Minnesota Session Laws - 1988, Regular Session

  

                         Laws of Minnesota 1988 

                        CHAPTER 427-S.F.No. 1710 
           An act relating to insurance; clarifying powers of 
          state compensation insurance fund; amending Minnesota 
          Statutes 1987 Supplement, section 176A.04; proposing 
          coding for new law in Minnesota Statutes, chapter 176A.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1987 Supplement, section 
176A.04, is amended to read:  
    176A.04 [GENERAL POWERS.] 
    For the purpose of exercising the specific powers granted 
in this chapter and effectuating the other purposes of this 
chapter, the fund:  
    (a) may sue and be sued;  
    (b) may have a seal and alter it at will;  
    (c) may make, amend, and repeal rules relating to the 
conduct of the business of the fund;  
    (d) may enter into contracts relating to the administration 
of the fund;  
    (e) may rent, lease, buy, pledge, mortgage, or sell 
property in its own name and may construct or repair buildings 
necessary to provide space for its operations;  
    (f) may declare a dividend when there is an excess of 
assets over liabilities and minimum surplus requirements as 
consistent with chapter 60A;  
    (g) may pay medical expenses, rehabilitation expenses, 
compensation due claimants of insured employers, pay salaries, 
and pay administrative and other expenses;  
    (h) may hire personnel and set salaries and compensation; 
and 
    (i) may issue guaranty fund certificates, surplus notes or 
debentures payable out of surplus, borrow money, and agree to 
pay any rate of return with respect to any guaranty fund 
certificate, surplus note, debenture, or other instrument, 
calculated in any manner, and upon such other terms as the board 
of directors approve; and 
    (j) may perform all other functions and exercise all other 
powers of a domestic mutual insurance company that are 
necessary, appropriate, or convenient to administer the fund. 
    Sec. 2.  [176A.12] [GUARANTY FUND CERTIFICATES, SURPLUS 
NOTES OR DEBENTURES.] 
    Money advanced to the fund in connection with or pursuant 
to section 176A.11 shall be evidenced by guaranty fund 
certificates that permit the issuance of other guaranty fund 
certificates, surplus notes, debentures, or other instruments 
with equal rights to payment out of surplus of the fund, and in 
the event of any insufficiency, payments with respect to 
guaranty certificates may be made pro rata based on outstanding 
principal amounts of guaranty certificates, surplus notes, 
debentures, or other instruments with equal rights.  Any 
guaranty fund certificates or other instruments previously 
issued to evidence any money advanced to the fund in connection 
with or pursuant to section 176A.11 shall be exchanged by the 
commissioner of finance for restated certificates in form and 
substance consistent with section 176A.11 and this section in 
order to facilitate the issuance by the fund of other guaranty 
fund certificates, surplus notes, debentures, or other 
instruments as provided in this section.  Any amounts accrued 
but unpaid pursuant to the terms of any outstanding guaranty 
certificate, surplus note, debenture, or other instrument shall 
be deemed to be money advanced for the purposes of this chapter. 
    Sec. 3.  [INSTRUCTIONS TO REVISOR.] 
    The revisor of statutes is directed to change the phrase 
"state compensation insurance fund" wherever it appears in 
Minnesota Statutes to "state fund mutual insurance company" in 
the next and subsequent editions of the statutes. 
    Sec. 4.  [EFFECTIVE DATE.] 
    This act is effective the day following final enactment. 
    Approved March 29, 1988