SF 2794 Minnesota Senate · 2025-2026 Regular Session

Certain loans and contract for deed maximum interest rate modification provision, group capital calculations for insurers establishments, Insurers completion of NAIC liquidity stress test requirement provision, and insurers filing group capital calculations and results from the NAIC liquidity stress test requirement provision, and insurers securing a deposit or bond requirement provision

This bill modifies Minnesota's maximum interest rate for certain loans and contracts for deed. It sets the cap at the Federal National Mortgage Association's 30-year mortgage yield (as published in the Wall Street Journal) plus four percentage points, rather than using previous formulas. The change directly affects borrowers and lenders involved in conventional loans, cooperative apartment loans, and contracts for deed for specific real estate purchases. The bill also includes separate provisions about insurer capital calculations and liquidity stress testing, but the primary focus is on updating the interest rate cap mechanism.
Bill status in committee 1 of 4 stages cleared
Introduction
Mar 2025
Committee Review
Floor Vote
Governor
Introduced Mar 20, 2025 Last action Apr 7, 2025
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What changed between versions

Introduction 1st Engrossment · 6 edits · Mar 27, 2025
MODERATE
This bill updates Minnesota insurance laws to require insurers to file group capital calculations and liquidity stress test results with the state, mirroring federal and international standards. It also expands an insurer's ability to invest in its own subsidiaries and clarifies rules for acquiring control of an insurance company.
Scope change
The bill expands the scope of financial reporting requirements to include group-level capital and liquidity assessments for insurance holding companies, and broadens investment authority for domestic insurers.
REQUIREMENT

Requires insurers to file annual group capital calculations and NAIC liquidity stress test results with the state insurance commissioner.

Updates filing requirements for acquiring control of an insurer to include preacquisition notifications and waiting periods, with enhanced confidentiality protections.

Mandates that insurers secure a deposit or bond if the commissioner determines the insurer is in hazardous financial condition.

DEFINITION

Adds new statutory definitions for 'group capital calculation instructions,' 'NAIC,' and 'NAIC liquidity stress test framework.'

ELIGIBILITY

Expands the authority for domestic insurers to invest in their own subsidiaries by allowing investments up to 10% of assets or 50% of surplus, provided policyholder surplus remains adequate.

ENFORCEMENT

Establishes that violations preventing a full understanding of enterprise risk can serve as an independent basis for placing an insurer under supervision.

Floor votes

How they voted

No floor votes recorded yet.
Full legislative history

Actions timeline

Total actions
5
Key actions
2
Committee
3
Apr 7, 2025
Upper · Passed
Comm report: To pass and re-referred to Commerce and Consumer Protection
upper
Mar 27, 2025
Upper · Passed
Comm report: To pass as amended and re-refer to Judiciary and Public Safety
upper
Mar 20, 2025
Committee
Referred to Commerce and Consumer Protection
upper
Mar 20, 2025
Introduced
Introduction and first reading
upper
1 primary · 1 co-sponsor

Sponsors