reglab/statecodes huggingface dataset:
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60C — Insurance Guaranty Association › Section 60C.04 — Creation.

60C.04 CREATION.
All insurers subject to the provisions of this chapter shall form an organization to be known as the Minnesota Insurance Guaranty Association. All insurers defined as member insurers in section 60C.03, subdivision 6, are and shall remain members of the association as a condition of their authority to transact insurance business or to execute surety bonds in this state. An insurer's membership obligations under this chapter shall survive any merger, consolidation, restructuring, incorporation, or reincorporation. The association shall perform its functions under a plan of operation established and approved under section 60C.07 and shall exercise its powers through a board of directors established under section 60C.08. For purposes of administration and assessment the association shall be divided into five separate accounts: (1) the automobile insurance account, (2) the township mutuals account, (3) the fidelity and surety bond account, (4) the account for all other insurance to which this chapter applies, and (5) the workers' compensation insurance account.
History:
1971 c 145 s 4; 1976 c 185 s 4; 1981 c 346 s 35; 1991 c 325 art 6 s 5
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60C — Insurance Guaranty Association › Section 60C.06 — Assessments.

60C.06 ASSESSMENTS.
Subdivision 1.
Determination of amount.
The assessments of each member insurer shall be in the proportion that the net direct written premiums of the member insurer for the preceding calendar year on the kinds of insurance in the account bear to the net direct written premiums of all member insurers for the preceding calendar year on the kinds of insurance in the account. No member insurer may be assessed in any year on any account in an amount greater than two percent of that member insurer's net direct written premiums for the preceding calendar year on the kinds of insurance in the account.
Subd. 2.
Insufficient amount.
If the maximum assessment, together with the other assets of the association in any account, does not provide in any one year in any account an amount sufficient to make all necessary payments from that account, the funds available shall be prorated and the unpaid portion shall be paid as soon thereafter as funds become available.
Subd. 3.
Exemption or deferral.
The association shall exempt or defer, in whole or in part, the assessment of any member insurer, if the commissioner determines that the assessment would cause the member insurer's financial statement to reflect amounts of capital or surplus less than the minimum amounts required for a certificate of authority by any jurisdiction in which the member insurer is authorized to transact insurance.
Subd. 4.
Set off.
Each member insurer may set off against any assessment, authorized payments made on covered claims and expenses incurred in the payment of the claims by the member insurer if, in the absence of the payment, they would be chargeable to the account for which the assessment is made.
Subd. 5.
[Repealed, 1988 c 541 s 14]
Subd. 6.
[Repealed, 1997 c 52 s 15]
History:
1971 c 145 s 6; 1978 c 465 s 9; 1987 c 268 art 2 s 13; 1988 c 541 s 7; 1991 c 325 art 6 s 6
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60C — Insurance Guaranty Association › Section 60C.07 — Plan Of Operation.

60C.07 PLAN OF OPERATION.
Subdivision 1.
Required submission.
The association shall submit to the commissioner a plan of operation and any amendments thereto necessary or suitable to assure the fair, reasonable, and equitable administration of the association. The plan of operation and any amendments thereto become effective upon written approval from the commissioner. If the association fails to submit a suitable plan of operation within 90 days following July 1, 1971, or if at any time thereafter the association fails to submit suitable amendments to the plan, the commissioner shall, after notice and hearing, adopt and promulgate reasonable rules necessary to effectuate the provisions of this chapter. The rules continue in force until modified by the commissioner or superseded by a plan submitted by the association and approved by the commissioner.
Subd. 2.
Contents.
The plan of operation shall:
(a) Establish the procedures whereby all the powers and duties of the association under section 60C.05 will be performed.
(b) Establish procedures for handling assets of the association.
(c) Establish the amount and method of reimbursement of members of the board of directors under section 60C.08, subdivision 3.
(d) Establish procedures by which claims may be filed with the association.
(e) Establish regular places and times for meetings for the board of directors.
(f) Establish procedures for records to be kept of all financial transactions of the association, its agents, and the board of directors.
(g) Provide that any member insurer aggrieved by any final action or decision of the association may appeal to the commissioner within 30 days after the action or decision.
(h) Establish the procedures whereby selections for the board of directors will be submitted to the commissioner.
(i) Contain additional provisions necessary or proper for the execution of the powers and duties of the association.
(j) Establish procedures for the disposition of liquidating dividends or other money received from the estate of insolvent insurers.
Subd. 3.
Delegation authority.
The plan of operation may provide that any or all powers and duties of the association, except those under section 60C.05, subdivisions 1, clause (b) and 2, clause (b), are delegated to a corporation, association or other organization which performs or will perform functions similar to those of this association, or its equivalent in two or more states. The corporation, association, or organization shall be reimbursed as a servicing facility would be reimbursed and shall be paid for its performance of any other functions of the association. A delegation under this subdivision shall take effect only with the approval of both the board of directors and the commissioner, and may be made only to a corporation, association or organization which extends protection not substantially less favorable and effective than that provided by this chapter.
History:
1971 c 145 s 7; 1997 c 52 s 6; 2003 c 74 s 5
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60C — Insurance Guaranty Association › Section 60C.08 — Board Of Directors.

