reglab/statecodes huggingface dataset:
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 72C — Readability Of Insurance Policies › Section 72C.08 — Format Requirements.

72C.08 FORMAT REQUIREMENTS.
Subdivision 1.
Requirement.
All insurance policies and contracts covered by section 72C.11 shall be written in a logical, clear, and understandable order and form and shall contain at least the following items:
(a) on the cover or first or an insert page of the policy a statement that the policy is a legal contract between the policy owner and the company and the statement, printed in larger or other contrasting type or color, "Read your policy carefully";
(b) an index of the major provisions of the policy or contract, which may include the following items:
(1) the person or persons insured by the policy;
(2) the applicable events, occurrences, conditions, losses or damages covered by the policy;
(3) the limitations or conditions on the coverage of the policy;
(4) definitional sections of the policy;
(5) provisions governing the procedure for filing a claim under the policy;
(6) provisions governing cancellation, renewal, or amendment of the policy by either the insurer or the policy owner;
(7) any options under the policy; and
(8) provisions governing the insurer's duties and powers in the event that suit is filed against the insured.
Subd. 2.
Compliance factors.
In determining whether a policy or contract is written in a logical, clear, and understandable order and form the commissioner shall consider the following factors:
(a) the extent to which each provision for coverage is stated separately in a self-contained section, including the conditions relating to or limiting that section's effect;
(b) the extent to which sections or provisions are set off and clearly identified by titles, headings, or margin notations;
(c) the use of a more easily understandable format such as narrative or outline forms; and
(d) any additional factors relevant to a logical, clear, and understandable format which the commissioner may prescribe by rule.
History:
1977 c 345 s 8
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 72C — Readability Of Insurance Policies › Section 72C.09 — Flesch Scale Analysis Readability Score, Procedures.

72C.09 FLESCH SCALE ANALYSIS READABILITY SCORE, PROCEDURES.
A Flesch scale analysis readability score shall be measured as provided in this section.
(1) For contracts containing 10,000 words or less of text, the entire contract shall be analyzed. For contracts containing more than 10,000 words the readability of two 200 word samples per page may be analyzed in lieu of the entire contract. The samples shall be separated by at least 20 printed lines. For purposes of this clause a word shall be counted as five printed characters or spaces between characters.
(2)(a)(i) The number of words and sentences in the text shall be counted and the total number of words divided by the total number of sentences. The figure obtained shall be multiplied by a factor of 1.015.
(ii) The total number of syllables shall be counted and divided by the total number of words. The figure obtained shall be multiplied by a factor of 84.6.
(iii) The sum of the figures computed under (i) and (ii) subtracted from 206.835 equals the Flesch scale analysis readability score for the policy or contract.
(b) For purposes of clause (a) the following procedures shall be used:
(i) A contraction, hyphenated word, or numbers and letters, when separated by spaces, shall be counted as one word;
(ii) A unit of words ending with a period, semicolon or colon, but excluding headings, captions, and lists, shall be counted as a sentence; and
(iii) A syllable means a unit of spoken language consisting of one or more letters of a word as divided by an accepted dictionary. Where the dictionary shows two or more equally acceptable pronunciations of a word, the pronunciation containing fewer syllables may be used.
History:
1977 c 345 s 9; 1980 c 353 s 2
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 72C — Readability Of Insurance Policies › Section 72C.10 — Filing Requirements; Duties Of Commissioner.

72C.10 FILING REQUIREMENTS; DUTIES OF COMMISSIONER.
Subdivision 1.
Readability compliance; filing and approval.
No insurer shall make, issue, amend, or renew any policy or contract after the dates specified in section 72C.11 for the applicable type of policy unless the contract is in compliance with the requirements of sections 72C.06 to 72C.09 and unless the contract is filed with the commissioner for approval. The contract shall be deemed approved 60 days after filing unless disapproved by the commissioner within the 60-day period. When an insurer, service plan corporation, or the Minnesota Comprehensive Health Association fails to respond to an objection or inquiry within 60 days, the filing is automatically disapproved. A resubmission is required if action by the Department of Commerce is subsequently requested. An additional filing fee is required for the resubmission. The commissioner shall not unreasonably withhold approval. Any disapproval shall be delivered to the insurer in writing, stating the grounds therefor. Any policy filed with the commissioner shall be accompanied by a Flesch scale readability analysis and test score and by the insurer's certification that the policy or contract is in its judgment readable based on the factors specified in sections 72C.06 to 72C.08.
Subd. 2.
Contract or policy disapproval.
The commissioner shall disapprove any contract or policy covered by subdivision 1 if the commissioner finds that:
(a) it is not accompanied by a certified Flesch scale analysis readability score of more than 40;
(b) it is not accompanied by the insurer's certification that the policy or contract is in its judgment readable under the standards of sections 72C.01 to 72C.13;
(c) it does not comply with the readability standards established by section 72C.06;
(d) it does not comply with the legibility standards established by section 72C.07; or
(e) it does not comply with the format requirements established by section 72C.08.
History:
1977 c 345 s 10; 1986 c 444; 2006 c 255 s 61
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 72C — Readability Of Insurance Policies › Section 72C.11 — Application Of Filing Requirements; Duties Of Commissioner.

