Chapter 60A — Minnesota Surplus Lines Insurance Act

60A.01 Scope This chapter covers the general rules for how insurance is regulated and managed in Minnesota. 60A.02 Definitions Defines key insurance terms used throughout Minnesota insurance law, such as 'insurer,' 'policy,' and 'premium.' 60A.03 Commissioner of Commerce The Commissioner of Commerce oversees insurance regulation in Minnesota, appointed by the governor. 60A.031 Examinations The commissioner can examine any insurance company's records and operations at any time to protect the public. 60A.032 Commissioner's Orders, Report After examining an insurance company, the commissioner must report findings to the governor and attorney general. 60A.033 Scheduling Conference and Order Sets rules for scheduling conferences and orders when the commissioner conducts market analysis examinations. 60A.035 Government Controlled or Owned Company Prohibited From Transacting Business Government-owned or government-controlled insurance companies generally cannot do business in Minnesota. 60A.04 This section was repealed and is no longer in effect. 60A.05 This section was repealed and is no longer in effect. 60A.051 This section was repealed and is no longer in effect. 60A.052 Certificates of Authority; Enforcement Actions The commissioner can take enforcement actions against insurance companies, including revoking their authority to do … 60A.053 This section was repealed and is no longer in effect. 60A.06 Kinds of Insurance Permitted Lists the different types of insurance that companies are allowed to sell in Minnesota. 60A.07 Authorization and Requirements Sets the requirements for insurance companies to get authorized to do business in Minnesota. 60A.075 This section was repealed and is no longer in effect. 60A.076 This section was repealed and is no longer in effect. 60A.077 This section was repealed and is no longer in effect. 60A.078 Short Title Provides the short title for the life insurance insurable interest rules (sections 60A.078 to 60A.0789). 60A.0782 Definitions Defines terms used in the life insurance insurable interest laws, such as 'life settlement' and 'stranger-originated … 60A.0783 Insurable Interest Required You must have an insurable interest in someone's life to buy a life insurance policy on them. 60A.0784 Prohibited Practices Lists practices that are prohibited in life insurance transactions, including stranger-originated life insurance … 60A.0785 Prohibition; Entry Into Settlement Contracts Life insurance policies cannot be settled (sold) within the first five years, with limited exceptions. 60A.0786 Presumption of Stoli Practices Certain activities create a legal presumption that a life insurance policy is part of an illegal scheme. 60A.0787 Processing Change of Ownership or Beneficiary Requests Insurance companies must follow specific rules when processing requests to change a policy's owner or beneficiary. 60A.0788 Fraudulent Acts It is a crime to commit fraud in connection with life settlements or stranger-originated life insurance. 60A.0789 Remedies Courts can order violators of life insurance insurable interest laws to pay damages and return profits. 60A.08 Contracts of Insurance Sets rules for what insurance contracts must include and how policies must be structured in Minnesota. 60A.081 Aircraft Insurance Allows insurance companies to sell aircraft insurance covering planes, pilots, passengers, and related liabilities. 60A.0811 Breach of Insurance Policy; Recovery of Interest When an insurance company wrongly denies a claim, the policyholder can recover interest on the unpaid amount. 60A.0812 Property and Casualty Policy Exclusions Property and casualty insurance policies cannot exclude coverage for certain types of losses unless allowed by law. 60A.082 Group Insurance; Benefits Continued if Insurer Changed When an employer switches group insurance providers, employees must keep equivalent benefits during the transition. 60A.084 Notification on Group Policies Insurance companies must notify all people covered under a group policy when the policy is being changed or terminated. 60A.085 Cancellation of Group Coverage; Notification to Covered Persons When group coverage is cancelled or not renewed, the insurer must notify all covered people at least 60 days in advance. 60A.086 Retroactive Termination of Coverage Under Group Policies Prohibited Insurance companies cannot cancel group coverage retroactively (backdate a termination) except in limited situations. 60A.09 Limits of Risk; Reinsurance Limits how much risk an insurance company can take on one policy and allows them to share risk through reinsurance. 60A.091 Definition; Qualified United States Financial Institution Defines what qualifies as a 'United States financial institution' for purposes of reinsurance regulations. 