1.1.................... moves to amend H. F. No. 3783 as follows:
1.2Page 2, after line 4, insert:

1.3    "Sec. 2. Minnesota Statutes 2007 Supplement, section 61A.257, subdivision 1, is
1.4amended to read:
1.5    Subdivision 1. Definitions. (a) For the purposes of this section only, the following
1.6terms have the meanings given them.
1.7    (b) "2001 CSO Mortality Table" means that mortality table, consisting of separate
1.8rates of mortality for male and female lives, developed by the American Academy of
1.9Actuaries CSO Task Force from the Valuation Basic Mortality Table developed by the
1.10Society of Actuaries Individual Life Insurance Valuation Mortality Task Force, and
1.11adopted by the NAIC in December 2002. The 2001 CSO Mortality Table is included in
1.12the Proceedings of the NAIC (2nd Quarter 2002) and supplemented by the 2001 CSO
1.13Preferred Class Structure Mortality Table defined in paragraph (c). Unless the context
1.14indicates otherwise, the "2001 CSO Mortality Table" includes both the ultimate form of
1.15that table and the select and ultimate form of that table and includes both the smoker and
1.16nonsmoker mortality tables and the composite mortality tables. It also includes both the
1.17age-nearest-birthday and age-last-birthday bases of the mortality tables. Mortality tables
1.18in the 2001 CSO Mortality Table include the following:
1.19    (1) "2001 CSO Mortality Table (F)" means that mortality table consisting of the rates
1.20of mortality for female lives from the 2001 CSO Mortality Table;
1.21    (2) "2001 CSO Mortality Table (M)" means that mortality table consisting of the
1.22rates of mortality for male lives from the 2001 CSO Mortality Table;
1.23    (3) "composite mortality tables" means mortality tables with rates of mortality that
1.24do not distinguish between smokers and nonsmokers; and
1.25    (4) "smoker and nonsmoker mortality tables" means mortality tables with separate
1.26rates of mortality for smokers and nonsmokers.
2.1    (c) "2001 CSO Preferred Class Structure Mortality Table" means mortality tables
2.2with separate rates of mortality for the super preferred Nonsmokers nonsmoker, preferred
2.3Nonsmokers nonsmoker, residual standard Nonsmokers nonsmoker, preferred Smokers
2.4smoker, and residual standard smoker splits of the 2001 CSO Nonsmoker and Smoker
2.5Mortality Tables as adopted by the NAIC at the September 2006 national meeting and
2.6published in the NAIC Proceedings (3rd Quarter 2006). Unless the context indicates
2.7otherwise, the "2001 CSO Preferred Class Structure Mortality Table" includes both the
2.8ultimate form of that table and the select and ultimate form of that table, the smoker and
2.9nonsmoker mortality tables, both the male and female mortality tables and the gender
2.10composite mortality tables, and both the age-nearest-birthday and age-last-birthday bases
2.11of the mortality table.
2.12    (d) "Statistical agent" means an entity with proven systems for protecting the
2.13confidentiality of individual insured and insurer information; demonstrated resources
2.14for and history of ongoing electronic communications and data transfer ensuring data
2.15integrity with insurers, which are its members or subscribers; and a history of and means
2.16for aggregation of data and accurate promulgation of the experience modifications in a
2.17timely manner.

2.18    Sec. 3. Minnesota Statutes 2006, section 61A.57, is amended to read:
2.1961A.57 DUTIES OF INSURERS THAT USE AGENTS OR BROKERS.
2.20    Each insurer that uses an agent or broker in a life insurance or annuity sale shall:
2.21    (a) Require with or as part of each completed application for life insurance or
2.22annuity, a statement signed by the agent or broker as to whether the agent or broker knows
2.23replacement is or may be involved in the transaction.