72C.11 APPLICATION OF FILING REQUIREMENTS; DUTIES OF COMMISSIONER.
Subdivision 1.
Policies and dates specified.
The filing requirements of section 72C.10 shall apply as follows:
(a) To all policies of private passenger vehicle insurance, as described in chapter 65B, and to all policies of homeowner's insurance as defined in the general custom and usage of the business or by a ruling of the commissioner or a court, which are made, issued, amended or renewed after July 1, 1979;
(b) To all policies of life insurance as defined in section 60A.06, subdivision 1, clause (4), to all certificates of a fraternal benefit society, as defined in section 64B.19, to all policies of accident and health insurance, as defined in section 60A.06, subdivision 1, clause (5), paragraph (a), to all subscriber contracts of nonprofit health service corporations as defined in section 62C.02, and to all health maintenance contracts as defined in section 62D.02, which are made, issued, amended or renewed after July 1, 1980; the commissioner may grant delays of not more than one year in full or partial compliance of accident and health policies; and
(c) To all policies of any additional line or type of insurance within the scope of sections 72C.01 to 72C.13, as provided by any rule promulgated by the commissioner not later than July 1, 1981.
Subd. 2.
Commissioner's reports.
The commissioner shall make the following reports to the legislature:
(a) On or before February 1, 1979 a report detailing and evaluating the efforts made by the commissioner and insurers to implement the provisions of subdivision 1, clause (a), and particularly examining the feasibility and practicality of requiring accident and health and life insurance policies to comply with sections 72C.01 to 72C.13 and in the time prescribed;
(b) On or before February 1, 1980 a report detailing and evaluating (1) the operation of and the extent of compliance with sections 72C.01 to 72C.13, (2) the efforts made by the commissioner and insurers to implement the provisions of subdivision 1, clause (b), and (3) the commissioner's intent regarding the extension of the application of sections 72C.01 to 72C.13 to other lines and types of insurance under subdivision 1, clause (c), and the reasons therefor.
History:
1977 c 345 s 11; 1980 c 353 s 3; 1Sp1981 c 4 art 1 s 61; 1985 c 49 s 41; 1986 c 444
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 72C — Readability Of Insurance Policies › Section 72C.12 — Commissioner's Powers And Duties.

72C.12 COMMISSIONER'S POWERS AND DUTIES.
In addition to the duties and powers enumerated elsewhere in sections 72C.01 to 72C.13 the commissioner shall have the power to promulgate rules consistent with sections 72C.01 to 72C.13 to effectuate its purpose.
History:
1977 c 345 s 12
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 72C — Readability Of Insurance Policies › Section 72C.13 — Construction.

72C.13 CONSTRUCTION.
Subdivision 1.
Other insurance law.
Sections 72C.01 to 72C.13 shall not operate to relieve any insurer from any provision of law regulating the contents or provisions of insurance policies, except to the extent that the provisions prescribe the use of specific language which is inconsistent with sections 72C.01 to 72C.13.
Subd. 2.
Standard fire policy and standard provisions in accident and sickness policy; effect of authorized alterations.
No alteration in the language of the Minnesota standard fire insurance policy under section 65A.01 or the standard provisions of health insurance policies under section 62A.04, as authorized by sections 72C.01 to 72C.13, shall be construed to limit or reduce an insured's or beneficiary's rights granted under those statutory provisions.
History:
1977 c 345 s 13
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 79 — Workers' Compensation Insurance › Section 79.01 — Definitions.

79.01 DEFINITIONS.
Subdivision 1.
Terms.
Unless the language or context clearly indicates that a different meaning is intended, the following terms, for the purposes of sections 79.01 to 79.211, shall have the meanings ascribed to them.
Subd. 1a.
Assigned risk plan.
"Assigned risk plan" means:
(1) the method to provide workers' compensation coverage to employers unable to obtain coverage through licensed workers' compensation companies; and
(2) the procedures established by the commissioner to implement that method of providing coverage including administration of all assigned risk losses and reserves.
Subd. 1b.
Employer.
"Employer" has the meaning given in section 176.011, subdivision 10.
Subd. 2.
Insurer.
The word "insurer" means any insurance carrier authorized by license issued by the commissioner of commerce to transact the business of workers' compensation insurance in this state and includes a political subdivision providing self insurance or establishing a pool under section 471.981, subdivision 3.
Subd. 3.
Insurance.
The word "insurance" means workers' compensation insurance and insurance covering any part of the liability of an employer exempted from insuring liability for compensation, as provided in section 176.181 and includes a program of self insurance, self insurance revolving fund or pool established under section 471.981.
Subd. 4.
[Repealed, 1969 c 9 s 10]
Subd. 5.
Commissioner.
The word "commissioner" means the commissioner of commerce.
Subd. 6.
Association or rating association.
"Association" or "rating association" means the Workers' Compensation Insurers Rating Association of Minnesota.
Subd. 7.
Interested party.
"Interested party" means any person or association acting on behalf of its members who is directly affected by a change in the schedule of rates and includes the staff of the Department of Commerce.
Subd. 8.
Schedule of rates.
"Schedule of rates" means the rate level applicable to the various industry groupings or classes, including the risk classifications thereunder upon which the determination of workers' compensation premiums are based, including but not limited to all systems for merit or experience rating, retrospective rating, and premium discounts.
History:
(3612) 1921 c 85 s 1; 1931 c 353 s 1; 1957 c 508 s 1; 1969 c 9 s 8; 1973 c 577 s 1,2; 1975 c 359 s 23; Ex1979 c 3 s 1; 1980 c 529 s 3,4; 1981 c 346 s 9,10; 1983 c 289 s 114 subd 1; 1984 c 655 art 1 s 92; 1986 c 444; 1987 c 384 art 2 s 1; 2006 c 255 s 62,63
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 79 — Workers' Compensation Insurance › Section 79.074 — Discrimination.

