2004 Minnesota Statutes

     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 $50.  

    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.  

    HIST: 1981 c 346 s 33; 1Sp1985 c 10 s 73; 1986 c 444