MN HF4799

Establishes new reserve financing requirements for term and universal life insurance reinsurance treaties ceded by Minnesota-domiciled life insurers, effective January 1, 2023.

Applies to "covered policies" (term life with nonlevel premiums/benefits and universal life with secondary guarantees), excluding older policies issued before January 1, 2015 and certain exempt policy types.

Requires reinsurance treaties to maintain primary security (cash, approved securities, commercial loans, or policy loans) equal to reserves calculated using VM-20 actuarial methods, with adjustments for partial risk cessions and other reinsurance arrangements.

Mandates ceding insurers perform quarterly analyses to ensure security requirements are continuously met and establish liabilities for any deficiencies, with no allowance for prolonged shortfalls.

Prohibits insurers from taking actions designed to avoid or circumvent the statute's requirements, and requires commissioner approval of affected reinsurance treaties.