79.074 DISCRIMINATION.
Subdivision 1.
[Repealed, 1981 c 346 s 145; 1983 c 290 s 15]
Subd. 2.
Dividends.
Dividend plans are not unfairly discriminatory where different premiums result for different policyholders with similar loss exposures but different expense factors, or where different premiums result for different policyholders with similar expense factors but different loss exposures, so long as the respective premiums reflect the differences with reasonable accuracy. Every insurer who issues participating policies shall file with the commissioner a true copy or summary as the commissioner shall direct of its participating dividend rates as to policyholders. The commissioner may study the participating dividend rates and make recommendations to the legislature concerning possible bases for unfair discrimination.
History:
Ex1979 c 3 s 5; 1995 c 231 art 2 s 3
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 79 — Workers' Compensation Insurance › Section 79.081 — Mandatory Deductibles.

79.081 MANDATORY DEDUCTIBLES.
Subdivision 1.
Premium reduction.
Each insurer, including the assigned risk plan, issuing a policy of insurance, must make available to an employer, upon request, the option to agree to pay an amount per claim selected by the employer and specified in the policy toward the total of any claim payable under chapter 176. The amount of premium to be paid by an employer who selects a policy with a deductible shall be reduced based upon a rating schedule or rating plan filed with and approved by the commissioner of commerce. Administration of claims shall remain with the insurer as provided in the terms and conditions of the policy. Each insurer shall notify its agents authorized to write workers' compensation insurance about the availability and terms and conditions of deductibles required by this section, using a brochure in a format approved by the commissioner.
Subd. 2.
Procedure for paying deductible.
If an insured employer chooses a deductible, the insured employer is liable for the amount of the deductible. The insurer shall administer the claim as provided in the terms and conditions of the insurance policy and seek reimbursement from the insured employer for the deductible. The payment or nonpayment of deductible amounts by the insured employer to the insurer shall be treated under the policy insuring the liability for workers' compensation in the same manner as payment or nonpayment of premiums.
Subd. 3.
Credit risk; exception.
An insurer is not required to offer a deductible to an employer if, as a result of a credit investigation, the insurer determines that the employer is not sufficiently financially stable to be responsible for the payment of deductible amounts.
Subd. 4.
Reporting requirement.
The existence of an insurance contract with a deductible or the fact of payment as a result of a deductible does not affect the requirement of an employer to report an injury or death to an insurer or the commissioner of labor and industry.
Subd. 5.
No employee liability.
Nothing in this section alters the obligation of the employer to provide the benefits required by this chapter. An employee is not responsible to pay all or a part of the deductible chosen by an employer.
History:
1992 c 510 art 3 s 1
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 79 — Workers' Compensation Insurance › Section 79.085 — Safety Programs.

79.085 SAFETY PROGRAMS.
All insurers writing workers' compensation insurance in this state shall provide safety and occupational health loss control consultation services to each of their policyholders requesting the services in writing. Insurers must annually notify their policyholders of their right under this section to safety and occupational health loss consultation services. The services must include the conduct of workplace surveys to identify health and safety problems, review of employer injury records with appropriate personnel, and development of plans to improve employer occupational health and safety loss records. Insurers shall notify each policyholder of the availability of those services and the telephone number and address where such services can be requested. The notification may be delivered with the policy of workers' compensation insurance.
History:
1992 c 510 art 3 s 2; 1995 c 231 art 2 s 4
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 79 — Workers' Compensation Insurance › Section 79.095 — Appointment Of Actuary.

79.095 APPOINTMENT OF ACTUARY.
The commissioner shall employ the services of a casualty actuary experienced in worker's compensation whose duties shall include but not be limited to investigation of complaints by insured parties relative to rates, rate classifications, or discriminatory practices of an insurer. The salary of the actuary employed pursuant to this section is not subject to the provisions of section 43A.17, subdivision 1.
History:
1977 c 342 s 24; Ex1979 c 3 s 8; 1981 c 210 s 54
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 79 — Workers' Compensation Insurance › Section 79.096 — Access To Rate-making Data.

