Skip to main content Skip to office menu Skip to footer
Capital IconMinnesota Legislature

Office of the Revisor of Statutes

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

                            CHAPTER 387-S.F.No. 3024 
                  An act relating to commerce; providing certain 
                  cosmetology definitions; regulating insurance 
                  coverages offered by, and continuing education and 
                  licensing requirements for, certain licensees; 
                  regulating the contractor's recovery fund; providing 
                  for the adoption and amendment of uniform conveyancing 
                  forms; making a technical correction in an 
                  appropriation to the department; regulating meetings 
                  of the assigned risk plan review board; amending 
                  Minnesota Statutes 2000, sections 62A.02, subdivision 
                  2, as amended; 62D.02, subdivision 8; 62D.30, 
                  subdivision 8, as added; 79.251, subdivision 1; 
                  79.252, subdivision 3; 82.20, subdivision 13; 82.22, 
                  subdivision 6; 82B.19, subdivision 1; 82B.21; 155A.03, 
                  by adding subdivisions; 155A.07, by adding a 
                  subdivision; 326.975, by adding subdivisions; 507.09; 
                  Minnesota Statutes 2001 Supplement, section 82.22, 
                  subdivision 13; Laws 2002, chapter 330, section 36; 
                  Laws 2002, chapter 336, section 5; proposing coding 
                  for new law in Minnesota Statutes, chapter 62D; 
                  Minnesota Rules, part 2765.1300, subparts 2, 5. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 2000, section 62A.02, 
        subdivision 2, as amended by Laws 2002, chapter 330, section 8, 
        is amended to read: 
           Subd. 2.  [APPROVAL.] (a) The health plan form shall not be 
        issued, nor shall any application, rider, endorsement, or rate 
        be used in connection with it, until the expiration of 60 days 
        after it has been filed unless the commissioner approves it 
        before that time.  
           (b) Notwithstanding paragraph (a), a rate filed with 
        respect to a policy of accident and sickness insurance as 
        defined in section 62A.01 by an insurer licensed under chapter 
        60A, may be used on or after the date of filing with the 
        commissioner.  Rates that are not approved or disapproved within 
        the 60-day time period are deemed approved.  This paragraph does 
        not apply to medicare-related coverage as defined in section 
        62A.31, subdivision 3, paragraph (q). 
           Sec. 2.  Minnesota Statutes 2000, section 62D.02, 
        subdivision 8, is amended to read: 
           Subd. 8.  [HEALTH MAINTENANCE CONTRACT.] "Health 
        maintenance contract" means any contract whereby a health 
        maintenance organization agrees to provide to enrollees 
        comprehensive health maintenance services to enrollees, provided 
        that and any other health care service set forth in the 
        contract.  The contract may contain reasonable enrollee 
        copayment cost-sharing provisions if the provisions meet the 
        requirements of section 62D.095.  An individual or group health 
        maintenance contract may contain the copayment and deductible 
        provisions specified in this subdivision.  Copayment and 
        deductible provisions in group contracts shall not discriminate 
        on the basis of age, sex, race, length of enrollment in the 
        plan, or economic status; and during every open enrollment 
        period in which all offered health benefit plans, including 
        those subject to the jurisdiction of the commissioners of 
        commerce or health, fully participate without any underwriting 
        restrictions, copayment and deductible provisions shall not 
        discriminate on the basis of preexisting health status.  In no 
        event shall the sum of the annual copayments and deductible 
        exceed the maximum out-of-pocket expenses allowable for a number 
        three qualified plan under section 62E.06, nor shall that sum 
        exceed $5,000 per family.  The annual deductible must not exceed 
        $1,000 per person.  The annual deductible must not apply to 
        preventive health services as described in Minnesota Rules, part 
        4685.0801, subpart 8.  Where sections 62D.01 to 62D.30 permit a 
        health maintenance organization to contain reasonable copayment 
        provisions for preexisting health status, these provisions may 
        vary with respect to length of enrollment in the plan.  Any 
        contract may provide for health care services in addition to 
        those set forth in subdivision 7. 
           Sec. 3.  [62D.095] [ENROLLEE COST SHARING.] 
