Minnesota Administrative Code

2765.0800 ADMINISTRATION. Subpart 1. Service company. A plan must contract with a service company for services necessary to the plan's day-to-day operations, except services and responsibilities reserved to the members, the board, individual trustees, the financial administrator,…

2765.0900 MEMBERSHIP. Subpart 1. Availability. Plan membership is available to employers domiciled and authorized to transact business in Minnesota. Plans may also cover nonresident employers if the portion of the plan covering Minnesota resident employees is treated as a separat…

2765.1000 COVERAGE. Subpart 1. Coverage administration and related requirements. Plans are subject to the requirements of Minnesota statutes and rules applicable to insurance companies providing insurance in Minnesota similar to the plan's coverage. These include requirements con…

2765.1100 PREMIUMS AND DIVIDENDS. Subpart 1. Premium payments. The fund year must be the basis for calculating members' premiums. A plan may permit installment payments if payment is always due before premium is to be earned. Any delinquencies in payments by employees must be pai…

2765.1200 RESERVES. Subpart 1. Loss and premium reserves. A plan must establish reserves for all incurred losses, both reported and unreported, and for unearned premiums. To the extent that the amount of a loss is uncertain, reserves must be set conservatively. As the degree of u…

2765.1300 STOP-LOSS INSURANCE. Subpart 1. Purchase and alteration. The plan must inform the commissioner at least 180 days prior to expiration of any required stop-loss insurance policy whether it intends to renew the policy, and whether the insurer is willing to renew the policy…

2765.1400 FINANCIAL INTEGRITY. Subpart 1. Fidelity bond. All contractors and individuals who handle plan funds or who will have authority to gain access to plan funds, including trustees, must be covered by a fidelity bond. The bond must cover losses from dishonesty, robbery, for…

2765.1500 REPORTING. Subpart 1. Financial statements. A plan must prepare annual financial statements containing a balance sheet; a full funding reserves calculation worksheet; a statement of revenues, expenses, and surplus; a statement of changes in financial position; and a sch…

2767.0100 DEFINITIONS. Subpart 1. Scope. The following definitions apply to parts 2767.0100 to 2767.0900 unless the context clearly indicates a different meaning. Subp. 2. Administrator. "Administrator" means vendors of risk management services and entities administering self-ins…

2767.0200 PURPOSE AND SCOPE. Parts 2767.0100 to 2767.0900 are designed to assure that administrators are capable of providing risk management services, financially solvent, and able to process claims in a prompt and equitable manner; and to allow the commissioner to authorize qua…

2767.0400 REQUIREMENTS FOR LICENSING. Subpart 1. Application procedure. Any person or entity desiring to be licensed as an administrator pursuant to Minnesota Statutes, section 60A.23, subdivision 8, shall apply to the commissioner in writing and on forms available from the commi…

2767.0600 LICENSE RENEWALS. Subpart 1. Time of filing. Application for renewal of a license must be filed with the commissioner at least 60 days prior to the expiration date of that license. Subp. 2. Required information. In support of the application for license renewal, an admi…

2767.0700 LICENSE REPORTING REQUIREMENTS. Subpart 1. Time limit. Within 30 days after signing an administrator contract, a licensee shall inform the department in writing of the name or names of the client under contract and the areas for which the client is self-insured or insur…

2767.0900 BOND AMOUNTS. Subpart 1. Administrator not commingling funds. The amount of the fidelity bond required under part 2767.0400, subpart 2, item F for an administrator that does not commingle funds of either its fiduciary account or claims-paying account must be in the amou…

2770.0200 CERTIFICATES OF INSURANCE AND CONTENTS. Insurance companies writing insurance in connection with automobile finance accounts shall instruct their agents that each purchaser of automobiles or accessories insured under finance accounts shall be furnished with certificates…

2770.1100 DEFINITIONS. Subpart 1. Scope. For the purposes of parts 2770.1100 to 2770.1800 and 2770.1900, the terms defined in this part have the meanings given them. Subp. 2. Auto plan. "Auto plan" means the Minnesota Automobile Insurance Plan. Subp. 3. Chargeable accident. "Char…