79.096 ACCESS TO RATE-MAKING DATA.
The rating association must make available for inspection on request of any person any data it possesses related to the calculation of indicated pure premium rates.
History:
1992 c 510 art 3 s 3
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 79 — Workers' Compensation Insurance › Section 79.10 — Review Of Acts Of Insurers.

79.10 REVIEW OF ACTS OF INSURERS.
The Department of Commerce staff may investigate on the request of any person or on its own initiative the acts of the rating association, an insurer, or an agent that are subject to provisions of chapter 79 and may make findings and recommendations that the commissioner issue an order requiring compliance with the provisions thereof. The proposed findings and recommended order shall be served on all affected parties at the same time that the staff transmits its findings and recommendations to the commissioner. Any party adversely affected by the proposed findings and recommended order may request that a hearing be held concerning the issues raised therein within 15 days after service of the findings and recommended order. This hearing shall be conducted as a contested case pursuant to sections 14.001 to 14.69. If a hearing is not requested within the time specified in this section, the proposed findings and recommended order may be adopted by the commissioner as a final order.
History:
(3621) 1921 c 85 s 10; 1953 c 615 s 3; 1969 c 9 s 9; 1973 c 577 s 2; Ex1979 c 3 s 9; 1982 c 424 s 130; 1983 c 289 s 114 subd 1; 1984 c 592 s 77; 1984 c 655 art 1 s 92; 1987 c 384 art 2 s 1; 1990 c 422 s 10
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 79 — Workers' Compensation Insurance › Section 79.211 — Certain Premium Determination Practices.

79.211 CERTAIN PREMIUM DETERMINATION PRACTICES.
Subdivision 1.
Certain wages included for ratemaking.
The rating association or an insurer shall include wages paid for a vacation, holiday, or sick leave in the determination of a workers' compensation insurance premium.
An insurer, including the assigned risk plan, shall not include wages paid for work performed in an adjacent state in the determination of a workers' compensation premium if the employer paid a workers' compensation insurance premium to the exclusive state fund of the adjacent state on the wages earned in the adjacent state.
Within 30 days of October 1, 1995, a licensed data service organization on behalf of its members shall file an amendment to its charged class premium rates to reflect the inclusion of vacation, holiday, and sick leave wages in the determination of premium. Within 30 days of the filing of those pure premium rates each insurer shall amend its filed schedule of rates to reflect the inclusion of vacation, holiday, and sick leave wages in the determination of premium.
Subd. 2.
Division of payroll.
An insurer shall permit an employer to divide a payroll among the rating classifications most closely fitting the work actually performed by each employee in a four-hour block or more for purposes of premium calculation when the employer's records provide adequate support for a division.
Subd. 3.
Payroll computations for certain public employees.
The commissioner of commerce in setting the assigned risk plan rates or an insurer shall compute a premium for an elected or appointed official of a town based on the actual annual wage received from the town.
Subd. 4.
Experience modification factor revision for certain closed claims.
An insurer or an employer insured under a workers' compensation policy subject to an experience rating plan may request in writing of the data service organization computing the policy's experience modification factor that the most recent factor be revised if each of the following criteria is met:
(1) a workers' compensation claim under that policy is closed between the normal valuation date for that claim and the next time that valuation is used in computing the experience modification factor on the policy;
(2) the data service organization receives a revised unit statistical report containing data on the closed claim in a form consistent with its filed unit statistical plan; and
(3) inclusion of the closed claim in the experience modification factor calculation would impact that factor by five percentage points or more.
History:
Ex1979 c 3 s 12; 1980 c 556 s 6; 1981 c 346 s 139; 1983 c 290 s 4; 1986 c 444; 1987 c 301 s 1; 1993 c 194 s 1; 1995 c 231 art 2 s 5; 2005 c 132 s 24
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 79 — Workers' Compensation Insurance › Section 79.253 — Assigned Risk Safety Account.