           Subdivision 1.  [GENERAL APPLICATION.] A health maintenance 
        contract may contain enrollee cost-sharing provisions as 
        specified in this section.  Co-payment and deductible provisions 
        in a group contract must not discriminate on the basis of age, 
        sex, race, disability, economic status, or length of enrollment 
        in the health plan.  During an open enrollment period in which 
        all offered health plans fully participate without any 
        underwriting restrictions, co-payment and deductible provisions 
        must not discriminate on the basis of preexisting health status. 
           Subd. 2.  [CO-PAYMENTS.] (a) A health maintenance contract 
        may impose a co-payment as authorized under Minnesota Rules, 
        part 4685.0801.  
           (b) If a health maintenance contract is permitted to impose 
        a co-payment for preexisting health status under sections 62D.01 
        to 62D.30, these provisions may vary with respect to length of 
        enrollment in the health plan.  
           Subd. 3.  [DEDUCTIBLES.] (a) A health maintenance contract 
        issued by a health maintenance organization that is assessed 
        less than three percent of the total annual amount assessed by 
        the Minnesota comprehensive health association may impose 
        deductibles not to exceed $3,000 per person, per year and $6,000 
        per family, per year.  For purposes of the percentage 
        calculation, a health maintenance organization's assessments 
        include those of its affiliates.  
           (b) All other health maintenance contracts may impose 
        deductibles not to exceed $2,250 per person, per year and $4,500 
        per family, per year.  
           Subd. 4.  [ANNUAL OUT-OF-POCKET MAXIMUMS.] (a) A health 
        maintenance contract issued by a health maintenance organization 
        that is assessed less than three percent of the total annual 
        amount assessed by the Minnesota comprehensive health 
        association must include a limitation not to exceed $4,500 per 
        person and $7,500 per family on total annual out-of-pocket 
        enrollee cost-sharing expenses.  For purposes of the percentage 
        calculation, a health maintenance organization's assessments 
        include those of its affiliates.  
           (b) All other health maintenance contracts must include a 
        limitation not to exceed $3,000 per person and $6,000 per family 
        on total annual out-of-pocket enrollee cost-sharing expenses.  
           Subd. 5.  [EXCEPTIONS.] No co-payments or deductibles may 
        be imposed on preventive health care services as described in 
        Minnesota Rules, part 4685.0801, subpart 8.  
           Sec. 4.  Minnesota Statutes 2000, section 62D.30, 
        subdivision 8, as added by Laws 2002, chapter 346, section 1, is 
        amended to read: 
           Subd. 8.  [RURAL DEMONSTRATION PROJECT.] (a) The 
        commissioner may permit demonstration projects to allow health 
        maintenance organizations to extend coverage to a health 
        improvement and purchasing coalition located in rural Minnesota, 
        comprised of the health maintenance organization and members 
        from a geographic area.  For purposes of this subdivision, rural 
        is defined as greater Minnesota excluding the seven-county 
        metropolitan area of Anoka, Carver, Dakota, Hennepin, Ramsey, 
        Scott, and Washington.  The coalition must be designed in such a 
        way that members will: 
           (1) become better informed about health care trends and 
        cost increases; 
           (2) be actively engaged in the design of health benefit 
        options that will meet the needs of their community; 
           (3) pool their insurance risk; 
           (4) purchase these products from the health maintenance 
        organization involved in the demonstration project; and 
           (5) actively participate in health improvement decisions 
        for their community. 
           (b) The commissioner must consider the following when 
        approving applications for rural demonstration projects: 
           (1) the extent of consumer involvement in development of 
        the project; 
           (2) the degree to which the project is likely to reduce the 
        number of uninsured or to maintain existing coverage; and 
           (3) a plan to evaluate and report to the commissioner and 
        legislature as prescribed by paragraph (e). 
