Minnesota Surety Requirement

Submitted by richter on Sun, 10/03/2010 - 23:03

Does anyone else think it is strange that Minn is the only state requiring surety bonds for life settlement brokers?

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Comments

kachow1 year ago

Yeah we have written off Minn

Yeah we have written off Minn for doing any business. We looked into getting a surety bond and the annual premium would be inbetween $15,000 to $25,000. Not worth time and effort. We are lucky if we ever see a case from Minn. Let alone one that we can recoup our licensing costs and surety bond requirements.

bigjim1 year ago

Caveat to the law

Those licensed in Minn as life producers for more than a year were exempt from having to get a life settlement broker's license. The odd thing is that the licensed life producers don't have to get the surety bond. How does that make sense? Why would you have this lame requirement for some but not others? Forget Minn, they can have the business.

cisero1 year ago

Yeah, the existing MN

Yeah, the existing MN producers have a huge advantage by not having to get the prohibitively expensive surety bond. No life settlement broker I know of would have had a MN life producer's license until it was a requirement for doing settlement business there. By the time the law was passed, you couldn't get a producer's license fast enough to get a year under your belt since the law took effect a few months after being passed. Really short sighted by MN's part.

trimmer1 year ago

Unfortunately, it is the

Unfortunately, it is the consumer that will suffer. Imagine how few reputable brokers are actually going to be doing business there. Limited choices for a consumer usually doesn't equate to anything good for them.

capnhook1 year ago

I've never known Minnesota to

I've never known Minnesota to be a huge life settlement market, but we used to get some cases from there. If this was happening in New York, Florida, CA or Texas I will bet every life settlement broker would line up for surety bonds. Not that they would like it, but at the end of the day you have to wonder who is going to pony up for a surety bond in Minn? Nice work Minn! Way to screw your insureds.