Subdivision 1. Domestic companies. (1) Deposit as security for all policyholders required. No company in this state, other than farmers' mutual, or real estate title insurers, shall do business in this state unless it has on deposit with the commissioner, for the protection of both its resident and nonresident policyholders, securities to an amount, the actual market value of which, exclusive of interest, shall never be less than $500,000 or one-half the applicable financial requirement set forth in sections 60A.07, 66A.32, and 66A.33, whichever is less. The securities shall be retained under the control of the commissioner as long as any policies of the depositing company remain in force.
(2) Securities defined. For the purpose of this subdivision, the word "securities" means bonds or other obligations of, or bonds or other obligations insured or guaranteed by, the United States, any state of the United States, any municipality of this state, or any agency or instrumentality of the foregoing.
(3) Protection of deposit from levy. No judgment creditor or other claimant may levy upon any securities held on deposit with, or for the account of, the commissioner. Upon the entry of an order by a court of competent jurisdiction for the rehabilitation, liquidation or conservation of any depositing company as provided in chapter 60B, that company's deposit together with any accrued income thereon shall be transferred to the commissioner as rehabilitator, liquidator, or conservator.
Subd. 2. Like requirement for foreign companies. Any insurance company of any other state of the United States may file with the commissioner a certificate of the insurance commissioner of the other state that, as such officer, there is held in trust by the certifying commissioner and on deposit for the benefit of all the policyholders of the company a deposit of an amount not less than that required by subdivision 1 in par value of such securities as are required or permitted to be deposited by the laws of that state, these securities to be of the character in which insurance companies are authorized to invest under the laws of that state, stating the items of the securities so held, and that the commissioner is satisfied that these securities are worth the value so certified. No deposit shall be required in this state while the deposit, so certified, remains.
Subd. 2a. Special deposits. The commissioner may require a special deposit of an individual foreign insurer for the protection of its Minnesota policyholders or claimants. In the event of the filing of a delinquency petition against the insurer in Minnesota, the deposit is subject to chapters 60B, 60C, 61A, and 61B.
Subd. 3. Deposits made in compliance with other laws or by foreign companies. The commissioner shall receive and hold in official trust deposits made by any domestic company in compliance with the laws of any other state, to enable it to do business in that state, and in like manner hold deposits made by a foreign company under any law of this state. The company making the deposit shall be entitled to the income thereof and, from time to time, with the commissioner's consent, when not inconsistent with the law under which it was made, may exchange, in whole or in part, the securities composing the deposit for other approved securities of equal value. Upon application by a domestic company, the commissioner may return the whole or any portion of the securities so deposited by it, if satisfied that they are subject to no liability. Upon like application, the commissioner may return to a foreign company any deposit made by it when it appears that the company has ceased to do business in this state or the United States, and the commissioner is satisfied that it is not subject to any liability in this state, or upon the order of any court of competent jurisdiction. A foreign company which has made a deposit, its trustees, receiver, resident manager, or any creditor or policyholder thereof, may, at any time, institute in the District Court of Ramsey County an action against the state and other proper parties to enforce and terminate the trust created by the deposit. The commissioner shall immediately notify the governor of the action, and furnish the necessary information to answer in behalf of the state, and shall carry out such order and decree as the court shall make therein.
Subd. 4. Safekeeping of securities on deposit. No later than July 1, 1975, all securities held on deposit with the commissioner pursuant to the laws of this state, or in accordance with an order of the commissioner, shall be deposited for the account of the commissioner in such state or national bank in this state as the depositing insurer may designate and the commissioner may approve. Said deposits shall be made and maintained in accordance with a custodial agreement between the bank and the depositing insurer in a form approved by the commissioner which shall provide as a minimum that (1) the fees of the custodian are to be the obligation of the depositing insurer, and (2) there shall be no exchange, release or transfer of any deposited security unless the commissioner has assented thereto in writing. Securities evidenced by the Federal Reserve book entry system or held in a clearing corporation, as that term is defined in section 60A.11, subdivision 10, must be deposited through an approved custodian or the commissioner of commerce for the account of the commissioner of commerce for the benefit of all policyholders of the depositor.
Subd. 5. [Repealed, 1969 c 494 s 4]
Subd. 6. Rules. The commissioner of commerce shall have the power to make such rules as may be necessary for the execution of the functions vested in the commissioner by this section.
1967 c 395 art 1 s 10; 1969 c 494 s 3; 1974 c 425 s 1-3; 1978 c 465 s 4; 1983 c 289 s 114 subd 1; 1984 c 655 art 1 s 92; 1Sp1985 c 10 s 50; 1986 c 444; 1986 c 455 s 5; 1991 c 325 art 10 s 5; 1992 c 540 art 2 s 4; 1999 c 177 s 10; 2005 c 69 art 2 s 18; 2014 c 198 art 4 s 4
Structure Minnesota Statutes
Chapters 59A - 79A — Insurance
Chapter 60A — General Insurance Powers
Section 60A.03 — Commissioner Of Commerce.
