1997 Minnesota Statutes

     60C.05 Powers and duties. 

    Subdivision 1.  The association shall: 

    (a) Be deemed the insurer to the extent of its obligation 
 on the covered claims and have the right to pursue and retain 
 salvage and subrogation recoverables on covered claim 
 obligations to the extent paid or acknowledged in writing as an 
 obligation by the association.  The claims found by the board of 
 directors to be covered shall be paid out of available funds 
 after they have been approved or settled under sections 60B.45, 
 subdivision 2, and 60B.58, subdivision 2, or the corresponding 
 laws of another jurisdiction, subject to the board's power to 
 reduce the amount of or reject the award under section 60C.10. 

    (b) Allocate claims paid and expenses incurred among the 
 five accounts and assess member insurers separately for each 
 account the amounts necessary to pay the obligations of the 
 association under clause (a), the expenses of handling claims, 
 the cost of examinations under section 60C.15, and other 
 expenses authorized by this chapter. 

    (c) Notify claimants in this state as considered necessary 
 by the commissioner, to the extent records are available to the 
 association.  If sufficient information for notification by mail 
 is not available, notice by publication in a newspaper of 
 general circulation is sufficient. 

    (d) Handle claims through its employees or through one or 
 more insurers or other persons designated as servicing 
 facilities.  Designation of a servicing facility is subject to 
 the approval of the commissioner, but the designation may be 
 declined. 

    (e) Reimburse each servicing facility for obligations of 
 the association paid by the facility and for expenses incurred 
 by the facility while handling claims on behalf of the 
 association and shall pay the other expenses of the association 
 authorized by this chapter.  

    (f) Notify each member insurer of its assessment not later 
 than 30 days before it is due.  

    (g) Issue to each insurer paying an assessment under this 
 chapter a certificate of contribution, in a form prescribed by 
 the commissioner, for the amount so paid.  All outstanding 
 certificates shall be of equal dignity and priority without 
 reference to amounts or dates of issue.  A certificate of 
 contribution may be shown by the insurer in its financial 
 statement as an asset in the form and for the amount, if any, 
 and period of time the commissioner approves. 

    (h) Have the right to appoint or substitute and to direct 
 legal counsel retained under liability insurance policies for 
 the defense of covered claims. 

    Subd. 2.  The association may: 

    (a) Employ or retain the persons necessary to handle claims 
 and perform other duties of the association.  

    (b) Borrow funds necessary to effect the purposes of Laws 
 1971, chapter 145, in accord with the plan of operation.  

    (c) Sue or be sued.  

    (d) Negotiate and become a party to the contracts necessary 
 to carry out the purpose of Laws 1971, chapter 145.  

    (e) Perform other acts necessary or proper to effectuate 
 the purpose of Laws 1971, chapter 145.  

    (f) Subject to section 60C.06, subdivision 6, refund to the 
 member insurers in proportion to the contribution of each member 
 insurer to that account the amount by which the assets of the 
 account exceed the liabilities, if at the end of the calendar 
 year the board of directors finds that the assets of the 
 association in any account exceed the liabilities of that 
 account as estimated by the board of directors for the coming 
 year.  

    (g) Request the court to disapprove or modify any claim for 
 which approval is sought under the provisions of section 60B.45, 
 subdivision 2, or 60B.58, subdivision 2. 

    HIST: 1971 c 145 s 5; 1976 c 185 s 5; 1985 c 255 s 6; 1988 c 
 541 s 5,6; 1997 c 52 s 5