60C.08 BOARD OF DIRECTORS.
Subdivision 1.
Composition.
The board of directors of the association shall consist of nine persons. Two of the directors shall be public members and seven shall be insurer members. The public members shall be appointed by the commissioner. Public members may include licensed insurance agents. The insurer members of the board shall be selected by association members subject to the approval of the commissioner. Vacancies on the board shall be filled for the remaining period of the term in the same manner as initial appointments. The term of appointment for all members is two years.
Subd. 2.
Commissioner's duty.
In approving selections to the board, the commissioner shall consider among other things whether member insurers are fairly represented.
Subd. 3.
Member reimbursement.
Members of the board may be reimbursed from the assets of the association for reasonable and necessary sums expended by them as members of the board of directors.
History:
1971 c 145 s 8; 1Sp1985 c 10 s 55; 1987 c 337 s 31
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60C — Insurance Guaranty Association › Section 60C.10 — Evaluation Of Claims.

60C.10 EVALUATION OF CLAIMS.
Subdivision 1.
Board to determine.
The board shall determine whether claims submitted for payment are covered claims.
Subd. 2.
[Repealed, 1981 c 260 s 4]
Subd. 3.
Claim denial; notification of appeal and review rights.
If the board finds that a claim for which the claimant has requested payment out of the fund is not a covered claim or the board reduces the amount of or rejects the claim, the board shall notify the claimant in writing of the rights the claimant has under section 60C.12.
History:
1971 c 145 s 10; 1981 c 260 s 3; 1986 c 444
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60C — Insurance Guaranty Association › Section 60C.11 — Effect Of Paid Claims.

60C.11 EFFECT OF PAID CLAIMS.
Subdivision 1.
Assignment upon recovery.
The rights under the policy of a person recovering under this chapter shall be deemed to have been assigned by the person to the association to the extent of the recovery.
Subd. 2.
Required cooperation.
Every insured or claimant seeking the protection of this chapter shall cooperate with the association to the same extent as the insured would have been required to cooperate with the insurer.
Subd. 3.
Limitation on action against insured.
The association has no cause of action against the insured of the insurer for any sums it has paid out except the causes of action the insurer would have had if the sums had been paid by the insurer.
Subd. 4.
Insurer operating on plan with assessment liability.
In the case of an insurer operating on a plan with assessment liability, payments of claims of the association do not operate to reduce the liability of insureds to the receiver, liquidator or statutory successor for unpaid assessments.
Subd. 5.
Priority of claims expenses in liquidation proceedings.
The expenses of the association or similar organization in handling claims are accorded the same priority as the liquidator's expenses. The association and a similar organization in another state must be recognized as claimants in the liquidation of an insolvent insurer for amounts paid by them on covered claims as determined under this chapter or similar laws in other states and must receive dividends and other distributions at the priority set forth in chapter 60B. The receiver, liquidator, or statutory successor of an insolvent insurer is bound by determinations of covered claim eligibility under this chapter and by settlements of claims made by the association or a similar organization in another state. The court having jurisdiction shall grant the claims priority equal to that which the claimant would have been entitled against the assets of the insolvent insurer in the absence of this chapter.
Subd. 6.
Statement of claims paid; periodic filing.
The association shall periodically file with the receiver or liquidator of the insurer statements of the covered claims paid by the association and estimates of anticipated claims against the association which shall preserve the rights of the association against the assets of the insurer.
Subd. 7.
Authorized recovery in certain insolvencies.
The association may recover the amount of any covered claim including claim handling expenses paid, resulting from insolvencies which occur after July 31, 1996, on behalf of an insured who has a net worth of $25,000,000 as provided in section 60C.09, subdivision 2, clause (3), on December 31 of the year immediately preceding the date the insurer becomes an insolvent insurer and whose liability obligations to other persons are satisfied in whole or in part by payments made under this chapter.
History:
1971 c 145 s 11; 1986 c 444; 1996 c 446 art 2 s 8; 1997 c 52 s 8; 2003 c 74 s 7
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60C — Insurance Guaranty Association › Section 60C.12 — Appeal And Review.