60A.092 Reinsurance Credit Allowed a Domestic Ceding Insurer Sets rules for when a Minnesota insurance company can take credit on its financial statements for reinsurance it has … 60A.0921 Credit for Reinsurance; Certified Reinsurers Establishes a certification process for reinsurers that allows ceding insurers to receive credit for reinsurance. 60A.093 Reduction From Liability for Reinsurance Ceded by a Domestic Insurer; Collateral Requirements Sets collateral requirements for reinsurance agreements where the reinsurer is not licensed in Minnesota. 60A.094 Rules The commissioner can adopt rules to implement the reinsurance credit and collateral requirements. 60A.095 Reinsurance Agreements Affected Reinsurance agreements entered into after a certain date must comply with the reinsurance credit rules. 60A.096 Qualifying Letter of Credit Sets requirements for letters of credit used as security in reinsurance transactions. 60A.097 Qualifying Trust Agreements Sets requirements for trust agreements used as security in reinsurance transactions. 60A.10 Deposits for Protection of Policyholders Insurance companies must deposit money or securities with the state to protect policyholders. 60A.101 This section was repealed and is no longer in effect. 60A.11 Investments Permitted for Domestic Companies Lists the types of investments that Minnesota insurance companies are allowed to make with their funds. 60A.111 This section was repealed and is no longer in effect. 60A.112 Investment Policy Required Insurance companies must have a written investment policy approved by their board of directors. 60A.12 Assets and Liabilities Sets rules for how insurance companies must value their assets and calculate their liabilities. 60A.121 Valuations; Definitions Defines terms used in the rules about how insurance companies must value their property and investments. 60A.122 Required Written Procedures for Valuations Insurance companies must have written procedures for how they value their investments and assets. 60A.123 Valuation Procedure Sets specific rules for how insurance companies must calculate the value of different types of investments. 60A.124 Independent Audit Insurance companies must get independent audits of certain investments valued above a set threshold. 60A.125 Appraisal by Independent Appraiser Real estate and certain other assets must be appraised by an independent appraiser. 60A.126 Reports to Board; Valuations The board of directors must receive regular reports on how the company's investments are valued. 60A.127 Independent Appraisals of Certain Properties Properties like real estate and mortgages must be independently appraised at regular intervals. 60A.128 This section was repealed and is no longer in effect. 60A.1285 Other Impairments If an insurance company's assets lose value below a certain level, the commissioner can take action. 60A.129 This section was repealed and is no longer in effect. 60A.1291 Annual Audit Insurance companies must have an annual financial audit performed by an independent certified public accountant. 60A.1295 Actuarial Opinion of Reserves and Supporting Documentation Insurance companies must get an actuarial opinion stating that their reserves are adequate to cover future claims. 60A.1296 Confidentiality Actuarial opinions and supporting documents submitted to the commissioner are confidential. 60A.13 Annual Statement, Inquiries, Renewal Licenses Insurance companies must file an annual financial statement with the commissioner and can be investigated at any time. 60A.131 Other Business and Insurance Interests, Disclosure Insurance companies must disclose their business interests and connections with other insurance entities. 60A.135 Report; Certain Transactions Insurance companies must report certain large transactions to the commissioner before they happen. 60A.136 Acquisitions and Dispositions of Assets Insurance companies must report significant acquisitions or sales of assets to the commissioner. 60A.137 Nonrenewals, Cancellations, or Revisions of Ceded Reinsurance Agreements Insurance companies must report when they cancel or significantly change their reinsurance agreements. 60A.139 Electronic Notices and Documents Insurance companies can deliver notices and documents electronically if the policyholder agrees. 60A.1391 Corporate Governance Annual Disclosure Insurance companies must file an annual report about their corporate governance practices. 60A.14 Fees Lists the fees that insurance companies must pay to the state for licenses, filings, and other services. 60A.15 This section was repealed and is no longer in effect. 60A.151 This section was repealed and is no longer in effect. 60A.152 This section was repealed and is no longer in effect. 60A.16 Mergers and Consolidations Sets rules for how insurance companies can merge with or be absorbed by other insurance companies. 60A.161 Insurer Domestication and Conversion Allows insurance companies from other states to move their legal home to Minnesota, and vice versa. 