67A.01 NUMBER OF MEMBERS REQUIRED, PROPERTY AND TERRITORY.
(a) It shall be lawful for any number of persons, not less than 25, residing in adjoining
townships in this state, who shall collectively own property worth at least $50,000, to form
themselves into a corporation for mutual insurance against loss or damage by the perils listed in
section 67A.13.
(b) Except as otherwise provided in this section, the company shall operate in no more than
150 adjoining townships in the aggregate at the same time. The company may, if approval has been
granted by the commissioner, operate in more than 150 adjoining townships in the aggregate at the
same time, subject to a maximum of 300 townships. If the company confines its operations to one
county it may transact business in that county by so providing in its certificate of incorporation. In
case of merger of two or more companies having contiguous territories, the surviving company in
the merger may transact business in the entire territory of the merged companies, but the territory
of the surviving company in the merger must not be larger than 300 townships.
History: 1967 c 395 art 8 s 1; 1971 c 135 s 1; 1975 c 15 s 1; 1999 c 53 s 1

67A.02 CERTIFICATE OF INCORPORATION.
    Subdivision 1. Contents. The persons who desire to form a township mutual fire insurance
company, as defined in section 67A.01, shall make, sign, and acknowledge before some officer
competent to take acknowledgments of deeds a certificate of incorporation which shall specify:
(1) the name;
(2) the location of the principal office;
(3) the general nature of the business;
(4) the territory in which it desires to transact business;
(5) who may become members;
(6) source from which the corporate funds shall be derived;
(7) the class of property it desires to insure;
(8) in what board its management shall be vested;
(9) the date of its annual meeting; and
(10) the corporate existence.
It may contain any other lawful provision defining and regulating the powers or business of
the corporation, its officers, directors, and members.
    Subd. 2. Approval of commissioner required; filing. The certificate of every such
corporation shall be presented to the commissioner for approval and, on approving the same, the
commissioner shall endorse thereon the approval and the certificate shall then be filed in the
commissioner's office and recorded in a book kept therein for that purpose. Upon the approval of
the certificate and the filing of the same with the commissioner, the corporate organization of
the incorporation shall be complete.
History: 1967 c 395 art 8 s 2; 1986 c 444

67A.03 CORPORATE EXISTENCE.
The corporate existence of any township mutual fire insurance company heretofore or
hereafter organized may be made perpetual by so providing in its articles of incorporation.
History: 1967 c 395 art 8 s 3; 1975 c 15 s 2

67A.04 AMENDMENTS TO CERTIFICATE OF INCORPORATION.
The certificate of incorporation of any township mutual fire insurance company may be
amended in respect to any matter which the original certificate of incorporation might lawfully
have contained, or which is authorized by the provisions of sections 67A.01 to 67A.26, by the
adoption of a resolution, specifying the proposed amendment, at the regular meeting, or a special
meeting called for that expressly stated purpose, by a majority vote of its members present and
voting; or by a majority vote of its entire board of directors, within one year after having been
thereby duly authorized by a specific resolution duly adopted at such meeting of the members,
and by causing the resolution to be embraced in a certificate duly executed by its president
and secretary under the corporate seal of the company, if it have one, and approved, filed,
and recorded in the manner prescribed by such sections for the approval, filing, and recording
of the original certificate.
History: 1967 c 395 art 8 s 4

67A.05 BYLAWS.
    Subdivision 1. Bylaws required. The first board of directors shall adopt bylaws, which shall
remain effective until and except as amended by the members at any regular or special meeting
called therefor.
    Subd. 2. Filing of bylaws and amendments thereto. Every township mutual fire insurance
company doing business within this state shall be subject to the requirements of section 72A.061,
subdivision 2 , as to amendments or additions to its bylaws.
History: 1967 c 395 art 8 s 5; 1987 c 337 s 110

67A.06 POWERS OF CORPORATION.
Every corporation formed under the provisions of sections 67A.01 to 67A.26, shall have
power:
(1) to have succession by its corporate name for the time stated in its certificate of
incorporation;
(2) to sue and be sued in any court;
(3) to have and use a common seal and alter the same at pleasure;
(4) to acquire, by purchase or otherwise, and to hold, enjoy, improve, lease, encumber, and
convey all real and personal property necessary for the purpose of its organization, subject to such
limitations as may be imposed by law or by its articles of incorporation;
(5) to elect or appoint in such manner as it may determine all necessary or proper officers,
agents, boards, and committees, fix their compensation, and define their powers and duties;
(6) to make and amend consistently with law bylaws providing for the management of its
property and the regulation and government of its affairs;
(7) to wind up and liquidate its business in the manner provided by chapter 60B; and
(8) to indemnify certain persons against expenses and liabilities as provided in section
302A.521. In applying section 302A.521 for this purpose, the term "members" shall be substituted
for the terms "shareholders" and "stockholders."
History: 1967 c 395 art 8 s 6; 1969 c 708 s 63; 1975 c 15 s 3; 1979 c 152 s 1; 1987 c 337 s
111; 1987 c 384 art 2 s 1; 1989 c 209 art 2 s 1; 2005 c 69 art 3 s 14

