2007 Minnesota Statutes

62H.02 REQUIRED PROVISIONS.
    (a) 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.
    (b) Aggregate excess stop-loss coverage must include provisions to cover incurred, unpaid
claim liability in the event of plan termination.
    (c) The plan of self-insurance must have participating employers fund an amount at least
equal to the point at which the excess or stop-loss insurer has contracted to assume 100 percent
of additional liability.
    (d) 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 they meet the standards established by sections 62H.01 to 62H.08 and
respond within a 30-day period.
    (e) Any excess or stop-loss insurance plan must contain a provision that the excess or
stop-loss insurer will give the plan and the commissioner of commerce a minimum of 180 days'
notice of termination or nonrenewal. If the plan fails to secure replacement coverage within 60
days after receipt of the notice of cancellation or nonrenewal, the commissioner shall issue an
order providing for the orderly termination of the plan.
    (f) The commissioner may waive the requirements of this section and of any rule relating to
the requirements of this section, if the commissioner determines that a joint self-insurance plan
has established alternative arrangements that fully fund the plan's liability or incurred but unpaid
claims. The commissioner may not waive the requirement that a joint self-insurance plan have
excess stop-loss coverage.
History: 1983 c 241 s 2; 1983 c 289 s 114 subd 1; 1984 c 655 art 1 s 92; 1987 c 337 s 75;
2004 c 288 art 6 s 5; 2007 c 147 art 12 s 3