2002 Minnesota Statutes

     62I.13 Action by the Minnesota joint underwriting 
  association upon the application. 

    Subdivision 1.    Generally.  To be eligible to 
 participate in the association, an applicant must apply for 
 coverage through the market assistance program, as required by 
 section 62I.08.  Except as provided by subdivision 4, the market 
 assistance program has 30 days from the receipt of the 
 application to secure an offer of coverage for the applicant.  
 If the market assistance program is able to secure an offer of 
 coverage for the applicant and if the offer of coverage would 
 not be considered a refusal for purposes of the association, 
 then coverage may not be extended by the association.  
 Eligibility for coverage by the association is also subject to 
 the terms and conditions of subdivisions 2 and 3. 

    Subd. 2.    Minimum of qualifications.  Anyone who is 
 unable to obtain insurance in the private market and who so 
 certifies to the association in the application is eligible to 
 make written application to the association for coverage.  The 
 application may require information as provided in section 
 62I.08.  Payment of the applicable premium or required portion 
 of it must be paid prior to coverage by the association.  An 
 offer of coverage at a rate in excess of the rate that would be 
 charged by the association for similar coverage and risk shall 
 be deemed to be a refusal of coverage for purposes of 
 eligibility for participation in the association.  It shall not 
 be deemed to be a written notice of refusal if the rate for 
 coverage offered is less than ten percent in excess of the joint 
 underwriting association rates for similar coverage and risk or 
 20 percent in excess of the joint underwriting association rates 
 for liquor liability coverages.  However, the offered rate must 
 also be the rate that the insurer has filed with the department 
 of commerce if the insurer is required to file its rates with 
 the department.  If the insurer is not required to file its 
 rates with the department, the offered rate must be the rate 
 generally charged by the insurer for similar coverage and risk. 

    Subd. 3.    Disqualifying factors.  For good cause, 
 coverage may be denied or terminated by the association.  Good 
 cause may exist if the applicant or insured:  (1) has an 
 outstanding debt due or owing to the association at the time of 
 application or renewal arising from a prior policy; (2) refuses 
 to permit completion of an audit requested by the commissioner 
 or administrator; (3) submits misleading or erroneous 
 information to the commissioner or administrator; (4) disregards 
 safety standards, laws, rules or ordinance pertaining to the 
 risk being insured; (5) fails to supply information requested by 
 the commissioner or administrator; (6) fails to comply with the 
 terms of the policies or contracts for coverage issued by the 
 association; and (7) has not satisfied the requirements of the 
 market assistance program as set forth in section 62I.09. 

    Subd. 4.    Disqualification after coverage granted.  If 
 an application is filed with the market assistance program less 
 than 30 business days before the expiration of the applicant's 
 current insurance coverage, the market assistance program may 
 continue to seek coverage for the applicant after coverage is 
 extended by the association.  The market assistance program will 
 have 30 business days from the date of filing the application 
 with the market assistance program to obtain an offer of 
 coverage for the applicant.  If the market assistance program is 
 able to secure an offer of coverage for the applicant within 30 
 business days of filing of the application and if the offer of 
 coverage would not otherwise be considered refusal for purposes 
 of the association, the applicant will be deemed to be not 
 qualified to participate in the association plan and coverage, 
 if any, shall be terminated. 

    Subd. 5.    Notice.  An application for coverage under 
 the association must be granted or denied within ten days after 
 receipt by the administrator of a properly completed application 
 and any supplemental information requested by the 
 administrator.  Anyone covered by the association must be given 
 at least 30 days' notice of nonrenewal or cancellation of 
 coverage. 

    Subd. 6.    Authority to decline coverage.  
 Notwithstanding any order of the commissioner or inconsistent 
 provisions of this chapter, the board of directors may decline 
 to offer coverage to any class of business or a member of a 
 class of business upon a reasonable underwriting basis. 

    HIST: 1986 c 455 s 32; 1987 c 337 s 82; 1994 c 425 s 16; 1994 
 c 485 s 48,49