1.1 	A bill for an act
1.2 	relating to insurance; regulating agency terminations,
1.3 	coverages, fees, forms, disclosures, reports,
1.4 	information security, and premiums; amending Minnesota
1.5 	Statutes 2004, sections 59A.12, subdivision 2; 60A.14,
1.6 	subdivision 1; 60A.171, subdivision 11; 60A.23,
1.7 	subdivision 8; 60A.966; 60A.969; 62A.136; 62A.31,
1.8 	subdivision 1h; 62A.315; 62A.316; 62E.13, subdivision
1.9 	2; 62Q.471; 65A.29, subdivision 11; 65B.48,
1.10 	subdivision 3; 72A.20, subdivisions 13, 36; 72A.501,
1.11 	subdivisions 1, 2; 79.211, by adding a subdivision;
1.12 	79.40; 79.56, subdivisions 1, 3; 79.62, subdivision 3;
1.13 	79A.03, subdivision 9; 79A.04, subdivisions 2, 10;
1.14 	79A.06, subdivision 5; 79A.12, subdivision 2; 79A.22,
1.15 	subdivision 11, by adding a subdivision; 176.191,
1.16 	subdivision 3; proposing coding for new law in
1.17 	Minnesota Statutes, chapters 60A; 60D; repealing
1.18 	Minnesota Statutes 2004, sections 61A.072, subdivision
1.19 	2; 62E.03.
1.20 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.21 	Section 1. Minnesota Statutes 2004, section 59A.12,
1.22 	subdivision 2, is amended to read:
1.23 		Subdivision 1.Fees other than examination fees.  In
2.2 	addition to the fees and charges provided for examinations, the
2.3 	following fees must be paid to the commissioner for deposit in
2.4 	the general fund:
2.5 	(a) by township mutual fire insurance companies;
2.6 	(1) for filing certificate of incorporation $25 and
2.7 	amendments thereto, $10;
2.8 	(2) for filing annual statements, $15;
2.9 	(3) for each annual certificate of authority, $15;
2.10 	(4) for filing bylaws $25 and amendments thereto, $10;
2.11 	(b) by other domestic and foreign companies including
2.12 	fraternals and reciprocal exchanges;
2.13 	(1) for filing certified copy of certificate of articles of
2.14 	incorporation, $100;
2.15 	(2) for filing annual statement, $225;
2.16 	(3) for filing certified copy of amendment to certificate
2.17 	or articles of incorporation, $100;
2.18 	(4) for filing bylaws, $75 or amendments thereto, $75;
2.19 	(5) for each company's certificate of authority, $575,
2.20 	annually;
2.21 	(c) the following general fees apply:
2.22 	(1) for each certificate, including certified copy of
2.23 	certificate of authority, renewal, valuation of life policies,
2.24 	corporate condition or qualification, $25;
2.25 	(2) for each copy of paper on file in the commissioner's
2.26 	office 50 cents per page, and $2.50 for certifying the same;
2.27 	(3) for license to procure insurance in unadmitted foreign
2.28 	companies, $575;
2.29 	(4) for valuing the policies of life insurance companies,
2.30 	one cent per $1,000 of insurance so valued, provided that the
2.31 	fee shall not exceed $13,000 per year for any company.  The
2.32 	commissioner may, in lieu of a valuation of the policies of any
2.33 	foreign life insurance company admitted, or applying for
2.34 	admission, to do business in this state, accept a certificate of
2.35 	valuation from the company's own actuary or from the
2.36 	commissioner of insurance of the state or territory in which the
3.1 	company is domiciled;
3.2 	(5) for receiving and filing certificates of policies by
3.3 	the company's actuary, or by the commissioner of insurance of
3.4 	any other state or territory, $50;
3.5 	(6) for each appointment of an agent filed with the
3.6 	commissioner, $10;
3.7 	(7) for filing forms and rates, $75 $90 per filing,
3.8 	which or $75 per filing when submitted via electronic filing
3.9 	system.  Filing fees may be paid on a quarterly basis in
3.10 	response to an invoice.  Billing and payment may be made
3.11 	electronically;
3.12 	(8) for annual renewal of surplus lines insurer license,
3.13 	$300;
3.14 	(9) $250 filing fee for a large risk alternative rating
3.15 	option plan that meets the $250,000 threshold requirement.
3.16 	The commissioner shall adopt rules to define filings that
3.17 	are subject to a fee.

3.18 	Sec. 3. Minnesota Statutes 2004, section 60A.171,
3.19 	subdivision 11, is amended to read:
3.20 		Subd. 8.Self-insurance or insurance plan administrators
4.1 	who are vendors of risk management services.  (1)  [SCOPE.] This
4.2 	subdivision applies to any vendor of risk management services
4.3 	and to any entity which administers, for compensation, a
4.4 	self-insurance or insurance plan.  This subdivision does not
4.5 	apply (a) to an insurance company authorized to transact
4.6 	insurance in this state, as defined by section 60A.06,
4.7 	subdivision 1, clauses (4) and (5); (b) to a service plan
4.8 	corporation, as defined by section 62C.02, subdivision 6; (c) to
4.9 	a health maintenance organization, as defined by section 62D.02,
4.10 	subdivision 4; (d) to an employer directly operating a
4.11 	self-insurance plan for its employees' benefits; (e) to an
4.12 	entity which administers a program of health benefits
4.13 	established pursuant to a collective bargaining agreement
4.14 	between an employer, or group or association of employers, and a
4.15 	union or unions; or (f) to an entity which administers a
4.16 	self-insurance or insurance plan if a licensed Minnesota insurer
4.17 	is providing insurance to the plan and if the licensed insurer
4.18 	has appointed the entity administering the plan as one of its
4.19 	licensed agents within this state.
4.20 	(2)  [DEFINITIONS.] For purposes of this subdivision the
4.21 	following terms have the meanings given them.
4.22 	(a) "Administering a self-insurance or insurance plan"
4.23 	means (i) processing, reviewing or paying claims, (ii)
4.24 	establishing or operating funds and accounts, or (iii) otherwise
4.25 	providing necessary administrative services in connection with
4.26 	the operation of a self-insurance or insurance plan.
4.27 	(b) "Employer" means an employer, as defined by section
4.28 	62E.02, subdivision 2.
4.29 	(c) "Entity" means any association, corporation,
4.30 	partnership, sole proprietorship, trust, or other business
4.31 	entity engaged in or transacting business in this state.
4.32 	(d) "Self-insurance or insurance plan" means a plan
4.33 	providing life, medical or hospital care, accident, sickness or
4.34 	disability insurance for the benefit of employees or members of
4.35 	an association, or a plan providing liability coverage for any
4.36 	other risk or hazard, which is or is not directly insured or
5.1 	provided by a licensed insurer, service plan corporation, or
5.2 	health maintenance organization.
5.3 	(e) "Vendor of risk management services" means an entity
5.4 	providing for compensation actuarial, financial management,
5.5 	accounting, legal or other services for the purpose of designing
5.6 	and establishing a self-insurance or insurance plan for an
5.7 	employer.
5.8 	(3)  [LICENSE.] No vendor of risk management services or
5.9 	entity administering a self-insurance or insurance plan may
5.10 	transact this business in this state unless it is licensed to do
5.11 	so by the commissioner.  An applicant for a license shall state
5.12 	in writing the type of activities it seeks authorization to
5.13 	engage in and the type of services it seeks authorization to
5.14 	provide.  The license may be granted only when the commissioner
5.15 	is satisfied that the entity possesses the necessary
5.16 	organization, background, expertise, and financial integrity to
5.17 	supply the services sought to be offered.  The commissioner may
5.18 	issue a license subject to restrictions or limitations upon the
5.19 	authorization, including the type of services which may be
5.20 	supplied or the activities which may be engaged in.  The license
5.21 	fee is $1,000 $1,500 for the initial application and
5.22 	$1,000 $1,500 for each two-year three-year renewal.  All
5.23 	licenses are for a period of two three years.
5.24 	(4)  [REGULATORY RESTRICTIONS; POWERS OF THE COMMISSIONER.]
5.25 	To assure that self-insurance or insurance plans are financially
5.26 	solvent, are administered in a fair and equitable fashion, and
5.27 	are processing claims and paying benefits in a prompt, fair, and
5.28 	honest manner, vendors of risk management services and entities
5.29 	administering insurance or self-insurance plans are subject to
5.30 	the supervision and examination by the commissioner.  Vendors of
5.31 	risk management services, entities administering insurance or
5.32 	self-insurance plans, and insurance or self-insurance plans
5.33 	established or operated by them are subject to the trade
5.34 	practice requirements of sections 72A.19 to 72A.30.  In lieu of
5.35 	an unlimited guarantee from a parent corporation for a vendor of
5.36 	risk management services or an entity administering insurance or
6.1 	self-insurance plans, the commissioner may accept a surety bond
6.2 	in a form satisfactory to the commissioner in an amount equal to
6.3 	120 percent of the total amount of claims handled by the
6.4 	applicant in the prior year.  If at any time the total amount of
6.5 	claims handled during a year exceeds the amount upon which the
6.6 	bond was calculated, the administrator shall immediately notify
6.7 	the commissioner.  The commissioner may require that the bond be
6.8 	increased accordingly.
6.9 	No contract entered into after July 1, 2001, between a
6.10 	licensed vendor of risk management services and a group
6.11 	authorized to self-insure for workers' compensation liabilities
6.12 	under section 79A.03, subdivision 6, may take effect until it
6.13 	has been filed with the commissioner, and either (1) the
6.14 	commissioner has approved it or (2) 60 days have elapsed and the
6.15 	commissioner has not disapproved it as misleading or violative
6.16 	of public policy.
6.17 	(5)  [RULEMAKING AUTHORITY.] To carry out the purposes of
6.18 	this subdivision, the commissioner may adopt rules pursuant to
6.19 	sections 14.001 to 14.69.  These rules may:
6.20 	(a) establish reporting requirements for administrators of
6.21 	insurance or self-insurance plans;
6.22 	(b) establish standards and guidelines to assure the
6.23 	adequacy of financing, reinsuring, and administration of
6.24 	insurance or self-insurance plans;
6.25 	(c) establish bonding requirements or other provisions
6.26 	assuring the financial integrity of entities administering
6.27 	insurance or self-insurance plans; or
6.28 	(d) establish other reasonable requirements to further the
6.29 	purposes of this subdivision.