           (c) For purposes of this subdivision, the commissioner must 
        waive compliance with the following statutes and rules:  the 
        cost-sharing restrictions under section 62D.02, subdivision 8, 
        which for purposes of this subdivision is the sum of the annual 
        copayments and deductible which is prohibited from exceeding the 
        maximum out-of-pocket expenses allowable for a number three 
        qualified plan under section 62E.06 or $5,000 per family and an 
        annual deductible of $1,000 per person 62D.095, subdivisions 2, 
        3, and 4, and Minnesota Rules, part 4685.0801, subparts 1 to 7; 
        for a period of at least two years, participation in government 
        programs under section 62D.04, subdivision 5, in the counties of 
        the demonstration project if that compliance would have been 
        required solely due to participation in the demonstration 
        project and shall continue to waive this requirement beyond two 
        years if the enrollment in the demonstration project is less 
        than 10,000 enrollees; small employer marketing under section 
        62L.05, subdivisions 1 to 3; and small employer geographic 
        premium variations under section 62L.08, subdivision 4.  The 
        commissioner shall approve enrollee cost-sharing features 
        desired by the coalition that appropriately share costs between 
        employers, individuals, and the health maintenance organization. 
           (d) The health maintenance organization may make the 
        starting date of the project contingent upon a minimum number of 
        enrollees as cited in the application, provide for an initial 
        term of contract with the purchasers of a minimum of three 
        years, and impose a reasonable penalty for employers who 
        withdraw early from the project.  For purposes of this 
        subdivision, loss ratios are to be determined as if the policies 
        issued under this section are considered individual or small 
        employer policies pursuant to section 62A.021, subdivision 1, 
        paragraph (f).  The health maintenance organization may consider 
        businesses of one to be a small employer under section 62L.02, 
        subdivision 26.  The health maintenance organization may limit 
        enrollment and establish enrollment criteria for businesses of 
        one.  Health improvement and purchasing coalitions under this 
        subdivision are not associations under section 62L.045, 
        subdivision 1, paragraph (a). 
           (e) The health improvement and purchasing coalition must 
        report to the commissioner and legislature annually on the 
        progress of the demonstration project and, to the extent 
        possible, any significant findings in the criteria listed in 
        clauses (1), (2), and (3) for the final report.  The coalition 
        must submit a final report five years from the starting date of 
        the project.  The final report must detail significant findings 
        from the project and must include, to the extent available, but 
        should not be limited to, information on the following: 
           (1) the extent to which the project had an impact on the 
        number of uninsured in the project area; 
           (2) the effect on health coverage premiums for groups in 
        the project's geographic area, including those purchasing health 
        coverage outside the health improvement and purchasing 
        coalition; and 
           (3) the degree to which health care consumers were involved 
        in the development and implementation of the demonstration 
        project. 
           (f) The commissioner must limit the number of demonstration 
        projects under this subdivision to five projects. 
           (g) Approval of the application for the demonstration 
        project is deemed to be in compliance with sections 62E.03 and 
        62E.06, subdivisions 1, paragraph (a), 2, and 3. 
           (h) Subdivisions 2 to 7 apply to demonstration projects 
        under this subdivision.  Waivers permitted under subdivision 1 
        do not apply to demonstration projects under this subdivision. 
           (i) If a demonstration project under this subdivision works 
        in conjunction with a purchasing alliance formed under chapter 
        62T, that chapter will apply to the purchasing alliance except 
        to the extent that chapter 62T is inconsistent with this 
        subdivision. 
           Sec. 5.  Minnesota Statutes 2000, section 79.251, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ASSIGNED RISK PLAN REVIEW BOARD GENERAL 
        DUTIES OF COMMISSIONER.] (1) An assigned risk plan review board 
        is created for the purposes of review of the operation of 
        section 79.252 and this section.  The board commissioner shall 
        have all the usual powers and authorities necessary for the 
        discharge of its the commissioner's duties under this section 
        and may contract with individuals in discharge of those duties.  
           (2) The board shall consist of six members to be appointed 
        by the commissioner of commerce.  Three members shall be 
        insureds holding policies or contracts of coverage issued 
        pursuant to subdivision 4.  Two members shall be insurers 
        licensed pursuant to section 60A.06, subdivision 1, clause (5), 
        paragraph (b).  The commissioner shall be the sixth member and 
        shall vote. 
           Initial appointments shall be made by September 1, 1981, 
        and terms shall be for three years duration.  Removal, the 
        filling of vacancies and compensation of the members other than 
        the commissioner shall be as provided in section 15.059.  
