HF 3233

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to insurance; requiring insurers to pay an 
  1.3             annual assessment based on total subrogation and 
  1.4             indemnification claims paid each year; proposing 
  1.5             coding for new law in Minnesota Statutes, chapter 60A. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [60A.50] [SUBROGATION AND INDEMNIFICATION 
  1.8   CLAIMS; ANNUAL ASSESSMENT.] 
  1.9      (a) For purposes of this section, "insurer" has the meaning 
  1.10  given the term in section 72A.201, subdivision 3. 
  1.11     (b) An insurer that receives payment from another insurer 
  1.12  in settlement of a subrogation or indemnification claim shall 
  1.13  pay an assessment to the commissioner of commerce.  The 
  1.14  assessment shall be equal to ..... percent of the total 
  1.15  subrogation or indemnification claims received by the insurer in 
  1.16  a calendar year.  The assessment must be paid within 15 days of 
  1.17  the end of the calendar year.  The commissioner shall conduct 
  1.18  periodic audits of insurers to ensure compliance with this 
  1.19  section.  Failure to pay the assessment required by this section 
  1.20  is grounds for suspension or revocation of the insurer's license 
  1.21  or certificate of authority.  
  1.22     The commissioner shall deposit all assessments received 
  1.23  under this section in the general fund. 
  1.24     An insurer shall not directly or indirectly pass the cost 
  1.25  of this assessment along to policy holders by way of premium 
  2.1   increase or otherwise.