6.30 	Sec. 5. Minnesota Statutes 2004, section 60A.966, is
6.31 	amended to read:
6.32 	60A.966 APPROVAL OF VIATICAL SETTLEMENTS CONTRACT FORMS.
6.33 	A viatical settlement provider or broker may not use a
6.34 	viatical settlement contract form in this state unless it has
6.35 	been filed with and approved by the commissioner.  A viatical
6.36 	settlement contract form filed with the commissioner is
7.1 	considered to have been approved if it has not been disapproved
7.2 	within 60 days of the filing.  The commissioner shall disapprove
7.3 	a viatical settlement contract form if, in the commissioner's
7.4 	opinion, the contract or contract provisions are unreasonable,
7.5 	contrary to the interests of the public, or otherwise misleading
7.6 	or unfair to the policy owner.

7.7 	Sec. 6. Minnesota Statutes 2004, section 60A.969, is
7.8 	amended to read:
7.9 	60A.969 DISCLOSURE.
7.10 	A viatical settlement provider or a broker shall disclose
7.11 	the following information to the viator no later than the
7.12 	date the viatical settlement contract is signed by all
7.13 	parties an application is given to the viator:
7.14 	(1) possible alternatives to viatical settlement contracts
7.15 	for persons with catastrophic or life threatening illnesses,
7.16 	including accelerated benefits offered by the issuer of the life
7.17 	insurance policy;
7.18 	(2) the fact that some or all of the proceeds of the
7.19 	viatical settlement may be taxable and that assistance should be
7.20 	sought from a personal tax advisor;
7.21 	(3) the fact that the viatical settlement may be subject to
7.22 	the claims of creditors;
7.23 	(4) the fact that receipt of a viatical settlement may
7.24 	adversely affect the recipients' eligibility for Medicaid or
7.25 	other government benefits or entitlements and that advice should
7.26 	be obtained from the appropriate agencies;
7.27 	(5) the policy owner's right to rescind a viatical
7.28 	settlement contract within 30 days of the date it is executed by
7.29 	all parties or 15 days of the receipt of the viatical settlement
7.30 	proceeds by the viator, whichever is less, as provided in
7.31 	section 60A.970, subdivision 3; and
7.32 	(6) the date by which the funds will be available to the
7.33 	viator and the source of the funds.

7.34 	Sec. 7. [60A.98] DEFINITIONS.
7.35 		Subdivision 1.Scope. For purposes of sections 60A.98
7.36 	and 60A.981, the terms defined in this section have the meanings
8.1 	given them.
8.2 		Subd. 2.Customer. "Customer" means a consumer who has a
8.3 	continuing relationship with a licensee under which the licensee
8.4 	provides one or more insurance products or services to the
8.5 	consumer that are to be used primarily for personal, family, or
8.6 	household purposes.
8.7 		Subd. 3.Customer information. "Customer information"
8.8 	means nonpublic personal information about a customer, whether
8.9 	in paper, electronic, or other form, that is maintained by or on
8.10 	behalf of the licensee.
8.11 		Subd. 4.Customer information systems. "Customer
8.12 	information systems" means the electronic or physical methods
8.13 	used to access, collect, store, use, transmit, protect, or
8.14 	dispose of customer information.
8.15 		Subd. 5.Licensee. "Licensee" means all licensed
8.16 	insurers, producers, and other persons licensed or required to
8.17 	be licensed, authorized or required to be authorized, or
8.18 	registered or required to be registered pursuant to the
8.19 	insurance laws of this state, except that "licensee" does not
8.20 	include a purchasing group or an ineligible insurer in regard to
8.21 	the surplus line insurance conducted pursuant to sections
8.22 	60A.195 to 60A.209.
8.23 		Subd. 6.Nonpublic financial information. "Nonpublic
8.24 	financial information" means:
8.25 	(1) personally identifiable financial information; and 
8.26 	(2) any list, description, or other grouping of consumers,
8.27 	and publicly available information pertaining to them, that is
8.28 	derived using any personally identifiable financial information
8.29 	that is not publicly available.
8.30 		Subd. 7.Nonpublic personal health
8.31 	information. "Nonpublic personal health information" means
8.32 	health information:
8.33 	(1) that identifies an individual who is the subject of the
8.34 	information; or 
8.35 	(2) with respect to which there is a reasonable basis to
8.36 	believe that the information could be used to identify an
9.1 	individual.
9.2 		Subd. 8.Nonpublic personal information. "Nonpublic
9.3 	personal information" means nonpublic financial information and
9.4 	nonpublic personal health information.
9.5 		Subd. 9.Personally identifiable financial
9.6 	information. "Personally identifiable financial information"
9.7 	means any information:
9.8 	(1) a consumer provides to a licensee to obtain an
9.9 	insurance product or service from the licensee;
9.10 	(2) about a consumer resulting from a transaction involving
9.11 	an insurance product or service between a licensee and a
9.12 	consumer; or 
9.13 	(3) the licensee otherwise obtains about a consumer in
9.14 	connection with providing an insurance product or service to
9.15 	that consumer.
9.16 		Subd. 10.Service provider. "Service provider" means a
9.17 	person that maintains, processes, or otherwise is permitted
9.18 	access to customer information through its provision of services
9.19 	directly to the licensee.

9.20 	Sec. 8. [60A.981] INFORMATION SECURITY PROGRAM.
9.21 		Subdivision 1.General requirements. Each licensee shall
9.22 	implement a comprehensive written information security program
9.23 	that includes administrative, technical, and physical safeguards
9.24 	for the protection of customer information.  The administrative,
9.25 	technical, and physical safeguards included in the information
9.26 	security program must be appropriate to the size and complexity
9.27 	of the licensee and the nature and scope of its activities.
9.28 		Subd. 2.Objectives. A licensee's information security
9.29 	program must be designed to:
9.30 	(1) ensure the security and confidentiality of customer
9.31 	information;
9.32 	(2) protect against any anticipated threats or hazards to
9.33 	the security or integrity of the information; and 
9.34 	(3) protect against unauthorized access to or use of the
9.35 	information that could result in substantial harm or
9.36 	inconvenience to any customer.
10.1 		Subd. 3.Examples of methods of development and
10.2 	implementation. The following actions and procedures are
10.3 	examples of methods of implementation of the requirements of
10.4 	subdivisions 1 and 2.  These examples are nonexclusive
10.5 	illustrations of actions and procedures that licensees may
10.6 	follow to implement subdivisions 1 and 2:
10.7 	(1) the licensee:
10.8 	(i) identifies reasonably foreseeable internal or external
10.9 	threats that could result in unauthorized disclosure, misuse,
10.10 	alteration, or destruction of customer information or customer
10.11 	information systems;
10.12 	(ii) assesses the likelihood and potential damage of these
10.13 	threats, taking into consideration the sensitivity of customer
10.14 	information; and 
10.15 	(iii) assesses the sufficiency of policies, procedures,
10.16 	customer information systems, and other safeguards in place to
10.17 	control risks;
10.18 	(2) the licensee:
10.19 	(i) designs its information security program to control the
10.20 	identified risks, commensurate with the sensitivity of the
10.21 	information, as well as the complexity and scope of the
10.22 	licensee's activities;
10.23 	(ii) trains staff, as appropriate, to implement the
10.24 	licensee's information security program; and 
10.25 	(iii) regularly tests or otherwise regularly monitors the
10.26 	key controls, systems, and procedures of the information
10.27 	security program.  The frequency and nature of these tests or
10.28 	other monitoring practices are determined by the licensee's risk
10.29 	assessment;
10.30 	(3) the licensee:
10.31 	(i) exercises appropriate due diligence in selecting its
10.32 	service providers; and 
10.33 	(ii) requires its service providers to implement
10.34 	appropriate measures designed to meet the objectives of this
10.35 	regulation, and, where indicated by the licensee's risk
10.36 	assessment, takes appropriate steps to confirm that its service
11.1 	providers have satisfied these obligations; and 
11.2 	(4) the licensee monitors, evaluates, and adjusts, as
11.3 	appropriate, the information security program in light of any
11.4 	relevant changes in technology, the sensitivity of its customer
11.5 	information, internal or external threats to information, and
11.6 	the licensee's own changing business arrangements, such as
11.7 	mergers and acquisitions, alliances and joint ventures,
11.8 	outsourcing arrangements, and changes to customer information
11.9 	systems.

11.10 	Sec. 9. [60A.982] UNFAIR TRADE PRACTICES.
11.11 	A violation of sections 60A.98 and 60A.981 is considered to
11.12 	be a violation of sections 72A.17 to 72A.32.

11.13 	Sec. 10. [60D.30] ELIGIBILITY DETERMINATION.
11.14 	Section 302A.521, subdivision 3, applies to a corporation
11.15 	that is a member of an insurance holding company system, except
11.16 	if a determination for advancement is not made under section
11.17 	302A.521, subdivision 6, clauses (1) to (4), the corporation
11.18 	that is a member of an insurance holding company system may make
11.19 	the determination that a person is entitled to payment or
11.20 	reimbursement of expenses in advance of the final disposition of
11.21 	a proceeding upon receipt of a written affirmation as provided
11.22 	in section 302A.521, subdivision 3.