2770.1200 AUTHORITY. Parts 2770.1100 to 2770.1800 apply to all companies writing policies of private passenger automobile insurance. They are adopted pursuant to the authority of Minnesota Statutes, section 65B.133, subdivision 7. Statutory Authority: MS s 65B.133 Published Elect…

2770.1300 PURPOSE. Parts 2770.1100 to 2770.1800 are designed to assure that surcharge disclosure statements contain minimum basic information which allows insureds to make sound decisions when comparison shopping for automobile insurance. Statutory Authority: MS s 65B.133 Publish…

2770.1400 READABILITY. All statements must meet the following standards of readability and legibility: A. Statements must be written in simple, commonly used language so as to be easily readable and understandable by a person of average intelligence, experience, and education. B.…

2770.1500 HIGHLIGHTED PROVISIONS. All surcharge plans containing one or more of the following provisions, must have the provisions highlighted in bold print or contrasting color print on the surcharge disclosure statement: A. surcharges that are based on estimated damage instead …

2770.1600 REVIEW. Statements must be submitted to the commissioner as an informational filing at least 30 days prior to use. Although not subject to affirmative approval by the commissioner, the statements must comply with Minnesota Statutes, section 65B.133 and parts 2770.1100 t…

2770.1700 AUTO PLAN PROCEDURES. The auto plan shall submit a statement to the commissioner which is subject to prior approval. The participating members of the auto plan are responsible for providing a copy of the statement to auto plan insureds, and to their agents for use when …

2770.1800 EXAMPLES OF SURCHARGE PLAN. Each company must display on the statement two examples of how their surcharge plan works. One example must show a one-vehicle insured with a $200 premium. The second example must show a two-vehicle insured, with a $200 premium on one vehicle…

2770.1900 SURCHARGE PLAN FORMATS. The formats contained in this part must be used, but additional information may be included. A. One vehicle insured. Coverage Premium with no accidents Premium including surcharge for one chargeable accident Premium including surcharge for two ch…

2770.3100 AUTHORITY. The rules set forth in parts 2770.3100 to 2770.5200 are promulgated under the authority of Minnesota Statutes, section 65B.53, subdivision 4. Statutory Authority: MS s 65B.53 Published Electronically: September 14, 2007

2770.3200 PURPOSE AND SCOPE. These rules are designed to promote efficient settlement of claims involving economic loss between reparation obligors. As a condition precedent to arbitration, however, local representatives of the involved reparation obligors must make a sincere eff…

2770.3300 APPLICATION. These rules shall be considered applicable to controversies arising out of accidents, insured events, or losses involving a commercial vehicle under the jurisdiction of the Minnesota No-Fault Automobile Insurance Act, Minnesota Statutes, section 65B.53 givi…

2770.3400 CONSTRUCTION. These rules shall not be construed to create any causes of action or liabilities not existing in law or equity. Statutory Authority: MS s 65B.53 Published Electronically: September 14, 2007

2770.3500 LIMITATION ON JURISDICTION. These rules are applicable to controversies involving reparation obligors as that term is defined in Minnesota Statutes, section 65B.43, subdivision 9. The interest of other parties may not be arbitrated under these rules. The fact that such …

2770.3600 LIMITATIONS ON CLAIMS. The monetary limits and extent of a reparation obligor's claim shall be governed by Minnesota Statutes, section 65B.53, subdivision 1. Statutory Authority: MS s 65B.53 Published Electronically: September 14, 2007

2770.3700 PRIMARY JURISDICTION. Where a claim under these rules is also under the compulsory jurisdiction of other industry agreements sponsored by the Committee on Insurance Arbitration, the jurisdiction of these rules is primary. Statutory Authority: MS s 65B.53 Published Elect…

