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A joint self-insurance plan must include aggregate excess stop-loss coverage and individual
excess stop-loss coverage provided by an insurance company licensed by the state of Minnesota.
Aggregate excess stop-loss coverage must include provisions to cover the excess claims of
incurred, unpaid claim liability even in the event of plan termination. The joint plan must bear the
risk of coverage for any member of the pool that becomes insolvent with outstanding contribution
due by providing a surety bond from a Minnesota licensed surety in the amount of one year's
contribution. In addition, the plan of self-insurance must have participants fund an amount at
least equal to the point at which the excess or stop-loss insurer must assume 100 percent of the
excess coverage limits of additional liability. A joint self-insurance plan must submit its proposed
excess or stop-loss insurance contract to the commissioner of commerce at least 30 days prior
to the proposed plan's effective date and at least 30 days subsequent to any renewal date. The
commissioner shall review the contract to determine if it meets the standards established by this
chapter and respond within a 30-day period. An excess or stop-loss insurance plan must be
noncancelable for a minimum term of one year.
History: 1987 c 337 s 35