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Other Insurance-Related Licenses

Includes Employee Leasing, Managing General Agency, Reinsurance Intermediary Broker or Manager, Service Contract Provider, Third Party Administrator, Utilization Review, Viatical Broker, Vehicle Protection Product Warrantor, and Purchasing Group.

  • Employee Leasing


    The Employee Leasing Company Registration Unit registers employee leasing companies and grants exemption certificates for temporary help agencies that do not enter into any agreements or arrangements involving the lease-back of their client's employees. See Minnesota Statutes: ß 79.255

     

  • Managing General Agent


    Who needs a license?
    Under Minnesota law, a managing general agent is a person, firm, association or corporation who (1) manages all or part of the insurance business of an insurer, including the management of a separate division, department, or underwriting office, and (2) acts as an agent for the insurer whether known as a managing general agent, manager, or other similar term, who, with or without the authority, either separately or together with affiliates, produces, directly or indirectly, and underwrites an amount of gross direct written premium equal to or more than five percent of the policyholder surplus as reported in the last annual statement of the insurer in any one quarter or year, together with one or more of the following activities related to the business produced: (i) adjusts or pays any claim exceeding $5,000, or any combination of claims, the aggregate of which exceeds $25,000, in any 12 consecutive months, or (ii) negotiates reinsurance on behalf of the insurer.

    A managing general agent representing an insurer licensed in Minnesota with respect to risks located in Minnesota must be licensed in Minnesota.

    A managing general agent representing an insurer domiciled in Minnesota with respect to risks located outside Minnesota must be licensed in Minnesota as a managing general agent. The license may be a nonresident license.

    The following persons do not require licensure as a managing general agent:
    (1) an employee of the insurer;
    (2) a United States manager of the United States branch of an alien insurer;
    (3) an underwriting manager who, pursuant to contract, manages all or a part of the insurance or reinsurance operation of the insurer, is under common control with the insurer, subject to the Insurance Holding Company Act, chapter 60D, and whose compensation is not based on the volume of premiums written; or
    (4) an attorney in fact authorized by and acting for the subscribers of a reciprocal insurer or interinsurance exchange under powers of attorney.

     

    How to get a license
    The following must be submitted for a managing general agent license:

    1) A completed  agency license application.

    2) The $220 agency license fee. In accordance with Minn. Stat. §16E.22, this fee includes a 10% OET surcharge, which is being collected on behalf of the Minnesota Office of Enterprise Technology to fund a statewide electronic licensing system. Cash is not accepted. Send a check or money order payable to Minnesota Department of Commerce.
    3) Attach a list of owners, partners, and officers, providing the names and addresses of all officers, directors, shareholders, or employees who exercise management or policy control in the agency.
    4) Attach a completed BCA form (included with the application) for each individual listed as an owner, partner, or officer.
    5) If the agency name differs from the legal name of the partnership, corporation, or other business entity, attach a copy of the Certificate of Assumed Name that was filed and stamped by the Minnesota Secretary of State. For example, this requirement applies to a partnership that intends to do business using an agency name that does not include the first and last name of each individual partner, or a corporation or business entity that intends to do business under an agency name that is not the legal corporate name. Information about filing a Certificate of Assumed Name may be obtained from the Secretary of State (www.sos.state.mn.us , 180 State Office Building, 100 Constitution Avenue, St. Paul, MN 55155, telephone 651-296-2803).
    6) If the agency is a corporation, attach a copy of the Articles of Incorporation that were filed and stamped by the Minnesota Secretary of State.
    7) If the agency is a partnership, attach a copy of the partnership agreement signed by all partners.
    8) If the agency is a Limited Liability Company or other business entity, attach a copy of the business organization documents.
    9) If the agency is incorporated in another jurisdiction and has Minnesota resident producers, attach a copy of the Certificate of Foreign Corporation issued by the Minnesota Secretary of State.
    10) Attach a list of all Minnesota-licensed insurance producers affiliated with the agency, including each producer's full name and license number. At least one Minnesota-licensed insurance producer (resident or non-resident) must be working for the agency.
    11) Agencies are not licensed for specific lines of authority. An agency's lines of authority correspond to the lines of authority of the individual producers affiliated with the agency.
    12) Agencies are not required to be appointed by insurance companies.
    13) A managing general agent is required to have in effect a written contract with the insurer for which it acts as a managing general agent. A copy of the contract must be attached and submitted with the managing general agent application. Requirements for minimum contractual terms are set forth in Minn. Stat. §60H.
     