Section 60A.031 — Examinations.
Section 60A.032 — Commissioner's Orders, Report.
Section 60A.033 — Scheduling Conference And Order.
Section 60A.035 — Government Controlled Or Owned Company Prohibited From Transacting Business.
Section 60A.052 — Certificates Of Authority; Enforcement Actions.
Section 60A.06 — Kinds Of Insurance Permitted.
Section 60A.07 — Authorization And Requirements.
Section 60A.078 — Short Title.
Section 60A.0782 — Definitions.
Section 60A.0783 — Insurable Interest Required.
Section 60A.0784 — Prohibited Practices.
Section 60A.0785 — Prohibition; Entry Into Settlement Contracts.
Section 60A.0786 — Presumption Of Stoli Practices.
Section 60A.0787 — Processing Change Of Ownership Or Beneficiary Requests.
Section 60A.0788 — Fraudulent Acts.
Section 60A.08 — Contracts Of Insurance.
Section 60A.081 — Aircraft Insurance.
Section 60A.0811 — Breach Of Insurance Policy; Recovery Of Interest.
Section 60A.082 — Group Insurance; Benefits Continued If Insurer Changed.
Section 60A.084 — Notification On Group Policies.
Section 60A.085 — Cancellation Of Group Coverage; Notification To Covered Persons.
Section 60A.086 — Retroactive Termination Of Coverage Under Group Policies Prohibited.
Section 60A.09 — Limits Of Risk; Reinsurance.
Section 60A.091 — Definition; Qualified United States Financial Institution.
Section 60A.092 — Reinsurance Credit Allowed A Domestic Ceding Insurer.
Section 60A.0921 — Credit For Reinsurance; Certified Reinsurers.
Section 60A.095 — Reinsurance Agreements Affected.
Section 60A.096 — Qualifying Letter Of Credit.
Section 60A.097 — Qualifying Trust Agreements.
Section 60A.10 — Deposits For Protection Of Policyholders.
Section 60A.11 — Investments Permitted For Domestic Companies.
Section 60A.112 — Investment Policy Required.
Section 60A.12 — Assets And Liabilities.
Section 60A.121 — Valuations; Definitions.
Section 60A.122 — Required Written Procedures For Valuations.
Section 60A.123 — Valuation Procedure.
Section 60A.124 — Independent Audit.
Section 60A.125 — Appraisal By Independent Appraiser.
Section 60A.126 — Reports To Board; Valuations.
Section 60A.127 — Independent Appraisals Of Certain Properties.
Section 60A.1285 — Other Impairments.
Section 60A.1291 — Annual Audit.
Section 60A.1295 — Actuarial Opinion Of Reserves And Supporting Documentation.
Section 60A.1296 — Confidentiality.
Section 60A.13 — Annual Statement, Inquiries, Renewal Licenses.
Section 60A.131 — Other Business And Insurance Interests, Disclosure.
Section 60A.135 — Report; Certain Transactions.
Section 60A.136 — Acquisitions And Dispositions Of Assets.
Section 60A.137 — Nonrenewals, Cancellations, Or Revisions Of Ceded Reinsurance Agreements.
Section 60A.139 — Electronic Notices And Documents.
Section 60A.1391 — Corporate Governance Annual Disclosure.
Section 60A.16 — Mergers And Consolidations.
Section 60A.161 — Insurer Domestication And Conversion.
Section 60A.172 — Insurance Agency Contracts; Cancellation.
Section 60A.173 — Effective Date.
Section 60A.174 — Severability.
Section 60A.175 — Agent Commissions.
Section 60A.1755 — Agent Errors And Omissions Insurance; Choice Of Source.
Section 60A.176 — Definitions.
Section 60A.177 — Involuntary Termination Of An Agent By The Insurer.
Section 60A.178 — Life Or Health Insurance Sales Quotas.
Section 60A.179 — Life Or Health Insurance Sales Quotas For Exclusive Agents.
Section 60A.19 — Foreign Companies.
Section 60A.196 — Definitions.
Section 60A.197 — Rates And Forms.
Section 60A.198 — Transaction Of Nonadmitted Insurance.
Section 60A.199 — Examinations.
Section 60A.201 — Placement Of Insurance By Broker.
Section 60A.202 — Evidence Of Placement Of Insurance By Broker.
Section 60A.203 — Retention Of Records.
Section 60A.204 — Fees And Commissions.
Section 60A.205 — Compensation.
Section 60A.206 — Qualification As Eligible Surplus Lines Insurer.
Section 60A.207 — Policies To Include Notice.
Section 60A.208 — Broker Association.
Section 60A.2085 — Surplus Lines Association Of Minnesota.
Section 60A.2086 — Licensee's Duty To Submit Documents; Penalty.
Section 60A.209 — Insurance Procured From Ineligible Insurers.
Section 60A.2095 — Construction.