60C.12 APPEAL AND REVIEW.
Subdivision 1.
Appeal.
A claimant whose claim has been declared to be not covered or reduced by the board under section 60C.10 may appeal to the board within 30 days after the claimant has been notified of the board's decision and of the rights of the claimant under this section.
Subd. 2.
Review.
Decisions of the board under subdivision 1 are subject to appeal to the commissioner of commerce who may overturn, affirm, or modify the board's actions or take other action the commissioner considers appropriate.
The appeal to the commissioner must be in the manner provided in chapter 14.
Subd. 3.
Judicial review.
A final action or order of the commissioner under this subdivision is subject to judicial review in the manner provided by chapter 14. In lieu of the appeal to the commissioner under subdivision 2, a claimant may seek judicial review of the board's actions.
History:
1971 c 145 s 12; 1986 c 444; 1987 c 337 s 33
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60C — Insurance Guaranty Association › Section 60C.13 — Exhaustion Of Other Coverage.

60C.13 EXHAUSTION OF OTHER COVERAGE.
Subdivision 1.
Other policy coverage.
Any person having a claim under another policy whether or not the policy is a policy of a member insurer, which claim arises out of the same facts which give rise to the covered claim, shall be first required to exhaust the person's right under the other policy. Any amount payable on a covered claim under this chapter shall be reduced by the amount of any recovery under such insurance policy. For purposes of this subdivision, another insurance policy does not include a workers' compensation policy.
Subd. 2.
Other guaranty association coverage.
Any person having a claim which may be recovered under more than one insurance guaranty association or its equivalent shall seek recovery first from the association of the state of residence of the insured except that if the claim is a first party claim for damage to property with a permanent location, that person shall seek recovery first from the association of the state in which the property is located, and if it is a workers' compensation claim, that person shall seek recovery first from the association of the residence of the claimant. Any recovery under this chapter shall be reduced by the amount of recovery from any other insurance guaranty association or its equivalent.
History:
1971 c 145 s 13; 1986 c 444; 1988 c 541 s 9; 1991 c 325 art 6 s 8; 1997 c 52 s 9
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60C — Insurance Guaranty Association › Section 60C.14 — Duties And Powers Of Commissioner.

60C.14 DUTIES AND POWERS OF COMMISSIONER.
Subdivision 1.
Mandatory powers and duties.
The commissioner shall:
(a) Notify the association of the issuance of any order of liquidation of a member insurer not later than three days after the commissioner has knowledge of the issuance of the order.
(b) Upon request of the board of directors provide the association with a statement of the net direct written premiums of each member insurer.
Subd. 2.
Optional powers and duties.
The commissioner may:
(a) Suspend or revoke, after notice and hearing, the certificate of authority to transact insurance or to execute surety bonds in this state of any member insurer which fails to pay an assessment when due or fails to comply with the plan of operation. As an alternative, the commissioner may levy a fine on any member insurer which fails to pay an assessment when due. The fine shall not exceed five percent of the unpaid assessment per month, except that no fine shall be less than $100 per month.
(b) Revoke the designation of any servicing facility if the commissioner finds claims are being handled unsatisfactorily.
(c) Disclose to the board of directors information regarding any member insurer, or any company seeking admission to transact insurance business in this state, whose financial condition may be hazardous to policyholders or to the public. This disclosure does not violate any data privacy requirement or any obligation to treat the information as privileged. This disclosure does not change the data privacy or privileged status of the information. Board members shall not disclose the information to anyone else or use the information for any purpose other than their duties as board members.
Subd. 3.
Judicial review.
Any final action or order of the commissioner under this chapter shall be subject to judicial review in a court of competent jurisdiction.
History:
1971 c 145 s 14; 1976 c 185 s 7; 1986 c 444; 1991 c 325 art 21 s 3; 1997 c 52 s 10
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60C — Insurance Guaranty Association › Section 60C.15 — Prevention Of Insolvencies.

60C.15 PREVENTION OF INSOLVENCIES.
To aid in the detection and prevention of insurer insolvencies:
(1) The board of directors may upon majority vote make recommendations to the commissioner on matters generally related to improving or enhancing regulation for solvency.
(2) The board of directors may, at the conclusion of any domestic insurer insolvency in which the association was obligated to pay covered claims, prepare and submit to the commissioner a report on the history and causes of the insolvency, based on the information available to the association.
History:
1971 c 145 s 15; 1986 c 444; 1988 c 541 s 10; 1997 c 52 s 11
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60C — Insurance Guaranty Association › Section 60C.16 — Examination Of Association.

60C.16 EXAMINATION OF ASSOCIATION.
The association is subject to examination and regulation by the commissioner. The board of directors shall submit each year a financial report for the preceding calendar year in a form approved by the commissioner.
History:
1971 c 145 s 16; 2003 c 74 s 8
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60C — Insurance Guaranty Association › Section 60C.17 — Tax Exemption.

60C.17 TAX EXEMPTION.
The association is exempt from payment of all taxes imposed under chapter 297I and all fees and all other taxes levied by this state or any of its subdivisions except taxes levied on real or personal property.
History:
1971 c 145 s 17; 2000 c 394 art 2 s 9
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60C — Insurance Guaranty Association › Section 60C.18 — Recognition Of Assessments In Rates.

