Subdivision 1. Submission, review, report. Prior to the formation of a pool, there shall be submitted for approval to the commissioner of commerce a complete written proposal of the pool's operation, including, but not limited to, administration, claims adjusting, membership, capitalization, and provision for payment of claims exceeding the pool's assets. The commissioner shall review the proposal and approve or disapprove within 60 days after receipt to assure that proper insurance techniques and procedures are included in the proposal. If the commissioner does not disapprove within 60 days after receipt of the proposal, the proposal is deemed approved. Each pool shall file with the commissioner of commerce on or before March 1 of each year a written report in a form prescribed by the commissioner as to its condition. The report shall include a detailed statement of assets and liabilities, the amount and character of the business transacted, and the moneys reserved and expended during the previous year.
Subd. 2. Rules; considerations. The commissioner of commerce is authorized to adopt administrative rules pursuant to chapter 14. These rules may provide standards or guidelines governing the formation, operation, administration, dissolution of self-insurance pools, and other reasonable requirements to further the purpose of this section. In developing the rules under this section, the commissioner shall consider the following:
(a) the requirements for self-insuring pools of political subdivisions shall be no more restrictive and may be less restrictive than the requirements for self-insuring pools of private employers;
(b) all participants in the pool are jointly and severally liable for all claims and expenses of the pool;
(c) each pool shall contract with a service company licensed by the commissioner to provide or contract for all administrative services required by the pool. No vendor of risk management services or entity administering a self insurance plan under this section may transact such business in this state unless it is licensed to do so by the commissioner pursuant to section 60A.23, subdivision 8;
(d) the service company has sole responsibility for the settlement of all claims against the pool or its members for which the pool may provide indemnification;
(e) a minimum premium volume for each pool shall be established. The minimum premium volume may differ because of the kinds of coverage provided, and the limits of liability for the coverage;
(f) all premiums or other assessments due to the pool from members shall be payable prior to the period for which coverage is being provided, or at equal intervals throughout the period;
(g) premiums shall be neither excessive, inadequate, nor unfairly discriminatory;
(h) the commissioner may require each pool to purchase excess insurance above certain limits and in a particular form. The limits or form of the excess insurance may differ based on the kinds of coverage offered by a pool, the limits of liability of the coverage, and the revenues available to pool members for the payment of premiums or assessments;
(i) each pool shall be audited annually by a certified public accountant;
(j) whether limitations on the payment of dividends to pool members are necessary to assure the solvency of the pool in view of the taxing and levying authority of political subdivisions;
(k) no participant may withdraw from a pool for a period of at least three years after its initial entry into the pool;
(l) the amount of any liabilities in excess of assets shall be assessed to members of the pool within 30 days after a deficiency is identified and shall be payable by the member within 90 days;
(m) the investment policies of the pool shall be governed by the laws governing investments by cities pursuant to section 118A.04;
(n) pools shall be subject to the standards of unfair methods of competition and unfair or deceptive acts or practices established in chapter 72A;
(o) other requirements that are necessary to protect the solvency of the pool, the rights and privileges of claimants against the pool, and citizens of the members of the pool shall be included in the rules.
Subd. 3. Exemptions. Self-insurance pools established and open for enrollment on a statewide basis by the Minnesota League of Cities Insurance Trust, the Minnesota School Boards Association Insurance Trust, the Minnesota Association of Townships Insurance and Bond Trust, the Minnesota Counties Intergovernmental Trust, or the Nonprofit Insurance Trust and the political subdivisions that belong to them are exempt from the requirements of this section and sections 65B.48, subdivision 3, and 60A.0811. In addition, the Minnesota Association of Townships Insurance and Bond Trust and the townships that belong to it are exempt from the requirement to hold the certificate of surety authorization issued by the commissioner of commerce as provided in section 574.15.
1980 c 529 s 7; 1982 c 424 s 130; 1983 c 289 s 114 subd 1; 1983 c 290 s 169,170; 1983 c 328 s 10; 1984 c 655 art 1 s 92; 1986 c 455 s 78; 1987 c 102 s 1; 1987 c 384 art 2 s 1; 1995 c 233 art 2 s 56; 1996 c 399 art 2 s 12; 2009 c 53 s 2; 2009 c 148 s 6; 2013 c 125 art 1 s 79
Structure Minnesota Statutes
Chapters 471 - 472B — Municipalities
Chapter 471 — Municipal Rights, Powers, Duties
Section 471.15 — Recreational Facilities By Municipality; Bonds.