67A.07 PRINCIPAL OFFICE.
The principal office of a township mutual fire insurance company shall be located in a
township or in a city in a township in which the company is authorized to do business.
History: 1967 c 395 art 8 s 7; 1973 c 123 art 5 s 7; 1975 c 15 s 4

67A.08 BOARD OF DIRECTORS.
Each company shall choose of its members no less than five, and not more than nine,
directors to manage the affairs of the company, who shall hold their office for such period as may
be fixed by the bylaws of the company, not exceeding three years, and until their successors
are elected and qualified.
History: 1967 c 395 art 8 s 8

67A.09 OFFICERS.
    Subdivision 1. How elected or chosen. The directors shall choose one of their number as
president, one as vice-president, and one as secretary; they shall also choose a treasurer, who need
not be a member of the board, but must be a member of the company. They may also choose a
manager, who need not be a member of the board, and need not be a member of the company. The
offices of secretary and treasurer may be held by the same person.
The board of directors may appoint other officers as it deems necessary for the conduct of
business.
    Subd. 2. Officers, bond. The officers and employees of the company shall give such bond
to the company in such sum as the directors shall determine.
History: 1967 c 395 art 8 s 9; 1975 c 15 s 5; 1989 c 130 s 1

67A.10 RIGHTS OF CERTAIN MEMBERS.
Nonresidents owning property in the territory where any such company is authorized to do
business may become a member with all the rights thereof except eligibility to office.
History: 1967 c 395 art 8 s 10; 1975 c 15 s 6

67A.11 ANNUAL MEETING.
    Subdivision 1. Date and fiscal year. The annual meeting of every such company shall be
held before July first in each year, and the fiscal year of the company shall be from the first day of
January through the thirty-first day of the following December.
    Subd. 2. Annual report. A full report of the business of the company for the previous fiscal
year shall be presented at the annual meeting.
    Subd. 3. Annual statement. (a) On or before March first, following the end of each fiscal
year, the president and the secretary shall file with the commissioner a verified statement of
the entire business and condition of the company, which statement shall contain such data and
information in reference to the business of the preceding fiscal year as shall be required by the
commissioner.
(b) On or before March 1 of each year, the president and secretary shall also file with the
commissioner of revenue a copy of the verified statement required by paragraph (a). Failure to file
the statement on or before March 1 will subject the company to a penalty of $10 a day up to a
maximum of $200.
    Subd. 4. Other statements may be required by commissioner. The commissioner may
at other times require any further statement that the commissioner may deem necessary to be
made relating to the business of the company.
    Subd. 5. Fees. Fees to be paid as listed in section 60A.14.
History: 1967 c 395 art 8 s 11; 1975 c 15 s 7,8; 1977 c 244 s 1; 1986 c 444; 1987 c 268
art 2 s 18; 1987 c 329 s 21

67A.12 APPLICATIONS.
    Subdivision 1. Who may accept. The president, secretary, treasurer, or chosen manager may
accept all applications and sign and issue policies, agreeing in the name of the company to pay all
losses and damages, not exceeding the sums named in the policies, sustained by reason of the
perils named, for the term therein specified.
    Subd. 2. Binders. Every application for insurance made to any authorized officer or agent,
until refused by the proper officer, shall be of the same force and effect as a regularly issued policy
and contract of insurance, and from the time of its receipt by an officer or agent, the property
specified in the application shall be deemed insured in the same manner and to the same extent as
if covered by a regular policy issued according to law and the regulations of the company.
    Subd. 3.[Repealed, 1975 c 15 s 22]
    Subd. 4. Policy fee, premium and assessment. Before the delivery of any policy, the
company may collect regular cash premium and policy fee and shall take the written agreement of
the insured of even date therewith, which shall be embodied in the application, to pay a pro rata
share of losses or damages sustained by any member.
    Subd. 5. Term of policy. The term of policies issued by township mutual fire insurance
companies shall not exceed five years.
History: 1967 c 395 art 8 s 12; 1975 c 15 s 9; 1986 c 444; 1989 c 130 s 2

67A.13 TYPES OF INSURANCE AUTHORIZED.
A township mutual fire insurance company shall insure only against loss or damage by fire,
lightning, explosion, flood, earthquake, theft, vandalism, collapse, upset, overturn, collision, riot,
riot attending a strike, civil commotion, aircraft, vehicles, smoke, breakage of glass, weight of
ice, snow or sleet, freezing, leakage of water or other substance, electrical power interruption or
electrical breakdown from any cause, and as to livestock against loss or damage by electrocution
by electrical currents artificially generated, attack by dogs or wild animals, drowning, accidental
shooting, loading or unloading, or collision or overturn of conveyances, and consequential losses
as a result of damage from any of the perils listed except public liability.
History: 1967 c 395 art 8 s 13; 1975 c 15 s 10