60C.18 RECOGNITION OF ASSESSMENTS IN RATES.
Subdivision 1.
Recognition required.
The rates and premiums charged for insurance policies and fidelity and surety bonds to which this chapter applies may include amounts sufficient to recoup a sum equal to the amounts paid to the association by the member insurer less any amounts returned to the member insurer by the association. The rates shall not be deemed excessive because they contain an amount reasonably calculated to recoup assessments paid by the member insurer.
Subd. 2.
[Repealed, 2003 c 74 s 11]
History:
1971 c 145 s 18; 1976 c 185 s 8; 1988 c 541 s 11; 2003 c 74 s 9
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60C — Insurance Guaranty Association › Section 60C.19 — Immunity.

60C.19 IMMUNITY.
There shall be no liability on the part of and no cause of action of any nature shall arise against any member insurer, the association or its agents or employees, the board of directors, or a person serving as an alternative or substitute representative of a director, or the commissioner, or the commissioner's representatives for action taken or a failure to act by them in the performance of their powers and duties under this chapter.
History:
1971 c 145 s 19; 1986 c 444; 1997 c 52 s 12
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60C — Insurance Guaranty Association › Section 60C.195 — Stay Of Proceedings.

60C.195 STAY OF PROCEEDINGS.
All proceedings in which the insolvent insurer is a party or is obligated to defend a party in a court in this state shall, subject to waiver by the association in specific cases involving covered claims, be stayed for six months and additional time that may be determined by the court. The stay must run from the date of the final order of liquidation with a finding of insolvency is entered or an ancillary proceeding is instituted in the state, whichever is later. The proceedings are stayed to permit proper defense by the association of all pending causes of action. As to covered claims arising from a judgment under decision, verdict, or finding based on the default of the insolvent insurer or its failure to defend an insured, the association, either on its own behalf or on behalf of an insured, may apply to have the judgment, order, decision, verdict, or finding set aside by the same court or administrator that made the judgment, order, decision, verdict, or finding and must be permitted to defend the claim on the merits.
The liquidator, receiver, or statutory successor of an insolvent insurer covered by this chapter must permit access by the board or its authorized representative to the insolvent insurer's records that are necessary for the board in carrying out its functions under this chapter with regard to covered claims. In addition, the liquidator, receiver, or statutory successor must provide the board or its representative with copies of those records upon request by the board and at the expense of the board.
History:
1997 c 52 s 13
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60C — Insurance Guaranty Association › Section 60C.20 — Unfair Trade Practices.

60C.20 UNFAIR TRADE PRACTICES.
It is an unfair trade practice, subject to regulation under sections 72A.17 through 72A.32, for any insurer or agent to make use in any manner of the protection given policyholders by this chapter as a reason for buying insurance.
History:
1971 c 145 s 20
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60C — Insurance Guaranty Association › Section 60C.22 — Notice For Policy Or Contract Not Covered.

60C.22 NOTICE FOR POLICY OR CONTRACT NOT COVERED.
A policy or contract not covered by the Minnesota Life and Health Insurance Guaranty Association or the Minnesota Insurance Guaranty Association must contain the following notice in 10-point type, stamped in red ink on the policy or contract and the application:
"THIS POLICY OR CONTRACT IS NOT PROTECTED BY THE MINNESOTA LIFE AND HEALTH INSURANCE GUARANTY ASSOCIATION OR THE MINNESOTA INSURANCE GUARANTY ASSOCIATION. IN THE CASE OF INSOLVENCY, PAYMENT OF CLAIMS IS NOT GUARANTEED. ONLY THE ASSETS OF THIS INSURER WILL BE AVAILABLE TO PAY YOUR CLAIM."
This section does not apply to fraternal benefit societies regulated under chapter 64B.
History:
1992 c 540 art 2 s 11; 1993 c 248 s 1
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60D — Insurance Holding Company Systems › Section 60D.09 — Penalties.

60D.09 PENALTIES.
Subdivision 1.
Failure to file registration statement; civil penalty.
An insurer failing, without just cause, to file a registration statement as required in section 60D.19 shall pay a penalty of $1,000 for each day's delay, to be recovered by the commissioner and paid into the general fund. The commissioner may reduce the penalty if the insurer demonstrates to the commissioner that the imposition of the penalty would constitute a financial hardship to the insurer.
Subd. 2.
Failure to provide notice and filing regarding affiliated transaction or agreement; civil penalty.
An insurer failing, without just cause, to provide the appropriate notice and filing under section 60D.20 regarding an affiliated transaction or agreement, shall pay a penalty of $5,000, to be recovered by the commissioner and paid into the general fund.
Subd. 3.
Certain contracts and agreements; cease and desist and void orders.
Whenever it appears to the commissioner that an insurer subject to sections 60D.15 to 60D.29 or a director, officer, employee, or agent of an insurer has engaged in a transaction or entered into a contract that is subject to section 60D.20 and that would have been disapproved by the commissioner, the commissioner may order the insurer to cease and desist immediately any further activity under that transaction or contract. After notice and hearing, the commissioner may also order the insurer to void any contracts and restore the status quo if the action is in the best interest of the policyholders, creditors, or the public.
Subd. 4.
Criminal penalties.
Whenever it appears to the commissioner that any insurer or any director, officer, employee or agent thereof has committed a willful violation of sections 60D.15 to 60D.29, the commissioner may cause criminal proceedings to be instituted by the district court for the county in which the principal office of the insurer is located or if such insurer has no such office in the state, then by the District Court for Ramsey County against such insurer or the responsible director, officer, employee or agent thereof. Any person who willfully violates sections 60D.15 to 60D.29 shall be guilty, for the first offense, of a misdemeanor, and for each subsequent offense, of a gross misdemeanor.
History:
1971 c 288 s 9; 1992 c 464 art 2 s 1; 2014 c 198 art 5 s 1
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60D — Insurance Holding Company Systems › Section 60D.215 — Supervisory Colleges.

