1998 Minnesota Statutes

     79A.11 Reimbursement for obligations paid and assumed. 

    Subdivision 1.    Insolvent insurer.  The security fund 
 shall have the right and obligation to obtain reimbursement from 
 an insolvent private self-insurer up to the amount of the 
 private self-insurer's workers' compensation obligations paid 
 and assumed by the security fund, including reasonable 
 administrative and legal costs.  This right includes, but is not 
 limited to, a right to claim for wages and other necessities of 
 life advanced to claimants as subrogee of the claimants in any 
 action to collect against the private self-insurer as debtor. 

    Subd. 2.    Security deposits.  The security fund shall 
 have the right and obligation to obtain from the security 
 deposit of an insolvent private self-insurer the amount of the 
 private self-insurer's compensation obligations, including 
 reasonable administrative and legal costs, paid or assumed by 
 the security fund.  Reimbursement of administrative costs, 
 including legal costs, shall be subject to approval by a 
 majority of the security fund's voting trustees.  The security 
 fund shall be a party in interest in any action to obtain the 
 security deposit for the payment of compensation obligations of 
 an insolvent self-insurer. 

    Subd. 3.    Legal actions.  The security fund shall have 
 the right to bring an action against any person or entity to 
 recover compensation paid and liability assumed by the security 
 fund, including, but not limited to, any excess insurance 
 carrier of the insolvent private self-insurer, and any person or 
 entity whose negligence or breach of any obligation contributed 
 to any underestimation of the private self-insurer's total 
 accrued liability as reported to the commissioner. 

    Subd. 4.    Party in interest.  The security fund may be 
 a party in interest in any action brought by any other person 
 seeking damages resulting from the failure of an insolvent 
 private self-insurer to pay workers' compensation required 
 pursuant to this subdivision.  

    HIST: 1988 c 674 s 11