Subdivision 1. Authorization. An insurer authorized to deliver or issue for delivery annuity contracts in this state may deliver or issue for delivery one or more funding agreements. The issuance or delivery of these funding agreements shall not be deemed to be doing a kind of business specifically authorized by section 60A.06. Notwithstanding the definition of contracts of life and endowment insurance or of annuities under section 60A.06, subdivision 1, clause (4) or the definition of life insurance company under section 61A.01, the issuance or delivery of a funding agreement by an insurer in this state constitutes doing an insurance business in the state.
Subd. 2. Issuance. The funding agreements may be issued to: (1) individuals; or (2) persons authorized by a state or foreign country to engage in an insurance business or subsidiaries or affiliates of these persons; or (3) entities other than individuals and other than persons authorized to engage in an insurance business, and subsidiaries and affiliates of these persons, for the following purposes: (i) to fund benefits under any employee benefit plan as defined in the Employee Retirement Income Security Act of 1974, as now or hereafter amended, maintained in the United States or in a foreign country; (ii) to fund the activities of any organization exempt from taxation under section 501(c) of the Internal Revenue Code of 1986, as amended through December 31, 1992, or of any similar organization in any foreign country; (iii) to fund any program of any state, foreign country or political subdivision thereof, or any agency or instrumentality thereof; (iv) to fund any agreement providing for periodic payments in satisfaction of a claim; or (v) to fund a program of an institution that has assets in excess of $25,000,000. No funding agreement shall be issued in an amount less than $1,000,000.
Subd. 3. General operation. No amounts shall be guaranteed or credited under a funding agreement except upon reasonable assumptions as to investment income and expenses and on a basis equitable to all holders of funding agreements of a given class. The funding agreements shall not provide for payments to or by the insurer based on mortality or morbidity contingencies.
Subd. 4. [Repealed, 2011 c 61 s 9]
Subd. 5. Rules. The commissioner may adopt rules relating to (1) the standards to be followed in the approval of forms of the funding agreements, (2) the reserves to be maintained by insurers issuing the funding agreements, (3) the accounting and reporting of funds credited under the funding agreements, (4) the disclosure of information to be given to holders and prospective holders of the funding agreements, and (5) the qualification and compensation of persons selling the funding agreements on behalf of insurers. Notwithstanding any other provision of law, the commissioner has sole authority to regulate the issuance and sale of the funding agreements, including the persons selling the funding agreements on behalf of insurers.
1985 c 43 s 1; 1993 c 375 art 8 s 14; 1998 c 319 s 17; 1999 c 177 s 34; 2001 c 131 s 11
Structure Minnesota Statutes
Chapters 59A - 79A — Insurance
Section 61A.01 — Life Insurance Company Defined.
Section 61A.011 — Interest On Unpaid Benefits.
Section 61A.02 — Forms Of Policy.
Section 61A.021 — Sale Of Life Insurance And Annuity As Single Policy Prohibited.
Section 61A.03 — Required Provisions; Life Insurance Policies.
Section 61A.031 — Suicide Provisions.
Section 61A.04 — Spendthrift Provisions.
Section 61A.05 — Life Policies To Contain Entire Contract.
Section 61A.06 — Aviation And War Risk Exclusion Permitted.
Section 61A.07 — Prohibited Provisions.
Section 61A.071 — Applications.
Section 61A.072 — Accelerated Benefits.
Section 61A.09 — Group Life Insurance.
Section 61A.091 — Employee Group Life Insurance Plans.
Section 61A.092 — Continuation Of Coverage For Life Insurance.
Section 61A.093 — Certificate Of Insurance.
Section 61A.10 — Extension Of Time For Payment Of Premiums.
Section 61A.11 — Misstatement, When Not To Invalidate Policy.
Section 61A.12 — Beneficiaries.
Section 61A.14 — Companies Entitled To Issue Contracts; Accounts; Investments.
Section 61A.15 — Contract Provisions.
Section 61A.16 — Contract Provisions.
Section 61A.17 — Filing Of Contracts.
Section 61A.18 — Disapproval Of Contracts.
Section 61A.19 — Company Requirements.
Section 61A.21 — Application Of Other Laws.
Section 61A.22 — Contracts To Specify Benefits And Consideration.
Section 61A.23 — Provisions In Policies; Laws Of Other States.
Section 61A.24 — Standard Nonforfeiture Law For Life Insurance.
Section 61A.245 — Standard Nonforfeiture Law For Individual Deferred Annuities.
Section 61A.25 — Standard Valuation Law.
Section 61A.255 — Smoker And Nonsmoker Mortality Tables.
Section 61A.257 — Preferred Mortality Tables For Use In Determining Minimum Reserve Liabilities.
Section 61A.27 — Contingency Reserve; Limitations.
Section 61A.276 — Funding Agreements.
Section 61A.28 — Domestic Companies, Investments.
Section 61A.281 — Investments; Subsidiaries.
Section 61A.282 — Investments In Name Of Company Or Nominee And Prohibitions.
Section 61A.283 — Admitted Assets.
Section 61A.284 — Investments; Capital Stock Of Other Insurance Companies.
Section 61A.29 — Foreign Investments.
Section 61A.30 — Joint Investments.
Section 61A.31 — Real Estate Holdings.
Section 61A.315 — Investments And Holdings; Limitations.
Section 61A.39 — Cooperative Life And Casualty Companies.
Section 61A.40 — Qualifications For License; Number Of Members.
Section 61A.41 — Reserve Fund; Reciprocal Provisions.
Section 61A.42 — Payments; Liens; Assessments; Policies To Be Labeled.
Section 61A.43 — Accumulations; Amendment To Articles Or Bylaws.
Section 61A.44 — Limitation On Expenses; Life Insurance.
Section 61A.45 — Limitation On Expenses; Companies With Reserve Deposits.
Section 61A.46 — Net Rates; Reserve Fund; Limitation Of Expenses.
Section 61A.47 — Reinsurance Or Consolidation.
Section 61A.48 — Change To Legal Reserve Or Level Premium Companies.
Section 61A.52 — Reserve Required.
Section 61A.55 — Duties Of Agents And Brokers.
Section 61A.56 — Duties Of All Insurers.
Section 61A.57 — Duties Of Insurers That Use Agents Or Brokers.
Section 61A.58 — Duties Of Insurers With Respect To Direct Response Sales.
Section 61A.59 — Enforcement; Effect Of Compliance.
Section 61A.60 — Required Replacement Notice And Form.
Section 61A.70 — Applicability And Scope.
Section 61A.705 — Definitions.
Section 61A.71 — Policies To Be Illustrated.
Section 61A.715 — General Rules And Prohibitions.
Section 61A.72 — Standards For Basic Illustrations.
Section 61A.725 — Standards For Supplemental Illustrations.
Section 61A.73 — Delivery Of Illustration And Record Retention.
Section 61A.735 — Annual Report; Notice To Policy Owners.