           (3) The assigned risk plan review board commissioner shall 
        audit the reserves established (a) for individual cases arising 
        under policies and contracts of coverage issued under 
        subdivision 4 and (b) for the total book of business issued 
        under subdivision 4.  
           (4) (2) The assigned risk plan review board commissioner 
        shall monitor the operations of section 79.252 and this section 
        and shall periodically make recommendations to the commissioner, 
        and to the governor and legislature when appropriate, for 
        improvement in the operation of those sections.  
           (5) (3) All insurers and self-insurance administrators 
        issuing policies or contracts under subdivision 4 shall pay to 
        the commissioner a .25 percent assessment on premiums for 
        policies and contracts of coverage issued under subdivision 4 
        for the purpose of defraying the costs of the assigned risk plan 
        review board performing the duties under clauses (1) and (2).  
        Proceeds of the assessment shall be deposited in the state 
        treasury and credited to the general fund. 
           (6) (4) The assigned risk plan and the assigned risk plan 
        review board shall not be deemed a state agency.  
           Sec. 6.  Minnesota Statutes 2000, section 79.252, 
        subdivision 3, is amended to read: 
           Subd. 3.  [COVERAGE.] (a) Policies and contracts of 
        coverage issued pursuant to section 79.251, subdivision 4, shall 
        contain the usual and customary provisions of workers' 
        compensation insurance policies, and shall be deemed to meet the 
        mandatory workers' compensation insurance requirements of 
        section 176.181, subdivision 2.  
           (b) Policies issued by the assigned risk plan pursuant to 
        this chapter may also provide workers' compensation coverage 
        required under the laws of states other than Minnesota, 
        including coverages commonly known as "all states coverage."  
        The assigned risk plan review board commissioner may apply for 
        and obtain any licensure required in any other state to issue 
        that coverage.  
           Sec. 7.  Minnesota Statutes 2000, section 82.20, 
        subdivision 13, is amended to read: 
           Subd. 13.  [LIMITED BROKER'S LICENSE.] (a) The commissioner 
        shall have the authority to issue a limited real estate broker's 
        license authorizing the licensee to engage in transactions as 
        principal only.  Such license shall be issued only after receipt 
        of the application described in subdivision 3 and payment of the 
        fee prescribed by section 82.21, subdivision 1.  No salesperson 
        may be licensed to act on behalf of an individual holding a 
        limited broker's license.  An officer of a corporation or 
        partner of a partnership licensed as a limited broker may act on 
        behalf of that corporation or partnership without being subject 
        to the licensing requirements. 
           (b) A limited broker's license shall also authorize the 
        licensee to engage in negotiation of mortgage loans, other than 
        residential mortgage loans, as described in section 82.17, 
        subdivision 4, clause (b). 
           Sec. 8.  Minnesota Statutes 2000, section 82.22, 
        subdivision 6, is amended to read: 
           Subd. 6.  [INSTRUCTION; NEW LICENSES.] (a) Every applicant 
        for a salesperson's license shall be required to successfully 
        complete a course of study in the real estate field consisting 
        of 30 hours of instruction approved by the commissioner before 
        taking the examination specified in subdivision 1.  Every 
        applicant for a salesperson's license shall be required to 
        successfully complete an additional course of study in the real 
        estate field consisting of 60 hours of instruction approved by 
        the commissioner, of which three hours shall consist of training 
        in state and federal fair housing laws, regulations, and rules, 
        and of which two hours must consist of training in laws and 
        regulations on agency representation and disclosure, before 
        filing an application for the license.  Every salesperson shall, 
        within one year of licensure, be required to successfully 
        complete a course of study in the real estate field consisting 
        of 30 hours of instruction approved by the commissioner. 
           (b) The commissioner may approve courses of study in the 
        real estate field offered in educational institutions of higher 
        learning in this state or courses of study in the real estate 
        field developed by and offered under the auspices of the 
        national association of realtors, its affiliates, or private 
        real estate schools.  The commissioner shall not approve any 
        course offered by, sponsored by, or affiliated with any person 
        or company licensed to engage in the real estate business.  The 
        commissioner may by rule prescribe the curriculum and 
        qualification of those employed as instructors. 