2770.3800 AUTHORITY TO DETERMINE. Any determination as to whether a reparation obligor is legally entitled to recovery from another reparation obligor shall be made by an arbitration panel appointed under the authority of these rules. Statutory Authority: MS s 65B.53 Published El…

2770.3900 OUT-OF-STATE RECOVERY EXCLUSION. Compulsory arbitration under these rules does not apply to a controversy arising from an out-of-state accident where the party receiving benefits has a right to proceed at law for full recovery of tort loss. Statutory Authority: MS s 65B…

2770.4000 AUTHORITY OF COMMITTEE ON INSURANCE ARBITRATION. Under these rules, the Committee on Insurance Arbitration is authorized to select places where arbitration facilities are to be available, and to make appropriate rules to apportion equitably among reparation obligors the…

2770.4100 ARBITRATION COMMITTEES. Arbitration committees shall be appointed by the committee on insurance arbitration from full-time salaried representatives of reparation obligors and shall function in the following manner: A. Members of arbitration committees shall be selected …

2770.4200 APPLICANT AND RESPONDENT. In arbitration proceedings and practice, the reparation obligor that initiates the proceeding by filing a request for arbitration shall be known as the "applicant"; and the reparation obligor or reparation obligors against which such controvert…

2770.4300 EFFECT ON STATUTES OF LIMITATION. Submission of a case to arbitration under these rules shall have the same force and effect as to reparation obligors with regard to the applicable statute of limitations as if litigation has been instituted. Further, if a matter within …

2770.4400 OTHER INDUSTRY ARBITRATION PROGRAMS. Where reparation obligors are also signatory to other industry arbitration programs sponsored by the Committee on Insurance Arbitration and the claim is within the compulsory jurisdiction of these other agreements, the signatory comp…

2770.4500 PENDING CLAIMS FROM SAME INSURED EVENT. Subpart 1. Deferment. Reparation obligors may, by mutual agreement, include all claims arising out of the same accident or insured event for disposition by an arbitration panel under these rules, provided, however, that hearing of…

2770.4600 COMPANION CLAIMS. Where there are companion claims arising out of the same accident arbitrated together pursuant to part 2770.4500, subpart 1, only one filing is necessary to determine the issue of liability as to the drivers of the respective vehicles. A panel's decisi…

2770.4700 ORGANIZATION. Reparation obligors of commercial vehicles shall, on request, furnish the Committee on Insurance Arbitration a list of names, titles, and local addresses of all employees who are qualified to act as arbitrators. The chair of the arbitration committee shall…

2770.4800 COMMERCIAL VEHICLES AND OUT-OF-STATE ACCIDENTS. Compulsory arbitration under these rules applies to controversies arising out of accidents, insured events, or occurrences within this state involving commercial vehicles. Controversies arising from accidents, insured even…

2770.4900 FILING ASSESSMENTS. Filing assessments: A. The Committee on Insurance Arbitration by resolution will prescribe the filing assessment for the use of local arbitration facilities. B. The obligation for the prescribed filing assessment is incurred upon filing, but payment …

2770.5000 ARBITRATION PROCEDURE. Subpart 1. Commencement. An arbitration proceeding is commenced by the local representative of a reparation obligor filing an arbitration notice (three copies) with the secretary of the local arbitration committee. At the same time, three copies o…

2770.5100 HEARINGS. Hearings: A. When the secretary has received the essential facts and contentions from the controverting reparation obligors, the issue in the case shall be scheduled for a hearing by the arbitration panel at the earliest practicable date. B. Hearing date shall…

2770.5200 DECISIONS. Decisions: A. Arbitration panels may, upon their own initiative, render a decision in favor of a respondent company without production of evidence by such respondent, if the panel unanimously agrees following presentation of the applicant's evidence that such…

2770.6100 PURPOSE. The purpose of parts 2770.6100 to 2770.7300 is to ensure that self-insurers under the Minnesota No-Fault Automobile Insurance Act have the financial and administrative resources needed to satisfy all obligations and responsibilities under the act. Statutory Aut…