60D.215 SUPERVISORY COLLEGES.
Subdivision 1.
Power of commissioner.
With respect to any insurer registered under section 60D.19, and in accordance with subdivision 3, the commissioner may also participate in a supervisory college for a domestic insurer that is part of an insurance holding company system with international operations in order to determine compliance by the insurer with sections 60D.15 to 60D.29. The powers of the commissioner with respect to supervisory colleges include, but are not limited to, the following:
(1) initiating the establishment of a supervisory college;
(2) clarifying the membership and participation of other supervisors in the supervisory college;
(3) clarifying the functions of the supervisory college and the role of other regulators, including the establishment of a groupwide supervisor;
(4) coordinating the ongoing activities of the supervisory college, including planning meetings, supervisory activities, and processes for information sharing; and
(5) establishing a crisis management plan.
Subd. 2.
Expenses.
Each registered insurer subject to this section is liable for and shall pay the reasonable expenses of the commissioner's participation in a supervisory college in accordance with subdivision 3, including reasonable travel expenses. For purposes of this section, a supervisory college may be convened as either a temporary or permanent forum for communication and cooperation between the regulators charged with the supervision of the insurer or its affiliates, and the commissioner may establish a regular assessment to the insurer for the payment of these expenses. A registered insurer's liability for expenses under this subdivision is limited to the actual, incurred costs of the commissioner's participation in their supervisory college.
Subd. 3.
Supervisory college.
In order to assess the business strategy, financial position, legal and regulatory position, risk exposure, risk management, and governance processes, and as part of the examination of individual insurers in accordance with section 60D.21, the commissioner may participate in a supervisory college with other regulators charged with supervision of the insurer or its affiliates, including other state, federal, and international regulatory agencies. The commissioner may enter into agreements in accordance with section 60D.22 providing the basis for cooperation between the commissioner and the other regulatory agencies, and the activities of the supervisory college. Nothing in this section delegates to the supervisory college the authority of the commissioner to regulate or supervise the insurer or its affiliates within its jurisdiction.
History:
2014 c 198 art 5 s 21; 1Sp2015 c 1 art 3 s 10
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60D — Insurance Holding Company Systems › Section 60D.25 — Receivership.

60D.25 RECEIVERSHIP.
Whenever it appears to the commissioner that any person has committed a violation of this chapter that so impairs the financial condition of a domestic insurer as to threaten insolvency or make the further transaction of business by it hazardous to its policyholders or the public, then the commissioner may proceed as provided in chapter 60B to take possessions of the property of the domestic insurer and to conduct the business of that insurer.
History:
1991 c 325 art 14 s 12
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60D — Insurance Holding Company Systems › Section 60D.26 — Recovery.

60D.26 RECOVERY.
(a) If an order for liquidation or rehabilitation of a domestic insurer has been entered, the receiver appointed under the order shall have a right to recover on behalf of the insurer, (1) from any parent corporation or holding company or person or affiliate who otherwise controlled the insurer, the amount of distributions, other than distributions of shares of the same class of stock, paid by the insurer on its capital stock, or (2) any payment in the form of a bonus, termination settlement or extraordinary lump-sum salary adjustment made by the insurer or its subsidiary(s) to a director, officer, or employee, where the distribution or payment pursuant to clause (1) or (2) is made at any time during the one year preceding the petition for liquidation, conservation, or rehabilitation, as the case may be, subject to the limitations of paragraphs (b), (c), and (d).
(b) No such distribution shall be recoverable if the parent or affiliate shows that when paid the distribution was lawful and reasonable, and that the insurer did not know and could not reasonably have known that the distribution might adversely affect the ability of the insurer to fulfill its contractual obligations.
(c) Any person who was a parent corporation or holding company or a person who otherwise controlled the insurer or affiliate at the time such distributions were paid shall be liable up to the amount of distributions or payments under paragraph (a), the person received. Any person who otherwise controlled the insurer at the time the distributions were declared is liable up to the amount of distributions the person would have received if they had been paid immediately. If two or more persons are liable with respect to the same distributions, they are jointly and severally liable.
(d) The maximum amount recoverable under this subsection shall be the amount needed in excess of all other available assets of the impaired or insolvent insurer to pay the contractual obligations of the impaired or insolvent insurer and to reimburse any guaranty funds.
(e) To the extent that any person liable under paragraph (c) is insolvent or otherwise fails to pay claims due from it pursuant to this paragraph, its parent corporation or holding company or person who otherwise controlled it at the time the distribution was paid, is jointly and severally liable for any resulting deficiency in the amount recovered from the parent corporation or holding company or person who otherwise controlled it.
History:
1991 c 325 art 14 s 13
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60D — Insurance Holding Company Systems › Section 60D.27 — Revocation, Suspension, Or Nonrenewal Of Insurer's License.