60A.17 Contains miscellaneous provisions related to insurance company operations and regulation. 60A.1701 This section was repealed and is no longer in effect. 60A.171 Rehabilitation and Cancellation of Independent Agent Contracts by Insurance Companies Protects independent insurance agents from unfair cancellation of their contracts with insurance companies. 60A.172 Insurance Agency Contracts; Cancellation Sets rules for when and how insurance companies can cancel contracts with insurance agencies. 60A.173 Effective Date Specifies when the insurance agency contract cancellation rules took effect. 60A.174 Severability If any part of the insurance agency contract rules is found invalid, the rest of the rules still apply. 60A.175 Agent Commissions Requires insurance companies to pay agents earned commissions even after their contract is terminated. 60A.1755 Agent Errors and Omissions Insurance; Choice of Source Insurance agents have the right to choose their own errors and omissions insurance provider. 60A.176 Definitions Defines terms used in the rules about termination of insurance agent contracts. 60A.177 Involuntary Termination of an Agent by the Insurer Sets detailed rules for when an insurance company can involuntarily terminate an agent's contract. 60A.178 Life or Health Insurance Sales Quotas Insurance companies cannot require their agents to meet specific life or health insurance sales quotas. 60A.179 Life or Health Insurance Sales Quotas for Exclusive Agents Exclusive insurance agents cannot be required to meet life or health insurance sales quotas. 60A.18 This section was repealed and is no longer in effect. 60A.19 Foreign Companies Sets rules for out-of-state (foreign) insurance companies that want to do business in Minnesota. 60A.195 Citation Provides the short title for the surplus lines insurance regulations. 60A.196 Definitions Defines terms used in surplus lines insurance regulation, such as 'surplus lines broker' and 'eligible surplus lines … 60A.197 Rates and Forms Surplus lines insurers generally do not need to file their rates or policy forms with the state. 60A.198 Transaction of Nonadmitted Insurance Sets rules for when and how insurance can be purchased from companies not licensed in Minnesota. 60A.199 Examinations The commissioner can examine surplus lines insurers that do business in Minnesota. 60A.20 This section was repealed and is no longer in effect. 60A.201 Placement of Insurance by Broker Surplus lines insurance must be placed through a licensed surplus lines broker. 60A.202 Evidence of Placement of Insurance by Broker Surplus lines brokers must document proof that standard insurance was not available before placing surplus lines … 60A.203 Retention of Records Surplus lines brokers must keep records of their transactions for at least five years. 60A.204 Fees and Commissions Sets rules for fees and commissions that surplus lines brokers can charge. 60A.205 Compensation Surplus lines brokers may receive and keep commissions from surplus lines insurers. 60A.206 Qualification as Eligible Surplus Lines Insurer Sets the requirements for an insurance company to qualify as an eligible surplus lines insurer in Minnesota. 60A.207 Policies to Include Notice Surplus lines insurance policies must include a notice that the insurer is not licensed in Minnesota. 60A.208 Broker Association Surplus lines brokers cannot be owned or controlled by surplus lines insurers. 60A.2085 Surplus Lines Association of Minnesota Creates the Surplus Lines Association of Minnesota to help regulate surplus lines insurance. 60A.2086 Licensee's Duty to Submit Documents; Penalty Surplus lines brokers must submit transaction documents to the Surplus Lines Association. 60A.209 Insurance Procured From Ineligible Insurers Sets rules for when insurance is purchased from an ineligible surplus lines insurer. 60A.2095 Construction The surplus lines laws should be interpreted broadly to protect the public interest. 60A.21 Unauthorized Insurers Process Act Allows Minnesota residents to serve legal process on unauthorized insurance companies through the commissioner. 60A.22 Special Provisions as to Stock Companies; Stockholders, Officers, Directors and Investors Sets rules for stock insurance companies, including requirements for stockholders, officers, and directors. 60A.23 Miscellaneous Contains various insurance rules, including provisions about mutual companies, assessments, and policy forms. 60A.235 Standards for Determining Whether Contracts Are Health Plan Contracts or Stop Loss Contracts Sets standards to determine whether a contract is a health plan or a stop loss insurance contract. 60A.236 Stop Loss Regulation; Small Employer Coverage Regulates stop loss insurance for small employers to prevent abuse of health insurance rules. 