79A.25 Default of a commercial self-insurance group.
Subdivision 1. Notice of insolvency, bankruptcy, or default. The commissioner of labor and industry shall notify the commissioner and the commercial self-insurance group security fund if the commissioner of labor and industry has knowledge that any commercial self-insurance group has failed to pay workers' compensation benefits as required by chapter 176. If the commissioner determines that a court of competent jurisdiction has declared the commercial self-insurance group to be bankrupt or insolvent and the commercial self-insurance group has failed to pay workers' compensation as required by chapter 176 or if the commissioner issues a certificate of default against a commercial self-insurance group for failure to pay workers' compensation as required by chapter 176, then the security deposit posted by the commercial self-insurance group shall be utilized to administer and pay the commercial self-insurance group's workers' compensation obligation.
Subd. 2. Revocation of certificate to self-insure. (a) The commissioner shall revoke the commercial self-insurance group's certificate to self-insure once notified of the commercial self-insurance group's bankruptcy, insolvency, or upon issuance of a certificate of default. The revocation shall be completed as soon as practicable, but no later than 30 days after the commercial self-insurance group's security has been called.
(b) The commissioner shall also revoke a commercial self-insurance group's authority to self-insure on the following grounds:
(1) failure to comply with any lawful order of the commissioner;
(2) failure to comply with any provision of chapter 176;
(3) a deterioration of the commercial self-insurance group's financial condition affecting its ability to pay obligations in chapter 176;
(4) committing an unfair or deceptive act or practice as defined in section 72A.20; or
(5) failure to abide by the plan of operation of the workers' compensation reinsurance association.
Subd. 3. Notice by the commissioner. In the event of bankruptcy, insolvency, or certificate of default, the commissioner shall immediately notify by certified mail the state treasurer, the surety, the issuer of an irrevocable letter of credit, and any custodian of the security. At the time of notification, the commissioner shall also call the security and transfer and assign it to the commercial self-insurance group security fund. The commissioner shall also notify by certified mail the commercial self-insurance group's security fund and order the commercial security fund to assume the insolvent commercial self-insurance group's obligations for which it is liable under chapter 176.
HIST: 1995 c 231 art 2 s 34
Official Publication of the State of Minnesota
Revisor of Statutes