60D.27 REVOCATION, SUSPENSION, OR NONRENEWAL OF INSURER'S LICENSE.
Whenever it appears to the commissioner that any person has committed a violation of this chapter that makes the continued operation of an insurer contrary to the interests of policyholders or the public, the commissioner may, after giving notice and an opportunity to be heard, determine to suspend, revoke, or refuse to renew the insurer's license or authority to do business in this state for the period the commissioner finds is required for the protection of policyholders or the public. The determination must be accompanied by specific findings of fact and conclusions of law.
History:
1991 c 325 art 14 s 14
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60D — Insurance Holding Company Systems › Section 60D.28 — Judicial Review, Mandamus.

60D.28 JUDICIAL REVIEW, MANDAMUS.
(a) Any person aggrieved by any act, determination, rule or order, or any other action of the commissioner pursuant to this chapter may appeal therefrom to the District Court for Ramsey County. The court shall conduct its review without a jury and by trial de novo, except that if all parties, including the commissioner, so stipulate, the review shall be confined to the record. Portions of the record may be introduced by stipulation into evidence in a trial de novo as to those parties so stipulated.
(b) The filing of an appeal pursuant to this section shall stay the application of the rule, order, or other action of the commissioner to the appealing party unless the court, after giving the party notice and an opportunity to be heard, determines that the stay would be detrimental to the interest of policyholders or the public.
(c) Any person aggrieved by any failure of the commissioner to act or make a determination required by this chapter may petition the District Court for Ramsey County for a writ in the nature of a mandamus or a peremptory mandamus directing the commissioner to act or make this determination immediately.
History:
1991 c 325 art 14 s 15
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60D — Insurance Holding Company Systems › Section 60D.29 — Conflict With Other Laws.

60D.29 CONFLICT WITH OTHER LAWS.
All laws and parts of laws of this state inconsistent with this chapter are superseded with respect to matters covered by this chapter.
History:
1991 c 325 art 14 s 16
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60D — Insurance Holding Company Systems › Section 60D.30 — Eligibility Determination.

60D.30 ELIGIBILITY DETERMINATION.
Section 302A.521, subdivision 3, applies to a corporation that is a member of an insurance holding company system, except if a determination for advancement is not made under section 302A.521, subdivision 6, clauses (1) to (4), the corporation that is a member of an insurance holding company system may make the determination that a person is entitled to payment or reimbursement of expenses in advance of the final disposition of a proceeding upon receipt of a written affirmation as provided in section 302A.521, subdivision 3.
History:
2005 c 74 s 7
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60D — Insurance Holding Company Systems › Section 60D.50 — Purpose And Scope.

60D.50 PURPOSE AND SCOPE.
(a) The purpose of sections 60D.50 to 60D.58 is to provide the requirements for maintaining a risk management framework and completing an Own Risk and Solvency Assessment (ORSA) and provide guidance and instructions for filing an ORSA Summary Report with the commissioner.
(b) Sections 60D.50 to 60D.58 apply to all insurers domiciled in this state unless exempt pursuant to section 60D.55.
History:
2014 c 198 art 6 s 1
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60D — Insurance Holding Company Systems › Section 60D.51 — Definitions.

