MN SF3491

Amends the definition of "insolvency" for fraternal benefit societies to reference a new "fraternal authorized control level event" and specify conditions under which a society is considered insolvent, including inability to pay debts or when assets do not exceed liabilities plus required surplus.

Modifies notice requirements for extra assessments by fraternal societies, changing "commissioner" to "insurance regulator" for foreign societies and granting the commissioner 60 days to disapprove assessments that are not duly adopted, not in members' best interests, or do not improve long-term viability.

Establishes "fraternal authorized control level events" for both foreign and domestic fraternal benefit societies, defined by risk-based capital triggers, failure to respond to corrective orders, or failure to adhere to risk-based capital plans.

Creates new Section 64B.435 requiring domestic societies experiencing a fraternal authorized control level event to submit a plan within 60 days to transfer all members, certificates, and policies to another qualified society or organization, with commissioner approval required within 30 days.

Authorizes liquidation of societies if the commissioner determines a fraternal authorized control level event cannot be promptly remedied, with rehabilitation presumed futile unless the society demonstrates clear probability of returning to long-term viability.