Bill Text: MN HF2544 | 2011-2012 | 87th Legislature | Engrossed
Bill Title: Travel insurance offer and dissemination regulated.
Sponsorship: Bipartisan Bill
Status: (Introduced - Dead) 2012-03-29 - HF indefinitely postponed [HF2544 Detail]
Download: Minnesota-2011-HF2544-Engrossed.html
1.2relating to insurance; regulating the offer and dissemination of travel insurance;
1.3amending Minnesota Statutes 2010, sections 60K.36, subdivision 2; 60K.38,
1.4subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 60K.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 60K.36, subdivision 2, is amended to read:
1.7 Subd. 2. Examination not required. A resident individual applying for a limited
1.8lines credit insurance, title insurance, travelbaggage insurance, or bail bonds license is
1.9not required to take a written examination.
1.10 Sec. 2. Minnesota Statutes 2010, section 60K.38, subdivision 1, is amended to read:
1.11 Subdivision 1. Issuance. (a) Unless denied a license under section60K.43 , a person
1.12who has met the requirements of sections60K.36 and
60K.37 must be issued an insurance
1.13producer license. An insurance producer may receive qualification for a license in one or
1.14more of the lines of authority in paragraphs (b) and (c).
1.15(b) An individual insurance producer may receive qualification for a license in
1.16one or more of the following major lines:
1.17(1) life insurance: coverage on human lives including benefits of endowment and
1.18annuities, and may include benefits in the event of death or dismemberment by accident
1.19and benefits for disability income;
1.20(2) accident and health or sickness insurance: coverage for sickness, bodily injury,
1.21or accidental death, and may include benefits for disability income;
1.22(3) property insurance: coverage for the direct or consequential loss or damage to
1.23property of every kind;
2.1(4) casualty insurance: coverage against legal liability, including that for death,
2.2injury, or disability, or damage to real or personal property;
2.3(5) variable life and variable annuity products insurance: coverage provided under
2.4variable life insurance contracts and variable annuities; and
2.5(6) personal lines: property and casualty insurance coverage sold to individuals and
2.6families for primarily noncommercial purposes.
2.7(c) An individual insurance producer may receive qualification for a license in
2.8one or more of the following limited lines:
2.9(1) limited line credit insurance;
2.10(2) farm property and liability insurance;
2.11(3) title insurance;
2.12(4) travelbaggage insurance; and
2.13(5) bail bonds.
2.14 Sec. 3. [60K.383] TRAVEL INSURANCE.
2.15 Subdivision 1. Definitions. (a) As used in this section, the terms in paragraphs (b)
2.16to (d) have the meanings given.
2.17(b) "Travel insurance" means insurance coverage for personal risks incident to
2.18planned travel, including, but not limited to:
2.19(1) interruption or cancellation of trip or event;
2.20(2) loss of baggage or personal effects;
2.21(3) damages to accommodations or rental vehicles; or
2.22(4) sickness, accident, disability, or death occurring during travel.
2.23Travel insurance does not include major medical plans, which provide
2.24comprehensive medical protection for travelers with trips lasting six months or longer,
2.25including those working overseas as an ex-patriot or military personnel being deployed.
2.26(c) "Travel insurance producer" means an insurer designee, such as a managing
2.27general underwriter, managing general agent, or licensed limited lines producer of travel
2.28insurance.
2.29(d) "Travel retailer" means a business entity that offers and disseminates travel
2.30insurance on behalf of and under the direction of a travel insurance producer.
2.31 Subd. 2. Travel retailer license. A travel retailer may offer and disseminate travel
2.32insurance on behalf of and under a travel insurance producer business entity license only if
2.33the travel insurance producer holds a business entity license, and:
3.1(1) the licensed business entity is clearly identified as the licensed producer on
3.2marketing materials and fulfillment packages distributed by travel retailers to customers,
3.3identification shall include the entity's name and contact information;
3.4(2) the licensed business entity keeps a register of each travel retailer that offers
3.5travel insurance on the licensed business entity's behalf. The register must include the
3.6name and contact information of the travel retailer and an officer or person who directs
3.7or controls the travel retailer's operations, and the travel retailer's federal Employer
3.8Identification Number. The licensed business entity shall also certify that the travel retailer
3.9registered complies with United States Code, title 18, section 1033. The licensed business
3.10entity shall submit the register within 30 days upon request by the commissioner;
3.11(3) the licensed business entity has designated one of its employees as a licensed
3.12individual producer, a "designated responsible producer" or "DRP," responsible for the
3.13business entity's compliance with Minnesota insurance laws and rules;
3.14(4) the DRP, president, secretary, treasurer, and any other officer or person who
3.15directs or controls the licensed business entity's insurance operations comply with the
3.16fingerprinting requirements applicable to insurance producers in the resident state of
3.17the business entity;
3.18(5) the licensed business entity has paid all applicable insurance producer licensing
3.19fees as set forth in Minnesota state law; and
3.20(6) the licensed business entity requires each employee of the travel retailer whose
3.21duties include offering and disseminating travel insurance to receive a program of
3.22instruction or training, which may be subject to review by the commissioner.
3.23 Subd. 3. Offer and dissemination of travel insurance; compensation. A
3.24travel retailer, whose activities, and those of its employees, are limited to offering and
3.25disseminating travel insurance on behalf of and under the direction of a licensed business
3.26entity meeting the conditions stated in this section, is authorized to do so and receive
3.27related compensation, upon registration by the licensed business entity. For purposes of
3.28this section, "offering and disseminating" means providing general information, including
3.29a description of the coverage and price, as well as processing the application, collecting
3.30premiums, and performing other nonlicensable activities permitted by the state.
