60C.05 POWERS AND DUTIES.
Subdivision 1. Required duties.
The association shall:
(a) Be deemed the insurer to the extent of its obligation on the covered claims and have the
right to pursue and retain salvage and subrogation recoverables on covered claim obligations to
the extent paid or acknowledged in writing as an obligation by the association.
The association shall not be deemed the insolvent insurer for any purpose relating to the
issue of whether the association is amenable to the personal jurisdiction of the courts of any state.
(b) Allocate claims paid and expenses incurred among the five accounts and assess member
insurers separately for each account the amounts necessary to pay the obligations of the
association under clause (a), the expenses of handling claims, the cost of examinations under
, and other expenses authorized by this chapter.
(c) Notify claimants in this state as considered necessary by the commissioner, to the extent
records are available to the association. If sufficient information for notification by mail is not
available, notice by publication in a newspaper of general circulation is sufficient.
(d) Handle claims through its employees or through one or more insurers or other persons
designated as servicing facilities. Designation of a servicing facility is subject to the approval of
the commissioner, but the designation may be declined.
(e) Reimburse each servicing facility for obligations of the association paid by the facility
and for expenses incurred by the facility while handling claims on behalf of the association and
shall pay the other expenses of the association authorized by this chapter.
(f) Notify each member insurer of its assessment not later than 30 days before it is due.
(g) Issue to each insurer paying an assessment under this chapter a certificate of contribution,
in a form prescribed by the commissioner, for the amount so paid. All outstanding certificates
shall be of equal dignity and priority without reference to amounts or dates of issue. A certificate
of contribution may be shown by the insurer in its financial statement as an asset in the form and
for the amount, if any, and period of time the commissioner approves.
(h) Have the right to appoint or substitute and to direct legal counsel retained under insurance
policies for the defense of covered claims.
Subd. 2. Authorized powers.
The association may:
(a) Employ or retain the persons necessary to handle claims and perform other duties of
(b) Borrow funds necessary to effect the purposes of this chapter, in accord with the plan of
(c) Sue or be sued.
(d) Negotiate and become a party to the contracts necessary to carry out the purpose of
(e) Perform other acts necessary or proper to effectuate the purpose of this chapter.
(f) Subject to section
60C.06, subdivision 6
, refund to the member insurers in proportion to
the contribution of each member insurer to that account the amount by which the assets of the
account exceed the liabilities, if at the end of the calendar year the board of directors finds that
the assets of the association in any account exceed the liabilities of that account as estimated
by the board of directors for the coming year.
(g) Request the court to disapprove or modify any claim for which approval is sought under
the provisions of section
60B.45, subdivision 2
60B.58, subdivision 2
History: 1971 c 145 s 5; 1976 c 185 s 5; 1985 c 255 s 6; 1988 c 541 s 5,6; 1997 c 52 s
5; 2003 c 74 s 4