           (c) An applicant for a broker's license must successfully 
        complete a course of study in the real estate field consisting 
        of 30 hours of instruction approved by the commissioner, of 
        which three hours shall consist of training in state and federal 
        fair housing laws, regulations, and rules.  The course must have 
        been completed within six 12 months prior to the date of 
        application for the broker's license. 
           (d) An applicant for a real estate closing agent's license 
        must successfully complete a course of study relating to closing 
        services consisting of eight hours of instruction approved by 
        the commissioner. 
           Sec. 9.  Minnesota Statutes 2001 Supplement, section 82.22, 
        subdivision 13, is amended to read: 
           Subd. 13.  [CONTINUING EDUCATION.] (a) After their first 
        renewal date, All real estate salespersons and all real estate 
        brokers shall be required to successfully complete 30 hours of 
        real estate continuing education, either as a student or a 
        lecturer, in courses of study approved by the commissioner, 
        during the initial license period and during each succeeding 
        24-month license period.  At least 15 of the 30 credit hours 
        must be completed during the first 12 months of the 24-month 
        licensing period.  Salespersons and brokers whose initial 
        license period extends more than 12 months are required to 
        complete 15 hours of real estate continuing education during the 
        initial license period.  Those licensees who will receive a 
        12-month license on July 1, 1995, because of the staggered 
        implementation schedule must complete 15 hours of real estate 
        continuing education as a requirement for renewal on July 1, 
        1996.  Licensees may not claim credit for continuing education 
        not actually completed as of the date their report of continuing 
        education compliance is filed. 
           (b) The commissioner shall adopt rules defining the 
        standards for course and instructor approval, and may adopt 
        rules for the proper administration of this subdivision.  The 
        commissioner may not approve a course which can be completed by 
        the student at home or outside the classroom without the 
        supervision of an instructor except accredited courses using new 
        delivery technology, including interactive technology, and the 
        Internet.  Courses in motivation, salesmanship, psychology, or 
        time management shall not be approved by the commissioner for 
        continuing education credit. 
           (c) Any program approved by Minnesota continuing legal 
        education shall be approved by the commissioner of commerce for 
        continuing education for real estate brokers and salespeople if 
        the program or any part thereof relates to real estate.  
           (d) As part of the continuing education requirements of 
        this section, the commissioner shall require that all real 
        estate brokers and salespersons receive: 
           (1) at least one hour of training during each license 
        period in courses in laws or regulations on agency 
        representation and disclosure; and 
           (2) at least one hour of training during each license 
        period in courses in state and federal fair housing laws, 
        regulations, and rules, other antidiscrimination laws, or 
        courses designed to help licensees to meet the housing needs of 
        immigrant and other underserved populations. 
           Clauses (1) and (2) do not apply to real estate 
        salespersons and real estate brokers engaged solely in the 
        commercial real estate business who file with the commissioner a 
        verification of this status along with the continuing education 
        report required under paragraph (a). 
           (e) The commissioner is authorized to establish a procedure 
        for renewal of course accreditation. 
           (f) Approved courses may be sponsored or offered by a 
        broker of a real estate company and may be held on the premises 
        of a company licensed under this chapter.  All course offerings 
        must be open to any interested individuals.  Access may be 
        restricted by the sponsor based on class size only.  Courses 
        must not be approved if attendance is restricted to any 
        particular group of people.  A broker must comply with all 
        continuing education rules prescribed by the commissioner. 
           (g) No more than one-half of the credit hours per licensing 
        period, including continuing education required under 
        subdivision 6, may be credited to a person for attending any 
        combination of courses either:  
           (1) sponsored by, offered by, or affiliated with a real 
        estate company or its agents; or 
           (2) offered using new delivery technology, including 
        interactive technology, and the Internet. 
           Sec. 10.  Minnesota Statutes 2000, section 82B.19, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [LICENSE RENEWALS.] A licensed real estate 
        appraiser shall present evidence satisfactory to the 
        commissioner of having met the continuing education requirements 
        of this chapter before the commissioner renews a license. 
