Minnesota Administrative Code

2770.6500 AUTHORIZATION STANDARDS. Subpart 1. Political subdivisions. The commissioner shall grant self-insurance authority to an applicant that is a political subdivision if it satisfies these conditions: A. at least 25 motor vehicles are registered in its name; and B. it has, o…

2770.6600 COMMISSIONER'S DECISION. Subpart 1. Approval. The commissioner shall authorize an applicant to self-insure by issuing a self-insurance certificate to the applicant. The certificate must include the dates when self-insurance authority begins and ends. Subp. 2. Denial. Th…

2770.6700 RENEWAL. Authorization to self-insure ends 150 days after the end of a self-insurer's fiscal year. Authorization may be renewed for one year if a self-insurer informs the commissioner no later than 120 days after the end of its fiscal year that it wishes to continue to …

2770.6800 SECURITY REQUIREMENT. Subpart 1. Surety bond required. An authorized self-insurer, except political subdivisions that have satisfied the requirements of part 2770.6500, subpart 1, items A and B, shall maintain a surety bond written by a corporate surety authorized to do…

2770.6900 REPORTING REQUIREMENTS. Subpart 1. Financial statements. Authorized self-insurers shall provide these items to the commissioner no later than 120 days after the end of each fiscal year: A. a certified financial statement for the self-insurer's most recently ended fiscal…

2770.7000 QUARTERLY FINANCIAL STATEMENTS. If the commissioner determines that a deterioration in the funds flow, net worth, debt structure, profitability, or general financial integrity of the self-insurer or its parent company, if a parent company exists, adversely affects the s…

2770.7100 ASSIGNED CLAIMS PLAN, UNFAIR PRACTICES. Self-insurers authorized under this chapter are reparation obligors under Minnesota Statutes, section 65B.43, subdivision 9, and shall participate in the assigned claims plan in Minnesota Statutes, section 65B.63. Self-insurers au…

2770.7200 TERMINATION OF SELF-INSURANCE STATUS. An authorized self-insurer shall inform the commissioner at least 30 days after becoming insured. Self-insurance authority terminates immediately upon becoming insured. Statutory Authority: MS s 65B.48 History: 9 SR 734; 9 SR 764 Pu…

2770.7300 REVOCATION OF SELF-INSURANCE AUTHORITY. The commissioner may revoke a self-insurer's authorization to self-insure: A. if the commissioner determines that a self-insurer: (1) does not satisfy applicable authorization standards in part 2770.6500; (2) is not complying with…

2770.7500 STATUTORY AUTHORITY. Parts 2770.7500 to 2770.8500 apply to all companies writing policies of private passenger vehicle insurance. They are adopted under Minnesota Statutes, section 65B.17, subdivision 2. Statutory Authority: MS s 65B.17 History: 9 SR 764 Published Elect…

2770.7600 PURPOSE. Parts 2770.7500 to 2770.8500 are designed to limit the reasons a policy of private passenger vehicle insurance may not be renewed. Statutory Authority: MS s 65B.17 History: 9 SR 764 Published Electronically: September 14, 2007

2770.7700 DEFINITIONS. Subpart 1. Scope. For the purposes of parts 2770.7500 to 2770.8500, the terms defined in this part have the meanings given them. Subp. 2. Chargeable accident. "Chargeable accident" means an accident in which the insurer nonrenewing the policy makes a paymen…

2770.7800 REASONS FOR NONRENEWAL. Subpart 1. Entire policy. The grounds for nonrenewal of an entire policy are limited to one or more of the following reasons: A. The reasons stated in Minnesota Statutes, section 65B.15, subdivision 1. B. An insured equals or exceeds the relevant…

2770.7900 SCHEDULE OF POINTS FOR VIOLATION OR CHARGEABLE ACCIDENT. Subpart 1. In general. Subparts 2 to 7 show the points assigned to each violation and chargeable accident during the experience period. Subp. 2. Four points. Four points will be assigned for each of the following:…

2770.8000 POINTS FOR NONRENEWAL. Subpart 1. Schedule. The following schedule shows the number of points that must be accumulated before a policy can be nonrenewed: Number of household vehicles insured by the same insurer Number of Points required to nonrenew 1 2 2 3 3 3-1/2 4 or …