67A.14 INSURABLE PROPERTY.
    Subdivision 1. Kinds of property. (a) Township mutual fire insurance companies may insure
qualified property. Qualified property means dwellings, household goods, appurtenant structures,
farm buildings, farm personal property, churches, church personal property, county fair buildings,
community and township meeting halls and their usual contents.
(b) Township mutual fire insurance companies may extend coverage to include an insured's
secondary property if the township mutual fire insurance company covers qualified property
belonging to the insured. Secondary property means any real or personal property that is not
considered qualified property for a township mutual fire insurance company to cover under this
chapter. The maximum amount of coverage that a township mutual fire insurance company
may write for secondary property is 25 percent of the total limit of liability of the policy issued
to an insured covering the qualified property.
    Subd. 2.[Repealed, 1975 c 15 s 22]
    Subd. 3.[Repealed, 1975 c 15 s 22]
    Subd. 4.[Repealed, 1975 c 15 s 22]
    Subd. 5. What may not be insured; property outside designated territory; exceptions.
(a) No township mutual insurance company shall insure any property in cities of the first or
second class.
(b) If by annexation or other growth in population a city, town, township or unorganized
territory or any portion thereof is reclassified into a city of the second class, a township mutual
insurance company may do business in that portion of the city in which it was authorized to do
business prior to the reclassification.
(c) A township mutual insurance company may insure any real or personal property,
including qualified or secondary property, subject to the limitations in subdivision 1, paragraph
(b), located outside of the limits of the territory in which the company is authorized by its
certificate or articles of incorporation to transact business, if the company is already covering
qualified property belonging to the insured, inside the limits of the company's territory.
(d) A township mutual fire insurance company may insure property temporarily outside of
the authorized territory of the township mutual insurance company.
(e) Except as otherwise provided in paragraph (b) or elsewhere in this chapter, a company
may operate in adjoining cities of the second class if approval has been granted by the
commissioner.
    Subd. 6.[Repealed, 1975 c 15 s 22]
    Subd. 7. Amount of insurable risk. No township mutual insurance company shall insure
or reinsure a single risk or hazard in a larger sum than the greater of $3,000, or one tenth of its
net assets plus two tenths of a mill of its insurance in force; provided that no portion of any such
risk or hazard which shall have been reinsured, as authorized by the laws of this state, shall be
included in determining the limitation of risk prescribed by this subdivision.
History: 1967 c 395 art 8 s 14; 1971 c 133 s 1; 1971 c 187 s 1; 1973 c 123 art 5 s 7; 1975 c
15 s 11,12; 1977 c 244 s 2,3; 1981 c 136 s 1; 1989 c 130 s 3,4; 2006 c 204 s 13

67A.15 CLASSIFICATION OF PROPERTY.
Every such company may classify property insured under different rates, corresponding as
nearly as possible to the greater or less risk from fire by reason of location or construction, and
issue its policies in accordance with these differences.
History: 1967 c 395 art 8 s 15

67A.16 [Repealed, 1975 c 15 s 22]

67A.161 ARBITRATION OF DISPUTED LOSSES.
If a township mutual fire insurance company and an insured fail to agree on the actual cash
value of an item or amount of a loss, on written demand by either party, the insured and the
company shall each, within 20 days of the demand, select a competent and disinterested appraiser
and notify the other party of the appraiser's identity. If either party fails to select an appraiser
within the time provided, the presiding judge of the district court in the county in which the loss
occurred shall appoint an appraiser to represent that party. The appointment shall be made upon
application to the court by the party not failing to make the required selection and upon five days'
written notice to the other party. The appraisers appointed pursuant to this section shall make a
good faith effort to select a competent and disinterested umpire. If the appraisers fail to agree
upon an umpire within 15 days of their appointment, the presiding judge of the district court in
the county in which the loss occurred shall appoint an umpire upon application by either party
and five days' written notice to the other party. The appraisers shall appraise the loss, stating
separately actual value and loss to each item. If the appraisers fail to agree, they shall submit their
differences to the umpire, whose decision shall control to the extent of the differences between the
appraisers. An award in writing, approved by the appraisers or by an appraiser and the umpire,
upon being filed with the company shall be conclusive evidence of the actual value and loss to
an item. An appraiser shall be paid by the party represented, and the expenses of the appraisal
and the umpire shall be paid in equal shares by the two parties.
History: 1975 c 15 s 13; 1986 c 444

67A.17 ASSESSMENTS.
    Subdivision 1. Determination. When any loss shall be ascertained which exceeds in amount
the cash funds of the company, the secretary, or, in the secretary's absence, the president, shall
convene the directors, who shall levy an assessment upon each policyholder for the proportionate
amount to be paid to cover this excess; or the company may borrow not to exceed two mills on
each dollar of insurance written by it and then in force, and from this fund pay these losses, and
afterwards levy assessments to pay the loans.
If the fund for the payment of expenses is insufficient, the amount of the deficiency may be
added to any assessment.
    Subd. 1a. Advance premiums or assessments. The directors of a company may collect an
advance premium or an assessment for the purpose of maintaining surplus funds in its treasury
to be used in payment of losses or expenses.
    Subd. 2. Secretary's duties. It shall be the duty of the secretary or chosen manager, after the
assessment is completed, to immediately notify every person composing the company, by letter
sent to the person's usual post office address, of the amount of the loss, and the sum due as the
person's share thereof, and of the time when and to whom the payment is to be made, but this time
shall not be less than 60, nor more than 90, days from the date of the notice, and every person
designated to receive this money may demand and receive two percent in addition to the amount
due on the assessment, as aforesaid, for fees in receiving and paying over the same.
    Subd. 3. Member subject to suit and directors' liability. Suits at law may be brought
against any member of the company who refuses or neglects to pay any assessment. The articles
may eliminate or limit a director's personal liability to the company or its members for monetary
damages for breach of fiduciary duty as a director. The articles shall not eliminate or limit the
liability of a director:
(1) for breach of loyalty to the company or its members;
(2) for acts or omissions made in bad faith or with intentional misconduct or knowing
violation of law;
(3) for transactions from which the director derived an improper personal benefit; or
(4) for acts or omissions occurring before the date that the provisions in the articles
eliminating or limiting liability become effective.
History: 1967 c 395 art 8 s 17; 1975 c 15 s 14; 1986 c 444; 1989 c 130 s 5,6