2.24    (b) Where a replacement is involved:
2.25    (1) require from the agent or broker with the application for life insurance or
2.26annuity, a copy of the fully completed and signed replacement notice provided the
2.27applicant under section 61A.55. The existing life insurance or annuity must be identified
2.28by name of insurer, insured, and contract number. If a number has not been assigned by
2.29the existing insurer, alternative identification, such as an application or receipt number,
2.30must be listed; and
2.31    (2) send to each existing insurer a written communication advising of the
2.32replacement or proposed replacement and the identification information obtained under
2.33this section. This written communication must be made within five working days of the
2.34date that the application is received in the replacing insurer's home or regional office, or
2.35the date the proposed policy or contract is issued, whichever is sooner.
3.1    (c) The replacing insurer shall maintain evidence of the "notice regarding
3.2replacement" and a replacement register, cross-indexed, by replacing agent and existing
3.3insurer to be replaced. Evidence that all requirements were met shall be maintained for at
3.4least six years.
3.5    (d) The replacing insurer shall provide in its policy or contract, or in a separate
3.6written notice that is delivered with the policy or contract, that the applicant has a right
3.7to an unconditional refund of all premiums paid, which right may be exercised within a
3.8period of 20 30 days beginning from the date of delivery of the policy."
3.9Page 9, after line 25, insert:

3.10    "Sec. 22. Minnesota Statutes 2007 Supplement, section 62S.23, subdivision 1, is
3.11amended to read:
3.12    Subdivision 1. Inflation protection feature. (a) No insurer may offer a long-term
3.13care insurance policy unless the insurer also offers to the policyholder, in addition to any
3.14other inflation protection, the option to purchase a policy that provides for benefit levels to
3.15increase with benefit maximums or reasonable durations which are meaningful to account
3.16for reasonably anticipated increases in the costs of long-term care services covered by
3.17the policy. In addition to other options that may be offered, insurers must offer to each
3.18policyholder, at the time of purchase, the option to purchase a policy with an inflation
3.19protection feature no less favorable than one of the following:
3.20    (1) increases benefit levels annually in a manner so that the increases are
3.21compounded annually at a rate not less than five percent;
3.22    (2) guarantees the insured individual the right to periodically increase benefit levels
3.23without providing evidence of insurability or health status so long as the option for the
3.24previous period has not been declined. The amount of the additional benefit shall be no
3.25less than the difference between the existing policy benefit and that benefit compounded
3.26annually at a rate of at least five percent for the period beginning with the purchase of the
3.27existing benefit and extending until the year in which the offer is made; or
3.28    (3) covers a specified percentage of actual or reasonable charges and does not
3.29include a maximum specified indemnity amount or limit.
3.30    (b) A long-term care partnership policy must provide the inflation protection
3.31described in this subdivision. If the policy is sold to an individual who:
3.32    (1) has not attained age 61 as of the date of purchase, the policy must provide
3.33compound annual inflation protection;
3.34    (2) has attained age 61, but has not attained age 76 as of such date, the policy must
3.35provide some level of inflation protection; and
4.1    (3) has attained the age of 76 as of such date, the policy may, but is not required to,
4.2provide some level of inflation protection.
4.3    Inflation protection for a long-term care partnership policy may not be less than
4.4three percent per year or a rate based on changes in the Consumer Price Index. The
4.5commissioner, however, may approve other types of inflation protection that comply with
4.6this section and further the goals of the partnership program."
4.7Page 14, line 29, delete "three" and insert "two"
4.8Page 21, after line 6, insert:
4.9"EFFECTIVE DATE.This section is effective January 1, 2008.

4.10    Sec. 36. Minnesota Statutes 2006, section 66A.07, subdivision 2, is amended to read:
4.11    Subd. 2. Life insurance companies. (a) Unless otherwise approved by the
4.12commissioner of commerce, a domestic mutual life insurance company member is any
4.13person who is listed on the records of the company as the owner of an in-force policy,
4.14and each member is entitled to one vote regardless of the number of policies owned by
4.15the member or the amounts of coverage provided to the member. For purposes of this
4.16section, "policy" means a policy or contract of insurance, including an annuity contract
4.17issued by the company, but excluding individual noncontributory insurance policies for
4.18which the premiums are paid by a financial institution, association, employer, or other
4.19institutional entity. Except as otherwise provided in the company's certificate or bylaws, a
4.20person covered under a group policy is not a member by virtue of such coverage, except
4.21that a person insured under a group life insurance policy is a member if: (1) the person
4.22is insured under a group life policy under which cash value has accumulated and been
4.23some cash value is allocated to the insured persons person; and (2) the group policyholder
4.24makes no contribution to the premiums or deposits for the policy.
