Bill Text: MN HF3396 | 2013-2014 | 88th Legislature | Introduced


Bill Title: Insurance coverage sales to school districts 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 [HF3396 Detail]

Download: Minnesota-2013-HF3396-Introduced.html

1.1A bill for an act
1.2relating to insurance; regulating sales of insurance coverage to school districts;
1.3amending Minnesota Statutes 2012, section 60K.46, by adding a subdivision.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5    Section 1. Minnesota Statutes 2012, section 60K.46, is amended by adding a
1.6subdivision to read:
1.7    Subd. 9. Sales of insurance to school districts. An insurance broker who provides
1.8insurance coverage to school districts must not:
1.9(1) receive and retain an overriding commission in connection with the sale. For
1.10purposes of this subdivision, an overriding commission is a portion of the proceeds of a
1.11sale of insurance that is earned by an agent of the broker, rather than by the broker, but
1.12which the broker retains as income for the broker;
1.13(2) fail to disclose all compensation to the broker or agents from any potential
1.14sale of insurance to the school district; or
1.15(3) fail to initiate and maintain a fiduciary responsibility to the school district.
1.16EFFECTIVE DATE.This section is effective July 1, 2014.
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