67A.18 TERMINATION.
    Subdivision 1. By member. Any member may terminate membership in the company by
giving written notice or returning the member's policy to the secretary and paying the withdrawing
member's share of all existing claims.
    Subd. 2. By company. The company may annul and cancel any policy after giving not less
than ten days' written notice to the insured by registered or certified mail to the last known address
of the insured and to any mortgagee to whom the policy is made payable.
    Subd. 3.[Repealed, 1975 c 15 s 22]
History: 1967 c 395 art 8 s 18; 1975 c 15 s 15,16; 1986 c 444

67A.19 JOINT OR PARTIAL RISKS.
Township mutual fire insurance companies may issue joint or partial risk policies in
conjunction with adjoining companies of the same class and, in this case, they are not confined to
the townships in which they are otherwise authorized to do business; but no such insurance of a
joint or partial risk shall be valid or binding upon the company insuring the same until approved
by all the companies holding prior policies on the property so insured, and the total amount of
the joint insurance on any one piece of property shall in no case exceed the total percentage of
its value for which the property is insurable by the company.
History: 1967 c 395 art 8 s 19; 1975 c 15 s 17

67A.191 COMBINATION POLICIES.
    Subdivision 1. Qualified risks. A township mutual fire insurance company may issue an
insurance policy for qualified and secondary property as defined in section 67A.14, subdivision
1 , in combination with a policy issued by an insurer authorized to sell property and casualty
insurance in this state. The portions of the combination policy issued by a township mutual
insurance company are excluded from all provisions of the insurance laws of this state as provided
in section 67A.25, subdivision 2.
    Subd. 2. Homeowner's risks. A township mutual fire insurance company may issue
policies known as "homeowner's insurance" as defined in section 65A.27, subdivision 4, only in
combination with a policy issued by an insurer authorized to sell property and casualty insurance
in this state. All portions of the combination policy providing homeowner's insurance, including
those issued by a township mutual insurance company, shall be subject to the provisions of
chapter 65A.
History: 1994 c 564 s 1; 1998 c 297 s 1; 2004 c 202 s 2

67A.20 REINSURANCE.
    Subdivision 1. Among themselves. Township mutual fire insurance companies may enter
into reinsurance agreements with other township mutual fire insurance companies and reinsure a
portion of any risk with these companies. In these cases they shall not be confined to the territory
in which they are writing direct business.
    Subd. 2. With reinsurance association. Any township mutual fire insurance company may
become a member of a reinsurance association, such as provided for under sections 67A.40 to
67A.44, for the purpose of reinsuring any part or all of any risk or risks written by it.
    Subd. 3. With licensed insurers. Township mutual fire insurance companies may enter
into reinsurance agreements with any Minnesota licensed insurer authorized to write the same
lines of business.
History: 1967 c 395 art 8 s 20; 2001 c 215 s 34

67A.21 CONSOLIDATION, MERGER.
Two or more township mutual fire insurance companies which have been or may hereafter
be authorized to transact the business of insurance upon insurable property as herein authorized
may consolidate or merge as provided herein.
To effect this consolidation or merger, it shall be necessary:
(1) that the board of directors or managing body of each of the corporations pass a resolution
to the effect that the consolidation or merger is advisable and containing the proposed name of the
corporation, as consolidated or merged, its principal office, and the names of its first board of
directors and officers;
(2) that a special meeting of the policyholders of each of the corporations shall be held, a
notice of which meeting shall be mailed to each of the policyholders thereof at least 30 days prior
to the holding thereof, and which notice shall embody the resolution adopted by the board of
directors, as provided in clause (1);
(3) that a majority of the policyholders of each of the corporations present or represented
at these special meetings shall, by resolution, approve and ratify the action of the directors,
as provided for in clause (1); and
(4) that the proceedings and resolutions be filed with, and approved of by, the commissioner.
When full copies of these proceedings have been filed with the commissioner, which copies
shall be certified by the president and secretary of the respective corporations and duly verified
by these officers, and approved of by the commissioner, the consolidation or merger of these
corporations shall be deemed to be complete, and the company so continuing the business shall
be deemed to have fully assumed all of the obligations, liabilities, and risks and to be the owner
of all the assets of the companies so consolidating or merging.
If this consolidation or merger is made under any new name, the filing of these proceedings
and the approval of same by the commissioner shall be sufficient to constitute the consolidated
or merged company a corporation, with all the powers and privileges, and subject to all the
limitations, of a township mutual fire insurance company under the laws of this state.
History: 1967 c 395 art 8 s 21; 1975 c 15 s 18; 1986 c 444

