SF 2713

as introduced - 88th Legislature (2013 - 2014) Posted on 03/18/2014 09:29am

A bill for an act
relating to workers' compensation insurance; limiting the insurer's permissible
administrative expenses; amending Minnesota Statutes 2012, section 79.561,
subdivision 1.

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

Section 1.

Minnesota Statutes 2012, section 79.561, subdivision 1, is amended to read:

Subdivision 1.

Disapproval; time period.

The commissioner may disapprove a rate
and rating plan or amendment thereto prior to its effective date, as provided under section
79.56, subdivision 1, if the commissioner determines that it is excessive, inadequate, or
unfairly discriminatory. If the commissioner disapproves any rate or rating plan filing or
amendment thereto, the commissioner shall advise the filing insurer what rate and rating
plan the commissioner has reason to believe would be in compliance with section 79.55,
and the reasons for that determination. An insurer may not implement a rate and rating
plan or amendment thereto which has been disapproved under this subdivision. If the
commissioner disapproves any rate and rating plan filing or amendment thereto, an insurer
may use its current rate and rating plan for writing any workers' compensation insurance in
this state. Following any disapproval, the commissioner and insurer may reach agreement
on a rate or rating plan filing or amendment thereto new text begin , provided that the insurer's expected
administrative expenses do not exceed 20 percent of the insurer's expected total revenues new text end .
Notwithstanding any law to the contrary, in such cases, the rate or rating plan filing or
amendment thereto may be implemented by the insurer immediately.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2015, and applies to rates
and rating plans filed on or after that date.
new text end