60A.24 Exemptions From Insurance Laws of This State Lists organizations that are exempt from Minnesota insurance laws, such as fraternal societies and certain employee … 60A.25 Insolvent Companies Gives the commissioner power to handle insolvent insurance companies that cannot pay their claims. 60A.26 Suspension of Insurers; Notifications and Reports When an insurance company is suspended, the commissioner must notify the public and other states. 60A.27 Discipline of Insurer by Another State; Notice to Commissioner If another state disciplines an insurance company, that company must notify the Minnesota commissioner. 60A.28 Documents Filed With Commissioner, Verification Documents filed with the commissioner must be verified under oath or as permitted by law. 60A.29 Nonprofit Risk Indemnification Trust Act Creates rules for nonprofit risk indemnification trusts that provide coverage for nonprofit organizations. 60A.30 This section was repealed and is no longer in effect. 60A.31 This section was repealed and is no longer in effect. 60A.315 Expedited Form and Rate Filing Allows insurance companies to use an expedited process for filing rates and policy forms. 60A.32 Rate Filing for Crop Hail Insurance Sets special rate filing rules for crop hail insurance. 60A.35 Scope Defines the scope of the insurance cancellation and nonrenewal rules. 60A.351 Renewal of Insurance Policy With Altered Rates When an insurer renews a policy with changed rates, it must give proper notice to the policyholder. 60A.352 Workers' Compensation Insurance Special cancellation and nonrenewal rules apply to workers' compensation insurance policies. 60A.36 Midterm Cancellation Sets rules for when and how insurance companies can cancel a policy in the middle of its term. 60A.37 Nonrenewal Sets rules for when and how insurance companies can refuse to renew an insurance policy. 60A.38 Interpretation and Penalties Explains how the cancellation and nonrenewal rules are interpreted and what penalties apply for violations. 60A.39 Certificates of Insurance Regulates certificates of insurance to ensure they accurately represent the coverage provided. 60A.40 This section was repealed and is no longer in effect. 60A.41 Subrogation Against Insureds Prohibited Insurance companies cannot use subrogation to collect from their own policyholders. 60A.42 Disability Income Coverage; Prohibited Provision Disability income insurance policies cannot include a provision reducing benefits based on other income sources. 60A.43 Disability Income Coverage; Disclosure Disability income insurance policies must include clear disclosure of key terms and limitations. 60A.50 Definitions Defines terms used in the risk-based capital rules for health organizations. 60A.51 Rbc Reports Health organizations must file risk-based capital reports showing they have enough money to cover their risks. 60A.52 Company Action Level Event If a health organization's capital falls to the company action level, it must submit a plan to fix the problem. 60A.53 Regulatory Action Level Event If a health organization's capital falls to the regulatory action level, the commissioner can take corrective action. 60A.54 Authorized Control Level Event If a health organization's capital falls to the authorized control level, the commissioner may take control. 60A.55 Mandatory Control Level Event If a health organization's capital falls to the mandatory control level, the commissioner must take control. 60A.56 Hearings Health organizations can request a hearing before the commissioner takes action based on capital levels. 60A.57 Access to and Use of Rbc Information Risk-based capital information filed by health organizations is confidential and not public data. 60A.58 Supplemental Provisions The commissioner can adopt rules to supplement the risk-based capital requirements for health organizations. 60A.59 Foreign Health Organizations Health organizations from other states must also follow Minnesota's risk-based capital rules. 60A.591 Immunity The commissioner and others acting in good faith are immune from lawsuits related to risk-based capital actions. 60A.592 Notices Risk-based capital notices to health organizations must be sent by certified mail. 60A.60 Definitions Defines terms used in the risk-based capital rules for property and casualty insurance companies. 60A.61 Risk-based Capital Reports Property and casualty insurers must file risk-based capital reports showing they have enough money to cover risks. 60A.62 Company Action Level Event If a property and casualty insurer's capital falls to the company action level, it must submit a corrective plan. 60A.63 Regulatory Action Level Event If an insurer's capital falls to the regulatory action level, the commissioner can require corrective action. 60A.64 Authorized Control Level Event If an insurer's capital falls to the authorized control level, the commissioner may take control of the company. 