60D.51 DEFINITIONS.
Subdivision 1.
Scope.
For purposes of sections 60D.50 to 60D.58, the terms in this section have the meanings given them.
Subd. 2.
Insurance group.
For the purpose of conducting an ORSA, "insurance group" means those insurers and affiliates included within an insurance holding company system as defined in section 60D.15, subdivision 5.
Subd. 3.
Insurer.
"Insurer" has the meaning given in section 60D.15, subdivision 6, except that it does not include agencies, authorities, or instrumentalities of the United States, its possessions or territories, the Commonwealth of Puerto Rico, the District of Columbia, or a state or political subdivision of a state.
Subd. 4.
Own Risk and Solvency Assessment or ORSA.
"Own Risk and Solvency Assessment" or "ORSA" means a confidential internal assessment, appropriate to the nature, scale, and complexity of an insurer or insurance group, conducted by that insurer or insurance group of the material and relevant risks associated with the insurer's or insurance group's current business plan, and the sufficiency of capital resources to support those risks.
Subd. 5.
ORSA Guidance Manual.
"ORSA Guidance Manual" means the current version of the Own Risk and Solvency Assessment Guidance Manual developed and adopted by the National Association of Insurance Commissioners (NAIC) and as amended from time to time. A change in the ORSA Guidance Manual is effective on the January 1 following the calendar year in which the changes have been adopted by the NAIC.
Subd. 6.
ORSA Summary Report.
"ORSA Summary Report" means a confidential high-level summary of an insurer's or insurance group's ORSA.
History:
2014 c 198 art 6 s 2
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60D — Insurance Holding Company Systems › Section 60D.52 — Risk Management Framework.

60D.52 RISK MANAGEMENT FRAMEWORK.
An insurer shall maintain a risk management framework to assist the insurer with identifying, assessing, monitoring, managing, and reporting on its material and relevant risks. This requirement may be satisfied if the insurance group of which the insurer is a member maintains a risk management framework applicable to the operations of the insurer.
History:
2014 c 198 art 6 s 3
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60D — Insurance Holding Company Systems › Section 60D.53 — Orsa Requirement.

60D.53 ORSA REQUIREMENT.
Subject to section 60D.55, an insurer, or the insurance group of which the insurer is a member, shall regularly conduct an ORSA consistent with a process comparable to the ORSA Guidance Manual. The ORSA must be conducted no less than annually but also at any time when there are significant changes to the risk profile of the insurer or the insurance group of which the insurer is a member.
History:
2014 c 198 art 6 s 4
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60D — Insurance Holding Company Systems › Section 60D.54 — Orsa Summary Report.

60D.54 ORSA SUMMARY REPORT.
Subdivision 1.
Required submission.
Upon the commissioner's request and no more than once per year, an insurer shall submit to the commissioner an ORSA Summary Report or any combination of reports that together contain the information described in the ORSA Guidance Manual, applicable to the insurer or the insurance group of which it is a member. Notwithstanding any request from the commissioner, if the insurer is a member of an insurance group, the insurer shall submit the reports required by this subdivision if the commissioner is the lead state commissioner of the insurance group as determined by the procedures adopted by the National Association of Insurance Commissioners.
Subd. 2.
Attestation.
The reports in subdivision 1 shall include a signature of the insurer's or insurance group's chief risk officer or other executive having responsibility for the oversight of the insurer's enterprise risk management process attesting to the best of the executive's belief and knowledge that the insurer applies the enterprise risk management process described in the ORSA Summary Report and that a copy of the report has been provided to the insurer's board of directors or the appropriate committee of the board.
Subd. 3.
Alternative compliance.
An insurer may comply with subdivision 1 by providing the most recent and substantially similar reports provided by the insurer or another member of an insurance group of which the insurer is a member to the commissioner of another state, or to a supervisor or regulator of a foreign jurisdiction, if that report provides information that is comparable to the information described in the ORSA Guidance Manual. A report in a language other than English must be accompanied by a translation of the report into the English language.
History:
2014 c 198 art 6 s 5
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60D — Insurance Holding Company Systems › Section 60D.56 — Contents Of Orsa Summary Report.

60D.56 CONTENTS OF ORSA SUMMARY REPORT.
Subdivision 1.
Preparation and documentation.
The ORSA Summary Report shall be prepared by the insurer consistent with the ORSA Guidance Manual, subject to the requirements of subdivision 2. Documentation and supporting information shall be maintained by the insurer and made available upon examination or upon request of the commissioner.
Subd. 2.
Review.
The review of the ORSA Summary Report, and any additional requests for information, shall be made by the commissioner using similar procedures currently used in the analysis and examination of multistate or global insurers and insurance groups.
History:
2014 c 198 art 6 s 7
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60D — Insurance Holding Company Systems › Section 60D.58 — Sanctions.

60D.58 SANCTIONS.
An insurer failing, without just cause, to timely file the ORSA Summary Report as required in sections 60D.50 to 60D.58 shall pay a penalty of $1,000 for each day's delay to be recovered by the commissioner and to be paid into the general fund. The commissioner may reduce the penalty if the insurer demonstrates to the commissioner that the imposition of the penalty would constitute a financial hardship to the insurer.
History:
2014 c 198 art 6 s 9
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60E — Risk Retention Groups › Section 60E.01 — Purpose.

60E.01 PURPOSE.
The purpose of sections 60E.01 to 60E.14 is to regulate the formation and operation of risk retention groups and purchasing groups in this state formed under the federal Liability Risk Retention Act of 1986, to the extent permitted by that law.
History:
1987 c 192 s 1; 1993 c 299 s 11
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60E — Risk Retention Groups › Section 60E.03 — Risk Retention Groups Chartered In This State.