67A.22 [Repealed, 1975 c 15 s 22]

67A.23 [Repealed, 1981 c 127 s 3]

67A.231 DEPOSIT OF FUNDS; INVESTMENT; LIMITATIONS.
The directors of any township mutual insurance company may authorize the treasurer to
invest any of its funds and accumulations in:
(a) Bonds, notes, mortgages, or other obligations guaranteed by the full faith and credit of
the United States of America and those for which the credit of the United States is pledged to
pay principal, interest or dividends, including United States agency and instrumentality bonds,
debentures, or obligations;
(b) Bonds, notes, evidence of indebtedness, or other public authority obligations guaranteed
by this state;
(c) Bonds, notes, evidence of the indebtedness or other obligations guaranteed by the full
faith and credit of any county, municipality, school district, or other duly authorized political
subdivision of this state;
(d) Bonds or other interest bearing obligations, payable from revenues, provided that the
bonds or other interest bearing obligations are at the time of purchase rated among the highest four
quality categories used by a nationally recognized rating agency for rating the quality of similar
bonds or other interest bearing obligations, and are not rated lower by any other such agency; or
obligations of a United States agency or instrumentality that have been rated in one of the two
highest categories established by the Securities Valuation Office of the National Association of
Insurance Commissioners. A company may not invest more than 20 percent of its admitted
assets in the obligations of any one corporation. This is not applicable to bonds or other interest
bearing obligations in default as to principal;
(e) Investments in the obligations stated in paragraphs (a), (b), (c), and (d), may be made
either directly or in the form of securities of, or other interests in, an investment company
registered under the Federal Investment Company Act of 1940. Investment company shares
authorized pursuant to this subdivision shall not exceed 20 percent of the company's surplus.
These obligations must be carried at the lower of cost or market on the annual statement filed with
the commissioner and adjusted to market on an annual basis;
(f) Loans upon improved and unencumbered real property in this state worth at least twice
the amount loaned thereon, not including buildings, unless insured by property insurance policies
payable to and held by the security holder;
(g) Real estate, including land, buildings and fixtures, located in this state and used primarily
as home office space for the insurance company;
(h) Demand or time deposits or savings accounts in federally insured depositories located in
any state to the extent that the deposit or investment is insured by the Federal Deposit Insurance
Corporation or the National Credit Union Administration. An additional deposit not to exceed
50 percent of the township mutual insurance company's policyholder surplus may be located in
these depositories if covered by private deposit insurance written by an insurer licensed by the
Department of Commerce;
(i) Guarantee fund certificates of a mutual insurer which reinsures the business of the
township mutual insurance company. The commissioner may by rule limit the amount of
guarantee fund certificates which the township mutual insurance company may purchase and this
limit may be a function of the size of the township mutual insurance company;
(j) Up to $1,500 in stock of an insurer which issues directors and officers liability insurance
to township mutual insurance company directors and officers;
(k) Up to $10,000 in shares of stock of the National Association of Mutual Insurance
Companies bank, subject to the commissioner's approval; and
(l) Overnight repurchase agreements with the depository that handles the company's primary
accounts under paragraph (h). The repurchase agreements must be collateralized by securities
that the company is otherwise authorized to invest in under this section. The securities must
have an aggregate market value of at least 105 percent of the total amount invested under the
repurchase agreement.
History: 1981 c 127 s 1; 1987 c 337 s 112; 1995 c 214 s 16; 1997 c 222 s 8; 1998 c 297 s
2; 1999 c 52 s 1

67A.24 [Repealed, 1981 c 127 s 3]

67A.241 RECORD KEEPING; EXAMINATION; REMEDIES.
    Subdivision 1. Record keeping. The commissioner may prescribe a basis upon which
a township mutual insurance company shall maintain its records which shall reflect the true
financial condition of the company.
    Subd. 2. External examination of company records and accounts. (a) The board of
directors of every township mutual insurance company shall, at least once every three years, cause
the records and accounts of the company to be examined by an independent public accountant,
auditor, or person who has been certified by the society of financial examiners. The examination
shall cover the financial and business affairs including the treatment of members and claimants of
the company during the previous three years ending December 31.
(b) A written summary report of the pertinent results of the examination shall immediately
be filed with each member of the board of directors following completion of the examination.
A complete examination report shall be filed with the board of directors and the commissioner
within 60 days following completion of the examination.
(c) The accountant, auditor, or certified financial examiner conducting or supervising the
examination must have a minimum of five years' experience in public accounting or examining
the financial records or statements of financial institutions and shall not be an officer or employee
of the company being examined. The examiner must not be directly involved in maintaining the
records being examined, but may advise or counsel management in record keeping, accounting,
or management procedures.
    Subd. 3. Examination by commissioner. The commissioner, with due cause based upon
information disclosed in any statement or report or upon information from any examination
conducted under this section or when requested by five or more members, shall make an
examination of the financial and business affairs of any township mutual fire insurance company
doing business within this state. The company examined shall pay the actual expenses of the
person or persons making the examination and the fees prescribed in section 60A.03, subdivision
5 .
    Subd. 4. Remedies. When, after examination by the commissioner or independent public
accountant, auditor, or certified financial examiner, the commissioner is satisfied that a township
mutual insurance company has failed to comply with provisions of sections 67A.01 to 67A.26;
is exceeding its power; is not carrying out its contracts in good faith; is transacting business
fraudulently; or is in such condition as to render further proceedings hazardous to the public or
to its policyholders, the commissioner may take action deemed necessary or proceed under the
provisions of chapter 60B.
History: 1981 c 127 s 2; 1984 c 592 s 63; 1986 c 444