Section 471.16 — Operation Of Program; Levy.
Section 471.17 — Location Of Activities.
Section 471.18 — Education Commissioner To Establish Qualifications.
Section 471.19 — Recreation Program To Be For Education Purposes.
Section 471.191 — Acquisition Of Facilities By City, School District.
Section 471.1911 — Validation Of School District Agreements.
Section 471.1912 — Public Beaches; Lifeguards.
Section 471.193 — Municipal Heritage Preservation.
Section 471.195 — Unclaimed Property; Disposal.
Section 471.198 — Expenditures; National Night Out; Law Enforcement Community Events.
Section 471.24 — Towns, Statutory Cities; Joint Maintenance Of Cemetery.
Section 471.342 — Inflow And Infiltration Program.
Section 471.345 — Uniform Municipal Contracting Law.
Section 471.3455 — Public Safety Equipment Purchase Or Lease.
Section 471.3457 — Veteran-owned Small Business Contracts.
Section 471.3459 — Donation Of Surplus Equipment.
Section 471.346 — Publicly Owned And Leased Vehicles Identified.
Section 471.35 — Specifications Of Supplies Or Equipment.
Section 471.36 — Noncompetitive Supplies And Equipment.
Section 471.371 — Contracts For Construction Of Treatment Works.
Section 471.381 — City, Town, And County Obligations And Payments.
Section 471.382 — Credit Cards.
Section 471.391 — Declaration Form.
Section 471.40 — Auditing Claims.
Section 471.41 — Auditing Accounts Not Itemized A Gross Misdemeanor.
Section 471.415 — Duplicate Warrants Or Orders.
Section 471.425 — Prompt Payment Of Local Government Bills.
Section 471.426 — Direct Deposit.
Section 471.44 — Municipality To Supply Counsel For Police, Peace Officers.
Section 471.45 — Costs And Disbursements To Be Assigned To Municipalities.
Section 471.46 — Vacancies; Persons Ineligible To Appointment.
Section 471.462 — Written Estimate Of Consultant Fees.
Section 471.464 — Ramps At Crosswalks.
Section 471.469 — Elevators In Apartment Buildings.
Section 471.471 — Access Review Board.
Section 471.475 — Iron Range Cities Or Towns May Lease Out Hospital.
Section 471.476 — Ambulance Services, Hennepin County Exception.
Section 471.50 — County Board May Make Agreements In Regard To Taxes.
Section 471.51 — Agreement To State Years Of Payments.
Section 471.52 — Apportionment Of Payments.
Section 471.53 — Who May Make Requests.
Section 471.54 — Use Of Money.
Section 471.55 — Construction Of Sections 471.49 To 471.55.
Section 471.562 — Definitions.
Section 471.563 — Uses Of Loan Repayments.
Section 471.57 — Public Works Reserve Fund.
Section 471.571 — Permanent Improvement Fund, Certain Cities.
Section 471.572 — Infrastructure Replacement Reserve Fund.
Section 471.58 — Range Association Of Municipalities And Schools; Dues.
Section 471.59 — Joint Exercise Of Powers.
Section 471.591 — Extension Of Municipal Services.
Section 471.61 — Group Benefits For Officers, Employees, Retirees.
Section 471.611 — Retirees' Health Insurance Benefits.
Section 471.615 — Individual Annuity For Public Officer, Employee.
Section 471.6151 — Contributions From Lawful Gambling Organizations.
Section 471.6161 — Group Insurance; Governmental Units.
Section 471.617 — Self-insurance Of Employee Health Benefits.
Section 471.6175 — Trust For Postemployment Benefits.
Section 471.62 — Statutes Or Rules May Be Adopted By Reference.
Section 471.63 — Promotion Of Safety And Preservation Of Human Life.
Section 471.631 — Rewards For Information About Felons.
Section 471.635 — Zoning Ordinances.
Section 471.64 — May Get, Dispose Of Property To, From U.s., State Agencies.
Section 471.65 — Grant, Advance, Or Loan From U.s. Or State Government.
