Section 61B.18 — Citation.

61B.18 CITATION. Sections 61B.18 to 61B.32 may be cited as the “Minnesota Life and Health Insurance Guaranty Association Act.” History: 1993 c 319 s 3

Section 61B.19 — Purpose; Scope; Limitation Of Coverage; Limitation Of Benefits; Construction.

61B.19 PURPOSE; SCOPE; LIMITATION OF COVERAGE; LIMITATION OF BENEFITS; CONSTRUCTION. Subdivision 1. Purpose. (a) The purpose of sections 61B.18 to 61B.32 is to protect, subject to certain limitations, the persons specified in subdivision 2 against failure in the performance of contractual obligations under life, health, and annuity policies or contracts, and the supplemental contracts specified […]

Section 61B.20 — Definitions.

61B.20 DEFINITIONS. Subdivision 1. Application. The definitions in this section apply to sections 61B.18 to 61B.32. Subd. 2. Account. “Account” means either of the two accounts created under section 61B.21, subdivision 1. Subd. 3. Annuity contracts. “Annuity contracts” means annuity contracts as described in section 60A.06, subdivision 1, clause (4). Subd. 4. Association. “Association” means […]

Section 61B.21 — Minnesota Life And Health Insurance Guaranty Association.

61B.21 MINNESOTA LIFE AND HEALTH INSURANCE GUARANTY ASSOCIATION. Subdivision 1. Functions. The Minnesota Life and Health Insurance Guaranty Association shall perform its functions under the plan of operation established and approved under section 61B.25, and shall exercise its powers through a board of directors. The association is not a state agency for purposes of chapter […]

Section 61B.22 — Board Of Directors.

61B.22 BOARD OF DIRECTORS. Subdivision 1. Members. The board of directors of the association consists of nine member insurers serving terms as established in the plan of operation under section 61B.25. The insurer board members must be elected by member insurers, subject to the approval of the commissioner, for the terms of office specified in […]

Section 61B.23 — Powers And Duties Of Association.

61B.23 POWERS AND DUTIES OF ASSOCIATION. Subdivision 1. Impaired domestic insurer. If a member insurer is an impaired domestic insurer, the association may, in its discretion, and subject to any conditions imposed by the association that do not impair the contractual obligations of the impaired insurer and that are approved by the commissioner, and that […]

Section 61B.24 — Assessments.

61B.24 ASSESSMENTS. Subdivision 1. Purpose. For the purpose of providing the funds necessary to carry out the powers and duties of the association, the board of directors shall assess the member insurers, separately for each account or subaccount, at the times and for the amounts as the board finds necessary. Assessments are due not less […]

Section 61B.25 — Plan Of Operation.

61B.25 PLAN OF OPERATION. Subdivision 1. Adoption and amendment. The purpose of the plan of operation is to assure the fair, reasonable, and equitable administration of the association under sections 61B.18 to 61B.32. Amendments to the plan of operation must be submitted to the commissioner and become effective upon the commissioner’s written approval or 30 […]

Section 61B.26 — Duties And Powers Of Commissioner.

61B.26 DUTIES AND POWERS OF COMMISSIONER. (a) In addition to other duties and powers in sections 61B.18 to 61B.32, the commissioner shall: (1) notify the board of directors of the existence of an impaired or insolvent insurer within three days after a determination of impairment or insolvency is made or the commissioner receives notice of […]

Section 61B.27 — Prevention Of Insolvencies.

61B.27 PREVENTION OF INSOLVENCIES. (a) To aid in the detection and prevention of member insurer insolvencies or impairments the commissioner shall notify the commissioners of insurance of all the other states, territories of the United States, and the District of Columbia when the commissioner takes one of the following actions against a member insurer: (i) […]

Section 61B.28 — Miscellaneous Provisions.

61B.28 MISCELLANEOUS PROVISIONS. Subdivision 1. Records. Records must be kept of all negotiations and meetings of the board of directors to discuss the activities of the association in carrying out its powers and duties under section 61B.23. Records of the association with respect to an impaired or insolvent insurer shall be made public only upon […]

Section 61B.29 — Examination; Annual Report.

61B.29 EXAMINATION; ANNUAL REPORT. The association is subject to examination and regulation by the commissioner. The board of directors shall submit to the commissioner before May 1 each year, a financial report in a form approved by the commissioner and a report of its activities during the association’s preceding fiscal year. Upon request of a […]

Section 61B.30 — Tax Exemptions.

61B.30 TAX EXEMPTIONS. Subdivision 1. State fees and taxes. The association is exempt from payment of all taxes imposed under chapter 297I and all fees and all other taxes levied by this state or its subdivisions, except taxes levied on real property. Subd. 2. Federal and foreign state taxes. The association may seek exemption from […]

Section 61B.31 — Indemnification.

61B.31 INDEMNIFICATION. The association has authority to indemnify certain persons against certain expenses and liabilities as provided in section 302A.521, including the power to purchase and maintain insurance on behalf of these persons as provided by section 302A.521, subdivision 7. In applying section 302A.521 for this purpose, the term “member insurers” shall be substituted for […]

Section 61B.32 — Stay Of Proceedings; Reopening Default Judgments.

61B.32 STAY OF PROCEEDINGS; REOPENING DEFAULT JUDGMENTS. All proceedings in which the insolvent insurer is a party in a court in this state must be stayed 60 days from the date an order of liquidation, rehabilitation, or conservation is final to permit proper legal action by the association on matters germane to its powers or […]

Section 61B.33 — Rights And Obligations Of Association.

61B.33 RIGHTS AND OBLIGATIONS OF ASSOCIATION. Notwithstanding any other provision of law, the provisions of the Minnesota Life and Health Insurance Guaranty Association Act in effect on the date the association first becomes obligated for the policies or contracts of an insolvent or impaired member insurer govern the association’s rights or obligations to the policy […]