67A.25 REFERENCE TO LAWS 1909, CHAPTER 411.
    Subdivision 1. What companies may come under Laws 1909, chapter 411. Any township
mutual fire insurance company heretofore organized may exercise, after the passage of Laws
1909, chapter 411, all of the rights conferred thereby that are within the powers and privileges
of its certificate or articles of incorporation, or it may be reincorporated thereunder. No such
company already organized shall be required to reincorporate thereunder in order to avail itself of
the privileges thereof.
Every township mutual fire insurance company now doing business in this state shall
have the right to continue transacting such business until the first day of March succeeding the
passage thereof; and the commissioner, if satisfied that the company is transacting its business in
accordance therewith, shall on the first day of each succeeding June issue a license to the company
authorizing it to transact business until the May 31 following the date of the license.
    Subd. 2. Application of Laws 1909, chapter 411. Except as therein provided, all township
mutual fire insurance companies heretofore or hereafter organized in this state shall be governed
by Laws 1909, chapter 411, as amended, and excluded from all provisions of the insurance laws
of this state, not only in governmental relations with the state, but for every other purpose, and
no law heretofore or hereafter passed shall apply to the company unless it shall be expressly
designated in the law that it is applicable to township mutual fire insurance companies.
History: 1967 c 395 art 8 s 25; 1Sp1985 c 10 s 70; 1986 c 444

67A.26 PENALTIES.
    Subdivision 1. Fraudulent statements. Any person, officer, or member who shall knowingly
or willfully make any false or fraudulent statement or representation in reference to any
application for membership under sections 67A.01 to 67A.26, or any false or fraudulent statement
as to the transactions or condition of the company of which the person is a member or officer,
shall be guilty of a misdemeanor.
    Subd. 2. Noncompliance by officers or employees. Any officer of any such company, or
employee thereof, who shall neglect or refuse to comply with, or violates any of the provisions of
sections 67A.01 to 67A.26, shall be guilty of a misdemeanor.
History: 1967 c 395 art 8 s 26; 1971 c 23 s 8,9; 1986 c 444

67A.27 SCOPE.
Sections 67A.27 to 67A.39 are limited to such companies as are now in existence. No such
companies shall hereafter be formed.
History: 1967 c 395 art 8 s 27

67A.28 NUMBER OF MEMBERS AND PROPERTY REQUIRED, TERRITORY AND
TYPES OF INSURANCE.
The incorporators of a farmers mutual fire insurance company shall not be less than 25 in
number and owning in the aggregate movable farm property worth at least $50,000, located
anywhere in this state. Such company may insure like property anywhere in this state against
the perils of fire, lightning, explosion, earthquake, theft, vandalism, collapse of bridges, upset,
overturn, collision, riot, riot attending a strike, civil commotion, aircraft, vehicles, smoke,
breakage of glass, weight of ice, snow or sleet, freezing, leakage of water or other substance,
electrical power interruption or electrical breakdown from any cause, and as to livestock against
loss or damage by electrocution by electrical currents artificially generated, attack by dogs or wild
animals, drowning, accidental shooting, loading or unloading, collapse of buildings or straw or
hay stacks, or collision or overturn of conveyances, and consequential losses as a result of damage
from any of the perils listed except public liability.
History: 1967 c 395 art 8 s 28; 1971 c 522 s 1

67A.29 GOVERNMENT.
    Subdivision 1. Board of directors and officers. Every company so formed shall choose of
their number not less than five, nor more than nine, directors to manage the affairs of the company,
who shall hold their office for such period as may be fixed by the bylaws of the company not
exceeding three years and until their successors are elected and have qualified; and these directors
shall choose one of their number president, one vice-president, and one secretary; they shall
choose a treasurer, who may or may not be a member of the board, but shall be a member of
the company. The articles of incorporation of the company may provide that the president, the
vice-president, the secretary, and the treasurer may be chosen by the direct vote of the members at
the annual meeting. In this case, the election of these persons as president, vice-president, and
secretary shall constitute them members of the board of directors and the remaining members of
the board shall be elected as provided in subdivision 1.
    Subd. 2. Officers, bond. The officers and employees of the company shall give bond to the
company in such sum as the directors shall determine.
    Subd. 3. Investments. The directors may authorize the treasurer to loan on first real estate
securities such sums of money on hand as they may determine, or to deposit any or all sums of
money on hand in such banks as they may designate.
History: 1967 c 395 art 8 s 29; 1975 c 15 s 20; 1986 c 444

