Minnesota Life Insurance

Minnesota life insurance laws deal primarily with claims issues. However, familiarizing yourself with some basic regulations is still key to making wise coverage decisions.

This page:

  • Briefly describes Minnesota life insurance regulations.

  • Explains the Minnesota Guaranty Association's protection.

  • Links to more information about life insurance in Minnesota

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Minnesota life insurance rights and regulations

The insurance industry in the State of Minnesota is regulated under Chapter 61A of the Minnesota Statutes. These statutes outline claims procedures and policy requirements for the benefit and protection of you, the consumer.

One such protection lies in the one-month grace period on late premium payment found in every Minnesota life insurance policy. During this time an insurer will not cancel the policy, and coverage will continue uninterrupted so long as the account is brought current.

Minnesota life insurance companies are also obligated to pay interest on a claim from the date of death until the date of settlement. If the insurer fails to pay the proceeds within 60 days of receiving proof of death, the rate of interest increases.

However, Minnesota law extends some protections to insurers, too. Insurance companies may contest statements on a policy application for up to two years from the effective date of the policy. If any misstatement is found,they can cancel the policy (and refund the paid premiums).

If there has been a misstatement of age, the death benefits will be recalculated to reflect the actual age of the insured.

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If you are ready to apply for a Minnesota term life insurance policy, or if you just want a quick online quote, visit Efinancial now.
If you are not sure about what type of life coverage you want, you can also try InsureME. They will put you in touch with agents who can answer any questions that you might have.

The Minnesota Life Insurance Guaranty Association

If your insurance company is licensed in Minnesota, then your policy is backed by the Minnesota Life and Health Insurance Guaranty Association. This organization helps protect you, the insured, from the total loss of your policy should your insurer go bankrupt.

However, this protection comes with restrictions. In Minnesota, the maximum compensation for lost cash surrender is $100,000 and the maximum compensation for lost death benefits is $300,000.

And your insurance company must be licensed in Minnesota to be backed by the guaranty. You can check the status of an insurer by calling the Minnesota Department of Commerce at (651) 296-2488.

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Apply for a quote with confidence at Efinancial
(for Minnesota term life insurance), or InsureME.
Your insurer will be licensed in Minnesota.

More MN life insurance help

If you want more help getting the best value on your MN life insurance policy, start with our guide to term life insurance or sign-up for our free life insurance course (see below).

To find out more about MN life insurance laws and regulations, visit the official website of the Department of Commerce.

Learn even more:

Getting the lowest possible premium on your life insurance is almost like an art form. There are many variables to consider, and to get the right balance of term length, benefit amounts, and policy riders and illustrations, you need to take a careful step-by-step approach to the buying process.

Our free life insurance course is designed to help you do just that.

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