Bill Text: MN HF3395 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Insurance coverage sales to governmental entities regulated.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2014-05-16 - Introduction and first reading, referred to Commerce and Consumer Protection Finance and Policy [HF3395 Detail]
Download: Minnesota-2013-HF3395-Introduced.html
1.2relating to insurance; regulating sales of insurance coverage to governmental
1.3entities;amending Minnesota Statutes 2012, section 60K.46, by adding a
1.4subdivision.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 60K.46, is amended by adding a
1.7subdivision to read:
1.8 Subd. 9. Sales of insurance to governmental entities. An insurance broker who
1.9provides insurance coverage to governmental entities must not:
1.10(1) receive and retain an overriding commission in connection with the sale. For
1.11purposes of this subdivision, an overriding commission is a portion of the proceeds of a
1.12sale of insurance that is earned by an agent of the broker, rather than by the broker, but
1.13which the broker retains as income for the broker;
1.14(2) fail to disclose all compensation to the broker or agents from any potential sale
1.15of insurance to the governmental entity; or
1.16(3) fail to initiate and maintain a fiduciary responsibility to the governmental entity.
1.17EFFECTIVE DATE.This section is effective July 1, 2014.
1.3entities;amending Minnesota Statutes 2012, section 60K.46, by adding a
1.4subdivision.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 60K.46, is amended by adding a
1.7subdivision to read:
1.8 Subd. 9. Sales of insurance to governmental entities. An insurance broker who
1.9provides insurance coverage to governmental entities must not:
1.10(1) receive and retain an overriding commission in connection with the sale. For
1.11purposes of this subdivision, an overriding commission is a portion of the proceeds of a
1.12sale of insurance that is earned by an agent of the broker, rather than by the broker, but
1.13which the broker retains as income for the broker;
1.14(2) fail to disclose all compensation to the broker or agents from any potential sale
1.15of insurance to the governmental entity; or
1.16(3) fail to initiate and maintain a fiduciary responsibility to the governmental entity.
1.17EFFECTIVE DATE.This section is effective July 1, 2014.
