1.1                          A bill for an act 
  1.2             relating to insurance; amending retaliatory 
  1.3             provisions; amending Minnesota Statutes 2002, sections 
  1.4             60A.14, subdivision 2; 297I.05, subdivision 11. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 2002, section 60A.14, 
  1.7   subdivision 2, is amended to read: 
  1.8      Subd. 2.  [RETALIATORY PROVISIONS.] When, by the laws of 
  1.9   any other state or nation, any fines, penalties, licenses, or 
  1.10  fees additional to, or in excess of, those imposed by this 
  1.11  section upon foreign on insurance companies and their agents of 
  1.12  that state or nation, are imposed upon insurance companies of 
  1.13  this state or their agents doing business in such state or 
  1.14  nation, the same fines, penalties, licenses, and fees shall be 
  1.15  imposed upon all insurance companies of that state or nation and 
  1.16  their agents doing business in this state shall be increased by 
  1.17  an amount equal to the difference between the amount imposed 
  1.18  upon insurance companies of this state by that state or nation, 
  1.19  and the amount imposed by that state or nation upon insurance 
  1.20  companies of that state or nation, so long as such laws of such 
  1.21  other state or nation remain in force.  This subdivision does 
  1.22  not apply to agent appointment fees required under subdivision 
  1.23  1, clause (6). 
  1.24     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
  1.25  following final enactment. 
  2.1      Sec. 2.  Minnesota Statutes 2002, section 297I.05, 
  2.2   subdivision 11, is amended to read: 
  2.3      Subd. 11.  [RETALIATORY PROVISIONS.] (a) If any other state 
  2.4   or country imposes any taxes, fines, deposits, penalties, 
  2.5   licenses, or fees upon any insurance companies of this state and 
  2.6   their agents doing business in another state or country that are 
  2.7   in addition to or in excess of those imposed by the laws of this 
  2.8   that state or country upon foreign insurance companies and their 
  2.9   agents doing business in this of that state or country, the same 
  2.10  taxes, fines, deposits, penalties, licenses, and fees that are 
  2.11  imposed upon every similar insurance company companies of that 
  2.12  state or country and their agents doing or applying to do 
  2.13  business in this state shall be increased by an amount equal to 
  2.14  the difference between the amount imposed upon insurance 
  2.15  companies of this state and their agents by that state or 
  2.16  country, and the amount imposed by that state or country upon 
  2.17  insurance companies and their agents of that state or country. 
  2.18     (b) If any conditions precedent to the right to do business 
  2.19  in any other state or country are imposed by the laws of that 
  2.20  state or country, beyond those imposed upon foreign companies by 
  2.21  the laws of this of that state, the same conditions precedent 
  2.22  are imposed upon every similar insurance company of that state 
  2.23  or country and their agents doing or applying to do business in 
  2.24  that this state. 
  2.25     (c) For purposes of this subdivision, "taxes, fines, 
  2.26  deposits, penalties, licenses, or fees" means an amount of money 
  2.27  that is deposited in the general revenue fund of the state or 
  2.28  other similar fund in another state or country and is not 
  2.29  dedicated to a special purpose or use or money deposited in the 
  2.30  general revenue fund of the state or other similar fund in 
  2.31  another state or country and appropriated to the commissioner of 
  2.32  commerce or insurance for the operation of the Department of 
  2.33  Commerce or other similar agency with jurisdiction over 
  2.34  insurance.  Taxes, fines, deposits, penalties, licenses, or fees 
  2.35  do not include: 
  2.36     (1) special purpose obligations or assessments imposed in 
  3.1   connection with particular kinds of insurance, including but not 
  3.2   limited to assessments imposed in connection with residual 
  3.3   market mechanisms; or 
  3.4      (2) assessments made by the insurance guaranty association, 
  3.5   life and health guarantee association, or similar association. 
  3.6      (d) This subdivision applies to taxes imposed under 
  3.7   subdivisions 1, 3, 4, 6, and 12, paragraph (a), clauses (1) and 
  3.8   (2). 
  3.9      (e) This subdivision does not apply to insurance companies 
  3.10  organized or domiciled in a state or country, the laws of which 
  3.11  do not impose retaliatory taxes, fines, deposits, penalties, 
  3.12  licenses, or fees or which grant, on a reciprocal basis, 
  3.13  exemptions from retaliatory taxes, fines, deposits, penalties, 
  3.14  licenses, or fees to insurance companies domiciled in this state.
  3.15     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
  3.16  following final enactment.