11.23 	Sec. 11. Minnesota Statutes 2004, section 62A.136, is
11.24 	amended to read:
11.25 	62A.136 DENTAL AND VISION PLAN COVERAGE.
11.26 	The following provisions do not apply to health plans as
11.27 	defined in section 62A.011, subdivision 3, clause (6),providing
11.28 	dental or vision coverage only:  sections 62A.041; 62A.0411;
11.29 	62A.047; 62A.149; 62A.151; 62A.152; 62A.154; 62A.155; 62A.17,
11.30 	subdivision 6; 62A.21, subdivision 2b; 62A.26; 62A.28; 62A.285;
11.31 	62A.30; 62A.304; 62A.3093; and 62E.16.

11.32 	Sec. 12. Minnesota Statutes 2004, section 62A.31,
11.33 	subdivision 1h, is amended to read:
11.34 		Subd. 1h.Limitations on denials, conditions, and pricing
11.35 	of coverage.  No health carrier issuing Medicare-related
11.36 	coverage in this state may impose preexisting condition
12.1 	limitations or otherwise deny or condition the issuance or
12.2 	effectiveness of any such coverage available for sale in this
12.3 	state, nor may it discriminate in the pricing of such coverage,
12.4 	because of the health status, claims experience, receipt of
12.5 	health care, medical condition, or age of an applicant where an
12.6 	application for such coverage is submitted prior to or during
12.7 	the six-month period beginning with the first day of the month
12.8 	in which an individual first enrolled for benefits under
12.9 	Medicare Part B.  This subdivision applies to each
12.10 	Medicare-related coverage offered by a health carrier regardless
12.11 	of whether the individual has attained the age of 65 years.  If
12.12 	an individual who is enrolled in Medicare Part B due to
12.13 	disability status is involuntarily disenrolled due to loss of
12.14 	disability status, the individual is eligible for another
12.15 	six-month enrollment period provided under this subdivision
12.16 	beginning the first day of the month in which the individual
12.17 	later becomes eligible for and enrolls again in Medicare Part
12.18 	B.  An individual who is or was previously enrolled in Medicare
12.19 	Part B due to disability status is eligible for another
12.20 	six-month enrollment period under this subdivision beginning the
12.21 	first day of the month in which the individual has attained the
12.22 	age of 65 years and either maintains enrollment in, or enrolls
12.23 	again in, Medicare Part B.  If an individual enrolled in
12.24 	Medicare Part B voluntarily disenrolls from Medicare Part B
12.25 	because the individual becomes reemployed and is enrolled under
12.26 	an employee welfare benefit plan, the individual is eligible for
12.27 	another six-month enrollment period, as provided in this
12.28 	subdivision, beginning the first day of the month in which the
12.29 	individual later becomes eligible for and enrolls again in
12.30 	Medicare Part B.

12.31 	Sec. 13. Minnesota Statutes 2004, section 62A.315, is
12.32 	amended to read:
12.33 	62A.315 EXTENDED BASIC MEDICARE SUPPLEMENT PLAN;
12.34 	COVERAGE.
12.35 	The extended basic Medicare supplement plan must have a
12.36 	level of coverage so that it will be certified as a qualified
13.1 	plan pursuant to section 62E.07, and will provide:
13.2 	(1) coverage for all of the Medicare Part A inpatient
13.3 	hospital deductible and coinsurance amounts, and 100 percent of
13.4 	all Medicare Part A eligible expenses for hospitalization not
13.5 	covered by Medicare;
13.6 	(2) coverage for the daily co-payment amount of Medicare
13.7 	Part A eligible expenses for the calendar year incurred for
13.8 	skilled nursing facility care;
13.9 	(3) coverage for the coinsurance amount or in the case of
13.10 	hospital outpatient department services paid under a prospective
13.11 	payment system, the co-payment amount, of Medicare eligible
13.12 	expenses under Medicare Part B regardless of hospital
13.13 	confinement, and the Medicare Part B deductible amount;
13.14 	(4) 80 percent of the usual and customary hospital and
13.15 	medical expenses and supplies described in section 62E.06,
13.16 	subdivision 1, not to exceed any charge limitation established
13.17 	by the Medicare program or state law, the usual and customary
13.18 	hospital and medical expenses and supplies, described in section
13.19 	62E.06, subdivision 1, while in a foreign country, and
13.20 	prescription drug expenses, not covered by Medicare;
13.21 	(5) coverage for the reasonable cost of the first three
13.22 	pints of blood, or equivalent quantities of packed red blood
13.23 	cells as defined under federal regulations under Medicare parts
13.24 	A and B, unless replaced in accordance with federal regulations;
13.25 	(6) 100 percent of the cost of immunizations not otherwise
13.26 	covered under Part D of the Medicare program and routine
13.27 	screening procedures for cancer, including mammograms and pap
13.28 	smears;
13.29 	(7) preventive medical care benefit:  coverage for the
13.30 	following preventive health services not covered by Medicare:
13.31 	(i) an annual clinical preventive medical history and
13.32 	physical examination that may include tests and services from
13.33 	clause (ii) and patient education to address preventive health
13.34 	care measures;
13.35 	(ii) any one or a combination of the following preventive
13.36 	screening tests or preventive services, the selection and 
14.1 	frequency of which is considered determined to be medically
14.2 	appropriate:by the attending physician.
14.3 	(A) fecal occult blood test and/or digital rectal
14.4 	examination;
14.5 	(B) dipstick urinalysis for hematuria, bacteriuria, and
14.6 	proteinuria;
14.7 	(C) pure tone (air only) hearing screening test
14.8 	administered or ordered by a physician;
14.9 	(D) serum cholesterol screening every five years;
14.10 	(E) thyroid function test;
14.11 	(F) diabetes screening;
14.12 	(iii) any other tests or preventive measures determined
14.13 	appropriate by the attending physician.
14.14 	Reimbursement shall be for the actual charges up to 100
14.15 	percent of the Medicare-approved amount for each service as if
14.16 	Medicare were to cover the service as identified in American
14.17 	Medical Association current procedural terminology (AMA CPT)
14.18 	codes to a maximum of $120 annually under this benefit.  This
14.19 	benefit shall not include payment for any procedure covered by
14.20 	Medicare;
14.21 	(8) at-home recovery benefit:  coverage for services to
14.22 	provide short-term at-home assistance with activities of daily
14.23 	living for those recovering from an illness, injury, or surgery:
14.24 	(i) for purposes of this benefit, the following definitions
14.25 	shall apply:
14.26 	(A) "activities of daily living" include, but are not
14.27 	limited to, bathing, dressing, personal hygiene, transferring,
14.28 	eating, ambulating, assistance with drugs that are normally
14.29 	self-administered, and changing bandages or other dressings;
14.30 	(B) "care provider" means a duly qualified or licensed home
14.31 	health aide/homemaker, personal care aide, or nurse provided
14.32 	through a licensed home health care agency or referred by a
14.33 	licensed referral agency or licensed nurses registry;
14.34 	(C) "home" means a place used by the insured as a place of
14.35 	residence, provided that the place would qualify as a residence
14.36 	for home health care services covered by Medicare.  A hospital
15.1 	or skilled nursing facility shall not be considered the
15.2 	insured's place of residence;
15.3 	(D) "at-home recovery visit" means the period of a visit
15.4 	required to provide at-home recovery care, without limit on the
15.5 	duration of the visit, except each consecutive four hours in a
15.6 	24-hour period of services provided by a care provider is one
15.7 	visit;
15.8 	(ii) coverage requirements and limitations:
15.9 	(A) at-home recovery services provided must be primarily
15.10 	services that assist in activities of daily living;
15.11 	(B) the insured's attending physician must certify that the
15.12 	specific type and frequency of at-home recovery services are
15.13 	necessary because of a condition for which a home care plan of
15.14 	treatment was approved by Medicare;
15.15 	(C) coverage is limited to:
15.16 	(I) no more than the number and type of at-home recovery
15.17 	visits certified as medically necessary by the insured's
15.18 	attending physician.  The total number of at-home recovery
15.19 	visits shall not exceed the number of Medicare-approved home
15.20 	health care visits under a Medicare-approved home care plan of
15.21 	treatment;
15.22 	(II) the actual charges for each visit up to a maximum
15.23 	reimbursement of $100 per visit;
15.24 	(III) $4,000 per calendar year;
15.25 	(IV) seven visits in any one week;
15.26 	(V) care furnished on a visiting basis in the insured's
15.27 	home;
15.28 	(VI) services provided by a care provider as defined in
15.29 	this section;
15.30 	(VII) at-home recovery visits while the insured is covered
15.31 	under the policy or certificate and not otherwise excluded;
15.32 	(VIII) at-home recovery visits received during the period
15.33 	the insured is receiving Medicare-approved home care services or
15.34 	no more than eight weeks after the service date of the last
15.35 	Medicare-approved home health care visit;
15.36 	(iii) coverage is excluded for:
16.1 	(A) home care visits paid for by Medicare or other
16.2 	government programs; and
16.3 	(B) care provided by unpaid volunteers or providers who are
16.4 	not care providers.