Section 471.653 — Distribution Of Certain Federal Payments.
Section 471.655 — Municipality's Economic Opportunity Program Powers.
Section 471.656 — Limits On Bond Issuance For Extraterritorial Projects.
Section 471.661 — Out-of-state Travel.
Section 471.665 — Mileage Allowances.
Section 471.666 — Personal Use Of Publicly Owned Automobiles Prohibited.
Section 471.67 — Agreement Between Commissioner Of Dnr And Municipality.
Section 471.68 — Distribution Of Publications By Any County Or City.
Section 471.685 — Limit On Postsecondary Institution Fees.
Section 471.69 — Limitation Of Tax Levies; Statement.
Section 471.695 — City Defined For Sections 471.695 To 471.699.
Section 471.696 — Fiscal Year; Designation.
Section 471.6965 — Publication Of Summary Budget Statement.
Section 471.697 — Financial Reports; Filing; Cities, Towns Of 2,500.
Section 471.698 — Finance Report, File, Publish Or Post; Cities Under 2,500.
Section 471.6985 — Municipal Liquor Store.
Section 471.699 — Enforcement Of Reporting Requirements.
Section 471.6995 — Extended Time To File Financial Report; Disaster Areas.
Section 471.70 — Annual Report Of Outstanding Obligations.
Section 471.701 — Salary Data.
Section 471.707 — Vending Machine License Fees; Notice.
Section 471.709 — Massage Therapist License; Permit.
Section 471.72 — Application; Purpose.
Section 471.73 — Acceptance Of Provisions.
Section 471.75 — Orders, Sufficient Funds; Certificates Of Indebtedness.
Section 471.76 — Expenditures, Obligations; Clerk's Statement.
Section 471.77 — Indebtedness Contracted In Excess Of Revenue.
Section 471.78 — Indebtedness In Excess Of Revenue, Contracts Void.
Section 471.81 — Construction.
Section 471.82 — Repealer, Exceptions.
Section 471.83 — Severable, Effect.
Section 471.831 — Municipality May File Bankruptcy Petition.
Section 471.84 — Cemeteries; Appropriation By Certain Subdivisions.
Section 471.85 — Property Transfer; Public Corporations.
Section 471.86 — Protection For Firefighter Driver Sued For Damages.
Section 471.87 — Public Officers, Interest In Contract; Penalty.
Section 471.881 — Exceptions; Application.
Section 471.89 — Contract, When Void.
Section 471.895 — Certain Gifts By Interested Persons Prohibited.
Section 471.90 — Statutory Cities, Hospital; Transfer To County.
Section 471.91 — Air Travel Accounts.
Section 471.92 — Dangerous Excavations.
Section 471.924 — County Regulation Of Secondhand And Junk Dealers.
Section 471.925 — Definitions.
Section 471.926 — Relation To Other County Authority.
Section 471.927 — Cooperation With Municipalities.
Section 471.929 — Enforcement.
Section 471.93 — Appropriations For Historical Work By Municipalities.
Section 471.935 — Appropriations For Senior, Youth Centers.
Section 471.941 — Appropriation For Artistic Activities.
Section 471.95 — Patients In Public Hospitals, Extension Of Credit.
Section 471.96 — Members Of Civic Educational Associations.
Section 471.97 — Authority To Advance Expense Money.
Section 471.98 — Self-insurance; Definitions.
Section 471.981 — Self-insurance Coverage By Political Subdivision.
Section 471.982 — Review Of Joint Self-insurance Pool.
Section 471.985 — County And City Ordinances Prohibiting Trespassing.
Section 471.99 — Notice Of Government Action.
Section 471.991 — Definitions.
Section 471.992 — Equitable Compensation Relationships.
Section 471.993 — Compensation Relationships Of Positions.
Section 471.994 — Job Evaluation System.
Section 471.995 — Report Availability.
Section 471.9966 — Effect On Other Law.
Section 471.997 — Human Rights Act, Evidence.
Section 471.9981 — Counties And Cities; Pay Equity Compliance.
Section 471.999 — Report To Legislature.
Section 471.9995 — Rental Dwelling Notice.
Section 471.9996 — Rent Control Prohibited.
Section 471.9997 — Federally Assisted Rental Housing; Impact Statement.