4.25    (b) Every member of a mutual life insurance company must be notified of its annual
4.26meetings by a written notice mailed to the member's address, or by an imprint on the front
4.27or back of the policy, premium notice, receipt, or certificate of renewal, substantially
4.28as follows:
4.29    "The policyowner is hereby notified that by virtue of his or her ownership of this
4.30policy, the policyowner is a member of the .......... Insurance Company, and that the annual
4.31meetings of said company are held at its home office on the .... day of .... in each year,
4.32at .... o'clock."
4.33    For mutual life insurance holding companies, the notice of the annual meeting
4.34may be modified to reflect that the policyowner, by virtue of his or her ownership of a
4.35policy issued by a subsidiary insurance company reorganized under section 66A.40, is a
5.1member of the mutual insurance holding company. Notice given in this manner is deemed
5.2to comply with the requirements of section 302A.435."
5.3Page 21, after line 15, insert:

5.4    "Sec. 38. Minnesota Statutes 2006, section 66A.41, subdivision 1, is amended to read:
5.5    Subdivision 1. Definitions. (a) For the purposes of this section, the terms in this
5.6subdivision have the meanings given them.
5.7    (b) "Converting mutual insurer" means a Minnesota domestic mutual insurance
5.8company seeking to reorganize according to this section.
5.9    (c) "Converting mutual holding company" means a Minnesota domestic mutual
5.10insurance holding company seeking to reorganize according to this section.
5.11    (d) "Converting mutual company" means a converting mutual insurer or a converting
5.12mutual holding company seeking to convert according to this section.
5.13    (e) "Reorganized company" means a converting mutual insurer or a converting
5.14mutual holding company, as the case may be, that has reorganized according to this section.
5.15    (f) "Eligible member" means:
5.16    (1) for converting mutual insurers, a policyholder whose policy is in force as of the
5.17record date. Unless otherwise provided in the plan, a person covered under a group policy
5.18is not an eligible member, except that a person insured under a group life insurance policy
5.19is an eligible member if, on the record date:
5.20    (i) the person is insured under a group life policy under which cash value has
5.21accumulated and been some cash value is allocated to the insured persons person; and
5.22    (ii) the group policyholder makes no contribution to the premiums for the group
5.23policy; and
5.24    (2) for converting mutual holding companies, a person who is a member of the
5.25converting mutual holding company, as defined by the converting mutual holding
5.26company's articles of incorporation and bylaws, determined as of the record date.
5.27    (g) "Plan of conversion" or "plan" means a plan adopted by a converting mutual
5.28company's board of directors under this section.
5.29    (h) "Policy" means a policy or contract of insurance, including an annuity contract,
5.30issued by a converting mutual insurer or issued by a reorganized insurance company
5.31subsidiary of a mutual holding company, but excluding individual noncontributory
5.32insurance policies for which the premiums are paid by a financial institution, association,
5.33employer, or other institutional entity.
5.34    (i) "Active participating policy" means an individual policy of a converting mutual
5.35company or its subsidiary that: (1) is a participating policy; (2) is among a class of similar
5.36policies that have been credited with policy dividends at any time within the 12 months
6.1preceding the effective date of the conversion or that will, under the then current dividend
6.2scale, be credited with policy dividends if in force on a future policy anniversary; (3) gives
6.3rise to membership interests in the converting mutual company; and (4) is in force on the
6.4effective date or some other reasonable date identified in the plan.
6.5    (j) "Commissioner" means the commissioner of commerce.
6.6    (k) "Effective date of a conversion" means the date determined according to
6.7subdivision 6.
6.8    (l) "Record date" means the date that the converting mutual company's board
6.9of directors adopts a plan of conversion, unless another date is specified in the plan of
6.10conversion and approved by the commissioner.