16.5 	Sec. 14. Minnesota Statutes 2004, section 62A.316, is
16.6 	amended to read:
16.7 	62A.316 BASIC MEDICARE SUPPLEMENT PLAN; COVERAGE.
16.8 	(a) The basic Medicare supplement plan must have a level of
16.9 	coverage that will provide:
16.10 	(1) coverage for all of the Medicare part A inpatient
16.11 	hospital coinsurance amounts, and 100 percent of all Medicare
16.12 	part A eligible expenses for hospitalization not covered by
16.13 	Medicare, after satisfying the Medicare part A deductible;
16.14 	(2) coverage for the daily co-payment amount of Medicare
16.15 	part A eligible expenses for the calendar year incurred for
16.16 	skilled nursing facility care;
16.17 	(3) coverage for the coinsurance amount, or in the case of
16.18 	outpatient department services paid under a prospective payment
16.19 	system, the co-payment amount, of Medicare eligible expenses
16.20 	under Medicare part B regardless of hospital confinement,
16.21 	subject to the Medicare part B deductible amount;
16.22 	(4) 80 percent of the hospital and medical expenses and
16.23 	supplies incurred during travel outside the United States as a
16.24 	result of a medical emergency;
16.25 	(5) coverage for the reasonable cost of the first three
16.26 	pints of blood, or equivalent quantities of packed red blood
16.27 	cells as defined under federal regulations under Medicare parts
16.28 	A and B, unless replaced in accordance with federal regulations;
16.29 	(6) 100 percent of the cost of immunizations not otherwise
16.30 	covered under Part D of the Medicare program and routine
16.31 	screening procedures for cancer screening including mammograms
16.32 	and pap smears; and
16.33 	(7) 80 percent of coverage for all physician prescribed
16.34 	medically appropriate and necessary equipment and supplies used
16.35 	in the management and treatment of diabetes not otherwise
16.36 	covered under Part D of the Medicare program.  Coverage must
17.1 	include persons with gestational, type I, or type II diabetes.
17.2 	(b) Only the following optional benefit riders may be added
17.3 	to this plan:
17.4 	(1) coverage for all of the Medicare part A inpatient
17.5 	hospital deductible amount;
17.6 	(2) a minimum of 80 percent of eligible medical expenses
17.7 	and supplies not covered by Medicare part B, not to exceed any
17.8 	charge limitation established by the Medicare program or state
17.9 	law;
17.10 	(3) coverage for all of the Medicare part B annual
17.11 	deductible;
17.12 	(4) coverage for at least 50 percent, or the equivalent of
17.13 	50 percent, of usual and customary prescription drug expenses;
17.14 	(5) coverage for the following preventive health services 
17.15 	medical care benefit coverage for the following preventative
17.16 	health services not covered by Medicare:
17.17 	(i) an annual clinical preventive medical history and
17.18 	physical examination that may include tests and services from
17.19 	clause (ii) and patient education to address preventive health
17.20 	care measures;
17.21 	(ii) any one or a combination of the following preventive
17.22 	screening tests or preventive services, the selection and 
17.23 	frequency of which is considered determined to be medically
17.24 	appropriate:by the attending physician.
17.25 	(A) fecal occult blood test and/or digital rectal
17.26 	examination;
17.27 	(B) dipstick urinalysis for hematuria, bacteriuria, and
17.28 	proteinuria;
17.29 	(C) pure tone (air only) hearing screening test,
17.30 	administered or ordered by a physician;
17.31 	(D) serum cholesterol screening every five years;
17.32 	(E) thyroid function test;
17.33 	(F) diabetes screening;
17.34 	(iii) any other tests or preventive measures determined
17.35 	appropriate by the attending physician.
17.36 	Reimbursement shall be for the actual charges up to 100
18.1 	percent of the Medicare-approved amount for each service, as if
18.2 	Medicare were to cover the service as identified in American
18.3 	Medical Association current procedural terminology (AMA CPT)
18.4 	codes, to a maximum of $120 annually under this benefit.  This
18.5 	benefit shall not include payment for a procedure covered by
18.6 	Medicare;
18.7 	(6) coverage for services to provide short-term at-home
18.8 	assistance with activities of daily living for those recovering
18.9 	from an illness, injury, or surgery:
18.10 	(i) For purposes of this benefit, the following definitions
18.11 	apply:
18.12 	(A) "activities of daily living" include, but are not
18.13 	limited to, bathing, dressing, personal hygiene, transferring,
18.14 	eating, ambulating, assistance with drugs that are normally
18.15 	self-administered, and changing bandages or other dressings;
18.16 	(B) "care provider" means a duly qualified or licensed home
18.17 	health aide/homemaker, personal care aid, or nurse provided
18.18 	through a licensed home health care agency or referred by a
18.19 	licensed referral agency or licensed nurses registry;
18.20 	(C) "home" means a place used by the insured as a place of
18.21 	residence, provided that the place would qualify as a residence
18.22 	for home health care services covered by Medicare.  A hospital
18.23 	or skilled nursing facility shall not be considered the
18.24 	insured's place of residence;
18.25 	(D) "at-home recovery visit" means the period of a visit
18.26 	required to provide at-home recovery care, without limit on the
18.27 	duration of the visit, except each consecutive four hours in a
18.28 	24-hour period of services provided by a care provider is one
18.29 	visit;
18.30 	(ii) Coverage requirements and limitations:
18.31 	(A) at-home recovery services provided must be primarily
18.32 	services that assist in activities of daily living;
18.33 	(B) the insured's attending physician must certify that the
18.34 	specific type and frequency of at-home recovery services are
18.35 	necessary because of a condition for which a home care plan of
18.36 	treatment was approved by Medicare;
19.1 	(C) coverage is limited to:
19.2 	(I) no more than the number and type of at-home recovery
19.3 	visits certified as necessary by the insured's attending
19.4 	physician.  The total number of at-home recovery visits shall
19.5 	not exceed the number of Medicare-approved home care visits
19.6 	under a Medicare-approved home care plan of treatment;
19.7 	(II) the actual charges for each visit up to a maximum
19.8 	reimbursement of $40 per visit;
19.9 	(III) $1,600 per calendar year;
19.10 	(IV) seven visits in any one week;
19.11 	(V) care furnished on a visiting basis in the insured's
19.12 	home;
19.13 	(VI) services provided by a care provider as defined in
19.14 	this section;
19.15 	(VII) at-home recovery visits while the insured is covered
19.16 	under the policy or certificate and not otherwise excluded;
19.17 	(VIII) at-home recovery visits received during the period
19.18 	the insured is receiving Medicare-approved home care services or
19.19 	no more than eight weeks after the service date of the last
19.20 	Medicare-approved home health care visit;
19.21 	(iii) Coverage is excluded for:
19.22 	(A) home care visits paid for by Medicare or other
19.23 	government programs; and
19.24 	(B) care provided by family members, unpaid volunteers, or
19.25 	providers who are not care providers;
19.26 	(7) coverage for at least 50 percent, or the equivalent of
19.27 	50 percent, of usual and customary prescription drug expenses to
19.28 	a maximum of $1,200 paid by the issuer annually under this
19.29 	benefit.  An issuer of Medicare supplement insurance policies
19.30 	that elects to offer this benefit rider shall also make
19.31 	available coverage that contains the rider specified in clause
19.32 	(4).

19.33 	Sec. 15. Minnesota Statutes 2004, section 62E.13,
19.34 	subdivision 2, is amended to read:
19.35 		Subd. 2.Selection of writing carrier.  The association
19.36 	may select policies and contracts, or parts thereof, submitted
20.1 	by a member or members of the association, or by the association
20.2 	or others, to develop specifications for bids from any entity
20.3 	which wishes to be selected as a writing carrier to administer
20.4 	the state plan.  The selection of the writing carrier shall be
20.5 	based upon criteria established by the board of directors of the
20.6 	association and approved by the commissioner.  The criteria
20.7 	shall outline specific qualifications that an entity must
20.8 	satisfy in order to be selected and, at a minimum, shall include
20.9 	the entity's proven ability to handle large group accident and
20.10 	health insurance cases, efficient claim paying capacity, and the
20.11 	estimate of total charges for administering the plan.  The
20.12 	association may select separate writing carriers for the two
20.13 	types of qualified plans and the $2,000, $5,000, and $10,000
20.14 	deductible plans, the qualified Medicare supplement plan plans,
20.15 	and the health maintenance organization contract.

20.16 	Sec. 16. Minnesota Statutes 2004, section 62Q.471, is
20.17 	amended to read:
20.18 	62Q.471 EXCLUSION FOR SUICIDE ATTEMPTS PROHIBITED.
20.19 	(a) No health plan may exclude or reduce coverage for
20.20 	health care for an enrollee who is otherwise covered under the
20.21 	health plan on the basis that the need for the health care arose
20.22 	out of a suicide or suicide attempt by the enrollee.
20.23 	(b) For purposes of this section, "health plan" has the
20.24 	meaning given in section 62Q.01, subdivision 3, but includes the
20.25 	coverages described in section 62A.011, clauses (4), (6),
20.26 	and (7) and through (10).

20.27 	Sec. 17. Minnesota Statutes 2004, section 65A.29,
20.28 	subdivision 11, is amended to read:
20.29 		Subd. 11.Nonrenewal.  Every insurer shall establish a
20.30 	plan that sets out the minimum number and amount of claims
20.31 	during an experience period that may result in a
20.32 	nonrenewal. For purposes of the plan, the insurer may not
20.33 	consider as a claim the insured's inquiry about a hypothetical
20.34 	claim, or the insured's inquiry to the insured's agent regarding
20.35 	a potential claim.
20.36 	No homeowner's insurance policy may be nonrenewed based on
21.1 	the insured's loss experience unless the insurer has sent a
21.2 	written notice that any future losses may result in nonrenewal
21.3 	due to loss experience.
21.4 	Any nonrenewal of a homeowner's insurance policy must, at a
21.5 	minimum, comply with the requirements of subdivision 8 and the
21.6 	rules adopted by the commissioner.

