HF 1203

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to insurance; requiring the joint 
  1.3             underwriting association to provide liability 
  1.4             insurance to long-term care providers; amending 
  1.5             Minnesota Statutes 2002, section 62I.02, subdivisions 
  1.6             1, 6. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 2002, section 62I.02, 
  1.9   subdivision 1, is amended to read: 
  1.10     Subdivision 1.  [CREATION.] The Minnesota joint 
  1.11  underwriting association is created to provide insurance 
  1.12  coverage to any person or entity unable to obtain insurance 
  1.13  through ordinary methods if the insurance is required by 
  1.14  statute, ordinance, or otherwise required by law, or is 
  1.15  necessary to earn a livelihood or conduct a business and serves 
  1.16  a public purpose, including, but not limited to, liquor 
  1.17  liability.  Prudent business practice or mere desire to have 
  1.18  insurance coverage is not a sufficient standard for the 
  1.19  association to offer insurance coverage to a person or entity.  
  1.20  For purposes of this subdivision, directors' and officers' 
  1.21  liability insurance is considered to be a business necessity and 
  1.22  not merely a prudent business practice.  The association shall 
  1.23  be specifically authorized to provide insurance coverage to day 
  1.24  care providers, foster parents, foster homes, developmental 
  1.25  achievement centers, group homes, and rehabilitation facilities 
  1.26  for mentally, emotionally, or physically handicapped persons, 
  2.1   long-term care providers, and citizen participation groups 
  2.2   established pursuant to the Housing and Community Redevelopment 
  2.3   Act of 1974, Public Law Number 93-383.  Coverage for long-term 
  2.4   care providers must include, at the option of the insured, 
  2.5   liability insurance that is excess of any primary professional 
  2.6   liability, or general liability insurance issued by another 
  2.7   insurer or by the joint underwriting association; this excess 
  2.8   coverage must be available up to limits of $1,000,000 per annual 
  2.9   aggregate in excess of the liability policy and following the 
  2.10  form of any primary policy.  Because the activities of certain 
  2.11  persons or entities present a risk that is so great, the 
  2.12  association shall not offer insurance coverage to any person or 
  2.13  entity the board of directors of the association determines is 
  2.14  outside the intended scope and purpose of the association 
  2.15  because of the gravity of the risk of offering insurance 
  2.16  coverage.  The association shall not offer environmental 
  2.17  impairment liability or product liability insurance.  The 
  2.18  association shall not offer coverage for activities that are 
  2.19  conducted substantially outside the state of Minnesota unless 
  2.20  the insurance is required by statute, ordinance, or otherwise 
  2.21  required by law.  Every insurer authorized to write property and 
  2.22  casualty insurance and personal injury liability insurance in 
  2.23  this state shall be a member of the association as a condition 
  2.24  to obtaining and retaining a license to write insurance in this 
  2.25  state. 
  2.26     Sec. 2.  Minnesota Statutes 2002, section 62I.02, 
  2.27  subdivision 6, is amended to read: 
  2.28     Subd. 6.  [MEDICAL MALPRACTICE.] If the association is 
  2.29  authorized by the commissioner to issue medical malpractice 
  2.30  insurance, it shall administer the medical malpractice insurance 
  2.31  program according to chapter 62F.  This subdivision does not 
  2.32  affect the association's responsibility under subdivision 1 to 
  2.33  provide liability insurance that is excess of professional 
  2.34  liability insurance, including medical malpractice coverage. 
  2.35     Sec. 3.  [EFFECTIVE DATE.] 
  2.36     Sections 1 and 2 are effective the day following final 
  3.1   enactment.