  • Purchasing Groups


    A Purchasing Group is a group that:

    • purchases liability insurance on a group basis

    • purchases the insurance only for its group members just to cover their siimilar or related liability exposure

    • is composed of members whose businesses or activities are similar or related

    • is domiciled in a state

    All the requirements governing purchasing groups are found in Miinnesota Statute Chapter 60E. 

    Any insurance program marketed to purchasing groups in Minnesota must meet all the requirements found in state statutes and administrative rules that apply to liability insurance.  It must also meet all the filing requirements for the line of coverage.

    The Purchasing Group itself must register with the Minnesota Department of Commerce using this application.

  • Reinsurance Intermediary


    Who needs a license
    Under Minnesota law, "reinsurance intermediary" means either a reinsurance intermediary-broker or a reinsurance intermediary-manager. A reinsurance intermediary-broker is any person, other than an officer or employee of the ceding insurer, firm, association, or corporation, who solicits, negotiates, or places reinsurance cessions or retrocessions on behalf of a ceding insurer without the authority or power to bind reinsurance on behalf of this insurer. A reinsurance intermediary-manager is any person, firm, association, or corporation who has authority to bind or manages all or part of the assumed reinsurance business of a reinsurer, including the management of a separate division, department, or underwriting office, and acts as an agent for that reinsurer whether known as a reinsurance intermediary-manager, manager, or other similar term. But the following persons are not considered a reinsurance intermediary-manager, with respect to that reinsurer, for the purposes of Minnesota's Reinsurance Intermediary Act:

    (1) an employee of the reinsurer;
    (2) a United States manager of the United States branch of an alien reinsurer;
    (3) an underwriting manager which, pursuant to contract, manages all or part of the reinsurance operations of the reinsurer, is under common control with the reinsurer, subject to the Insurance Holding Company Act, chapter 60D, and whose compensation is not based on the volume of premiums written; or
    (4) the manager of a group, association, pool, or organization of insurers which engage in joint underwriting or joint reinsurance and who are subject to examination by the insurance commissioner of the state in which the manager's principal business office is located.

    In addition, licensed attorneys at law of Minnesota, when acting in their professional capacity as such, are exempt from licensure as a reinsurance intermediary. 

    No person, firm, association, or corporation may act as a reinsurance intermediary-broker in Minnesota if the reinsurance intermediary-broker maintains an office either directly or as a member or employee of a firm or association, or an officer, director, or employee of a corporation:

    1) in Minnesota, unless the reinsurance intermediary-broker is a licensed producer in Minnesota; or
    2) in another state, unless the reinsurance intermediary-broker is a licensed producer in Minnesota or another state having a law substantially similar to Minnesota's Reinsurance Intermediary Act or the reinsurance intermediary-broker is licensed in Minnesota as a nonresident reinsurance intermediary.

     
    No person, firm, association, or corporation may act as a reinsurance intermediary-manager:

    1) for a reinsurer domiciled in Minnesota, unless the reinsurance intermediary-manager is a licensed producer in Minnesota;
    2) in Minnesota, if the reinsurance intermediary-manager maintains an office either directly or as a member or employee of a firm or association, or an officer, director, or employee of a corporation in Minnesota, unless the reinsurance intermediary-manager is a licensed producer in Minnesota; or
    3) in another state for a nondomestic insurer, unless the reinsurance intermediary-manager is a licensed producer in Minnesota or another state having a law substantially similar to Minnesota's Reinsurance Intermediary Act or the person is licensed in Minnesota as a nonresident reinsurance intermediary.

