1998 Minnesota Statutes

     65B.48 Reparation security compulsory. 

    Subdivision 1.  Every owner of a motor vehicle of a type 
 which is required to be registered or licensed or is principally 
 garaged in this state shall maintain during the period in which 
 operation or use is contemplated a plan of reparation security 
 under provisions approved by the commissioner, insuring against 
 loss resulting from liability imposed by law for injury and 
 property damage sustained by any person arising out of the 
 ownership, maintenance, operation or use of the vehicle.  The 
 plan of reparation security shall provide for basic economic 
 loss benefits and residual liability coverage in amounts not 
 less than those specified in section 65B.49, subdivision 3, 
 clauses (1) and (2).  The nonresident owner of a motor vehicle 
 which is not required to be registered or licensed, or which is 
 not principally garaged in this state, shall maintain such 
 security in effect continuously throughout the period of the 
 operation, maintenance or use of such motor vehicle within this 
 state with respect to accidents occurring in this state; such 
 security shall include coverage for property damage to a motor 
 vehicle rented or leased within this state by a nonresident. 

    Subd. 2.  The security required by sections 65B.41 to 
 65B.71 may be provided by a policy of insurance complying with 
 sections 65B.41 to 65B.71 which is issued by or on behalf of an 
 insurer authorized to transact business in this state or, if the 
 vehicle is registered in another state, by a policy of insurance 
 issued by or on behalf of an insurer authorized to transact 
 business in either this state or the state in which the vehicle 
 is registered or by qualifying as a self-insurer. 

    Subd. 3.  Self-insurance, subject to approval of the 
 commissioner, is effected by filing with the commissioner in 
 satisfactory form: 

    (1) a continuing undertaking by the owner or other 
 appropriate person to pay tort liabilities or basic economic 
 loss benefits, or both, and to perform all other obligations 
 imposed by sections 65B.41 to 65B.71; 

    (2) evidence that appropriate provision exists for prompt 
 administration of all claims, benefits, and obligations provided 
 by sections 65B.41 to 65B.71; 

    (3) evidence that reliable financial arrangements, 
 deposits, or commitments exist providing assurance, 
 substantially equivalent to that afforded by a policy of 
 insurance complying with sections 65B.41 to 65B.71, for payment 
 of tort liabilities, basic economic loss benefits, and all other 
 obligations imposed by sections 65B.41 to 65B.71; and 

    (4) a nonrefundable initial application fee of $500 and an 
 annual renewal fee of $100 for political subdivisions and $250 
 for nonpolitical entities.  

    Subd. 3a.  To carry out the purposes of subdivision 3, the 
 commissioner may adopt rules pursuant to chapter 14. These rules 
 may:  

    (a) establish reporting requirements; 

    (b) establish standards or guidelines to assure the 
 adequacy of the financing and administration of self-insurance 
 plans; 

    (c) establish bonding requirements or other provisions 
 assuring the financial integrity of entities that self-insure 
 other than bonding requirements for self-insuring political 
 subdivisions; and 

    (d) establish other reasonable requirements to further the 
 purposes of this section.  

    Subd. 4.  The state of Minnesota or any agency thereof and 
 any political subdivision of the state or agency thereof shall 
 provide security by lawfully obligating itself to pay benefits 
 in accordance with sections 65B.41 to 65B.71, either as a 
 self-insurer pursuant to subdivision 3, or through purchase of a 
 plan of reparation security. 

    Subd. 5.  Every owner of a motorcycle registered or 
 required to be registered in this state or operated in this 
 state by the owner or with the owner's permission shall provide 
 and maintain security for the payment of tort liabilities 
 arising out of the maintenance or use of the motorcycle in this 
 state.  Security may be provided by a contract of liability 
 insurance complying with section 65B.49, subdivision 3, or by 
 qualifying as a self insurer in the manner provided in 
 subdivision 3. 

    Subd. 6.  A person providing security pursuant to 
 subdivision 3 is a "self-insurer." 

    Subd. 7.  "Security covering the vehicle" is the insurance 
 or other security so provided.  The vehicle for which the 
 security is so provided is the "secured vehicle." 

    Subd. 8. Repealed, 1984 c 592 s 94 

    HIST: 1974 c 408 s 8; 1975 c 160 s 1; 1978 c 674 s 57; 1983 c 
 203 s 3,4; 1984 c 640 s 32; 1985 c 168 s 9; 1986 c 444; 1987 c 
 337 s 105; 1995 c 233 art 2 s 56; 1997 c 200 art 1 s 44