Section 60A.21 — Unauthorized Insurers Process Act.
Section 60A.23 — Miscellaneous.
Section 60A.236 — Stop Loss Regulation; Small Employer Coverage.
Section 60A.24 — Exemptions From Insurance Laws Of This State.
Section 60A.25 — Insolvent Companies.
Section 60A.26 — Suspension Of Insurers; Notifications And Reports.
Section 60A.27 — Discipline Of Insurer By Another State; Notice To Commissioner.
Section 60A.28 — Documents Filed With Commissioner, Verification.
Section 60A.29 — Nonprofit Risk Indemnification Trust Act.
Section 60A.315 — Expedited Form And Rate Filing.
Section 60A.32 — Rate Filing For Crop Hail Insurance.
Section 60A.351 — Renewal Of Insurance Policy With Altered Rates.
Section 60A.352 — Workers' Compensation Insurance.
Section 60A.36 — Midterm Cancellation.
Section 60A.38 — Interpretation And Penalties.
Section 60A.39 — Certificates Of Insurance.
Section 60A.41 — Subrogation Against Insureds Prohibited.
Section 60A.42 — Disability Income Coverage; Prohibited Provision.
Section 60A.52 — Company Action Level Event.
Section 60A.53 — Regulatory Action Level Event.
Section 60A.54 — Authorized Control Level Event.
Section 60A.55 — Mandatory Control Level Event.
Section 60A.57 — Access To And Use Of Rbc Information.
Section 60A.58 — Supplemental Provisions.
Section 60A.59 — Foreign Health Organizations.
Section 60A.61 — Risk-based Capital Reports.
Section 60A.62 — Company Action Level Event.
Section 60A.63 — Regulatory Action Level Event.
Section 60A.64 — Authorized Control Level Event.
Section 60A.65 — Mandatory Control Level Event.
Section 60A.67 — Confidentiality.
Section 60A.68 — Supplemental Provisions; Rules; Exemption.
Section 60A.69 — Foreign Insurers.
Section 60A.705 — Definitions.
Section 60A.715 — Required Contract Provisions; Reinsurance Intermediary-brokers.
Section 60A.72 — Books And Records; Reinsurance Intermediary-brokers.
Section 60A.725 — Duties Of Insurers Utilizing The Services Of A Reinsurance Intermediary-broker.
Section 60A.73 — Required Contract Provisions; Reinsurance Intermediary-managers.
Section 60A.735 — Prohibited Acts.
Section 60A.74 — Duties Of Reinsurer Utilizing The Services Of A Reinsurance Intermediary-manager.
Section 60A.745 — Examination Authority; Reinsurance Intermediary - Broker.
Section 60A.76 — Purpose And Scope.
Section 60A.761 — Glossary Of Technical Terms Used.
Section 60A.762 — Categories Of Reserves.
Section 60A.763 — Claim Reserves.
Section 60A.764 — Premium Reserves.
Section 60A.765 — Contract Reserves Required.
Section 60A.766 — Minimum Standards For Contract Reserves.
Section 60A.767 — Reinsurance.
Section 60A.768 — Specific Standards For Morbidity, Interest, And Mortality.
Section 60A.803 — Life And Health Reinsurance Agreements.
Section 60A.91 — Filing Requirements.
Section 60A.93 — Confidentiality.
Section 60A.94 — Revocation Of Certificate Of Authority.
Section 60A.951 — Definitions.
Section 60A.952 — Disclosure Of Information.
Section 60A.953 — Enforcement; Refusal To Cooperate With An Investigation.
Section 60A.954 — Insurance Antifraud Plan.
Section 60A.955 — Claim Forms To Contain Fraud Warning.
Section 60A.956 — Other Law Enforcement Authority.
Section 60A.957 — Definitions.
Section 60A.9572 — License And Bond Requirements.
Section 60A.9573 — License Revocation And Denial.
Section 60A.9574 — Approval Of Viatical Settlement Contracts And Disclosure Statements.
Section 60A.9575 — Reporting Requirements And Privacy.
Section 60A.9577 — Disclosure To Viator.
Section 60A.9579 — General Rules.
Section 60A.9581 — Prohibited Practices And Conflicts Of Interest.
Section 60A.9583 — Fraud Prevention And Control.
Section 60A.9585 — Unfair Trade Practice.
Section 60A.975 — Definitions.
Section 60A.976 — Annuity Issuers Financial Requirements.
Section 60A.985 — Definitions.
Section 60A.9851 — Information Security Program.
Section 60A.9852 — Investigation Of A Cybersecurity Event.
Section 60A.9853 — Notification Of A Cybersecurity Event.
Section 60A.9854 — Power Of Commissioner.
Section 60A.9855 — Confidentiality.
Section 60A.9856 — Exceptions.
Section 60A.9858 — Exclusivity.
Section 60A.99 — Interstate Insurance Product Regulation Compact.
Section 60A.991 — Interstate Insurance Product Regulation Compact Opt Out Administration.