insured under a group life policy under which cash value has accumulated and been
allocated to the insured persons; and (2) the group policyholder makes no contribution to the
premiums or deposits for the policy.
(b) Every member of a mutual life insurance company must be notified of its annual meetings
by a written notice mailed to the member's address, or by an imprint on the front or back of the
policy, premium notice, receipt, or certificate of renewal, substantially as follows:
"The policyowner is hereby notified that by virtue of his or her ownership of this policy, the
policyowner is a member of the .......... Insurance Company, and that the annual meetings of said
company are held at its home office on the .... day of .... in each year, at .... o'clock."
For mutual life insurance holding companies, the notice of the annual meeting may be
modified to reflect that the policyowner, by virtue of his or her ownership of a policy issued
by a subsidiary insurance company reorganized under section 66A.40, is a member of the
mutual insurance holding company. Notice given in this manner is deemed to comply with the
requirements of section 302A.435.
    Subd. 3. Proxies. (a) Except as otherwise provided in paragraphs (b) and (c), proxies for
voting at meetings of members of domestic mutual insurance companies are governed by the
provisions of section 302A.449, subdivisions 1 to 6 and 8.
(b) A member may vote by proxy at any regular or special meeting of the members by filing
a written proxy appointment with the secretary of the company at its home office at least five
days before the first meeting at which it is to be used, unless a different time period is specified
in the company's bylaws.
(c) A member may cast or authorize the casting of a vote by telephonic transmission or
authenticated electronic communication, in accordance with section 302A.449, if permitted by
the bylaws of the company.
    Subd. 4. Membership interest. A domestic mutual insurance company must keep a list of
members as part of its books and records. Membership interest in a domestic mutual insurance
company must be uncertificated. A membership interest in a domestic mutual insurance company
does not constitute a security as defined in section 80A.14, subdivision 18. No member of a
mutual insurance company may transfer or pledge membership in the mutual insurance company
or any right arising from the membership except as attendant to the valid transfer or assignment of
the member's policy issued by the mutual insurance company. A member of a mutual insurance
company is not, as a member, personally liable for the acts, debts, liabilities, or obligations
of the company. No assessments of any kind may be imposed upon the members of a mutual
insurance company by the directors or members, or because of any liability of any company
owned or controlled by the mutual insurance company or because of any act, debt, or liability of
the mutual insurance company, except as may otherwise be provided in the company's articles or
bylaws. A member's interest in the mutual insurance company shall automatically terminate upon
cancellation, nonrenewal, expiration, or termination of the member's policy with the insurance
company that gave rise to the member's membership interest.
History: 1967 c 395 art 7 s 7; 1986 c 444; 2005 c 69 art 2 s 15,18; 2006 c 204 s 12

Official Publication of the State of Minnesota
Revisor of Statutes