           The basic continuing education requirement for renewal of a 
        license is the completion by the applicant either as a student 
        or as an instructor, during the immediately preceding term of 
        licensing, of at least 30 classroom hours of instruction in 
        courses or seminars that have received the approval of the 
        commissioner.  As part of the continuing education requirements 
        of this section, the commissioner shall require that all real 
        estate appraisers receive at least four seven hours of training 
        each license period in courses in laws or regulations on 
        standards of professional practice.  If the applicant's 
        immediately preceding term of licensing consisted of 12 or more 
        months, but fewer than 24 months, the applicant must provide 
        evidence of completion of 15 hours of instruction during the 
        license period.  If the immediately preceding term of licensing 
        consisted of fewer than 12 months, no continuing education need 
        be reported. 
           Sec. 11.  Minnesota Statutes 2000, section 82B.21, is 
        amended to read: 
           82B.21 [CLASSIFICATION OF SERVICES.] 
           A client or employer may retain or employ a licensed real 
        estate appraiser to act as a disinterested third party in giving 
        an unbiased estimate of value or analysis.  A client or employer 
        may also retain or employ a licensed real estate appraiser; to 
        provide a market analysis to facilitate the client's or 
        employer's objectives; or to perform a limited appraisal.  In 
        either case, The appraisal and the appraisal report must comply 
        with the provisions of this chapter and the uniform standards of 
        professional appraisal practice. 
           Sec. 12.  Minnesota Statutes 2000, section 155A.03, is 
        amended by adding a subdivision to read: 
           Subd. 14.  [LICENSED SALON.] "Licensed salon" means a salon 
        licensed in Minnesota. 
           Sec. 13.  Minnesota Statutes 2000, section 155A.03, is 
        amended by adding a subdivision to read: 
           Subd. 15.  [LICENSED SCHOOL.] "Licensed school" means a 
        school licensed in Minnesota. 
           Sec. 14.  Minnesota Statutes 2000, section 155A.07, is 
        amended by adding a subdivision to read: 
           Subd. 9.  [NONRESIDENT LICENSES.] Notwithstanding the 
        absence of a written reciprocal licensing agreement under 
        section 45.0292, a nonresident cosmetologist, manicurist, or 
        esthetician may be licensed in Minnesota if the individual has 
        completed cosmetology school in a state with the same or greater 
        school hour requirements, has an active license in that state, 
        and has passed the Minnesota-specific written operator 
        examination for cosmetologist, manicurist, or esthetician.  
        Licenses shall not be issued under this subdivision for managers 
        or instructors. 
           Sec. 15.  Minnesota Statutes 2000, section 326.975, is 
        amended by adding a subdivision to read: 
           Subd. 1a.  [LIMITATION.] Nothing may obligate the fund for 
        claims brought by: 
           (1) insurers or sureties under subrogation or similar 
        theories; or 
           (2) owners of residential property where the contracting 
        activity complained of was the result of a contract entered into 
        with a prior owner, unless the claim is brought and judgment 
        rendered for breach of the statutory warranty set forth in 
        chapter 327A. 
           Sec. 16.  Minnesota Statutes 2000, section 326.975, is 
        amended by adding a subdivision to read: 
           Subd. 1b.  [CONDOMINIUMS OR TOWNHOUSES.] For purposes of 
        this section, the owner or lessee of a condominium or townhouse 
        is considered an owner or lessee of residential property 
        regardless of the number of residential units per building. 
           Sec. 17.  Minnesota Statutes 2000, section 507.09, is 
        amended to read: 
           507.09 [FORMS APPROVED; AMENDMENTS.] 
           The several forms of deeds, mortgages, land contracts, 
        assignments, satisfactions, and other conveyancing instruments 
        prepared by the uniform conveyancing blanks commission and filed 
        by the commission with the secretary of state pursuant to Laws 
        1929, chapter 135, as amended by Laws 1931, chapter 34, are 
        approved and recommended for use in the state.  Such forms shall 
        be kept on file with and be preserved by the commissioner of 
        commerce as a public record.  The commissioner of commerce may 
        appoint an advisory task force on uniform conveyancing forms to 
        recommend to the commissioner of commerce amendments to existing 
        forms or the adoption of new forms.  The task force shall 
        expire, and the terms, compensation, and removal of members 
        shall be as provided in section 15.059.  The commissioner of 
        commerce may adopt amended or new forms consistent with the laws 
        of this state by complying with the procedures in section 
        14.386, paragraph (a), clauses (1) and (3).  Section 14.386, 
        paragraph (b), does not apply to these forms order. 
