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Key: (1) language to be deleted (2) new language


                         Laws of Minnesota 1983 

                        CHAPTER 154--H.F.No. 608
           An act relating to insurance; accident and health; 
          exempting administrators of self-insured health plans 
          established by collective bargaining agreement from 
          certain regulatory provisions; amending Minnesota 
          Statutes 1982, section 60A.23, subdivision 8. 
    Section 1.  Minnesota Statutes 1982, section 60A.23, 
subdivision 8, is amended to read: 
RISK MANAGEMENT SERVICES.] (1) [SCOPE.] This subdivision applies 
to any vendor of risk management services and to any entity 
which administers, for compensation, a self insurance plan.  
This subdivision shall does not apply (a) to an insurance 
company authorized to transact insurance in this state, as 
defined by section 60A.06, subdivision 1, clauses (4) and (5); 
(b) to a service plan corporation, as defined by section 62C.02, 
subdivision 6; (c) to a health maintenance organization, as 
defined by section 62D.02, subdivision 4; (d) to an employer 
directly operating a self-insurance plan for its employees' 
benefits or; (e) to a nonprofit insurance trust administered and 
operated for the benefit of employer participants and 
established prior to January 1, 1979 or; (f) to an entity which 
administers a program of health benefits established pursuant to 
a collective bargaining agreement between an employer, or group 
or association of employers, and a union or unions. 
    (2) [DEFINITIONS.] For purposes of this subdivision the 
following terms have the meanings given them. 
    (a) "Administering a self-insurance plan" means (i) 
processing, reviewing or paying claims, (ii) establishing or 
operating funds and accounts, or (iii) otherwise providing 
necessary administrative services in connection with the 
operation of a self-insurance plan. 
    (b) "Employer" means an employer, as defined by section 
62E.02, subdivision 2. 
    (c) "Entity" means any association, corporation, 
partnership, sole proprietorship, trust, or other business 
entity engaged in or transacting business in this state. 
    (d) "Self-insurance plan" means a plan providing life, 
medical or hospital care, accident, sickness or disability 
insurance, as an employee fringe benefit, which is not directly 
insured or provided by a licensed insurer, service plan 
corporation, or health maintenance organization. 
    (e) "Vendor of risk management services" means an entity 
providing for compensation actuarial, financial management, 
accounting, legal or other services for the purpose of designing 
and establishing a self-insurance plan for an employer. 
    (3) [LICENSE.] No vendor of risk management services or 
entity administering a self-insurance plan may transact such 
that business in this state unless it is licensed to do so by 
the commissioner.  An applicant for a license shall state in 
writing the type of activities it seeks authorization to engage 
in and the type of services it seeks authorization to provide.  
The license shall may be granted only when the commissioner is 
satisfied that the entity possesses the necessary organization, 
background, expertise, and financial integrity to supply the 
services sought to be offered.  The commissioner may issue a 
license subject to restrictions or limitations upon the 
authorization, including the type of services which may be 
supplied or the activities which may be engaged in.  The license 
fee shall be is $100.  All licenses are for a period of two 
To assure that self-insurance plans are financially solvent, are 
administered in a fair and equitable fashion, and are processing 
claims and paying benefits in a prompt, fair, and honest manner, 
vendors of risk management services and entities administering 
self-insurance plans are subject to the supervision and 
examination by the commissioner.  Vendors of risk management 
services, entities administering self-insurance plans, and 
self-insurance plans established or operated by them are subject 
to the trade practice requirements of sections 72A.19 to 72A.30. 
    (5) [RULE MAKING AUTHORITY.] To carry out the purposes of 
this subdivision, the commissioner may promulgate administrative 
adopt rules, including emergency rules, pursuant to sections 
14.01 to 14.70.  These rules may: 
     (a) Establish reporting requirements for administrators of 
self-insurance plans; 
    (b) Establish standards and guidelines to assure the 
adequacy of financing, reinsuring, and administration of 
self-insurance plans; 
    (c) Establish bonding requirements or other provisions 
assuring the financial integrity of entities administering 
self-insurance plans; or 
     (d) Establish other reasonable requirements to further the 
purposes of this subdivision. 
    Approved May 17, 1983

Official Publication of the State of Minnesota
Revisor of Statutes