67A.30 APPLICATIONS AND FEES.
    Subdivision 1. Acceptance. The president and the secretary of the company may accept all
applications and sign and issue policies agreeing, in the name of the company, to pay all losses
and damages, not exceeding the sums named in the policies, sustained to property authorized to
be insured in section 67A.31 for the term therein specified, and every application for insurance
made to any authorized officer or agent, until refused by the proper officer, shall be of the same
force and effect as a regularly issued policy and contract of insurance and, from the time of its
receipt by an officer or agent, the property specified in the application shall be deemed insured
in the same manner and to the same extent as if covered by a regular policy issued according
to law and the regulations of the company.
    Subd. 2.[Repealed, 1975 c 15 s 22]
    Subd. 3. Cash premium and agreement to assessment. Before the delivery of any
policy the company shall collect the regular cash premium and policy fee and take the written
agreement of the insured, of even date therewith, which shall be embodied in the application,
to pay a pro rata share of losses or damages sustained by any member. The same shall be kept
on file with the secretary.
History: 1967 c 395 art 8 s 30; 1986 c 444

67A.31 INSURABLE PROPERTY.
    Subdivision 1. Insurable property in rural areas. Farmers mutual fire insurance companies
may insure dwellings and their contents, farm buildings and their contents, livestock, farm
machinery, automobiles, country store buildings and the household goods therein, threshing
machines, farm produce anywhere on the premises, churches and their contents, school houses
and their contents, society and town halls and their contents, country blacksmith shops and
country garages and their contents, country locker plants and their contents, parsonages and their
contents and the barns and contents used in connection therewith, creameries, cheese factories and
their equipment and contents and respective operators' dwelling houses and contents and barns
and contents used in connection therewith.
    Subd. 2. Insurable property in cities. They may also insure churches and dwellings,
together with the usual outbuildings and the usual contents of both those dwellings and churches
and outbuildings, in any city except a city of the first or second class.
    Subd. 3. County poor farm. They may also insure any county poor farm together with
contents and such personal property as is used in connection therewith, and which real property,
contents and personal property are situated in the county wherein these farmers mutual fire
insurance companies are operating; provided, when at a duly called special or annual meeting of
the policyholders it shall be duly decided by them by a majority vote to do so.
    Subd. 4. County fair buildings. Any such company is hereby authorized to insure county
fair buildings whether the same are situated either within or without the limits of a duly
incorporated city.
    Subd. 5. What may not be insured; property outside designated territory. No farmers
mutual fire insurance company shall insure any property except that specifically authorized under
this section nor any such property outside of the state of Minnesota, except personal property
temporarily outside of the authorized territory.
    Subd. 6. What may not be insured; exceptions. Otherwise than as herein provided, no such
company shall insure any property within the limits of any city except that located upon lands
actually used for farming or gardening purposes.
History: 1967 c 395 art 8 s 31; 1973 c 123 art 5 s 7; 1975 c 15 s 21

67A.32 POLICY TERM.
The term of policies issued by farmers mutual fire insurance companies shall not exceed
five years.
History: 1967 c 395 art 8 s 32

67A.33 [Repealed, 1975 c 15 s 22]

67A.34 CLASSIFICATION OF PROPERTY.
Every such company may classify property insured under different rates, corresponding as
nearly as possible to the greater or less risk from fire by reason of location or construction, and
issue its policies in accordance with such differences.
History: 1967 c 395 art 8 s 34

67A.35 NONRESIDENT MEMBERS.
Nonresidents owning property in the state of Minnesota may become members, with all
rights except eligibility to office.
History: 1967 c 395 art 8 s 35

67A.36 LOSSES.
    Subdivision 1. Procedure in case of loss. Every member sustaining loss or damage by
named perils shall immediately notify the secretary, who, if the claim exceeds $300, may
forthwith convene the directors. The directors shall appoint a committee of three members, of
which the secretary shall be one, to ascertain the amount of the loss, with authority to examine
witnesses, to whom the secretary is hereby authorized to administer oaths. When the bylaws so
provide, the secretary may act in place of, and with all the authority of, the committee; and when
the claim does not exceed $300, the loss may be ascertained by the president and secretary, or
either, with like authority.
    Subd. 2. Arbitration. If the parties cannot agree upon the damages, the insured may apply to
a judge of the district court of the county, who may appoint three disinterested persons, who shall
make an award which shall be final, and deliver the same to the company.
    Subd. 3. Assessments. When any loss shall be ascertained which exceeds in amount the cash
funds of the company, the secretary, or, in the secretary's absence, the president, shall convene the
directors, who shall levy an assessment upon each policyholder for the proportionate amount to
be paid to cover this excess; or the company may borrow not to exceed two mills on each dollar of
insurance written by it and then in force, and from that fund pay these losses, and afterwards levy
assessments to pay the loans. If the fund for the payment of expenses is insufficient, the amount of
the deficiency may be added to any assessment.
History: 1967 c 395 art 8 s 36; 1986 c 444

67A.37 TERMINATION OF MEMBERSHIP.
    Subdivision 1. By member. Membership may be terminated at any time by giving written
notice to the secretary and paying the withdrawing members' share of all existing claims.
    Subd. 2. By company. Membership may also be terminated by the annulment of any policy
by a majority of the directors and written notice thereof to the holder.
    Subd. 3. Record. In either case the secretary shall record the same in a separate book.
History: 1967 c 395 art 8 s 37