21.7 	Sec. 18. Minnesota Statutes 2004, section 65B.48,
21.8 	subdivision 3, is amended to read:
21.9 		Subd. 13.Refusal to renew.  Refusing to renew, declining
21.32 	to offer or write, or charging differential rates for an
21.33 	equivalent amount of homeowner's insurance coverage, as defined
21.34 	by section 65A.27, for property located in a town or statutory
21.35 	or home rule charter city, in which the insurer offers to sell
21.36 	or writes homeowner's insurance, solely because:
22.1 	(a) of the geographic area in which the property is
22.2 	located;
22.3 	(b) of the age of the primary structure sought to be
22.4 	insured;
22.5 	(c) the insured or prospective insured was denied coverage
22.6 	of the property by another insurer, whether by cancellation,
22.7 	nonrenewal or declination to offer coverage, for a reason other
22.8 	than those specified in section 65A.01, subdivision 3a, clauses
22.9 	(a) to (e); or 
22.10 	(d) the property of the insured or prospective insured has
22.11 	been insured under the Minnesota FAIR Plan Act, shall constitute
22.12 	an unfair method of competition and an unfair and deceptive act
22.13 	or practice; or 
22.14 	(e) the insured has inquired about coverage for a
22.15 	hypothetical claim or has made an inquiry to the insured's agent
22.16 	regarding a potential claim.
22.17 	This subdivision prohibits an insurer from filing or
22.18 	charging different rates for different zip code areas within the
22.19 	same town or statutory or home rule charter city.
22.20 	This subdivision shall not prohibit the insurer from
22.21 	applying underwriting or rating standards which the insurer
22.22 	applies generally in all other locations in the state and which
22.23 	are not specifically prohibited by clauses (a) to (d) (e).  Such
22.24 	underwriting or rating standards shall specifically include but
22.25 	not be limited to standards based upon the proximity of the
22.26 	insured property to an extraordinary hazard or based upon the
22.27 	quality or availability of fire protection services or based
22.28 	upon the density or concentration of the insurer's risks.
22.29 	Clause (b) shall not prohibit the use of rating standards based
22.30 	upon the age of the insured structure's plumbing, electrical,
22.31 	heating or cooling system or other part of the structure, the
22.32 	age of which affects the risk of loss.  Any insurer's failure to
22.33 	comply with section 65A.29, subdivisions 2 to 4, either (1) by
22.34 	failing to give an insured or applicant the required notice or
22.35 	statement or (2) by failing to state specifically a bona fide
22.36 	underwriting or other reason for the refusal to write shall
23.1 	create a presumption that the insurer has violated this
23.2 	subdivision.

23.3 	Sec. 20. Minnesota Statutes 2004, section 72A.20,
23.4 	subdivision 36, is amended to read:
23.5 		Subd. 36.Limitations on the use of credit information.
 23.6 	(a) No insurer or group of affiliated insurers may reject,
23.7 	cancel, or nonrenew a policy of private passenger motor vehicle
23.8 	insurance as defined under section 65B.01 or a policy of
23.9 	homeowner's insurance as defined under section 65A.27, for any
23.10 	person in whole or in part on the basis of credit information,
23.11 	including a credit reporting product known as a "credit score"
23.12 	or "insurance score," without consideration and inclusion of any
23.13 	other applicable underwriting factor.
23.14 	(b) If credit information, credit scoring, or insurance
23.15 	scoring is to be used in underwriting, the insurer must disclose
23.16 	to the consumer that credit information will be obtained and
23.17 	used as part of the insurance underwriting process.
23.18 	(c) Insurance inquiries and non-consumer-initiated
23.19 	inquiries must not be used as part of the credit scoring or
23.20 	insurance scoring process.
23.21 	(d) If a credit score, insurance score, or other credit
23.22 	information relating to a consumer, with respect to the types of
23.23 	insurance referred to in paragraph (a), is adversely impacted or
23.24 	cannot be generated because of the absence of a credit history,
23.25 	the insurer must exclude the use of credit as a factor in the
23.26 	decision to reject, cancel, or nonrenew.
23.27 	(e) Insurers must upon the request of a policyholder
23.28 	reevaluate the policyholder's score.  Any change in premium
23.29 	resulting from the reevaluation must be effective upon the
23.30 	renewal of the policy.  An insurer is not required to reevaluate
23.31 	a policyholder's score pursuant to this paragraph more than
23.32 	twice in any given calendar year.
23.33 	(f) Insurers must upon request of the applicant or
23.34 	policyholder provide reasonable underwriting exceptions based
23.35 	upon prior credit histories for persons whose credit information
23.36 	is unduly influenced by expenses related to a catastrophic
24.1 	injury or illness, temporary loss of employment, or the death of
24.2 	an immediate family member.  The insurer may require reasonable
24.3 	documentation of these events prior to granting an exception.
24.4 	(f) (g) A credit scoring or insurance scoring methodology
24.5 	must not be used by an insurer if the credit scoring or
24.6 	insurance scoring methodology incorporates the gender, race,
24.7 	nationality, or religion of an insured or applicant.
24.8 	(g) (h) Insurers that employ a credit scoring or insurance
24.9 	scoring system in underwriting of coverage described in
24.10 	paragraph (a) must have on file with the commissioner:
24.11 	(1) the insurer's credit scoring or insurance scoring
24.12 	methodology; and
24.13 	(2) information that supports the insurer's use of a credit
24.14 	score or insurance score as an underwriting criterion.
24.15 	(h) (i) Insurers described in paragraph (g) shall file the
24.16 	required information with the commissioner within 120 days of
24.17 	August 1, 2002, or prior to implementation of a credit scoring
24.18 	or insurance scoring system by the insurer, if that date is
24.19 	later.
24.20 	(i) (j) Information provided by, or on behalf of, an
24.21 	insurer to the commissioner under this subdivision is trade
24.22 	secret information under section 13.37.

24.23 	Sec. 21. Minnesota Statutes 2004, section 72A.501,
24.24 	subdivision 1, is amended to read:
24.25 		Subdivision 1.Requirement; content.  An authorization
24.26 	used by an insurer, insurance-support organization, or insurance
24.27 	agent to disclose or collect personal or privileged information
24.28 	must be in writing and must meet the following requirements:
24.29 	(1) is written in plain language;
24.30 	(2) is dated;
24.31 	(3) specifies the types of persons authorized to disclose
24.32 	information about the person;
24.33 	(4) specifies the nature of the information authorized to
24.34 	be disclosed;
24.35 	(5) names the insurer or insurance agent and identifies by
24.36 	generic reference representatives of the insurer to whom the
25.1 	person is authorizing information to be disclosed;
25.2 	(6) specifies the purposes for which the information is
25.3 	collected; and
25.4 	(7) specifies the length of time the authorization remains
25.5 	valid.
25.6 	If the insurer, insurance-support organization, or insurance
25.7 	agent determines to disclose or collect a kind of information
25.8 	not specified in a previous authorization, a new authorization
25.9 	specifying that kind of information must be obtained.

25.10 	Sec. 22. Minnesota Statutes 2004, section 72A.501,
25.11 	subdivision 2, is amended to read:
25.12 		Subd. 2.Application.  (a) If the authorization is signed
25.13 	to collect information in connection with an application for a
25.14 	property and casualty insurance policy, a policy reinstatement,
25.15 	or a request for a change in benefits, the authorization must
25.16 	not remain is valid for longer than one year from the date the
25.17 	authorization is signed or the date the insurer grants or denies
25.18 	coverage, reinstatement, or change in benefits, whichever is
25.19 	sooner as long as the individual is continually insured with the
25.20 	insurer. At each renewal of the policy, the insurer must notify
25.21 	the insured in writing of the contents of the authorization and
25.22 	that the authorization remains in effect unless revoked.
25.23 	(b) If the authorization is signed to collect information
25.24 	in connection with an application for a life, disability, and
25.25 	health insurance policy or contract, reinstatement, or request
25.26 	for change in benefits, the authorization may not remain is 
25.27 	valid for longer than 26 months from the date the authorization
25.28 	is signed as long as the individual is continually insured with
25.29 	the insurer. At each renewal of the policy, the insurer must
25.30 	notify the insured in writing of the contents of the
25.31 	authorization and that the authorization remains in effect
25.32 	unless revoked.
25.33 	(c) This section and section 72A.502, subdivisions 1 and
25.34 	12, do not apply to the collection and use of a numeric product
25.35 	referred to as an insurance score or credit score that is used
25.36 	by a licensed insurance agent or insurer exclusively for the
26.1 	purpose of underwriting or rating an insurance policy, if the
26.2 	agent or insurer informs the policyholder or prospective
26.3 	policyholder requesting the insurance coverage that an insurance
26.4 	score or credit score will be obtained for the purpose of
26.5 	underwriting or rating the policy.

26.6 	Sec. 23. Minnesota Statutes 2004, section 79.211, is
26.7 	amended by adding a subdivision to read:
26.8 		Subd. 4.Experience modification factor revision for
26.9 	certain closed claims. An insurer or an employer insured under
26.10 	a workers' compensation policy subject to an experience rating
26.11 	plan may request in writing of the data service organization
26.12 	computing the policy's experience modification factor that the
26.13 	most recent factor be revised if each of the following criteria
26.14 	is met:
26.15 	(1) a workers' compensation claim under that policy is
26.16 	closed between the normal valuation date for that claim and the
26.17 	next time that valuation is used in computing the experience
26.18 	modification factor on the policy;
26.19 	(2) the data service organization receives a revised unit
26.20 	statistical report containing data on the closed claim in a form
26.21 	consistent with its filed unit statistical plan; and 
26.22 	(3) inclusion of the closed claim in the experience
26.23 	modification factor calculation would impact that factor by five
26.24 	percentage points or more.

26.25 	Sec. 24. Minnesota Statutes 2004, section 79.40, is
26.26 	amended to read:
26.27 	79.40 PREMIUM INCLUSION IN RATEMAKING.
26.28 	Premiums charged members by the reinsurance association
26.29 	shall be recognized in the ratemaking procedures for insurance
26.30 	rates in the same manner as assessments for the special
26.31 	compensation fund.

