2007 Minnesota Statutes

79.561 DISAPPROVAL OF RATES OR RATING PLANS.
    Subdivision 1. Disapproval; time period. The commissioner may disapprove a rate
and rating plan or amendment thereto prior to its effective date, as provided under section
79.56, subdivision 1, if the commissioner determines that it is excessive, inadequate, or
unfairly discriminatory. If the commissioner disapproves any rate or rating plan filing or
amendment thereto, the commissioner shall advise the filing insurer what rate and rating plan the
commissioner has reason to believe would be in compliance with section 79.55, and the reasons
for that determination. An insurer may not implement a rate and rating plan or amendment thereto
which has been disapproved under this subdivision. If the commissioner disapproves any rate
and rating plan filing or amendment thereto, an insurer may use its current rate and rating plan
for writing any workers' compensation insurance in this state. Following any disapproval, the
commissioner and insurer may reach agreement on a rate or rating plan filing or amendment
thereto. Notwithstanding any law to the contrary, in such cases, the rate or rating plan filing or
amendment thereto may be implemented by the insurer immediately.
    Subd. 2. Hearing. If an insurer's rate or rating plan filing or amendment thereto is
disapproved under subdivision 1, the insurer may request a contested case hearing under chapter
14. The insurer shall have the burden of proof to justify that its rate and rating plan or amendment
thereto is in compliance with section 79.55. The hearing must be scheduled promptly and in no
case later than three months from the date of disapproval or else the rate and rating plan or
amendment thereto shall be considered effective and may be implemented by the insurer. A
determination pursuant to chapter 14 must be made within 90 days following the closing of the
hearing record.
    Subd. 3. Consultants and costs. The commissioner may retain consultants, including a
consulting actuary or other experts, that the commissioner determines necessary for purposes of
this chapter. The salary limit set by section 43A.17 does not apply to a consulting actuary retained
under this subdivision. A consulting actuary shall be a fellow in the casualty actuarial society
and shall have demonstrated experience in workers' compensation insurance ratemaking. Any
individual not so qualified shall not render an opinion or testify on actuarial aspects of a filing,
including but not limited to, data quality, loss development, and trending. The commissioner may
determine the costs necessary for implementing and conducting a contested case hearing under
subdivision 2, including, but not limited to, retaining any consulting actuaries and experts, and
those costs shall be reimbursed by the special compensation fund.
History: 1995 c 231 art 1 s 11; 1996 c 452 s 28