2770.8100 NONRENEWAL NOTICES. A nonrenewal notice must be on a form approved by the Department of Commerce and it must contain on the front of the notice specific reasons for the nonrenewal and the information required by Minnesota Statutes, section 65B.19 regarding the right of …

2770.8200 RECORD KEEPING. Each insurance company shall keep a register of all cancellations, as defined in Minnesota Statutes, section 65B.15, and nonrenewals, as defined in Minnesota Statutes, section 65B.17 and part 2770.7700, subpart 8. This register must be available to the c…

2770.8300 AUTOMATIC COVERAGE ON NEWLY ACQUIRED AND REPLACEMENT VEHICLES. Parts 2770.7500 to 2770.8500 also apply to newly acquired vehicles and replacement vehicles which qualify for the automatic coverage provisions of a policy. Statutory Authority: MS s 65B.17 History: 9 SR 764…

2770.8400 NONRENEWAL OF MULTILINE CONTRACTS. Nothing in parts 2770.7500 to 2770.8500 prohibits an insurance company from nonrenewing a multiline insurance contract. However, if these parts prevent nonrenewal of the automobile insurance portion of the contract, then the insurance …

2770.8500 PENALTIES. Subpart 1. Generally. Failure to comply with parts 2770.7500 to 2770.8500 subjects the insurers to the following penalties during each calendar year period: A. first violation, $100; B. second violation, $300; and C. third and subsequent violation, $500. Mone…

2770.9010 ADMINISTRATION. The administration of arbitration under Minnesota Statutes, section 72A.327 shall be by the American Arbitration Association or other agency as designated by the commissioner. The administration is subject to the continuing supervision of the commissione…

2770.9020 APPOINTMENT OF ARBITRATION PANEL. Subpart 1. List of arbitrators. The commissioner shall establish three lists of qualified individuals who are eligible to serve on the three-member arbitration panel, under Minnesota Statutes, section 72A.327, paragraph (c). One list sh…

2770.9030 INITIATION OF ARBITRATION. Subpart 1. Notice of right to appeal. At the time an insurer denies a claim to which the claimant has a right to appeal under Minnesota Statutes, section 72A.327, the insurer shall advise the claimant, in writing, of the claimant's right to ap…

2770.9040 FILING FEE. The filing fee to be paid under parts 2770.9030, subpart 2 and 2770.9050 is the fee set in Rule 8 of the Rules of Procedure for No-fault Arbitration adopted by the Minnesota Supreme Court under Minnesota Statutes, section 65B.525. Statutory Authority: MS s 4…

2770.9050 NOTICE. On the filing of the petition form by the claimant, the American Arbitration Association shall send a copy of the petition to the insurer together with a request for payment of the filing fee. In addition, the American Arbitration Association shall send a copy o…

2770.9060 CONCILIATION AND PREHEARING PROCEDURES. Through prehearing conference or other joint communication to the parties, the arbitration panel may conciliate the claim. The arbitration panel shall encourage the parties to narrow the issues so far as possible in an effort to s…

2770.9070 COMMUNICATION WITH ARBITRATION PANEL. All communication, oral or written, from a party to the arbitration panel, must be through the American Arbitration Association for transmittal to the arbitrators. In any and all cases, oral communication with the arbitration panel …

2770.9080 TIME AND PLACE OF ARBITRATION. If conciliation is not successful, an informal arbitration hearing will be held in the office of the American Arbitration Association or some other appropriate place in the general locale of the claimant's residence, or other place agreed …

2770.9090 WITNESSES, SUBPOENAS, DEPOSITION. The arbitration panel may, upon its own initiative or at the request of any party, issue subpoenas for the attendance of witnesses and the production of books, records, documents, and other evidence. The subpoenas issued shall be served…

2770.9100 DISCOVERY. All parties may exchange information on a voluntary basis. Formal discovery of any kind beyond exchange of medical reports and other exhibits to be offered at the hearing is discouraged. However, upon application and a showing of good cause that the informati…

2770.9110 EVIDENCE. The parties may offer evidence as they desire and shall produce additional evidence as the arbitration panel considers necessary to an understanding and determination of the issues. The arbitration panel shall be the judge of the relevancy and materiality of a…