26.32 	Sec. 25. Minnesota Statutes 2004, section 79.56,
26.33 	subdivision 1, is amended to read:
26.34 		Subdivision 1.Prefiling of rates. (a) Each insurer
26.35 	shall file with the commissioner a complete copy of its rates
26.36 	and rating plan, and all changes and amendments thereto, and
27.1 	such supporting data and information that the commissioner may
27.2 	by rule require, at least 60 days prior to its effective date.
27.3 	The commissioner shall advise an insurer within 30 days of the
27.4 	filing if its submission is not accompanied with such supporting
27.5 	data and information that the commissioner by rule may require.
27.6 	The commissioner may extend the filing review period and
27.7 	effective date for an additional 30 days if an insurer, after
27.8 	having been advised of what supporting data and information is
27.9 	necessary to complete its filing, does not provide such
27.10 	information within 15 days of having been so notified.  If any
27.11 	rate or rating plan filing or amendment thereto is not
27.12 	disapproved by the commissioner within the filing review period,
27.13 	the insurer may implement it.  For the period August 1, 1995, to
27.14 	December 31, 1995, the filing shall be made at least 90 days
27.15 	prior to the effective date and the department shall advise an
27.16 	insurer within 60 days of such filing if the filing is
27.17 	insufficient under this section.
27.18 	(b) A rating plan or rates are not subject to the
27.19 	requirements of paragraph (a), where the insurer files a
27.20 	certification verifying that it will use the mutually agreed
27.21 	upon rating plan or rates only to write a specific employer that
27.22 	generates $250,000 in annual written workers' compensation
27.23 	premiums before the application of any large deductible rating
27.24 	plan.  The certification must be refiled upon each renewal of
27.25 	the employer's policy.  The $250,000 threshold includes premiums
27.26 	generated in any state.  The designation and certification must
27.27 	be submitted in substantially the following form:
27.28 	Name and address of insurer:.................................
27.29 	Name and address of insured employer:........................
27.30 	Policy period:...............................................
27.31 	I certify that the employer named above generates $250,000 or
27.32 	more in annual countrywide written workers' compensation
27.33 	premiums, and that the calculation of this threshold is based on
27.34 	the rates and rating plans that have been approved by the
27.35 	appropriate state regulatory authority.  The filing of this
27.36 	certification authorizes the use of this rate or rating plan
28.1 	only for the named employer.
28.2 	Name of responsible officer:.................................
28.3 	Title:.......................................................
28.4 	Signature:...................................................

28.5 	Sec. 26. Minnesota Statutes 2004, section 79.56,
28.6 	subdivision 3, is amended to read:
28.7 		Subd. 3.Penalties. (a) Any insurer using a rate or a
28.8 	rating plan which has not been filed or certified under
28.9 	subdivision 1 shall be subject to a fine of up to $100 for each
28.10 	day the failure to file continues.  The commissioner may, after
28.11 	a hearing on the record, find that the failure is willful.  A
28.12 	willful failure to meet filing requirements shall be punishable
28.13 	by a fine of up to $500 for each day during which a willful
28.14 	failure continues.  These penalties shall be in addition to any
28.15 	other penalties provided by law.
28.16 	(b) Notwithstanding this subdivision, an employer that
28.17 	generates $250,000 in annual written workers' compensation
28.18 	premium under the rates and rating plan of an insurer before the
28.19 	application of any large deductible rating plans, may be written
28.20 	by that insurer using rates or rating plans that are not subject
28.21 	to disapproval but which have been filed.  For the purposes of
28.22 	this paragraph, written workers' compensation premiums generated
28.23 	from states other than Minnesota are included in calculating the
28.24 	$250,000 threshold for large risk alternative rating option
28.25 	plans.

28.26 	Sec. 27. Minnesota Statutes 2004, section 79.62,
28.27 	subdivision 3, is amended to read:
28.28 		Subd. 3.Issuance.  The commissioner, upon finding that
28.29 	the applicant organization is qualified to provide the services
28.30 	required and proposed, or has contracted with a licensed data
28.31 	service organization to purchase these services which are
28.32 	required by this chapter but are not provided directly by the
28.33 	applicant, and that all requirements of law are met, shall issue
28.34 	a license.  Each license is subject to annual renewal effective
28.35 	June 30.  Each new or renewal license application must be
28.36 	accompanied by a fee of $50 $1,000.

29.1 	Sec. 28. Minnesota Statutes 2004, section 79A.03,
29.2 	subdivision 9, is amended to read:
29.3 		Subd. 9.Filing reports.  (a) Incurred losses, paid and
29.4 	unpaid, specifying indemnity and medical losses by
29.5 	classification, payroll by classification, and current estimated
29.6 	outstanding liability for workers' compensation shall be
29.7 	reported to the commissioner by each self-insurer on a calendar
29.8 	year basis, in a manner and on forms available from the
29.9 	commissioner.  Payroll information must be filed by April 1 of
29.10 	the following year.
29.11 	(b) Each self-insurer shall, under oath, attest to the
29.12 	accuracy of each report submitted pursuant to paragraph (a).
29.13 	Upon sufficient cause, the commissioner shall require the
29.14 	self-insurer to submit a certified audit of payroll and claim
29.15 	records conducted by an independent auditor approved by the
29.16 	commissioner, based on generally accepted accounting principles
29.17 	and generally accepted auditing standards, and supported by an
29.18 	actuarial review and opinion of the future contingent
29.19 	liabilities.  The basis for sufficient cause shall include the
29.20 	following factors:  where the losses reported appear
29.21 	significantly different from similar types of businesses; where
29.22 	major changes in the reports exist from year to year, which are
29.23 	not solely attributable to economic factors; or where the
29.24 	commissioner has reason to believe that the losses and payroll
29.25 	in the report do not accurately reflect the losses and payroll
29.26 	of that employer.  If any discrepancy is found, the commissioner
29.27 	shall require changes in the self-insurer's or workers'
29.28 	compensation service company record-keeping practices.
29.29 	(c) An annual status report due August 1 by each
29.30 	self-insurer shall be filed in a manner and on forms prescribed
29.31 	by the commissioner.
29.32 	(d) Each individual self-insurer shall, within four months
29.33 	after the end of its fiscal year, annually file with the
29.34 	commissioner its latest 10K report required by the Securities
29.35 	and Exchange Commission.  If an individual self-insurer does not
29.36 	prepare a 10K report, it shall file an annual certified
30.1 	financial statement, together with such other financial
30.2 	information as the commissioner may require to substantiate data
30.3 	in the financial statement.
30.4 	(e) Each member of the group shall, within seven six months
30.5 	after the end of each fiscal year for that group, file submit to
30.6 	a certified public accountant designated by the group,the most
30.7 	recent annual financial statement, reviewed by a certified
30.8 	public accountant in accordance with the Statements on Standards
30.9 	for Accounting and Review Services, Volume 2, the American
30.10 	Institute of Certified Public Accountants Professional
30.11 	Standards, or audited in accordance with generally accepted
30.12 	auditing standards, together with such other financial
30.13 	information the commissioner may require.  In addition, the
30.14 	group shall file with the commissioner, within seven months
30.15 	after the end of each fiscal year for that group, combining
30.16 	financial statements of the group members, compiled by a
30.17 	certified public accountant in accordance with the Statements on
30.18 	Standards for Accounting and Review Services, Volume 2, the
30.19 	American Institute of Certified Public Accountants Professional
30.20 	Standards.  The combining financial statements shall include,
30.21 	but not be limited to, a balance sheet, income statement,
30.22 	statement of changes in net worth, and statement of cash flow.
30.23 	Each combining financial statement shall include a column for
30.24 	each individual group member along with a total column. Each
30.25 	combined statement shall have a statement from the certified
30.26 	public accountant confirming that each member has submitted the
30.27 	required financial statement as defined in this section.  The
30.28 	certified public accountant shall notify the commissioner if any
30.29 	statement is qualified or otherwise conditional.  The
30.30 	commissioner may require additional financial information from
30.31 	any group member.
30.32 	Where a group has 50 or more members, the group shall file,
30.33 	in lieu of the combining financial statements, a combined
30.34 	financial statement showing only the total column for the entire
30.35 	group's balance sheet, income statement, statement of changes in
30.36 	net worth, and statement of cash flow.  Additionally, the group
31.1 	shall disclose, for each member, the total assets, net worth,
31.2 	revenue, and income for the most recent fiscal year.  The
31.3 	combining and combined financial statements may omit all
31.4 	footnote disclosures.
31.5 	(f) In addition to the financial statements required by
31.6 	paragraphs (d) and (e), interim financial statements or 10Q
31.7 	reports required by the Securities and Exchange Commission may
31.8 	be required by the commissioner upon an indication that there
31.9 	has been deterioration in the self-insurer's financial
31.10 	condition, including a worsening of current ratio, lessening of
31.11 	net worth, net loss of income, the downgrading of the company's
31.12 	bond rating, or any other significant change that may adversely
31.13 	affect the self-insurer's ability to pay expected losses.  Any
31.14 	self-insurer that files an 8K report with the Securities and
31.15 	Exchange Commission shall also file a copy of the report with
31.16 	the commissioner within 30 days of the filing with the
31.17 	Securities and Exchange Commission.

