Subdivision 1. Summary order after hearing. Whenever the commissioner has reasonable cause to believe, and determines, after a hearing held as prescribed in subdivision 3, that any insurer has committed or engaged in, or is committing or engaging in or is about to commit or engage in any act, practice, or transaction that would subject it to formal delinquency proceedings under sections 60B.01 to 60B.61, the commissioner may make and serve upon the insurer and any other persons involved such orders other than seizure orders under sections 60B.12 and 60B.13 as are reasonably necessary to correct, eliminate, or remedy such conduct, condition, or ground.
Subd. 2. Summary order before hearing. If the conditions of subdivision 1 are satisfied, and if it appears to the commissioner that irreparable harm to the property or business of the insurer or to the interests of its policyholders, creditors, or the public may occur unless the commissioner issues with immediate effect the orders described in subdivision 1, the commissioner may make and serve such orders without notice and before hearing, simultaneously serving upon the insurer notice of the hearing upon such order.
Subd. 3. Service, notice, hearing. The notice of hearing under subdivision 1 or 2 and the summary order issued under subdivision 1 or 2 shall be served personally or by sending a copy of such notice of order by prepaid certified mail. The notice of hearing under subdivision 1 shall state the time and place of hearing, and the conduct, condition, or ground upon which the commissioner would base an order; the notice of hearing under subdivision 2 shall state the time and place of hearing. Unless mutually agreed between the commissioner and the insurer, the hearing shall occur not less than ten days nor more than 30 days after notice is served and shall be either in Ramsey County or in some other place convenient to the parties to be designated by the commissioner.
Subd. 4. Judicial relief. If the commissioner issues a summary order before hearing under subdivision 2, the insurer may at any time waive the commissioner's hearing and the summary decision shall be treated as a final decision in a contested case under chapter 14, and the insurer may apply for immediate judicial relief by means of any remedy afforded by law without first exhausting administrative remedies. Subsequent to a hearing the insurer or any person whose interests are substantially affected shall be entitled to judicial review in accordance with chapter 14 of any order issued by the commissioner.
Subd. 5. Sanction. If any person has violated any order issued under this section which as to that person was then still in effect, that person shall be liable to forfeit a sum not to exceed $10,000. The penalty shall be imposed and collected in an action brought by the attorney general and shall be paid into the state treasury to the credit of the general fund.
Subd. 6. Enforcement by injunction. The commissioner may apply for and any court of general jurisdiction may grant, under the relevant sections of Minnesota Rules of Civil Procedure, such restraining orders, temporary and permanent injunctions, and other orders as are deemed necessary to enforce a summary order.
1969 c 399 s 1; 1969 c 708 s 11; 1978 c 674 s 60; 1982 c 424 s 130; 1986 c 444
Structure Minnesota Statutes
Chapters 59A - 79A — Insurance
Chapter 60B — Rehabilitation And Liquidation
Section 60B.01 — Title, Construction, And Purpose.
Section 60B.02 — Persons Covered.
Section 60B.04 — Jurisdiction And Venue.
Section 60B.05 — Injunctions And Orders.
Section 60B.06 — Costs And Expenses Of Litigation.
Section 60B.07 — Cooperation Of Officers And Employees.
Section 60B.09 — Commissioner's Reports.
Section 60B.10 — Continuation Of Delinquency Proceedings.
Section 60B.11 — Commissioner's Summary Orders.
Section 60B.12 — Court's Seizure Order.
Section 60B.13 — Commissioner's Seizure Order.
Section 60B.14 — Conduct Of Hearings In Summary Proceedings.
Section 60B.15 — Grounds For Rehabilitation.
Section 60B.16 — Rehabilitation Orders.
Section 60B.17 — Powers And Duties Of Rehabilitator.
Section 60B.171 — Use, Sale, Or Transfer Of Assets During Rehabilitation.
Section 60B.18 — Actions By And Against Rehabilitator.
Section 60B.181 — Notice Regarding Rehabilitation Or Liquidation Proceeding.
Section 60B.19 — Termination Of Rehabilitation.
Section 60B.193 — Liability Of Enrollees.
Section 60B.20 — Grounds For Liquidation.
Section 60B.21 — Liquidation Orders.
Section 60B.22 — Continuance Of Coverage.
Section 60B.23 — Dissolution Of Insurer.
Section 60B.25 — Powers Of Liquidator.
Section 60B.26 — Notice To Creditors And Others.
Section 60B.28 — Actions By And Against Liquidator.
Section 60B.29 — Collection And List Of Assets.
Section 60B.30 — Fraudulent Transfers Prior To Petition.
Section 60B.31 — Fraudulent Transfers After Petition.
Section 60B.32 — Voidable Preferences And Liens.
Section 60B.33 — Claims Of Holders Of Void Or Voidable Rights.
Section 60B.335 — Federal Home Loan Bank Rights; Collateral Pledged By Insurer-members.
Section 60B.34 — Setoffs And Counterclaims.
Section 60B.365 — Reinsurer's Liability.
Section 60B.37 — Filing Of Claims.
Section 60B.38 — Proof Of Claim.
Section 60B.39 — Special Claims.
Section 60B.40 — Special Provisions For Third-party Claims.
Section 60B.41 — Disputed Claims.
Section 60B.42 — Claims Of Surety.
Section 60B.43 — Secured Creditors' Claims.
Section 60B.435 — Qualified Financial Contracts.
Section 60B.44 — Order Of Distribution.
Section 60B.45 — Liquidator's Recommendations To The Court.
Section 60B.46 — Distribution Of Assets.
Section 60B.47 — Unclaimed And Withheld Funds.
Section 60B.48 — Termination Of Proceedings.
Section 60B.49 — Reopening Liquidation.
Section 60B.50 — Disposition Of Records During And After Termination Of Liquidation.
Section 60B.51 — External Audit Of Receiver's Books.
Section 60B.52 — Conservation Of Property Of Foreign Or Alien Insurers Found In This State.
Section 60B.53 — Liquidation Of Property Of Foreign Or Alien Insurers Found In This State.
Section 60B.54 — Foreign Domiciliary Receivers In Other States.
Section 60B.55 — Ancillary Formal Proceedings.
Section 60B.56 — Ancillary Summary Proceedings.
Section 60B.57 — Claims Of Nonresidents Against Insurers Domiciled In This State.
Section 60B.58 — Claims Of Residents Against Insurers Domiciled In Reciprocal States.
Section 60B.59 — Attachment, Garnishment And Levy Of Execution.
Section 60B.60 — Interstate Priorities.
Section 60B.61 — Subordination Of Claims For Noncooperation.