79.253 ASSIGNED RISK SAFETY ACCOUNT.
Subdivision 1.
Creation of account.
There is created the assigned risk safety account as a separate account in the special compensation fund in the state treasury. Income earned by funds in the account must be credited to the account. Principal and income of the account are annually appropriated to the commissioner of labor and industry to establish and promote workplace safety and health programs.
Subd. 2.
Use of funds; safety assessments.
The assigned risk plan shall, through persons under contract with the plan, perform on-site surveys of employers insured by the assigned risk plan and recommend practices and equipment to employers designed to reduce the risk of injury to employees. The recommendations may include that the employer form a joint labor-management safety committee. The plan shall generally survey employers in the following priority:
(1) employers with poor safety records for their industry based on their premium modification factor or other factors;
(2) employers whose workers' compensation premium classification assigned to the greatest portion of the payroll for the employer has a premium rate in the top 25 percent of premium rates for all classes; and
(3) all other employers.
Subd. 2a.
Eligible applicants.
An employer is eligible to apply for a grant or loan under this section if the employer meets the following requirements:
(1) the employer's workers' compensation insurance is provided by the assigned risk plan, is provided by an insurer subject to penalties under chapter 176, or the employer is self-insured;
(2) the employer has had an on-site safety survey conducted by a Minnesota occupational safety and health investigator, a Minnesota Department of Labor and Industry workplace safety and health consultant, an in-house employee safety and health committee, a workers' compensation underwriter, a private safety consultant, or a person under contract with the assigned risk plan; and
(3) the on-site safety survey recommends specific safety practices or equipment designed to reduce the risk of illness or injury to employees.
Subd. 3.
Incentives and penalties.
The assigned risk plan shall develop a premium rating system subject to approval by the commissioner of commerce that provides a reduction in premium rates for employers that follow safety recommendations made under this section and an increase in rates for employers that do not. The system must be sensitive to the economic ability of an employer to implement particular recommendations.
Subd. 4.
Grants and loans.
The commissioner of labor and industry may make grants or loans to employers for the cost of implementing safety recommendations made under this section.
Subd. 5.
Rules.
The commissioner of labor and industry may adopt rules necessary to implement this section.
History:
1992 c 510 art 3 s 8; 1995 c 231 art 2 s 8; 1997 c 200 art 1 s 46
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 79 — Workers' Compensation Insurance › Section 79.36 — Additional Powers.

79.36 ADDITIONAL POWERS.
In addition to the powers granted in section 79.35, the reinsurance association may do the following:
(1) sue and be sued. A judgment against the reinsurance association shall not create any direct liability against the individual members of the reinsurance association. The reinsurance association shall provide in the plan of operation for the indemnification, to the extent provided in the plan of operation, of the members, members of the board of directors of the reinsurance association, and officers, employees and other persons lawfully acting on behalf of the reinsurance association;
(2) reinsure all or any portion of its potential liability, including potential liability in excess of the prefunded limit, with reinsurers licensed to transact insurance in this state or otherwise approved by the commissioner of labor and industry;
(3) provide for appropriate housing, equipment, and personnel as may be necessary to assure the efficient operation of the reinsurance association;
(4) contract for goods and services, including but not limited to independent claims management, actuarial, investment, and legal services from others within or without this state to assure the efficient operation of the reinsurance association;
(5) adopt operating rules, consistent with the plan of operation, for the administration of the reinsurance association, enforce those operating rules, and delegate authority as necessary to assure the proper administration and operation of the reinsurance association;
(6) intervene in or prosecute at any time, including but not limited to intervention or prosecution as subrogee to the member's rights in a third-party action, any proceeding under this chapter or chapter 176 in which liability of the reinsurance association may, in the opinion of the board of directors of the reinsurance association or its designee, be established, or the reinsurance association affected in any other way;
(7) the net proceeds derived from intervention or prosecution of any subrogation interest, or other recovery, shall first be used to reimburse the reinsurance association for amounts paid or payable pursuant to this chapter, together with any expenses of recovery, including attorney's fees, and any excess shall be paid to the member or other person entitled thereto, as determined by the board of directors of the reinsurance association, unless otherwise ordered by a court;
(8) hear and determine complaints of a company or other interested party concerning the operation of the reinsurance association; and
(9) perform other acts not specifically enumerated in this section which are necessary or proper to accomplish the purposes of the reinsurance association and which are not inconsistent with sections 79.34 to 79.40 or the plan of operation.
History:
Ex1979 c 3 s 19; 1980 c 556 s 9; 1981 c 346 s 20,139; 1985 c 234 s 21; 1987 c 384 art 2 s 1
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 79 — Workers' Compensation Insurance › Section 79.362 — Workers' Compensation Reinsurance Association Excess Surplus Distribution.

79.362 WORKERS' COMPENSATION REINSURANCE ASSOCIATION EXCESS SURPLUS DISTRIBUTION.
An order of the commissioner of the Department of Labor and Industry relating to the distribution of excess surplus of the Workers' Compensation Reinsurance Association shall be reviewed by the commissioner of commerce. The commissioner of commerce may amend, approve, or reject an order or issue further orders to accomplish the purposes of section 79.361 and Laws 1993, chapter 361, section 2. The commissioner may not change the amount of the distribution ordered by the commissioner of labor and industry without agreement of the commissioner of labor and industry.
History:
1993 c 361 s 6; 1997 c 187 art 3 s 21
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 79 — Workers' Compensation Insurance › Section 79.363 — Distribution Of Excess Surplus.

79.363 DISTRIBUTION OF EXCESS SURPLUS.
The distribution of excess surplus of the Workers' Compensation Reinsurance Association is not a distribution of excess premiums to members. Any excess surplus not refunded according to Laws 1993, chapter 361, section 2, must be returned to the association and must not be distributed to its members. Any excess surplus not distributed or refunded according to section 79.361 must be retained by the association and must not be distributed to members.
History:
1993 c 361 s 8
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 79 — Workers' Compensation Insurance › Section 79.37 — Board Of Directors.