31.18 	Sec. 29. Minnesota Statutes 2004, section 79A.04,
31.19 	subdivision 2, is amended to read:
31.20 		Subd. 2.Minimum deposit.  The minimum deposit is 110
31.21 	percent of the private self-insurer's estimated future
31.22 	liability.  The deposit may be used to secure payment of all
31.23 	administrative and legal costs, and unpaid assessments required
31.24 	by section 79A.12, subdivision 2, relating to or arising from
31.25 	its or other employers' self-insuring.  As used in this section,
31.26 	"private self-insurer" includes both current and former members
31.27 	of the self-insurers' security fund; and "private self-insurers'
31.28 	estimated future liability" means the private self-insurers'
31.29 	total of estimated future liability as determined by an
31.30 	Associate or Fellow of the Casualty Actuarial Society every year
31.31 	for group member private self-insurers and, for a nongroup
31.32 	member private self-insurer's authority to self-insure, every
31.33 	year for the first five years.  After the first five years, the
31.34 	nongroup member's total shall be as determined by an Associate
31.35 	or Fellow of the Casualty Actuarial Society at least every two
31.36 	years, and each such actuarial study shall include a projection
32.1 	of future losses during the period until the next scheduled
32.2 	actuarial study, less payments anticipated to be made during
32.3 	that time.
32.4 	All data and information furnished by a private
32.5 	self-insurer to an Associate or Fellow of the Casualty Actuarial
32.6 	Society for purposes of determining private self-insurers'
32.7 	estimated future liability must be certified by an officer of
32.8 	the private self-insurer to be true and correct with respect to
32.9 	payroll and paid losses, and must be certified, upon information
32.10 	and belief, to be true and correct with respect to reserves.
32.11 	The certification must be made by sworn affidavit.  In addition
32.12 	to any other remedies provided by law, the certification of
32.13 	false data or information pursuant to this subdivision may
32.14 	result in a fine imposed by the commissioner of commerce on the
32.15 	private self-insurer up to the amount of $5,000, and termination
32.16 	of the private self-insurers' authority to self-insure.  The
32.17 	determination of private self-insurers' estimated future
32.18 	liability by an Associate or Fellow of the Casualty Actuarial
32.19 	Society shall be conducted in accordance with standards and
32.20 	principles for establishing loss and loss adjustment expense
32.21 	reserves by the Actuarial Standards Board, an affiliate of the
32.22 	American Academy of Actuaries.  The commissioner may reject an
32.23 	actuarial report that does not meet the standards and principles
32.24 	of the Actuarial Standards Board, and may further disqualify the
32.25 	actuary who prepared the report from submitting any future
32.26 	actuarial reports pursuant to this chapter.  Within 30 days
32.27 	after the actuary has been served by the commissioner with a
32.28 	notice of disqualification, an actuary who is aggrieved by the
32.29 	disqualification may request a hearing to be conducted in
32.30 	accordance with chapter 14.  Based on a review of the actuarial
32.31 	report, the commissioner of commerce may require an increase in
32.32 	the minimum security deposit in an amount the commissioner
32.33 	considers sufficient.
32.34 	Estimated future liability is determined by first taking
32.35 	the total amount of the self-insured's future liability of
32.36 	workers' compensation claims and then deducting the total amount
33.1 	which is estimated to be returned to the self-insurer from any
33.2 	specific excess insurance coverage, aggregate excess insurance
33.3 	coverage, and any supplementary benefits or second injury
33.4 	benefits which are estimated to be reimbursed by the special
33.5 	compensation fund. However, in the determination of estimated
33.6 	future liability, the actuary for the self-insurer shall not
33.7 	take a credit for any excess insurance or reinsurance which is
33.8 	provided by a captive insurance company which is wholly owned by
33.9 	the self-insurer.Supplementary benefits or second injury
33.10 	benefits will not be reimbursed by the special compensation fund
33.11 	unless the special compensation fund assessment pursuant to
33.12 	section 176.129 is paid and the reports required thereunder are
33.13 	filed with the special compensation fund.  In the case of surety
33.14 	bonds, bonds shall secure administrative and legal costs in
33.15 	addition to the liability for payment of compensation reflected
33.16 	on the face of the bond.  In no event shall the security be less
33.17 	than the last retention limit selected by the self-insurer with
33.18 	the Workers' Compensation Reinsurance Association, provided that
33.19 	the commissioner may allow former members to post less than the
33.20 	Workers' Compensation Reinsurance Association retention level if
33.21 	that amount is adequate to secure payment of the self-insurers'
33.22 	estimated future liability, as defined in this subdivision,
33.23 	including payment of claims, administrative and legal costs, and
33.24 	unpaid assessments required by section 79A.12, subdivision 2.
33.25 	The posting or depositing of security pursuant to this section
33.26 	shall release all previously posted or deposited security from
33.27 	any obligations under the posting or depositing and any surety
33.28 	bond so released shall be returned to the surety.  Any other
33.29 	security shall be returned to the depositor or the person
33.30 	posting the bond.
33.31 	As a condition for the granting or renewing of a
33.32 	certificate to self-insure, the commissioner may require a
33.33 	private self-insurer to furnish any additional security the
33.34 	commissioner considers sufficient to insure payment of all
33.35 	claims under chapter 176.

33.36 	Sec. 30. Minnesota Statutes 2004, section 79A.04,
34.1 	subdivision 10, is amended to read:
34.2 		Subd. 10.Notice; obligation of fund.  In the event of
34.3 	bankruptcy, insolvency, or certificate of default, the
34.4 	commissioner shall immediately notify by certified mail the
34.5 	commissioner of finance, the surety, the issuer of an
34.6 	irrevocable letter of credit, and any custodian of the security
34.7 	required in this chapter.  At the time of notification, the
34.8 	commissioner shall also call the security and transfer and
34.9 	assign it to the self-insurers' security fund.  The commissioner
34.10 	shall also immediately notify by certified mail the
34.11 	self-insurers' security fund, and order the security fund to
34.12 	assume the insolvent self-insurers' obligations for which it is
34.13 	liable under chapter 176.  The security fund shall commence
34.14 	payment of these obligations within 14 days of receipt of this
34.15 	notification and order.  Payments shall be made to claimants
34.16 	whose entitlement to benefits can be ascertained by the security
34.17 	fund, with or without proceedings before the Department of Labor
34.18 	and Industry, the Office of Administrative Hearings, the
34.19 	Workers' Compensation Court of Appeals, or the Minnesota Supreme
34.20 	Court.  Upon the assumption of obligations by the security fund
34.21 	pursuant to the commissioner's notification and order, the
34.22 	security fund has the right to immediate possession of any
34.23 	posted or deposited security and the custodian, surety, or
34.24 	issuer of any irrevocable letter of credit or the commissioner,
34.25 	if in possession of it, shall turn over the security, proceeds
34.26 	of the surety bond, or letter of credit to the security fund
34.27 	together with the interest that has accrued since the date of
34.28 	the self-insured employer's insolvency. The security fund has
34.29 	the right to the immediate possession of all relevant worker's
34.30 	compensation claim files and data of the self-insurer, and the
34.31 	possessor of the files and data must turn the files and data, or
34.32 	complete copies of them, over to the security fund within five
34.33 	days of the notification provided under this subdivision.  If
34.34 	the possessor of the files and data fails to timely turn over
34.35 	the files and data to the security fund, it is liable to the
34.36 	security fund for a penalty of $500 per day for each day after
35.1 	the five-day period has expired.  The security fund is entitled
35.2 	to recover its reasonable attorney fees and costs in any action
35.3 	brought to obtain possession of the worker's compensation claim
35.4 	files and data of the self-insurer, and for any action to
35.5 	recover the penalties provided by this subdivision.The
35.6 	self-insurers' security fund may administer payment of benefits
35.7 	or it may retain a third-party administrator to do so.

