Subdivision 1. Alternatives to conventional insurance. The commissioner may implement programs of insurance or alternatives to the purchase of conventional insurance. This authority does not extend to areas of risk subject to: (1) collective bargaining agreements, (2) plans established under section 43A.18, or (3) programs established under sections 176.541 to 176.611, except for the Department of Administration. The mechanism for implementing possible alternatives to conventional insurance is the risk management fund created in subdivision 2.
Subd. 2. Risk management fund. (a) All state agencies, political subdivisions, and the Minnesota State Colleges and Universities, may, in cooperation with the commissioner, participate in insurance programs and other funding alternative programs provided by the risk management fund.
(b) When an entity described in paragraph (a) enters into an insurance or self-insurance program, each entity shall contribute the appropriate share of its costs as determined by the commissioner.
(c) The money in the fund to pay claims arising from state activities and for administrative costs, including costs for the adjustment and defense of the claims, is appropriated to the commissioner.
(d) Interest earned from the investment of money in the fund shall be credited to the fund and be available to the commissioner for the expenditures authorized in this subdivision.
(e) The fund is exempt from the provisions of section 16A.152, subdivision 4. In the event that proceeds in the fund are insufficient to pay outstanding claims and associated administrative costs, the commissioner, in consultation with the commissioner of management and budget, may assess entities participating in the fund amounts sufficient to pay the costs. The commissioner shall determine the proportionate share of the assessment of each entity.
Subd. 3. Responsibilities. The commissioner shall:
(1) review the state's exposure to various types of potential risks in consultation with affected entities and advise them as to the reduction of risk and fiscal management of those losses;
(2) be responsible for statewide risk management coordination, evaluation of funding and insuring alternatives, and the approval of all insurance purchases in consultation with affected entities;
(3) identify ways to eliminate redundant efforts in the management of state risk management and insurance programs;
(4) maintain the state risk management information system; and
(5) administer and maintain the state risk management fund.
Subd. 4. Competitive bidding. The commissioner may request bids from insurance carriers or negotiate with insurance carriers and may enter into contracts of insurance carriers that in the judgment of the division are best qualified to underwrite and service the insurance programs.
Subd. 5. Risk management fund not considered insurance. A state agency, including an entity defined as a part of the state in section 3.732, subdivision 1, clause (1), may procure insurance against liability of the agency and its employees for damages resulting from the torts of the agency and its employees. The procurement of this insurance constitutes a waiver of the limits of governmental liability under section 3.736, subdivisions 4 and 4a, only to the extent that valid and collectible insurance, including where applicable, proceeds from the Minnesota Insurance Guaranty Association, exceeds those limits and covers the claim. Purchase of insurance has no other effect on the liability of the agency and its employees. Procurement of commercial insurance, participation in the risk management fund under this section, or provisions of an individual self-insurance plan with or without a reserve fund or reinsurance does not constitute a waiver of any governmental immunities or exclusions.
1986 c 455 s 3; 1988 c 613 s 18; 1992 c 513 art 4 s 32; 1993 c 192 s 111; 1994 c 634 art 1 s 17; 1996 c 398 s 21; 2001 c 162 s 7,8; 2006 c 212 art 1 s 2; 2009 c 86 art 1 s 7; 2009 c 101 art 2 s 109
Structure Minnesota Statutes
Chapters 16A - 16E — Administration And Finance
Chapter 16B — Department Of Administration
Section 16B.02 — Department Of Administration.
Section 16B.03 — Appointments.
Section 16B.05 — Delegation By Commissioner.
Section 16B.052 — Authority To Transfer Funds.
Section 16B.054 — Developmental Disabilities.
Section 16B.055 — Lead Agency.
Section 16B.24 — General Authority.
Section 16B.2405 — Capitol Building Powers And Duties.
Section 16B.2406 — Capitol Area Building Account To Address Health, Life Safety, And Security Needs.
Section 16B.241 — Coordinated Facility Planning.
Section 16B.242 — Enterprise Real Property Account.
Section 16B.2421 — Bird-safe Buildings.
Section 16B.245 — Inventory Of State-owned Land.
Section 16B.25 — Lost Property On State Lands.
Section 16B.26 — Utility Companies, Permits To Cross State-owned Lands.
Section 16B.27 — Governor's Residence.
Section 16B.275 — Capitol Area Cafeterias.
Section 16B.276 — Capitol Flag Program.
Section 16B.281 — Sale And Disposition Of Surplus State-owned Land.
Section 16B.282 — Surveys, Appraisals, And Sale.
Section 16B.283 — Terms Of Payment.
Section 16B.284 — Quitclaim Deed.
Section 16B.286 — Reservation Of Minerals.
Section 16B.287 — Disposition Of Proceeds From Surplus State-owned Land.
Section 16B.296 — Transfer Of Real Property.
Section 16B.297 — Acquisition Of Real Property.
Section 16B.2975 — Surplus Property Acquisition, Distribution, And Disposal.
Section 16B.298 — Surplus Property.
Section 16B.30 — General Authority.
Section 16B.305 — Capital Budget Requests.
Section 16B.307 — Asset Preservation Appropriations.
Section 16B.31 — Commissioner Must Approve Plans.
Section 16B.321 — Definitions.
Section 16B.322 — State Energy Improvement Financing Program.
Section 16B.323 — Solar Energy In State Buildings.
Section 16B.325 — Sustainable Building Guidelines.
Section 16B.326 — Heating And Cooling Systems; State-funded Buildings.
Section 16B.327 — Recycling Construction And Demolition Waste From State Buildings; Requirement.
Section 16B.328 — Outdoor Lighting Fixtures Model Ordinance.
Section 16B.33 — Designer Selection Board.
Section 16B.335 — Review Of Plans And Projects.
Section 16B.34 — Inmate Labor.
Section 16B.35 — Art In State Buildings.
Section 16B.355 — Cooperative Local Facilities Grants.
Section 16B.36 — Investigations.
Section 16B.37 — Reorganization Of Agencies.
Section 16B.371 — Assistance To Small Agencies.
Section 16B.38 — Dissolved Or Suspended Agencies.
Section 16B.39 — Programs For State Employees.
Section 16B.45 — Function Of Legislative Auditor.
Section 16B.48 — General Services Revolving Funds.
Section 16B.4805 — Accommodation Reimbursement.
Section 16B.481 — Fees For Training And Maintenance.
Section 16B.4821 — Provision Of Materials And Services To Mnscu.
Section 16B.485 — Interfund Loans.
Section 16B.49 — Central Mailing System.
Section 16B.495 — Hazard Identification And Accident Prevention.
Section 16B.51 — Agency Reports.
Section 16B.53 — Sale Of Laws And Resolutions.
Section 16B.531 — Travel Services.
Section 16B.54 — Enterprise Fleet; Establishment.
Section 16B.55 — Use Of State Vehicles; Compensation For Use Of Personal Vehicles.
Section 16B.56 — Commuter Vans; Use By State Employees And Spouses And Others.
Section 16B.57 — Gasoline And Petroleum Products, Source Of Supply For Agencies.
Section 16B.58 — State Parking Facilities.
Section 16B.581 — Distinctive Tax-exempt License Plates.
Section 16B.85 — Risk Management.
Section 16B.86 — State Building Energy Conservation Improvement Revolving Loan Account.
Section 16B.87 — Award And Repayment Of State Building Energy Improvement Conservation Loans.
Section 16B.875 — Review By Commissioner Of Administration.
Section 16B.97 — Grants Management.