60E.03 RISK RETENTION GROUPS CHARTERED IN THIS STATE.
A risk retention group shall be chartered and licensed to write only liability insurance pursuant to sections 60E.01 to 60E.14 and, except as provided elsewhere in sections 60E.01 to 60E.14, must comply with all of the laws, rules, and requirements applicable to insurers chartered and licensed in this state and with section 60E.04 to the extent those requirements are not a limitation on laws, rules, or requirements of this state.
Notwithstanding any other provision to the contrary, all risk retention groups chartered in this state shall file with the department and the National Association of Insurance Commissioners (NAIC), an annual statement in a form prescribed by the NAIC, and in diskette form if required by the commissioner, and completed in accordance with its instructions and the NAIC accounting practices and procedures manual.
Before it may offer insurance in a state, each risk retention group shall also submit for approval to the commissioner of commerce a plan of operation or feasibility study. The risk retention group shall submit an appropriate revision in the event of any subsequent material change in any item of the plan of operation or feasibility study, within ten days of a change. The group shall not offer any additional kinds of liability insurance, in this state or in any other state, until a revision of the plan or study is approved by the commissioner.
At the time of filing its application for charter, the risk retention group shall provide to the commissioner in summary form the following information: the identity of the initial members of the group, the identity of those individuals who organized the group or who will provide administrative services or otherwise influence or control the activities of the group, the amount and nature of initial capitalization, the coverages to be afforded, and the states in which the group intends to operate. Upon receipt of this information, the commissioner shall forward the information to the National Association of Insurance Commissioners.
Providing notification to the NAIC is in addition to and shall not be sufficient to satisfy the requirements of section 60E.04 or any other sections of this chapter.
History:
1987 c 192 s 3; 1993 c 299 s 14
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60E — Risk Retention Groups › Section 60E.05 — Compulsory Associations.

60E.05 COMPULSORY ASSOCIATIONS.
No risk retention group shall be required or permitted to join or contribute financially to an insurance insolvency guaranty fund, or similar mechanism, in this state, nor shall any risk retention group, or its insureds, or claimants against its insureds receive a benefit from the fund for claims arising out of the operations of the risk retention group.
When a purchasing group obtains insurance covering its members' risks from an insurer not authorized in this state or a risk retention group, no such risks, wherever resident or located, shall be covered by any insurance guaranty fund or similar mechanism in this state.
When a purchasing group obtains insurance covering its members' risks from an authorized insurer, only risks resident or located in this state shall be covered by the Minnesota Guaranty Association under chapter 60C.
Notwithstanding chapter 62I, the commissioner may require or exempt a risk retention group from participation in any mechanism established or authorized under the law of this state for the equitable apportionment among insurers of liability insurance losses and expenses incurred on policies written through this mechanism, and the risk retention group shall submit sufficient information to the commissioner to enable the commissioner to apportion on a nondiscriminatory basis the risk retention group's proportionate share of these losses and expenses.
History:
1987 c 192 s 5; 1993 c 299 s 23
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60E — Risk Retention Groups › Section 60E.06 — Countersignatures Not Required.

60E.06 COUNTERSIGNATURES NOT REQUIRED.
A policy of insurance issued to a risk retention group or a member of that group shall not be required to be countersigned as otherwise provided in chapters 60A to 72A.
History:
1987 c 192 s 6
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 60E — Risk Retention Groups › Section 60E.07 — Purchasing Groups; Exemption From Certain Laws Relating To The Group Purchase Of Insurance.

60E.07 PURCHASING GROUPS; EXEMPTION FROM CERTAIN LAWS RELATING TO THE GROUP PURCHASE OF INSURANCE.
A purchasing group and its insurer or insurers are subject to all applicable laws of this state, except that a purchasing group and its insurer or insurers are exempt, in regard to liability insurance for the purchasing group, from any law that would:
(1) prohibit the establishment of a purchasing group;
(2) make it unlawful for an insurer to provide or offer to provide insurance on a basis providing, to a purchasing group or its members, advantages based on their loss and expense experience not afforded to other persons with respect to rates, policy forms, coverages, or other matters;
(3) prohibit a purchasing group or its members from purchasing insurance on a group basis described in clause (2);
(4) prohibit a purchasing group from obtaining insurance on a group basis because the group has not been in existence for a minimum period of time or because any member has not belonged to the group for a minimum period of time;
(5) require that a purchasing group must have a minimum number of members, common ownership or affiliation, or certain legal form;
(6) require that a certain percentage of a purchasing group must obtain insurance on a group basis;
(7) otherwise discriminate against a purchasing group or any of its members; or
(8) require that any insurance policy issued to a purchasing group or any of its members be countersigned by an insurance agent or broker residing in this state.
History:
1987 c 192 s 7; 1993 c 299 s 24