    The license issued to a firm or association authorizes all the members of the firm or association and any designated employees to act as reinsurance intermediaries under the license. These persons must be named in the license application and any supplements to it.

    The license issued to a corporation authorizes all of the officers and any designated employees and directors of the corporation to act as reinsurance intermediaries on behalf of the corporation. These persons must be named in the license application and any supplements to it.

    How to get a license
    The following must be submitted for a Reinsurance Intermediary license:

    1) Completed Reinsurance Intermediary license application and BCA forms. 
    2) $220 Agency license fee. In accordance with Minn. Stat. 16E.22, this fee includes a 10% OET surcharge, which is being collected on behalf of the Minnesota Office of Enterprise Technology to fund a statewide electronic licensing system. Cash is not accepted. Check or money order payable to MN Dept of Commerce.
    3) Initial reinsurance intermediary licenses are valid for up to 24 months and expire on October 31 of the assigned renewal year

    How to renew a license
    Reinsurance intermediary license renewals are done online at Sircon Licensing. The renewal fee is $165. In accordance with Minn. Stat. 16E.22, this fee includes a 10% OET surcharge, which is being collected on behalf of the Minnesota Office of Enterprise Technology to fund a statewide electronic licensing system.
    Renewed reinsurance intermediary licenses are valid for 24 months and expire on October 31 of the designated year.

     

  • Service Contract Providers


    General Information
    Each provider of service contracts sold in Minnesota must file a registration with the Department of Commerce. The registration fee is $750 annually. The statutes covering Service Contract Providers are found in M.S. 59B. All the information needed for registration is available in this file.

    Information About Bonding

    An example has been provided for one form that would be acceptable in Minnesota, similar forms may be submitted. 

    In establishing, pursuant to 59B.03, Subd. 4(2) (ii) , a funded reserve account and financial security deposit.  The type of financial institution would need to be at least a federally chartered bank or a bank that is chartered under the Commerce Commissioner in the State of Minnesota. 
    Form may be downloaded here.

    For further questions on the Service Contract Providers Application, you can write or call:

    Marie R. Douglas
    Insurance Product Filing & Securities Registration
    Minnesota Department of Commerce
    85 7th Place East, Suite 500
    St. Paul, MN  55101-2198
    Phone:  (651) 539-1743 
    Fax: (651) 539-0100
    E-Mail: marie.douglas@state.mn.us

     

  • Third Party Administrator


    The Third Party Administrator Unit licenses third party administrators as defined by Minnesota Statutes 60A.23, Subdivision 8. Licenses are granted when the Commissioner of Commerce is satisfied that the administrator is capable of providing TPA services, is financially solvent and (if applicable) is able to process claims in a prompt and equitable manner.

    See Minnesota Statutes:  60A.23, Subdivision 8 and Minnesota Rules: Chapter 2767

    Li censing Forms

    • Application form  must be completed to be considered for TPA licensing or the renewal of a TPA license

    • Guarantee form must be completed when applying for a TPA license when an applicant uses the financial statements of a parent or other related entity to meet the financial requirements. The guarantee must be accompanied by a resolution by the guarantor's board of directors authorizing the guarantee.

    • Third Party Administrator Bond form 

    License Reporting Requirements (Minnesota Rules: 2767.0700)

    • Subp. 3 Report compliance.  Each licensee shall file or ensure that the clients it services file all required reports relating to those services which the administrator provides within the times established by statute, rule, or order of the commissioner.  Required reports include:

    • A. an annual activity report, filed within 60 days of the end of the calendar year, stating:
      (1) the name and address of clients administered by the licensee in Minnesota during the previous calendar year;
      (2) the area and type of service provided to each plan;
      (3) the starting and/or termination date each client was serviced;
      (4) the total number and total amount of claims paid and loss payments disbursed on behalf of each client; and
      (5) the reserves established for each client.