60A.65 Mandatory Control Level Event If an insurer's capital falls to the mandatory control level, the commissioner must take control. 60A.66 Hearings Property and casualty insurers can request a hearing before the commissioner takes capital-related action. 60A.67 Confidentiality Risk-based capital information filed by property and casualty insurers is confidential. 60A.68 Supplemental Provisions; Rules; Exemption The commissioner can adopt additional rules for property and casualty risk-based capital requirements. 60A.69 Foreign Insurers Out-of-state property and casualty insurers must also meet Minnesota's risk-based capital rules. 60A.695 Immunity Regulators acting in good faith on risk-based capital matters are immune from lawsuits. 60A.696 Notices Risk-based capital notices to property and casualty insurers must be sent by certified mail. 60A.70 Title Provides the title for the reinsurance intermediary regulation laws. 60A.705 Definitions Defines terms used in reinsurance intermediary regulation, such as 'reinsurance intermediary-broker' and 'manager.' 60A.71 Licensure Reinsurance intermediaries must be licensed by the commissioner before conducting business in Minnesota. 60A.715 Required Contract Provisions; Reinsurance Intermediary-brokers Reinsurance intermediary-broker contracts must include specific provisions required by law. 60A.72 Books and Records; Reinsurance Intermediary-brokers Reinsurance intermediary-brokers must maintain proper books, records, and accounts. 60A.725 Duties of Insurers Utilizing the Services of a Reinsurance Intermediary-broker Insurance companies that use reinsurance brokers must oversee the broker's activities. 60A.73 Required Contract Provisions; Reinsurance Intermediary-managers Reinsurance intermediary-manager contracts must include specific provisions required by law. 60A.735 Prohibited Acts Lists actions that reinsurance intermediary-managers are prohibited from taking. 60A.74 Duties of Reinsurer Utilizing the Services of a Reinsurance Intermediary-manager Reinsurance companies that use intermediary-managers must maintain oversight of the manager's activities. 60A.745 Examination Authority; Reinsurance Intermediary - Broker The commissioner can examine reinsurance intermediary-brokers at any time. 60A.75 Violations Violations of reinsurance intermediary rules can result in penalties, fines, and license revocation. 60A.755 Scope Defines the scope of the life and health insurance reserve requirements. 60A.756 Rules The commissioner can adopt rules for life and health insurance reserve requirements. 60A.76 Purpose and Scope Establishes the purpose and scope of life and health insurance reserve standards. 60A.761 Glossary of Technical Terms Used Defines technical terms used in life and health insurance reserve calculations. 60A.762 Categories of Reserves Lists the different categories of reserves that life and health insurance companies must maintain. 60A.763 Claim Reserves Sets rules for how life and health insurance companies must calculate their claim reserves. 60A.764 Premium Reserves Sets rules for how life and health insurance companies must calculate their premium reserves. 60A.765 Contract Reserves Required Life and health insurance companies must hold contract reserves for long-duration policies. 60A.766 Minimum Standards for Contract Reserves Sets minimum standards for calculating contract reserves, including mortality and interest rate assumptions. 60A.767 Reinsurance Sets rules for how reinsurance affects the reserve calculations of life and health insurance companies. 60A.768 Specific Standards for Morbidity, Interest, and Mortality Sets the specific mortality, morbidity, and interest rate standards used in reserve calculations. 60A.80 This section was repealed and is no longer in effect. 60A.801 This section was repealed and is no longer in effect. 60A.802 This section was repealed and is no longer in effect. 60A.803 Life and Health Reinsurance Agreements Sets rules for life and health reinsurance agreements to ensure they represent genuine risk transfer. 60A.90 Scope Defines the scope of the insurance company information-sharing requirements with regulators. 60A.91 Filing Requirements Insurance companies must file certain information about their operations with the commissioner. 60A.92 Immunity People who share information with regulators in good faith are protected from lawsuits. 60A.93 Confidentiality Information shared with the commissioner under these rules is confidential and not public data. 60A.94 Revocation of Certificate of Authority The commissioner can revoke an insurer's certificate of authority for failing to file required information. 60A.951 Definitions Defines terms used in the insurance fraud prevention laws. 60A.952 Disclosure of Information Insurance companies must share information about suspected fraud with law enforcement and regulators. 