79.37 BOARD OF DIRECTORS.
A board of directors of the reinsurance association is created and is responsible for the operation of the reinsurance association consistent with the plan of operation and sections 79.34 to 79.40. The board consists of 13 directors. Four directors shall represent insurers, two directors shall represent employers, two shall represent self-insurers; two directors shall represent employees; the commissioner of management and budget and the executive director of the state Board of Investment or their designees shall serve as directors; and one director shall represent the public. Insurer members of the reinsurance association shall elect the directors who represent insurers; self-insurer members of the reinsurance association shall elect the directors who represent self-insurers; and the commissioner of labor and industry shall appoint the remaining directors for the terms authorized in the plan of operation. Each director is entitled to one vote. Terms of the directors shall be staggered so that the terms of all the directors do not expire at the same time and so that a director does not serve a term of more than four years. The board shall select a chair and other officers it deems appropriate.
A majority of the directors currently holding office constitutes a quorum. Action may be taken by a majority vote of the directors present.
The board shall take reasonable and prudent action regarding the management of the reinsurance association including but not limited to determining the entity who shall manage the daily affairs of the reinsurance association. The board shall report to the governor of its actions regarding the entity selected to manage the reinsurance association and the reasons for the selection.
History:
Ex1979 c 3 s 20; 1980 c 556 s 10; 1981 c 346 s 139; 1983 c 290 s 11; 1984 c 592 s 78; 1985 c 234 s 2; 1986 c 444; 1987 c 384 art 2 s 1; 2009 c 101 art 2 s 109
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 79 — Workers' Compensation Insurance › Section 79.39 — Applicability Of Chapter 79.

79.39 APPLICABILITY OF CHAPTER 79.
Subdivision 1.
Examination by commissioner.
The reinsurance association is subject to all the provisions of this chapter. The commissioner of labor and industry or an authorized representative of the commissioner may visit the reinsurance association at any time and examine, audit, or evaluate the reinsurance association's operations, records and practices. For purposes of this section, "authorized representative of the commissioner" includes employees of the Department of Labor and Industry or other parties retained by the commissioner.
Subd. 2.
Costs and expenses.
The commissioner of labor and industry may order and the reinsurance association shall pay the costs and expenses of any examination, audit, or evaluation conducted pursuant to subdivision 1.
History:
Ex1979 c 3 s 22; 1984 c 592 s 79; 1985 c 234 s 21
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 79 — Workers' Compensation Insurance › Section 79.40 — Premium Inclusion In Ratemaking.

79.40 PREMIUM INCLUSION IN RATEMAKING.
Premiums charged members by the reinsurance association shall be recognized in the ratemaking procedures for insurance rates.
History:
Ex1979 c 3 s 23; 2005 c 132 s 25
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 79 — Workers' Compensation Insurance › Section 79.50 — Purposes.

79.50 PURPOSES.
The purposes of this chapter are to:
(a) promote public welfare by regulating insurance rates so that premiums are not excessive, inadequate, or unfairly discriminatory;
(b) promote quality and integrity in the databases used in workers' compensation insurance ratemaking;
(c) prohibit price fixing agreements and anticompetitive behavior by insurers;
(d) define the function and scope of activities of data service organizations; and
(e) encourage insurers to provide alternative innovative methods whereby employers can meet the requirements imposed by section 176.181.
History:
1981 c 346 s 21; 1995 c 231 art 1 s 1
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 79 — Workers' Compensation Insurance › Section 79.51 — Rules.

79.51 RULES.
Subdivision 1.
Adoption.
The commissioner shall adopt rules to implement provisions of this chapter.
Subd. 2.
[Repealed, 1983 c 290 s 173]
Subd. 3.
Rules; subject matter.
(a) The commissioner in issuing rules shall consider:
(1) data reporting requirements, including types of data reported, such as loss and expense data;
(2) experience rating plans;
(3) retrospective rating plans;
(4) general expenses and related expense provisions;
(5) minimum premiums;
(6) classification systems and assignment of risks to classifications;
(7) loss development and trend factors;
(8) the Workers' Compensation Reinsurance Association;
(9) requiring substantial compliance with the rules mandated by this section as a condition of workers' compensation carrier licensure;
(10) imposing limitations on the functions of workers' compensation data service organizations consistent with the introduction of competition;
(11) the rules contained in the workers' compensation rating manual adopted by the workers' compensation insurers rating association or other licensed data service organizations;
(12) the supporting data and information required in filings under section 79.56, including but not limited to, the experience of the filing insurer and the extent to which the filing insurer relies upon data service organization loss information, descriptions of the actuarial and statistical methods employed in setting rates, and the filing insurers interpretation of any statistical data relied upon; and
(13) any other factors that the commissioner deems relevant to achieve the purposes of this chapter.
(b) The rules shall provide for the following:
(1) adequate safeguards against excessive or discriminatory rates in workers' compensation;
(2) encouragement of workers' compensation insurance rates which are as low as reasonably necessary, but shall make provision against inadequate rates, insolvencies and unpaid benefits;
(3) assurances that employers are not unfairly relegated to the assigned risk pool;
(4) requiring all appropriate data and other information from insurers for the purpose of issuing rules, making legislative recommendations pursuant to this section; and
(5) preserving a framework for risk classification, data collection, and other appropriate joint insurer services.
Subd. 4.
[Repealed, 1999 c 86 art 2 s 6]
History:
1981 c 346 s 22; 1983 c 290 s 12; 1988 c 629 s 14; 1993 c 132 s 1; 1995 c 231 art 1 s 2,3
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 79 — Workers' Compensation Insurance › Section 79.53 — Premium Calculation.

