HF 1696

Introduction - 94th Legislature (2025 - 2026)

Posted on 02/27/2025 03:16 p.m.

A bill for an act
relating to workers' compensation insurance; establishing requirements for
certificates of insurance to prevent fraud; proposing coding for new law in
Minnesota Statutes, chapter 176.

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

Section 1.

new text begin [176.1781] WORKERS' COMPENSATION FRAUD PREVENTION;
CERTIFICATES OF INSURANCE.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Certificate of insurance" means documentation that provides evidence of workers'
compensation insurance coverage.
new text end

new text begin (c) "QR code" or "quick response code" means a machine-readable code consisting of
an array of black and white squares, used to provide access to online information through
the camera on a digital device such as a cell phone.
new text end

new text begin Subd. 2. new text end

new text begin Verification; requirements for employers. new text end

new text begin (a) Every certificate of insurance
issued as proof of workers' compensation insurance coverage must include a scannable QR
code that is capable of linking to the original certificate of insurance information, which
includes but is not limited to verification of coverage and the expiration date of coverage
that is contained in the department's workers' compensation insurance verification system.
new text end

new text begin (b) An employer obtaining a certificate of insurance for workers' compensation insurance
must report to the commissioner:
new text end

new text begin (1) the number of employees being insured, by classification of employee; and
new text end

new text begin (2) the estimated payroll for the period of coverage on each policy.
new text end

new text begin Subd. 3. new text end

new text begin Requirements for insurers. new text end

new text begin (a) An insurer must track the number of certificates
of insurance issued as evidence of coverage by the insurer's insurance broker. Data on the
number of certificates of insurance issued must be reported to the insurer and to the
department for tracking in the department's workers' compensation insurance verification
system.
new text end

new text begin (b) An insurer must track information about employers who have been found to have
committed workers' compensation premium fraud by the department or the Department of
Commerce or have been found to have missed a renewal period audit. The information
under this paragraph must also be maintained by the insurer in the Insurance Services Office
system.
new text end

new text begin Subd. 4. new text end

new text begin Enforcement. new text end

new text begin The commissioner may enforce this section as provided under
section 176.184.
new text end