60A.953 Enforcement; Refusal to Cooperate With an Investigation The commissioner can take action against anyone who refuses to cooperate with a fraud investigation. 60A.954 Insurance Antifraud Plan Insurance companies must have a written plan for preventing and detecting insurance fraud. 60A.955 Claim Forms to Contain Fraud Warning Insurance claim forms must include a warning that submitting a false claim is insurance fraud. 60A.956 Other Law Enforcement Authority Other law enforcement agencies can also investigate and prosecute insurance fraud. 60A.957 Definitions Defines terms used in the viatical settlement (life settlement) regulation laws. 60A.9572 License and Bond Requirements Viatical settlement providers and brokers must be licensed and bonded to operate in Minnesota. 60A.9573 License Revocation and Denial The commissioner can revoke or deny a viatical settlement license for violations or misconduct. 60A.9574 Approval of Viatical Settlement Contracts and Disclosure Statements Viatical settlement contracts and disclosure forms must be approved by the commissioner before use. 60A.9575 Reporting Requirements and Privacy Viatical settlement providers must file annual reports and protect the privacy of people who sell their policies. 60A.9577 Disclosure to Viator Viatical settlement providers must give sellers specific disclosures about the transaction and its effects. 60A.9579 General Rules Sets general rules for viatical settlement transactions, including advertising and reporting requirements. 60A.9581 Prohibited Practices and Conflicts of Interest Lists prohibited practices and conflicts of interest in viatical settlement transactions. 60A.9582 Advertising for Viatical Settlements and Viatical Settlements Purchase Agreements Regulates how viatical settlement companies can advertise their services. 60A.9583 Fraud Prevention and Control Establishes rules for preventing and detecting fraud in viatical settlement transactions. 60A.9585 Unfair Trade Practice Violations of viatical settlement rules are treated as unfair trade practices under insurance law. 60A.961 This section was repealed and is no longer in effect. 60A.962 This section was repealed and is no longer in effect. 60A.963 This section was repealed and is no longer in effect. 60A.964 Fees Sets fees that must be paid for certain insurance-related filings and transactions. 60A.965 This section was repealed and is no longer in effect. 60A.966 This section was repealed and is no longer in effect. 60A.967 This section was repealed and is no longer in effect. 60A.968 This section was repealed and is no longer in effect. 60A.969 This section was repealed and is no longer in effect. 60A.970 This section was repealed and is no longer in effect. 60A.971 This section was repealed and is no longer in effect. 60A.972 This section was repealed and is no longer in effect. 60A.973 This section was repealed and is no longer in effect. 60A.974 This section was repealed and is no longer in effect. 60A.975 Definitions Defines terms used in the annuity issuer financial requirement rules. 60A.976 Annuity Issuers Financial Requirements Sets financial requirements that companies must meet to issue annuity contracts in Minnesota. 60A.98 This section was repealed and is no longer in effect. 60A.981 This section was repealed and is no longer in effect. 60A.982 This section was repealed and is no longer in effect. 60A.985 Definitions Defines terms used in the insurance data security laws, such as 'cybersecurity event' and 'licensee.' 60A.9851 Information Security Program Insurance companies must have a written information security program to protect customer data. 60A.9852 Investigation of a Cybersecurity Event Insurance companies must investigate cybersecurity events that may compromise customer data. 60A.9853 Notification of a Cybersecurity Event Insurance companies must notify the commissioner and affected individuals after a cybersecurity event. 60A.9854 Power of Commissioner The commissioner has power to investigate and enforce the insurance cybersecurity requirements. 60A.9855 Confidentiality Information about cybersecurity events shared with the commissioner is confidential. 60A.9856 Exceptions Small insurers and those complying with other security laws may be partially exempt from these rules. 60A.9857 Penalties Insurance companies that violate cybersecurity requirements can face penalties. 60A.9858 Exclusivity These cybersecurity rules are the exclusive state-level requirements for insurance data security. 60A.99 Interstate Insurance Product Regulation Compact Minnesota joins the Interstate Insurance Product Regulation Compact to coordinate insurance regulation across states. 60A.991 Interstate Insurance Product Regulation Compact Opt Out Administration Allows the commissioner to opt out of certain compact rules that conflict with Minnesota law. 60K.19 This section was moved to a different part of the law.