Minnesota Legislature
Office of the Revisor of Statutes
2006 Minnesota Statutes
This is an historical version of this statute chapter. Also view the most recent published version.
79A.10 ASSUMPTION OF WORKERS' COMPENSATION OBLIGATIONS OF
INSOLVENT SELF-INSURER.
Subdivision 1. Order of commissioner. Upon order of the commissioner pursuant to section
79A.04, subdivision 10, the security fund shall assume the workers' compensation obligations
of an insolvent private self-insurer.
Subd. 2. Act or omissions; penalties. Notwithstanding subdivision 1, the security fund shall
not be liable for the payment of any penalties assessed for any act or omission on the part of any
person other than the security fund or its appointed administrator, including, but not limited to,
the penalties provided in chapter 176 unless the security fund or its appointed administrator
would be subject to penalties under chapter 176 as the result of the actions of the security fund
or its administrator.
Subd. 3. Party in interest. The security fund shall be a party in interest in all proceedings
involving compensation claims against an insolvent self-insurer whose compensation obligations
have been paid or assumed by the security fund. The security fund shall have the same rights and
defenses as the insolvent private self-insurer, including, but not limited to, all of the following:
(1) to appear, defend, and appeal claims;
(2) to receive notice of, investigate, adjust, compromise, settle, and pay claims; and
(3) to investigate, handle, and deny claims.
Subd. 4. Payments to security fund. Notwithstanding anything in this chapter or chapter
176 to the contrary, in the event that the self-insurers' security fund assumes the obligations of any
bankrupt or insolvent private self-insurer pursuant to this section, then the proceeds of any surety
bond, Workers' Compensation Reinsurance Association, specific excess insurance or aggregate
excess insurance policy, and any special compensation fund payment or second injury fund or
supplementary benefit reimbursements shall be paid to the self-insurers' security fund instead of
the bankrupt or insolvent private self-insurer or its successor in interest. No special compensation
fund reimbursements shall be made to the security fund unless the special compensation fund
assessments pursuant to section 176.129 are paid and the reports required thereunder are made
to the special compensation fund.
History: 1988 c 674 s 10
INSOLVENT SELF-INSURER.
Subdivision 1. Order of commissioner. Upon order of the commissioner pursuant to section
79A.04, subdivision 10, the security fund shall assume the workers' compensation obligations
of an insolvent private self-insurer.
Subd. 2. Act or omissions; penalties. Notwithstanding subdivision 1, the security fund shall
not be liable for the payment of any penalties assessed for any act or omission on the part of any
person other than the security fund or its appointed administrator, including, but not limited to,
the penalties provided in chapter 176 unless the security fund or its appointed administrator
would be subject to penalties under chapter 176 as the result of the actions of the security fund
or its administrator.
Subd. 3. Party in interest. The security fund shall be a party in interest in all proceedings
involving compensation claims against an insolvent self-insurer whose compensation obligations
have been paid or assumed by the security fund. The security fund shall have the same rights and
defenses as the insolvent private self-insurer, including, but not limited to, all of the following:
(1) to appear, defend, and appeal claims;
(2) to receive notice of, investigate, adjust, compromise, settle, and pay claims; and
(3) to investigate, handle, and deny claims.
Subd. 4. Payments to security fund. Notwithstanding anything in this chapter or chapter
176 to the contrary, in the event that the self-insurers' security fund assumes the obligations of any
bankrupt or insolvent private self-insurer pursuant to this section, then the proceeds of any surety
bond, Workers' Compensation Reinsurance Association, specific excess insurance or aggregate
excess insurance policy, and any special compensation fund payment or second injury fund or
supplementary benefit reimbursements shall be paid to the self-insurers' security fund instead of
the bankrupt or insolvent private self-insurer or its successor in interest. No special compensation
fund reimbursements shall be made to the security fund unless the special compensation fund
assessments pursuant to section 176.129 are paid and the reports required thereunder are made
to the special compensation fund.
History: 1988 c 674 s 10
Official Publication of the State of Minnesota
Revisor of Statutes