Subdivision 1. Notice of insolvency, bankruptcy, or default. The commissioner of labor and industry shall notify the commissioner and the commercial self-insurance group security fund if the commissioner of labor and industry has knowledge that any commercial self-insurance group has failed to pay workers' compensation benefits as required by chapter 176. If the commissioner determines that a court of competent jurisdiction has declared the commercial self-insurance group to be bankrupt or insolvent and the commercial self-insurance group has failed to pay workers' compensation as required by chapter 176 or if the commissioner issues a certificate of default against a commercial self-insurance group for failure to pay workers' compensation as required by chapter 176, then the security deposit posted by the commercial self-insurance group shall be utilized to administer and pay the commercial self-insurance group's workers' compensation obligation.
Subd. 2. Revocation of certificate to self-insure. (a) The commissioner shall revoke the commercial self-insurance group's certificate to self-insure once notified of the commercial self-insurance group's bankruptcy, insolvency, or upon issuance of a certificate of default. The revocation shall be completed as soon as practicable, but no later than 30 days after the commercial self-insurance group's security has been called.
(b) The commissioner shall also revoke a commercial self-insurance group's authority to self-insure on the following grounds:
(1) failure to comply with any lawful order of the commissioner;
(2) failure to comply with any provision of chapter 176;
(3) a deterioration of the commercial self-insurance group's financial condition affecting its ability to pay obligations in chapter 176;
(4) committing an unfair or deceptive act or practice as defined in section 72A.20; or
(5) failure to abide by the plan of operation of the Workers' Compensation Reinsurance Association.
Subd. 3. Notice by commissioner. In the event of bankruptcy, insolvency, or certificate of default, the commissioner shall immediately notify by certified mail the commissioner of management and budget, the surety, the issuer of an irrevocable letter of credit, and any custodian of the security. At the time of notification, the commissioner shall also call the security and transfer and assign it to the commercial self-insurance group security fund. The commissioner shall also notify by certified mail the commercial self-insurance group's security fund and order the commercial security fund to assume the insolvent commercial self-insurance group's obligations for which it is liable under chapter 176.
1995 c 231 art 2 s 34; 2003 c 112 art 2 s 50; 2009 c 101 art 2 s 109
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.