3.31 Subd. 4. Insurer designee. As the insurer designee, the travel insurance producer is
3.32responsible for the acts of the travel retailer.
3.33 Sec. 4. EFFECTIVE DATE.
3.34Sections 1 to 3 are effective July 1, 2012.
1.3amending Minnesota Statutes 2010, sections 60K.36, subdivision 2; 60K.38,
1.4subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 60K.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 60K.36, subdivision 2, is amended to read:
1.7 Subd. 2. Examination not required. A resident individual applying for a limited
1.8lines credit insurance, title insurance, travel
1.9not required to take a written examination.
1.10 Sec. 2. Minnesota Statutes 2010, section 60K.38, subdivision 1, is amended to read:
1.11 Subdivision 1. Issuance. (a) Unless denied a license under section
1.12who has met the requirements of sections
1.13producer license. An insurance producer may receive qualification for a license in one or
1.14more of the lines of authority in paragraphs (b) and (c).
1.15(b) An individual insurance producer may receive qualification for a license in
1.16one or more of the following major lines:
1.17(1) life insurance: coverage on human lives including benefits of endowment and
1.18annuities, and may include benefits in the event of death or dismemberment by accident
1.19and benefits for disability income;
1.20(2) accident and health or sickness insurance: coverage for sickness, bodily injury,
1.21or accidental death, and may include benefits for disability income;
1.22(3) property insurance: coverage for the direct or consequential loss or damage to
1.23property of every kind;
2.1(4) casualty insurance: coverage against legal liability, including that for death,
2.2injury, or disability, or damage to real or personal property;
2.3(5) variable life and variable annuity products insurance: coverage provided under
2.4variable life insurance contracts and variable annuities; and
2.5(6) personal lines: property and casualty insurance coverage sold to individuals and
2.6families for primarily noncommercial purposes.
2.7(c) An individual insurance producer may receive qualification for a license in
2.8one or more of the following limited lines:
2.9(1) limited line credit insurance;
2.10(2) farm property and liability insurance;
2.11(3) title insurance;
2.12(4) travel
2.13(5) bail bonds.
2.14 Sec. 3. [60K.383] TRAVEL INSURANCE.
2.15 Subdivision 1. Definitions. (a) As used in this section, the terms in paragraphs (b)
2.16to (d) have the meanings given.
2.17(b) "Travel insurance" means insurance coverage for personal risks incident to
2.18planned travel, including, but not limited to:
2.19(1) interruption or cancellation of trip or event;
2.20(2) loss of baggage or personal effects;
2.21(3) damages to accommodations or rental vehicles; or
2.22(4) sickness, accident, disability, or death occurring during travel.
2.23Travel insurance does not include major medical plans, which provide
2.24comprehensive medical protection for travelers with trips lasting six months or longer,
2.25including those working overseas as an ex-patriot or military personnel being deployed.
2.26(c) "Travel insurance producer" means an insurer designee, such as a managing
2.27general underwriter, managing general agent, or licensed limited lines producer of travel
2.28insurance.
2.29(d) "Travel retailer" means a business entity that offers and disseminates travel
2.30insurance on behalf of and under the direction of a travel insurance producer.
2.31 Subd. 2. Travel retailer license. A travel retailer may offer and disseminate travel
2.32insurance on behalf of and under a travel insurance producer business entity license only if
2.33the travel insurance producer holds a business entity license, and:
3.1(1) the licensed business entity is clearly identified as the licensed producer on
3.2marketing materials and fulfillment packages distributed by travel retailers to customers,
3.3identification shall include the entity's name and contact information;
3.4(2) the licensed business entity keeps a register of each travel retailer that offers
3.5travel insurance on the licensed business entity's behalf. The register must include the
3.6name and contact information of the travel retailer and an officer or person who directs
3.7or controls the travel retailer's operations, and the travel retailer's federal Employer
3.8Identification Number. The licensed business entity shall also certify that the travel retailer
3.9registered complies with United States Code, title 18, section 1033. The licensed business
3.10entity shall submit the register within 30 days upon request by the commissioner;
3.11(3) the licensed business entity has designated one of its employees as a licensed
3.12individual producer, a "designated responsible producer" or "DRP," responsible for the
3.13business entity's compliance with Minnesota insurance laws and rules;
3.14(4) the DRP, president, secretary, treasurer, and any other officer or person who
3.15directs or controls the licensed business entity's insurance operations comply with the
3.16fingerprinting requirements applicable to insurance producers in the resident state of
3.17the business entity;
3.18(5) the licensed business entity has paid all applicable insurance producer licensing
3.19fees as set forth in Minnesota state law; and
3.20(6) the licensed business entity requires each employee of the travel retailer whose
3.21duties include offering and disseminating travel insurance to receive a program of
3.22instruction or training, which may be subject to review by the commissioner.
3.23 Subd. 3. Offer and dissemination of travel insurance; compensation. A
3.24travel retailer, whose activities, and those of its employees, are limited to offering and
3.25disseminating travel insurance on behalf of and under the direction of a licensed business
3.26entity meeting the conditions stated in this section, is authorized to do so and receive
3.27related compensation, upon registration by the licensed business entity. For purposes of
3.28this section, "offering and disseminating" means providing general information, including
3.29a description of the coverage and price, as well as processing the application, collecting
3.30premiums, and performing other nonlicensable activities permitted by the state.
3.31 Subd. 4. Insurer designee. As the insurer designee, the travel insurance producer is
3.32responsible for the acts of the travel retailer.
3.33 Sec. 4. EFFECTIVE DATE.
3.34Sections 1 to 3 are effective July 1, 2012.