35.8 	Sec. 31. Minnesota Statutes 2004, section 79A.06,
35.9 	subdivision 5, is amended to read:
35.10 		Subd. 5.Private employers who have ceased to be
35.11 	self-insured.  (a) Private employers who have ceased to be
35.12 	private self-insurers shall discharge their continuing
35.13 	obligations to secure the payment of compensation which is
35.14 	accrued during the period of self-insurance, for purposes of
35.15 	Laws 1988, chapter 674, sections 1 to 21, by compliance with all
35.16 	of the following obligations of current certificate holders:
35.17 	(1) Filing reports with the commissioner to carry out the
35.18 	requirements of this chapter;
35.19 	(2) Depositing and maintaining a security deposit for
35.20 	accrued liability for the payment of any compensation which may
35.21 	become due, pursuant to chapter 176.  However, if a private
35.22 	employer who has ceased to be a private self-insurer purchases
35.23 	an insurance policy from an insurer authorized to transact
35.24 	workers' compensation insurance in this state which provides
35.25 	coverage of all claims for compensation arising out of injuries
35.26 	occurring during the entire period the employer was
35.27 	self-insured, whether or not reported during that period, the
35.28 	policy will:
35.29 	(i) discharge the obligation of the employer to maintain a
35.30 	security deposit for the payment of the claims covered under the
35.31 	policy;
35.32 	(ii) discharge any obligation which the self-insurers'
35.33 	security fund has or may have for payment of all claims for
35.34 	compensation arising out of injuries occurring during the period
35.35 	the employer was self-insured, whether or not reported during
35.36 	that period; and
36.1 	(iii) discharge the obligations of the employer to pay any
36.2 	future assessments to the self-insurers' security fund.
36.3 	A private employer who has ceased to be a private
36.4 	self-insurer may instead buy an insurance policy described
36.5 	above, except that it covers only a portion of the period of
36.6 	time during which the private employer was self-insured;
36.7 	purchase of such a policy discharges any obligation that the
36.8 	self-insurers' security fund has or may have for payment of all
36.9 	claims for compensation arising out of injuries occurring during
36.10 	the period for which the policy provides coverage, whether or
36.11 	not reported during that period.
36.12 	A policy described in this clause may not be issued by an
36.13 	insurer unless it has previously been approved as to form and
36.14 	substance by the commissioner; and
36.15 	(3) Paying within 30 days all assessments of which notice
36.16 	is sent by the security fund, for a period of seven years from
36.17 	the last day its certificate of self-insurance was in effect.
36.18 	Thereafter, the private employer who has ceased to be a private
36.19 	self-insurer may either:  (i) continue to pay within 30 days all
36.20 	assessments of which notice is sent by the security fund until
36.21 	it has no incurred liabilities for the payment of compensation
36.22 	arising out of injuries during the period of self-insurance; or
36.23 	(ii) pay the security fund a cash payment equal to four percent
36.24 	of the net present value of all remaining incurred liabilities
36.25 	for the payment of compensation under sections 176.101 and
36.26 	176.111 as certified by a member of the casualty actuarial
36.27 	society.  Assessments shall be based on the benefits paid by the
36.28 	employer during the calendar year immediately preceding the
36.29 	calendar year in which the employer's right to self-insure is
36.30 	terminated or withdrawn.
36.31 	(b) With respect to a self-insurer who terminates its
36.32 	self-insurance authority after April 1, 1998, that member shall
36.33 	obtain and file with the commissioner an actuarial opinion of
36.34 	its outstanding liabilities as determined by an associate or
36.35 	fellow of the Casualty Actuarial Society within 120 days of the
36.36 	date of its termination.  If the actuarial opinion is not timely
37.1 	filed, the self-insurers' security fund may, at its discretion,
37.2 	engage the services of an actuary for this purpose.  The expense
37.3 	of this actuarial opinion must be assessed against and be the
37.4 	obligation of the self-insurer.  The commissioner may issue a
37.5 	certificate of default against the self-insurer for failure to
37.6 	pay this assessment to the self-insurers' security fund as
37.7 	provided by section 79A.04, subdivision 9.  The opinion must
37.8 	separate liability for indemnity benefits from liability from
37.9 	medical benefits, and must discount each up to four percent per
37.10 	annum to net present value.  Within 30 days after notification
37.11 	of approval of the actuarial opinion by the commissioner, the
37.12 	member shall pay to the security fund an amount equal to 120
37.13 	percent of that discounted outstanding indemnity liability,
37.14 	multiplied by the greater of the average annualized assessment
37.15 	rate since inception of the security fund or the annual rate at
37.16 	the time of the most recent assessment before termination. If
37.17 	the payment is not made within 30 days of the notification,
37.18 	interest on it at the rate prescribed by section 549.09 must be
37.19 	paid by the former member to the security fund until the
37.20 	principal amount is paid in full.
37.21 	(c) A former member who terminated its self-insurance
37.22 	authority before April 1, 1998, who has paid assessments to the
37.23 	self-insurers' security fund for seven years, and whose
37.24 	annualized assessment is $500 or less, may buy out of its
37.25 	outstanding liabilities to the self-insurers' security fund by
37.26 	an amount calculated as follows:  1.35 multiplied by the
37.27 	indemnity case reserves at the time of the calculation,
37.28 	multiplied by the then current self-insurers' security fund
37.29 	annualized assessment rate.
37.30 	(d) A former member who terminated its self-insurance
37.31 	authority before April 1, 1998, and who is paying assessments
37.32 	within the first seven years after ceasing to be self-insured
37.33 	under paragraph (a), clause (3), may elect to buy out its
37.34 	outstanding liabilities to the self-insurers' security fund by
37.35 	obtaining and filing with the commissioner an actuarial opinion
37.36 	of its outstanding liabilities as determined by an associate or
38.1 	fellow of the Casualty Actuarial Society.  The opinion must
38.2 	separate liability for indemnity benefits from liability for
38.3 	medical benefits, and must discount each up to four percent per
38.4 	annum to net present value.  Within 30 days after notification
38.5 	of approval of the actuarial opinion by the commissioner, the
38.6 	member shall pay to the security fund an amount equal to 120
38.7 	percent of that discounted outstanding indemnity liability,
38.8 	multiplied by the greater of the average annualized assessment
38.9 	rate since inception of the security fund or the annual rate at
38.10 	the time of the most recent assessment.
38.11 	(e) A former member who has paid the security fund
38.12 	according to paragraphs (b) to (d) and subsequently receives
38.13 	authority from the commissioner to again self-insure shall be
38.14 	assessed under section 79A.12, subdivision 2, only on indemnity
38.15 	benefits paid on injuries that occurred after the former member
38.16 	received authority to self-insure again; provided that the
38.17 	member furnishes verified data regarding those benefits to the
38.18 	security fund.
38.19 	(f) In addition to proceedings to establish liabilities and
38.20 	penalties otherwise provided, a failure to comply may be the
38.21 	subject of a proceeding before the commissioner.  An appeal from
38.22 	the commissioner's determination may be taken pursuant to the
38.23 	contested case procedures of chapter 14 within 30 days of the
38.24 	commissioner's written determination.
38.25 	Any current or past member of the self-insurers' security
38.26 	fund is subject to service of process on any claim arising out
38.27 	of chapter 176 or this chapter in the manner provided by section
38.28 	5.25, or as otherwise provided by law.  The issuance of a
38.29 	certificate to self-insure to the private self-insured employer
38.30 	shall be deemed to be the agreement that any process which is
38.31 	served in accordance with this section shall be of the same
38.32 	legal force and effect as if served personally within this state.

38.33 	Sec. 32. Minnesota Statutes 2004, section 79A.12,
38.34 	subdivision 2, is amended to read:
38.35 		Subd. 2.Assessment.  The security fund may assess each
38.36 	of its members a pro rata share of the funding necessary to
39.1 	carry out its obligation and the purposes of this chapter.
39.2 	Total annual assessments in any calendar year shall not exceed
39.3 	ten percent of the workers' compensation benefits paid under
39.4 	sections 176.101 and 176.111 during the previous paid indemnity
39.5 	losses, as defined in section 176.129, made by the self-insured
39.6 	employer during the preceding calendar year.  The annual
39.7 	assessment calculation shall not include supplementary benefits
39.8 	paid which will be reimbursed by the special compensation fund.
39.9 	Funds obtained by assessments pursuant to this subdivision may
39.10 	only be used for the purposes of this chapter.  The trustees
39.11 	shall certify to the commissioner the collection and receipt of
39.12 	all money from assessments, noting any delinquencies.  The
39.13 	trustees shall take any action deemed appropriate to collect any
39.14 	delinquent assessments.

39.15 	Sec. 33. Minnesota Statutes 2004, section 79A.22,
39.16 	subdivision 11, is amended to read:
39.17 		Subd. 11.Disbursement of fund surplus.  (a) One
39.18 	hundred Except as otherwise provided in paragraphs (b) and (c),
39.19 	100 percent of any surplus money for a fund year in excess of
39.20 	125 percent of the amount necessary to fulfill all obligations
39.21 	under the Workers' Compensation Act, chapter 176, for that fund
39.22 	year may be declared refundable to a member eligible members at
39.23 	any time. The date shall be no earlier than 18 months following
39.24 	the end of such fund year.  The first disbursement of fund
39.25 	surplus may not be made prior to the written approval of the
39.26 	commissioner.  There can be no more than one refund made in any
39.27 	12-month period.
39.28 	(b) Except as otherwise provided in paragraph (c), for
39.29 	groups that have been in existence for five years or more, 100
39.30 	percent of any surplus money for a fund year in excess of 110
39.31 	percent of the amount necessary to fulfill all obligations under
39.32 	the Workers' Compensation Act, chapter 176, for that fund year
39.33 	may be declared refundable to eligible members at any time.
39.34 	(c) Excess surplus distributions under paragraphs (a) and
39.35 	(b) may not be greater than the combined surplus of the group at
39.36 	the time of the distribution.
40.1 	(d) When all the claims of any one fund year have been
40.2 	fully paid, as certified by an actuary, all surplus money from
40.3 	that fund year may be declared refundable.
40.4 	(b) (e) The commercial self-insurance group shall give ten
40.5 	days' prior notice to the commissioner of any refund. Said The 
40.6 	notice shall must be accompanied by a statement from the
40.7 	commercial self-insurer group's certified public accountant
40.8 	certifying that the proposed refund is in compliance
40.9 	with paragraph (a) this subdivision.

40.10 	Sec. 34. Minnesota Statutes 2004, section 79A.22, is
40.11 	amended by adding a subdivision to read:
40.12 		Subd. 14.All states coverage. Policies issued by
40.13 	commercial self-insurance groups pursuant to this chapter may
40.14 	also provide workers' compensation coverage required under the
40.15 	laws of states other than Minnesota, commonly known as "all
40.16 	states coverage."  The coverage must be provided to members of
40.17 	the group which are temporarily performing work in another state.

40.18 	Sec. 35. Minnesota Statutes 2004, section 176.191,
40.19 	subdivision 3, is amended to read:
40.20 		Subd. 3.Insurer payment.  If a dispute exists as to
40.21 	whether an employee's injury is compensable under this chapter
40.22 	and the employee is otherwise covered by an insurer or entity 
40.23 	pursuant to chapters 62A, 62C and ,62D, 62E, 62R, and 62T,that
40.24 	insurer or entity shall pay any medical costs incurred by the
40.25 	employee for the injury up to the limits of the applicable
40.26 	coverage and shall make any disability payments otherwise
40.27 	payable by that insurer or entity in the absence of or in
40.28 	addition to workers' compensation liability.  If the injury is
40.29 	subsequently determined to be compensable pursuant to this
40.30 	chapter, the workers' compensation insurer shall be ordered to
40.31 	reimburse the insurer or entity that made the payments for all
40.32 	payments made under this subdivision by the insurer or entity,
40.33 	including interest at a rate of 12 percent a year.  If a payment
40.34 	pursuant to this subdivision exceeds the reasonable value as
40.35 	permitted by sections 176.135 and 176.136, the provider shall
40.36 	reimburse the workers' compensation insurer for all the excess
41.1 	as provided by rules promulgated by the commissioner.

41.2 	Sec. 36. REPEALER.
 41.3 	Minnesota Statutes 2004, sections 61A.072, subdivision 2;
41.4 	and 62E.03 are repealed.

41.5 	Sec. 37. EFFECTIVE DATES.
 41.6 	Sections 11, 15, 17, 19, 20, 24, and 30 to 35 are effective
41.7 	the day following final enactment.  Sections 2, 4, 18, and 25 to
41.8 	27 are effective July 1, 2005.  The remaining sections are
41.9 	effective August 1, 2005.