Subdivision 1. Insolvent insurer. The security fund shall have the right and obligation to obtain reimbursement from an insolvent private self-insurer up to the amount of the private self-insurer's workers' compensation obligations paid and assumed by the security fund, including reasonable administrative and legal costs. This right includes, but is not limited to, a right to claim for wages and other necessities of life advanced to claimants as subrogee of the claimants in any action to collect against the private self-insurer as debtor.
Subd. 2. Security deposits. The security fund shall have the right and obligation to obtain and retain the security deposit of an insolvent private self-insurer to apply to the private self-insurer's current or future compensation obligations, including reasonable administrative and legal costs, paid or assumed by the security fund and to other current or future obligations of the security fund. Reimbursement of administrative costs, including legal costs, shall be subject to approval by a majority of the security fund's voting trustees. The security fund shall be a party in interest in any action to obtain the security deposit for the payment of compensation obligations of an insolvent self-insurer.
Subd. 2a. Replacement insurance policy. The insolvent self-insurer may obtain an insurance policy as described in section 79A.06, subdivision 5, to discharge further workers' compensation obligations assumed by the self-insurers' security fund on behalf of the insolvent insurer. At the self-insurers' security fund's option and in its sole discretion, any part of the insolvent self-insurer's security deposit may be used to fund the acquisition of this policy. After the security deposit has been used to: (1) fund the acquisition of this policy; (2) pay all direct and indirect administrative and professional expenses of the fund related to the insolvent self-insurer; and (3) to the extent not covered by the insurance policy, pay the insolvent self-insurer's losses, allocated loss expense and unallocated loss expense, any part of the insolvent self-insurer's security deposit that remains must be promptly returned to the insolvent self-insurer.
Subd. 3. Legal actions. The security fund shall have the right to bring an action against any person or entity to recover compensation paid and liability assumed by the security fund, including, but not limited to, any excess insurance carrier of the insolvent private self-insurer, and any person or entity whose negligence or breach of any obligation contributed to any underestimation of the private self-insurer's total accrued liability as reported to the commissioner.
Subd. 4. Party in interest. The security fund may be a party in interest in any action brought by any other person seeking damages resulting from the failure of an insolvent private self-insurer to pay workers' compensation required pursuant to this subdivision.
1988 c 674 s 11; 2000 c 483 s 28,29
Structure Minnesota Statutes
Chapters 59A - 79A — Insurance
Chapter 79A — Workers' Compensation Self-insurance
Section 79A.02 — Self-insurers' Advisory Committee.
Section 79A.03 — Self-insurance Applications.
Section 79A.05 — Revocation Of Certificate To Self-insure.
Section 79A.06 — Third-party Administrator.
Section 79A.07 — Preferred Subrogation Rights Of Self-insurers' Security Fund Or Surety.
Section 79A.071 — Custodial Accounts.
Section 79A.08 — Legislative Intent.
Section 79A.09 — Security Fund.
Section 79A.10 — Assumption Of Workers' Compensation Obligations Of Insolvent Self-insurer.
Section 79A.11 — Reimbursement For Obligations Paid And Assumed.
Section 79A.13 — Audit; Annual Report.
Section 79A.14 — Letter Of Credit Form.
Section 79A.15 — Surety Bond Form.
Section 79A.16 — Open Meeting; Administrative Procedure Act.
Section 79A.18 — Existing Rules.
Section 79A.19 — Commercial Self-insurance Groups; Definitions.
Section 79A.20 — Eligibility Requirements For Commercial Self-insurance Groups.
Section 79A.21 — Commercial Self-insurance Group Application.
Section 79A.22 — Commercial Self-insurance Group Operating Requirements.
Section 79A.23 — Commercial Self-insurance Group Reporting Requirements.
Section 79A.24 — Commercial Self-insurance Group Security Deposit.
Section 79A.25 — Default Of A Commercial Self-insurance Group.
Section 79A.26 — Commercial Self-insurance Group Security Fund.
Section 79A.27 — Indemnity Agreement Form.
Section 79A.28 — Open Meeting; Administrative Procedure Act.
Section 79A.30 — Governing Law.
Section 79A.32 — Reporting To Licensed Data Service Organizations.