Minnesota Statutes 61A.021 – Sale of Life Insurance and Annuity as Single Policy Prohibited
Subdivision 1.Sale as single policy prohibited.
The sale of a life insurance product and an annuity as a single policy, whether in the form of a life insurance policy with an annuity rider or otherwise, is prohibited in this state. This subdivision does not prohibit the simultaneous sale of these products, but the sale must involve two separate and distinct policies.
Subd. 2.Tying prohibited.
Terms Used In Minnesota Statutes 61A.021
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- state: extends to and includes the District of Columbia and the several territories. See Minnesota Statutes 645.44
Terms Used In Minnesota Statutes 61A.021
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- state: extends to and includes the District of Columbia and the several territories. See Minnesota Statutes 645.44
The tying of the sale of a life insurance product and an annuity is expressly prohibited. The sale of one policy cannot be conditioned upon the sale of a second policy. A violation of subdivision 1 is an unfair and deceptive trade practice under chapter 72A.
Subd. 3.Exemption.
The commissioner may exempt by order such a product from this section if it is in the public interest.
Subd. 4.Implementation.
This section applies to all sales where applications are completed on or after July 1, 1985.