    • This should be in letter form with the company name and date on it.

     

  • Utilization Review Organization (URO)


    The statutes covering UROs are found in M.S. 62M. The application package (download here) contains all the forms and information you will need and also a copy of the Medical Necessity Evaluation Review Annual Report. 
     

  • Vehicle Protection Product Warrantor Registration


    General Information
    Each provider of vehicle protection warranties sold in Minnesota must file an Application/Record containing the information required by Minn. Stat. 59C.04. The registration fee is $250 annually. Necessary forms may be downloaded below. 
      •   Vehicle Protection Product Warrantor Application 
      •   Guarantee of Payment

    For questions on the Vehicle Protection Product Warrantors Application, you can write or call:

    Marie Douglas
    Insurance Product Filing & Securities Registration
    Minnesota Department of Commerce
    85 7th Place East, Suite 500
    St. Paul, MN  55101-2198
    Phone:  (651) 539-1743
    Fax: (651) 539-0100 
    E-Mail:  marie.douglas@state.mn.us

  • Viaticals Forms and FAQ


    Minnesota defines the business of viatical settlements to include any method of offering, soliciting, negotiating, or acquiring an interest in a life insurance policy by means of a viatical settlement contract, whether referred to as "life settlement", "viatical settlement," or any other term.

    All providers and brokers of viatical settlements must be licensed in Minnesota before operating in the state.  An insurance producer who is currently licensed with the life line of authority and has been licensed in good standing for at least one year is exempt from licensure as a viatical settlement broker but must file an exemption form not later than 30 days from the first day of operating as a viatical settlement broker.

    In addition, any person who is an appointed or contracted agent of a licensed viatical settlement provider who solicits or arranges the funding for the purchase of a viatical settlement by a viatical settlement purchaser and who is acting on behalf of a viatical settlement provider must now obtain a "viatical settlement investment agent" license in Minnesota before operating in the state.

    All viatical settlement license applications must be made on the paper forms that are available for download below.

      •   Broker Application - Business Entity
      •   Broker Exemption
      •   Broker Renewal - Business Entity
      •   Individual Broker Application
      •   Individual Broker- Renewal
      •   Investment Agent Application
      •   Investment Agent Renewal
      •   Provider Application
      •   Provider Renewal
      •   Viatical Settlement Annual Statement

    Viatical FAQ

    1.)  Does Minnesota consider life settlements and viatical settlements to be the same for licensing purposes? Are "senior life settlements" outside the scope of the licensing law?

    Answer: Life settlements and viatical settlements are the same for licensing purposes, as are "senior life settlements" and the like. In enacting and modifying the Viatical Settlements Model Act of the National Association of Insurance Commissioners, Minnesota defined the business of viatical settlements to include any method of offering, soliciting, negotiating, or acquiring an interest in a life insurance policy by means of a viatical settlement contract, whether referred to as "life settlement," "viatical settlement," or any other term.

    2.)  Are there new license application forms for Viatical Settlement Brokers and Providers?

    Answer:Yes, applicants should use the August 2009 forms that are available on the Department of Commerce Insurance website (www.insurance.mn.gov ).

    3.)  How frequently must a viatical settlement provider, broker, or investment agent license be renewed?

    Answer: Annually.

    4.)  What is the initial cost of a viatical settlement provider, broker, or investment agent license?

    Answer: $750.

    5.)  How should viatical settlement contract forms or disclosure statement forms be submitted?

    Answer: Eventually we will require viatical settlement contract forms and disclosure statement forms to be submitted electronically via SERFF. Until then, they should be submitted either (1) by e-mail (attached as a PDF file) to licensing.commerce@state.mn.us , with "Viatical Settlement Form Submission" as the subject; (2) by fax to 651-539-0107, with "ATTN: Viatical Settlement Form Submission" on the cover page; or (3) by mail to Minnesota Department of Commerce, ATTN: Viatical Settlement Form Submission, 85 - 7th Place East, Suite 500, St. Paul, MN  55101.