67A.38 ANNUAL MEETING.
The annual meeting shall be held before July first each year and the annual report shall then
be read in full and within 30 days thereafter filed with the commissioner.
History: 1967 c 395 art 8 s 38

67A.39 EMERGENCY FUND.
The directors of any such company may collect, by advance assessment and maintain in its
treasury an emergency fund, not exceeding two mills on a dollar of the total amount of insurance in
force, to be used in payment of losses and for other purposes for which assessments may be used.
History: 1967 c 395 art 8 s 39

67A.40 ORGANIZATION AND POWERS.
    Subdivision 1. Organization and purpose. Not less than six duly licensed township mutual
fire insurance companies or farmers mutual fire insurance companies may organize a mutual
association for the purpose of reinsuring any part or all of any risk or risks, written by any of the
member companies.
    Subd. 2. Articles of incorporation, contents and filing. The incorporation of this
association shall be effected by filing with the commissioner and with the secretary of state a
certificate of incorporation duly executed and acknowledged by the companies forming the
association, these companies having been first duly authorized, by resolution duly adopted at a
regular annual meeting, or at a special meeting called for that purpose, which certificate shall
state, in substance, such facts as are required to be stated in certificates of incorporation by the
general corporation laws of this state and shall have first been approved by the commissioner.
    Subd. 3. Corporate powers. In addition to the powers conferred by sections 67A.40 to
67A.44, every such association shall have the power to reinsure any part or all of any risk or
risks assumed by it, and every such association shall have the corporate powers which are
granted to corporations under the general corporation laws of this state. Any such association
having a surplus of at least $300,000 may, at any regular meeting or at a special meeting called
for that purpose, transform itself into a mutual insurance company by amending its articles of
incorporation to provide for the doing of one or more of the kinds of business specified in section
60A.06, subdivision 1, clauses (1) to (14). Such transformed company shall be subject to the
general corporation laws contained in chapter 302A, and subject to the conditions and restrictions
as to the kinds of insurance which may be combined by a like stock insurance company and to
all restrictions contained in the laws of this state with reference to general mutual insurance
companies transacting the same kinds of business. The bylaws may also provide for voting rights
to be based on one vote for each policyholder, plus one vote for each $100 of premium paid
within 12 months prior to the meeting at which the votes are cast.
    Subd. 4. Perpetual existence. The corporate existence of any such association may be made
perpetual by so providing in its articles of incorporation.
    Subd. 5. Directors. The directors of the association shall be chosen from the officers of its
members.
    Subd. 6. Bylaws. The board of directors at its first meeting shall adopt bylaws, which shall
be filed with the commissioner and shall not be effective until approved by the commissioner.
History: 1967 c 395 art 8 s 40; 1969 c 7 s 28; 1986 c 444; 2005 c 69 art 3 s 15

67A.41 PREMIUMS AND ASSESSMENTS.
Member companies of any such association shall each year pay to the treasurer thereof such
assessments as shall be fixed or authorized by the board of directors of the association, which
assessments shall be based upon the amount of insurance of each of its member companies
during the calendar year ending December 31st next preceding. The individual members of the
member companies shall be subject to assessment in case the funds of the member companies are
insufficient to pay any assessment made by the association to the same extent and in the same
manner as though the assessment by the association were to cover a loss for which the member
company was liable.
History: 1967 c 395 art 8 s 41

67A.42 WITHDRAWAL BY MEMBERS.
Any member of the association may withdraw from membership upon giving 90 days'
notice of its intention so to do when the withdrawal has been authorized by a majority vote of its
members present and voting at a regular meeting or a special meeting called for that purpose.
This withdrawal shall not in any way affect its liability to contribute to any losses or expenses
which may have been incurred prior to the time of withdrawal.
History: 1967 c 395 art 8 s 42

67A.43 COMMISSIONER OF COMMERCE.
    Subdivision 1. To have supervision. The certificate of incorporation and bylaws, forms of
contracts and policies adopted or issued by every such association, and the general conduct of
its affairs shall be subject to the general supervision and jurisdiction of the commissioner, and
the commissioner, when requested by five or more members of the association, shall make an
examination of the affairs thereof at the expense of the association. Farmers and township
reinsurance or guaranty associations shall be subject to the provisions of chapter 60B.
    Subd. 2. Filing of annual statement and license required. Every such association shall file
with the commissioner the annual statement and procure the certificate of authority as required by
law pertaining to insurance companies.
    Subd. 3.[Repealed, 1987 c 337 s 131]
History: 1967 c 395 art 8 s 43; 1969 c 708 s 63; 1983 c 289 s 114 subd 1; 1984 c 655
art 1 s 92; 1986 c 444

67A.44 COMMISSIONER DEFINED.
As used in all parts of this chapter the word "commissioner" shall mean the commissioner of
commerce of the state of Minnesota and, in the commissioner's absence or disability, a deputy
or other person duly designated to act for the commissioner.
History: 1967 c 395 art 8 s 44; 1983 c 289 s 114 subd 1; 1984 c 655 art 1 s 92; 1986 c 444