79.53 PREMIUM CALCULATION.
Subdivision 1.
Method of calculation.
Each insurer shall establish premiums to be paid by an employer according to its filed rates and rating plan as follows:
Rates shall be applied to an exposure base to yield a base premium which may be further modified by merit rating, premium discounts, and other appropriate factors contained in the rating plan of an insurer to produce premium if the increase or decrease is not unfairly discriminatory. Nothing in this chapter shall be deemed to prohibit the use of any premium, provided the premium is not excessive, inadequate or unfairly discriminatory.
Subd. 2.
[Repealed, 1995 c 231 art 1 s 36; art 2 s 110]
History:
1981 c 346 s 24; 1983 c 289 s 114 subd 1; 1983 c 290 s 14; 1984 c 655 art 1 s 92; 1995 c 231 art 1 s 4; 1996 c 374 s 1
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 79 — Workers' Compensation Insurance › Section 79.561 — Disapproval Of Rates Or Rating Plans.

79.561 DISAPPROVAL OF RATES OR RATING PLANS.
Subdivision 1.
Disapproval; time period.
The commissioner may disapprove a rate and rating plan or amendment thereto prior to its effective date, as provided under section 79.56, subdivision 1, if the commissioner determines that it is excessive, inadequate, or unfairly discriminatory. If the commissioner disapproves any rate or rating plan filing or amendment thereto, the commissioner shall advise the filing insurer what rate and rating plan the commissioner has reason to believe would be in compliance with section 79.55, and the reasons for that determination. An insurer may not implement a rate and rating plan or amendment thereto which has been disapproved under this subdivision. If the commissioner disapproves any rate and rating plan filing or amendment thereto, an insurer may use its current rate and rating plan for writing any workers' compensation insurance in this state. Following any disapproval, the commissioner and insurer may reach agreement on a rate or rating plan filing or amendment thereto. Notwithstanding any law to the contrary, in such cases, the rate or rating plan filing or amendment thereto may be implemented by the insurer immediately.
Subd. 2.
Hearing.
If an insurer's rate or rating plan filing or amendment thereto is disapproved under subdivision 1, the insurer may request a contested case hearing under chapter 14. The insurer shall have the burden of proof to justify that its rate and rating plan or amendment thereto is in compliance with section 79.55. The hearing must be scheduled promptly and in no case later than three months from the date of disapproval or else the rate and rating plan or amendment thereto shall be considered effective and may be implemented by the insurer. A determination pursuant to chapter 14 must be made within 90 days following the closing of the hearing record.
Subd. 3.
Consultants and costs.
The commissioner may retain consultants, including a consulting actuary or other experts, that the commissioner determines necessary for purposes of this chapter. The salary limit set by section 43A.17 does not apply to a consulting actuary retained under this subdivision. A consulting actuary shall be a fellow in the casualty actuarial society and shall have demonstrated experience in workers' compensation insurance ratemaking. Any individual not so qualified shall not render an opinion or testify on actuarial aspects of a filing, including but not limited to, data quality, loss development, and trending. The commissioner may determine the costs necessary for implementing and conducting a contested case hearing under subdivision 2, including, but not limited to, retaining any consulting actuaries and experts, and those costs shall be reimbursed by the special compensation fund.
History:
1995 c 231 art 1 s 11; 1996 c 452 s 28
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 79 — Workers' Compensation Insurance › Section 79.59 — Insurers And Data Service Organizations; Prohibited Activities.

79.59 INSURERS AND DATA SERVICE ORGANIZATIONS; PROHIBITED ACTIVITIES.
Subdivision 1.
Monopolization.
No insurer or data service organization shall attempt to monopolize or combine or conspire with any other person to monopolize the business of insurance.
Subd. 2.
Agreement prohibited.
No insurer shall agree with any other insurer or with a data service organization to adhere to or to use any rate, rating plan, rating schedule, rating rule, or underwriting rule except as specifically authorized by this chapter or for the purpose of creating experience modifications for employers with employees in more than one state.
Subd. 3.
Trade restraint.
No insurer or data service organization shall make an agreement with any other insurer, data service organization, or other person which has the purpose or the effect of restraining trade or of substantially lessening competition.
Subd. 4.
Exceptions.
The fact that insurers writing not more than 25 percent of the workers' compensation premiums in Minnesota use the same rates, rating plans, rating schedules, rating rules, underwriting rules, or similar materials shall not alone constitute a violation of subdivision 1 or 2.
Two or more insurers under common ownership or operating under common management or control may act in concert between or among themselves with respect to matters authorized under this chapter as if they constituted a single insurer, provided that the rating plan of such insurers shall be considered to be a single plan for the purposes of determining unfair discrimination.
Subd. 5.
Additional prohibition.
In addition to other prohibitions contained in this chapter, no data service organization shall:
(1) refuse to supply any service for which it is licensed or any data, except for data identifiable to an individual insurer, to any insurer authorized to do business in this state which offers to pay the usual compensation for the service or data;
(2) require the purchase of any specific service as a condition to obtaining any other services sought;
(3) participate in the development or distribution of rates, rating plans, or rating rules except as specifically authorized by this chapter or by rules adopted pursuant to this chapter; or
(4) refuse membership to any licensed insurer.
History:
1981 c 346 s 30
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 79 — Workers' Compensation Insurance › Section 79.60 — Insurers; Required And Permitted Activity.