           Sec. 18.  Laws 2002, chapter 330, section 36, is amended to 
        read: 
           Sec. 36.  [EFFECTIVE DATE.] 
           Sections 7 and 30 are effective the day following final 
        enactment.  Section 3 is effective for dividends paid after 
        December 31, 2000.  Sections 8 and 9 are effective July 1, 2002. 
           Sec. 19.  Laws 2002, chapter 336, section 5, is amended to 
        read: 
           Sec. 5.  [APPROPRIATION.] 
           $70,000 is appropriated from the general fund to the 
        commissioner of commerce for the purpose of verifying premiums 
        in order to certify the $250,000 premium threshold under 
        Minnesota Statutes, section 79.56, subdivision 3.  The 
        appropriation is available until June 30, 2003, and shall become 
        part of the agency base for fiscal years 2004 and 2005. 
           Sec. 20.  Minnesota Rules, part 2765.1300, subpart 2, is 
        amended to read: 
           Subp. 2.  Individual excess.  A plan must have and maintain 
        individual excess stop-loss insurance, that provides for the 
        insurer to assume all liability in excess of $25,000 the per 
        person limit per year under all coverages the plan offers.  The 
        reporting period under this coverage must be no less than one 
        year after the fund year's conclusion.  A plan may must apply to 
        the commissioner for increasing a determination of the 
        individual excess stop-loss insurance limit, up to $50,000.  The 
        commissioner must approve this the application if the increased 
        limit would not be detrimental to the solvency and stability of 
        the plan, considering the plan's experience, size, surplus, and 
        other factors affecting financial integrity. 
           Sec. 21.  Minnesota Rules, part 2765.1300, subpart 5, is 
        amended to read: 
           Subp. 5.  Surety coverage.  A plan must have and maintain 
        the following language in its required aggregate excess 
        stop-loss insurance policy, unless the commissioner determines 
        that a policy with that language is not available in the market 
        for stop-loss coverage, in which case, the commissioner may 
        determine the requirements needed to obtain stop-loss coverage 
        and meet solvency requirements:  "The insurer shall, at the 
        commissioner's request, assume direct responsibility for the 
        plan's coverage and all other responsibilities under this 
        chapter and related statutes, if the plan becomes insolvent, 
        ceases operations without authorization, or otherwise fails to 
        fulfill its responsibilities under this chapter and related 
        statutes.  The insurer may attempt to collect reimbursement from 
        the plan or a member on whose behalf the insurer is called upon 
        to pay premium, pay claims, or incur other extraordinary 
        expenses.  However, the insurer must fulfill its 
        responsibilities under this section while any collection 
        attempts are pending.  The insurer's responsibilities extend to 
        all matters arising during or attributable to the policy period, 
        and do not terminate with the end of the policy period."  The 
        policy must not alter or qualify these terms to harm the plan's 
        rights materially. 
           Sec. 22.  [MEETINGS IN 2002; ASSIGNED RISK PLAN REVIEW 
        BOARD.] 
           The assigned risk plan review board must meet at least once 
        no later than December 31, 2002.  This section expires on that 
        date. 
           Sec. 23.  [EFFECTIVE DATES.] 
           Sections 7, 11 to 19, and 22 are effective the day 
        following final enactment.  Section 1 is effective July 1, 
        2002.  Sections 8 and 9 are effective the day following final 
        enactment, for licenses issued or renewed on or after that date. 
        Sections 2, 3, 4, 20, and 21 are effective August 1, 2002.  
        Sections 5 and 6 are effective January 1, 2003.  Section 10 is 
        effective September 1, 2003, for renewals on or after that date. 
           Presented to the governor May 20, 2002 
           Signed by the governor May 22, 2002, 1:19 p.m.

Official Publication of the State of Minnesota
Revisor of Statutes