6.11    (m) "Membership interests" means all rights as members of the converting
6.12mutual company, including, but not limited to, the rights to vote and to participate in
6.13any distributions of distributable net worth, whether or not incident to the company's
6.14liquidation.
6.15    (n) "Distributable net worth" means the value of the converting mutual company
6.16as of the record date of the conversion, or other date approved by the commissioner,
6.17determined as set forth in the plan and approved by the commissioner. The commissioner
6.18may approve a valuation method based on any of the following: (1) the surplus as regards
6.19policyholders of a converting mutual insurer determined according to statutory accounting
6.20principles, which may be adjusted to reflect the current market values of assets and
6.21liabilities, together with any other adjustments that are appropriate in the circumstances;
6.22(2) the net equity of a converting mutual holding company or a converting mutual insurer
6.23determined according to generally accepted accounting principles, which may be adjusted
6.24to reflect the current market values of assets and liabilities, together with any other
6.25adjustments that are appropriate in the circumstances; (3) the fair market value of the
6.26converting mutual company determined by an independent, qualified person; or (4) any
6.27other reasonable valuation method.
6.28    (o) "Permitted issuer" means: (1) a corporation organized and owned by the
6.29converting mutual company or by any other insurance company or insurance holding
6.30company for the purpose of purchasing and holding securities representing a majority of
6.31voting control of the reorganized company; (2) a stock insurance company owned by the
6.32converting mutual company or by any other insurance company or insurance holding
6.33company into which the converting mutual company will be merged; or (3) any other
6.34corporation approved by the commissioner."
6.35Page 21, delete line 24 and insert "cancellation may be given personally, or by mail,
6.36or by telegram. The policy or contract"
7.1Page 21, reinstate lines 25 and 26
7.2Page 21, delete lines 27 to 34
7.3Page 22, delete lines 1 to 4
7.4Page 22, delete section 35 and insert:

7.5    "Sec. 40. Minnesota Statutes 2007 Supplement, section 72A.52, subdivision 1, is
7.6amended to read:
7.7    Subdivision 1. Contents. In addition to all other legal requirements a policy or
7.8contract of insurance described in section 72A.51 shall show the name and address of the
7.9insurer and the seller of the policy or contract and shall state include a notice, clearly and
7.10conspicuously in boldface type of a minimum size of ten points, a right to cancel notice
7.11which shall include the following elements:
7.12    (1) a minimum of ten days to cancel the policy beginning on the date the policy
7.13is received by the owner;
7.14    (2) if the policy is a replacement policy, a minimum of 30 days beginning on the
7.15date the policy is received by the owner if the policy is a replacement policy. Pursuant to
7.16section 61A.57, this requirement may also be provided in a separate written notice that
7.17is delivered with the policy or contract;
7.18    (3) a requirement for the return of the policy to the company or an agent of the
7.19company;
7.20    (4) a statement that the policy is considered void from the beginning and the parties
7.21shall be in the same position as if no policy had been issued;
7.22    (5) a for policies or contracts other than a variable annuity or a variable life policy, a
7.23statement that the insurer will refund of all premiums paid, including any fees or charges,
7.24if the policy is returned; and
7.25    (6) a statement that notice given by mail and return of the policy or contract by mail
7.26are effective on being postmarked, properly addressed, and postage prepaid describing
7.27when the cancellation becomes effective.
7.28    The insurer must return all payments made for this policy within ten days after it
7.29receives notice of cancellation and the returned policy. For variable annuity contracts
7.30issued pursuant to sections 61A.13 to 61A.21, this notice shall be suitably modified so as
7.31to notify the purchaser that the purchaser is entitled to a refund of the amount calculated
7.32in accordance with the provisions of section 72A.51, subdivision 3. For variable life
7.33insurance policies, this notice must be suitably modified so as to notify the purchaser that
7.34the purchaser is entitled to a refund of: (i) the premiums paid; or (ii) the variable account
7.35value plus any amount deducted from the portion of the premium applied to the account."
7.36Page 23, delete section 37
8.1Renumber the sections in sequence and correct the internal references
8.2Amend the title accordingly