79.60 INSURERS; REQUIRED AND PERMITTED ACTIVITY.
Subdivision 1.
Required activity.
Each insurer shall perform the following activities:
(1) maintain membership in and report loss experience data to a licensed data service organization in accordance with the statistical plan and rules of the organization as approved by the commissioner;
(2) establish a plan for merit rating which shall be consistently applied to all insureds, provided that members of a data service organization may use merit rating plans developed by that data service organization;
(3) provide an annual report to the commissioner containing the information and prepared in the form required by the commissioner;
(4) keep a record of the premiums and losses paid under each workers' compensation policy written in Minnesota in the form required by the commissioner;
(5) provide to the association, upon request, information about its insurance premiums, losses, and operations which the association shall request in order to prepare and file with the commissioner and the Rate Oversight Commission the filings required by this chapter; and
(6) pay to the association its equitable share of the costs of preparing the filing with the commissioner and the Rate Oversight Commission required by this chapter.
Subd. 2.
Permitted activity.
In addition to any other activities not prohibited by this chapter, insurers may:
(1) through licensed data service organizations, individually, or with insurers commonly owned, managed, or controlled, conduct research and collect statistics to investigate, identify, and classify information relating to causes or prevention of losses;
(2) develop and use classification plans and rates based upon any reasonable factors; and
(3) develop rules for the assignment of risks to classifications.
History:
1981 c 346 s 31; 1995 c 231 art 2 s 16
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 79 — Workers' Compensation Insurance › Section 79.62 — Data Service Organizations; Licensing, Examination.

79.62 DATA SERVICE ORGANIZATIONS; LICENSING, EXAMINATION.
Subdivision 1.
License required.
No data service organization shall provide any service and no insurer shall use the services of a data service organization unless the organization is licensed by the commissioner.
Subd. 2.
Procedure; application.
A data service organization shall apply for a license in a form and manner prescribed by the commissioner. The application of a data service organization shall include:
(1) a copy of its constitution, articles of incorporation, bylaws, and other rules pertaining to the conduct of its business;
(2) a plan and narrative describing how it will perform the activities required by section 79.61;
(3) a statement showing its technical qualifications; and
(4) any other information that the commissioner may reasonably require.
Subd. 2a.
Employer representation.
The commissioner may appoint two representatives of employers to serve on the board of directors of each licensed data service organization. These directors serve for a term of two years and are entitled to vote on all matters under consideration.
Subd. 3.
Issuance.
The commissioner, upon finding that the applicant organization is qualified to provide the services required and proposed, or has contracted with a licensed data service organization to purchase these services which are required by this chapter but are not provided directly by the applicant, and that all requirements of law are met, shall issue a license. Each license is subject to annual renewal effective June 30. Each new or renewal license application must be accompanied by a fee of $1,000.
Subd. 4.
Suspension; revocation.
The commissioner may, after a hearing on the record, revoke or suspend the license of a data service organization if the commissioner finds that the organization is not in compliance with the requirements of this chapter or rules issued thereunder.
Subd. 5.
Licensee examination.
The commissioner may examine any licensed data service organization or applicant for this license to determine whether its activities and practices comply with law. The cost of the examination shall be paid by the examined organization pursuant to section 60A.03.
History:
1981 c 346 s 33; 1Sp1985 c 10 s 73; 1986 c 444; 2005 c 132 s 28
2023 Minnesota Statutes › Chapters 59A - 79A — Insurance › Chapter 79A — Workers' Compensation Self-insurance › Section 79A.05 — Revocation Of Certificate To Self-insure.

79A.05 REVOCATION OF CERTIFICATE TO SELF-INSURE.
A certificate to self-insure may be revoked by the commissioner at any time for good cause. After revocation, the self-insurer may request a hearing. Good cause includes, among other things, failure to maintain a security deposit as required by this chapter, failure to pay assessments of the self-insurers' security fund, or the failure or inability of the employer to fulfill obligations under chapter 176 or this chapter. Good cause also includes failure to provide proof of renewal of the security 15 days before its expiration.
A self-insured employer must comply with section 176.181 and all applicable rules to operate during the pendency of its appeal of a decision under this section.
History:
1988 c 674 s 5