SF 1772

1st Engrossment - 93rd Legislature (2023 - 2024) Posted on 10/25/2023 10:54am

A bill for an act
relating to insurance; requiring the commissioner of commerce to modify rules
relating to automotive self-insurance; authorizing expedited rulemaking.

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

Section 1. new text begin AUTOMOTIVE SELF-INSURANCE; RULES AMENDMENT;
EXPEDITED RULEMAKING.
new text end

new text begin Subdivision 1. new text end

new text begin Self-insurance working capital condition. new text end

new text begin The commissioner of
commerce must amend Minnesota Rules, part 2770.6500, subpart 2, item B, subitem (5),
to require the commissioner's grant of self-insurance authority to an applicant to be based
on the applicant's net working capital in lieu of the applicant's net funds flow.
new text end

new text begin Subd. 2. new text end

new text begin Commissioner discretion to grant self-insurance authority. new text end

new text begin The commissioner
of commerce must amend Minnesota Rules, part 2770.6500, subpart 2, item D, to,
notwithstanding any other provision of Minnesota Rules, part 2770.6500, permit the
commissioner to grant self-insurance authority to an applicant that is not a political
subdivision and that has not had positive net income or positive working capital in at least
three years of the last five-year period if the applicant's working capital, debt structure,
profitability, and overall financial integrity of the applicant and its parent company, if one
exists, demonstrate a continuing ability of the applicant to satisfy any financial obligations
that have been and might be incurred under the no-fault act.
new text end

new text begin Subd. 3. new text end

new text begin Working capital. new text end

new text begin The commissioner of commerce must define working capital
for the purposes of Minnesota Rules, part 2770.6500.
new text end

new text begin Subd. 4. new text end

new text begin Commissioner discretion to revoke self-insurance authority. new text end

new text begin The
commissioner of commerce must amend Minnesota Rules, part 2770.7300, to permit, in
lieu of require, the commissioner to revoke a self-insurer's authorization to self-insure based
on the commissioner's determinations under Minnesota Rules, part 2770.7300, items A and
B.
new text end

new text begin Subd. 5. new text end

new text begin Expedited rulemaking authorized. new text end

new text begin The commissioner of commerce may use
the expedited rulemaking process under Minnesota Statutes, section 14.389, to amend rules
under this section.
new text end