2770.9120 ARBITRATOR'S FEES. An arbitrator shall be compensated for services and for any use of office facilities in the amount set in Rule 16 of the Rules of Procedure for No-fault Arbitration adopted by the Minnesota Supreme Court under Minnesota Statutes, section 65B.525. Stat…

2770.9130 CLOSE OF HEARING. The arbitration panel shall specifically inquire of all parties as to whether they have any further evidence. If they do not, the arbitration panel shall declare the hearing closed. If briefs or documents are to be filed, the hearing shall be declared …

2770.9140 REOPENING HEARING. At any time before the recommendation is made, a hearing may be reopened by the arbitration panel upon own motion, or upon application of a party. Statutory Authority: MS s 45.023; 72A.327 History: 15 SR 1264 Published Electronically: September 14, 20…

2770.9150 RECOMMENDATION AND REPORT TO COMMISSIONER. The arbitration panel shall promptly render a written report to the commissioner, in which it recommends a resolution to the claim at issue. The report shall include the panel's findings of fact and conclusions on all material …

2770.9160 ACTION BY COMMISSIONER. Subpart 1. Filing of exceptions. Within ten days from the date the arbitration panel's report is delivered to the commissioner, a party to the arbitration proceedings may file with the commissioner written exceptions and written arguments to the …

2770.9170 APPEAL. A person aggrieved by an order under parts 2770.9010 to 2770.9170 shall have the right to appeal the order as provided in Minnesota Statutes, section 72A.327, paragraph (d). Statutory Authority: MS s 45.023; 72A.327 History: 15 SR 1264 Published Electronically: …

2780.0100 DEFINITIONS. Subpart 1. [Repealed, 12 SR 846] Subp. 2. [Repealed, 12 SR 846] Subp. 3. Classification. "Classification" means the manual classification as determined by the Workers' Compensation Insurers Rating Association's manual of rules, rates, and classifications ap…

2780.0400 INTEREST ON SECURITIES. Subpart 1. [Repealed, 18 SR 1472] Subp. 2. [Repealed, L 1992 c 510 art 5 s 10] Subp. 3. [Repealed, L 1992 c 510 art 5 s 10] Subp. 4. Interest. Interest accruing on any negotiable securities deposited shall be collected and transmitted to the depo…

2780.0500 FILING REPORTS. Filing reports: A. Incurred losses, paid and unpaid, specifying indemnity and medical losses by classification, payroll by classification, and current estimated outstanding liability for workers' compensation shall be reported to the commissioner by each…

2780.0600 GROUNDS FOR REVOCATION OF SELF-INSURANCE AUTHORITY. The following shall constitute grounds for revocation of the authority to self-insure: A. failure to comply with parts 2780.0100 to 2780.5000; B. failure to comply with any lawful order of the commissioner; C. failure …

2780.1100 APPLICATION FOR SELF-INSURER STATUS. Subpart 1. Procedure. Each employer desiring to self-insure individually shall apply to the commissioner on forms available from the commissioner. The commissioner shall grant or deny the application within 30 days after a complete a…

2780.1200 FINANCIAL STANDARDS. Subpart 1. Net worth. Each individual self-insurer shall have and maintain a net worth at least equal to the greater of ten times the retention limit selected with the WCRA or one-third the amount of the self-insurer's current annual modified premiu…

2780.1300 AGREEMENT TO PAY BENEFITS. Each individual self-insurer shall agree to fully discharge by cash payment, or other form of benefit approved by the Department of Labor and Industry, all amounts required to be paid by the provisions of the Workers' Compensation Act. Statuto…

2780.1400 DEPOSIT OF SECURITIES OR BONDS. Subpart 1. [Repealed, 12 SR 846] Subp. 2. Exemption. No deposit shall be required of a self-insurer that has had its workers' compensation liability guaranteed pursuant to part 2780.1200, subpart 3, provided that the affiliated company is…

2780.1500 ADMINISTRATION OF CLAIMS. Subpart 1. Equitable. Each individual self-insurer shall administer insurance claims in a fair and equitable manner. Subp. 2. Qualifications of administrators. Each individual self-insurer shall designate those employees who will administer the…

2780.1600 SALE OR MERGER OF SELF-INSURER. When a self-insurer is sold to or merged with another entity, the self-insurer shall give notice to the commissioner within 30 days of the sale or merger. At that time, the new owner shall file a consolidated financial statement, and the …