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79.62 DATA SERVICE ORGANIZATIONS; LICENSING, EXAMINATION.
    Subdivision 1. License required. No data service organization shall provide any service
and no insurer shall use the services of a data service organization unless the organization is
licensed by the commissioner.
    Subd. 2. Procedure; application. A data service organization shall apply for a license in a
form and manner prescribed by the commissioner. The application of a data service organization
shall include:
(a) a copy of its constitution, articles of incorporation, bylaws, and other rules pertaining to
the conduct of its business;
(b) a plan and narrative describing how it will perform the activities required by section
79.61;
(c) a statement showing its technical qualifications; and
(d) any other information that the commissioner may reasonably require.
    Subd. 2a. Employer representation. The commissioner may appoint two representatives of
employers to serve on the board of directors of each licensed data service organization. These
directors serve for a term of two years and are entitled to vote on all matters under consideration.
    Subd. 3. Issuance. The commissioner, upon finding that the applicant organization is
qualified to provide the services required and proposed, or has contracted with a licensed data
service organization to purchase these services which are required by this chapter but are not
provided directly by the applicant, and that all requirements of law are met, shall issue a license.
Each license is subject to annual renewal effective June 30. Each new or renewal license
application must be accompanied by a fee of $1,000.
    Subd. 4. Suspension; revocation. The commissioner may, after a hearing on the record,
revoke or suspend the license of a data service organization if the commissioner finds that the
organization is not in compliance with the requirements of this chapter or rules issued thereunder.
    Subd. 5. Licensee examination. The commissioner may examine any licensed data service
organization or applicant for this license to determine whether its activities and practices comply
with law. The cost of the examination shall be paid by the examined organization pursuant to
section 60A.03.
History: 1981 c 346 s 33; 1Sp1985 c 10 s 73; 1986 c 444; 2005 c 132 s 28

Official Publication of the State of Minnesota
Revisor of Statutes