2000 Minnesota Statutes

     60A.201 Placement of insurance by licensee. 

    Subdivision 1.    Restrictions.  Insurance shall not be 
 placed by the surplus lines licensee with an eligible or 
 ineligible surplus lines insurer when coverage is available from 
 a licensed insurer.  

    Subd. 2.    Availability of other coverage; presumption. 
  There shall be a rebuttable presumption that the following 
 coverages are available from a licensed insurer:  

    (a) All mandatory automobile insurance coverages required 
 by chapter 65B; 

    (b) Private passenger automobile physical damage coverage; 

    (c) Homeowners and property insurance on owner occupied 
 dwellings whose value is less than $500,000.  This figure shall 
 be changed annually by the commissioner by the same percentage 
 as the consumer price index for the Minneapolis-St. Paul 
 metropolitan area is changed; 

    (d) Any coverage readily available from three or more 
 licensed insurers unless the licensed insurers quote a premium 
 and terms not competitive with a premium and terms quoted by an 
 eligible surplus lines insurer; and 

    (e) Workers' compensation insurance, except excess workers' 
 compensation insurance which is not available from the workers' 
 compensation reinsurance association.  

    Subd. 3.    Unavailability of other coverage; presumption. 
  There shall be a rebuttable presumption that the following 
 coverages are unavailable from a licensed insurer:  

    (a) Coverages on a list of unavailable coverages maintained 
 by the commissioner pursuant to subdivision 4; 

    (b) Coverages where one portion of the risk is acceptable 
 to licensed insurers but another portion of the same risk is not 
 acceptable.  The entire coverage may be placed with eligible 
 surplus lines insurers if it can be shown that the eligible 
 surplus lines insurer will accept the entire coverage but not 
 the rejected portion alone; and 

    (c) Any coverage that the licensee is unable to procure 
 after diligent search among licensed insurers.  

    Subd. 4.    Lists of unavailable lines of insurance; 
 maintenance.  The commissioner shall maintain on a current 
 basis a list of those lines of insurance for which coverages are 
 believed by the commissioner to be generally unavailable from 
 licensed insurers.  The commissioner shall republish a list and 
 make it available to all licensees at least annually.  Any 
 person may request in writing that the commissioner add or 
 remove coverage from the current list at the next publication of 
 the list.  The commissioner's determinations of coverages to be 
 added to or removed from the list shall not be subject to the 
 Administrative Procedure Act but prior to making determinations 
 the commissioner shall provide opportunity for comment from 
 interested parties.  

    HIST: 1981 c 221 s 6; 1992 c 564 art 1 s 21