    6.)  If a company becomes licensed as a viatical settlement broker, is an individual agent at that company required to be licensed as a viatical settlement broker as well?

    Answer: No. A license issued to a legal entity authorizes all partners, officers, members, and designated employees to act as viatical settlement brokers under the license. All individuals to be covered by the license, however, must be listed on the license application or in a subsequent supplement to it, and a biographical statement (as provided with the application or in a supplement to it) must be submitted for each individual to be covered by the license.

    7.)  Does a bond need to be secured by the time of application?

    Answer: By the time of application, a viatical settlement provider or a viatical settlement broker must demonstrate evidence of financial responsibility through either (1) a surety bond executed and issued by an insurer authorized to issue surety bonds in Minnesota or evidence of the existence of a deposit of cash, certificates of deposit, or securities or any combination thereof in the amount of $250,000, or (2) proof that financial instruments in accordance with these requirements have been filed with one or more states where the applicant is licensed as a viatical settlement broker.

    8.)  What is the renewal cost for a viatical settlement provider, broker, or investment agent license?

    Answer: $250.

    9.)  Does E & O coverage of at least $250,000 meet the financial responsibility requirement?

    Answer: No.

    10.)  Is there a financial responsibility requirement for viatical settlement providers and brokers?

    Answer: Yes. A viatical settlement provider or a viatical settlement broker must demonstrate evidence of financial responsibility through either (1) a surety bond executed and issued by an insurer authorized to issue surety bonds in Minnesota or evidence of the existence of a deposit of cash, certificates of deposit, or securities or any combination thereof in the amount of $250,000, or (2) proof that financial instruments in accordance with these requirements have been filed with one or more states where the applicant is licensed as a viatical settlement broker.

    11.)  Is an insurance producer with the life line of authority who is operating as a viatical settlement broker under the exemption from licensing requirements required to post a bond?

    Answer: No.

    12.)  Will the Department of Commerce accept NAIC biographical affidavits for officers/directors?

    Answer:Yes.

    13.)  Must we submit a copy of a driver?s license for all officers/directors?

    Answer: No.

    14.)  What is the process to add an individual to a business entity license once that license is issued? What is the process if an individual must be deleted from a business entity license mid-year? Is there a cost associated with adding or deleting an individual to a business entity license?

    Answer:A licensed viatical settlement provider, broker, or investment agent business entity must provide to the Department of Commerce new or revised information about officers, ten percent or more stockholders, partners, directors, members, or designated employees within 30 days of the change.  There is no associated fee.

    15.)  According to the law, an insurance producer with the life line of authority is permitted to operate as viatical settlement broker, as long as the requirements for an exemption are met and the proper form is filed. Does this include a nonresident insurance producer with the life line of authority?

    Answer:Yes.

    16.)  Does the broker exemption apply to agencies?

    Answer: No, only individual producers.

    17.)  In order to operate as a viatical settlement broker without a separate license, does an insurance producer with the life line of authority need to be licensed as such in Minnesota for at least one year, or is it sufficient to have been a licensed insurance producer in another state for at least one year and licensed as a producer in Minnesota?

    Answer:The producer must be currently licensed in Minnesota with the life line of authority and must have been so licensed in Minnesota in good standing for at least one year.  Please note that Minnesota did not adopt the corresponding NAIC Model Act language for this provision.

    18.)  An insurance producer with the life line of authority is permitted to operate as a viatical settlement broker as long as the requirements for an exemption are met and the proper form is filed. Does this exemption expire?

    Answer: No, as long as the producer remains active and in good standing.

    19.)  Will I receive a exemption certificate?

    Answer: No.  You will receive an e-mail from our department stating that the exemption has been granted.