Minnesota Statutes Insurance (Ch. 59A-79a) § 60L.02. Requirements

(a) For each calendar year during whichsections 60L.01to60L.15apply to the insurer, the insurer shall have had, as of the end of the immediately preceding calendar year:

(b) For each calendar year during whichsections 60L.01to60L.15apply to the insurer, the insurer shall have had, as of the end of the immediately preceding calendar year, total adjusted capital equal to or greater than 200 percent of company action level risk-based capital, as defined insection 60A.60, subdivision 11. For purposes of this subdivision, “total adjusted capital” means total adjusted capital as defined insection 60A.60, subdivision 14, adjusted to deduct the value of capital notes and surplus notes as provided in the risk-based instructions as defined insection 60A.60, subdivision 10.

(c) For each calendar year during whichsections 60L.01to60L.15apply to the insurer, the mean of the ratio, calculated as of the end of each of the five immediately preceding calendar years, of total adjusted capital to company action level risk-based capital, as defined insection 60A.60, subdivision 11, must equal at least 2.0.

(a) For each calendar year during whichsections 60L.01to60L.15apply to the insurer, the insurer shall have had, as of the end of the immediately preceding calendar year:

(b) For each calendar year during whichsections 60L.01to60L.15apply to the insurer, the insurer shall have had, as of the end of the immediately preceding calendar year, total adjusted capital equal to or greater than company action level risk-based capital, as defined insection 60A.60, subdivision 11. For purposes of this subdivision, “total adjusted capital” means total adjusted capital as defined insection 60A.60, subdivision 14, adjusted to deduct the value of capital notes and surplus notes as provided in the risk-based instructions as defined insection 60A.60, subdivision 10.

(c) For each calendar year during whichsections 60L.01to60L.15apply to the insurer, the mean of the ratio, calculated as of the end of each of the five immediately preceding calendar years, of total adjusted capital to company action level risk-based capital, as defined insection 60A.60, subdivision 11, must equal at least 1.0.

(d) An insurer is considered to have met the requirements of this subdivision and subdivision 3 if the insurer participates in a 100 percent reinsurance pooling agreement which substantially affects the solvency and integrity of its reserves and cedes all of its direct and assumed business to the pool, and where the insurer with the largest share of pooled business subject to the agreement meets the requirements of this subdivision and subdivision 3.

Subd. 3. Additional requirements. (a) In order to be eligible to be governed bysections 60L.01to60L.15, the insurer must meet the requirements specified under this subdivision.

(b) The insurer shall:

(c) The insurer or an affiliate, as defined in section 60D.15, subdivision 2, of the insurer shall employ at least one individual as a professional investment manager for the insurer's investments whom the board of directors or trustees of the insurer finds is qualified on the basis of experience, education or training, competence, personal integrity, and who conducts professional investment management activities in accordance with the Code of Ethics and Standards of Professional Conduct of the Association for Investment Management and Research. For purposes of complying with this paragraph, an employee of an affiliate may only be used if they are responsible for managing the insurer's investments.

(d) The board of directors of the insurer must annually adopt a resolution finding that the insurer or an affiliate, as defined in section 60D.15, subdivision 2, of the insurer has employed a professional investment manager for the insurer's investments with sufficient expertise and has sufficient other resources to implement and monitor the insurer's investment policies and strategies.

(e) In the report required undersection 60A.1291, subdivision 12, the insurer's independent auditor shall not have identified any significant deficiencies in the insurer's internal control structure related to investments during any of the five years immediately preceding the date on whichsections 60L.01to60L.15begin to apply to the insurer, and as long assections 60L.01to60L.15apply to the insurer.

(1) a resolution finding that the insurer or an affiliate, as defined in section 60D.15, subdivision 2, of the insurer has employed a professional investment manager for the insurer's investments with sufficient expertise and has sufficient other resources to implement and monitor the insurer's investment policies and strategies; and

(2) a resolution electing thatsections 60L.01to60L.15apply to the insurer.

Subd. 7. Termination. (a) Aftersections 60L.01to60L.15begin to govern an insurer,sections 60L.01to60L.15apply to the insurer unless:

(b) An insurer may not elect more than once in a 12-month period thatsections 60L.01to60L.15do not apply to the insurer's investments and investment practices.

(c) An investment which is held as an admitted asset by an insurer on the date on whichsections 60L.01to60L.15cease to govern the insurer and which qualified as an admitted asset immediately before the date remains qualified as an admitted asset of the insurer.

(d) If sufficient voting securities of the insurer or an affiliate are acquired to require a filing undersection 60D.17,sections 60L.01to60L.15cease to apply to the insurer 30 days following the completion of the acquisition of voting securities. If the board of directors of the insurer desires the insurer to continue to be governed bysections 60L.01to60L.15, it shall comply with the requirements of subdivision 4 and shall notify the commissioner as required under and subject to subdivision 5. If the notification is received within 30 days of the completion of the acquisition, the insurer is governed bysections 60L.01to60L.15during the time period allowed for the commissioner's disapproval.

(e) Whensections 60L.01to60L.15cease to govern an insurer, then, in the case of a life insurer,sections 61A.28; 61A.282, subdivision 2; 61A.283; 61A.29; 61A.31; and61A.315, and, in the case of an insurer other than a life insurer,section 60A.11, apply to the insurer.