HF 7

as introduced - 87th Legislature, 2011 1st Special Session (2011 - 2012) Posted on 07/19/2011 02:55pm

A bill for an act
relating to insurance; specifying maximum financial surplus for nonprofit health
plan companies; proposing coding for new law in Minnesota Statutes, chapter
60A.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [60A.7671] LIMIT ON THE SURPLUS OF CERTAIN HEALTH
INSURERS.
new text end

new text begin (a) Notwithstanding any other law to the contrary, a nonprofit health services
corporation operating under chapter 62C and a health maintenance organization operating
under chapter 62D must not have statutory capital and surplus, as determined in accordance
with the statutory accounting applicable to the annual financial statements required to be
filed, in excess of the product of its authorized control level risk-based capital and 3.5. The
amounts shall be determined from a financial statement and certified audit filed annually
with the commissioner and subject to verification by an examination by the commissioner.
new text end

new text begin (b) If for any annual financial report the maximum required under this section is
exceeded, an entity regulated under this chapter shall transfer the surplus in excess of the
maximum to the health care access fund on January 2 of each calendar year pursuant
to section 164.724.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2012, and applies to the
surplus reported for calendar year 2012 and thereafter.
new text end