SF 1758

as introduced - 94th Legislature (2025 - 2026) Posted on 04/02/2025 09:48am

A bill for an act
relating to commerce; allowing the board of directors of the Minnesota Insurance
Guarantee Association to request financial information from insureds; amending
Minnesota Statutes 2024, section 60C.09, subdivision 2.

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

Section 1.

Minnesota Statutes 2024, section 60C.09, subdivision 2, is amended to read:

Subd. 2.

Further definition.

In addition to subdivision 1, a covered claim does not
include:

(1) claims by an affiliate of the insurer;

(2) claims due a reinsurer, insurer, insurance pool, or underwriting association, as
subrogation recoveries, reinsurance recoveries, contribution, indemnification, or otherwise.
This clause does not prevent a person from presenting the excluded claim to the insolvent
insurer or its liquidator, but the claims shall not be asserted against another person, including
the person to whom the benefits were paid or the insured of the insolvent insurer, except to
the extent that the claim is outside the coverage of the policy issued by the insolvent insurer;
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(3) any claims, resulting from insolvencies which occur after July 31, 1996, by an insured
whose net worth exceeds $25,000,000 on December 31 of the year prior to the year in which
the insurer becomes an insolvent insurer; provided that an insured's net worth on that date
shall be deemed to include the aggregate net worth of the insured and all of its subsidiaries
and affiliates as calculated on a consolidated basis new text begin . The board of directors may request
financial information from an insured to determine the insured's net worth under this clause.
If an insured fails to provide the requested financial information within 60 days of the date
the board submits a request, the insured's net worth is deemed to exceed $25,000,000 for
purposes of the board's evaluation of the claim under section 60C.10. A request by the board
to an insured seeking financial information under this clause must inform the insured of the
consequences of failing to provide the requested information new text end ;

(4) any claims under a policy written by an insolvent insurer with a deductible or
self-insured retention of $300,000 or more, nor that portion of a claim that is within an
insured's deductible or self-insured retention; new text begin and
new text end

(5) claims that are a fine, penalty, interest, or punitive or exemplary damages.