2007 Minnesota Statutes

45.0135 DIVISION OF INSURANCE FRAUD PREVENTION.
    Subdivision 1.[Repealed, 2004 c 269 art 1 s 12]
    Subd. 2.[Repealed, 2004 c 269 art 1 s 12]
    Subd. 2a. Authorization. The commissioner may appoint peace officers, as defined in
section 626.84, subdivision 1, paragraph (c), and establish a law enforcement agency, as defined
in section 626.84, subdivision 1, paragraph (f), known as the Division of Insurance Fraud
Prevention, to conduct investigations, and to make arrests under sections 629.30 and 629.34. The
jurisdiction of the law enforcement agency is limited to offenses related to insurance fraud.
    Subd. 2b. Duties. The Division of Insurance Fraud Prevention shall:
(1) review notices and reports of insurance fraud submitted by authorized insurers, their
employees, and agents or producers;
(2) respond to notifications or complaints of suspected insurance fraud generated by other
law enforcement agencies, state or federal governmental units, or any other person;
(3) initiate inquiries and conduct investigations when the division has reason to believe that
insurance fraud has been or is being committed; and
(4) report incidents of alleged insurance fraud disclosed by its investigations to appropriate
law enforcement agencies, including, but not limited to, the attorney general, county attorneys, or
any other appropriate law enforcement or regulatory agency, and shall assemble evidence, prepare
charges, and otherwise assist any law enforcement authority having jurisdiction.
    Subd. 2c. Arrests and investigations. The initial processing of a person arrested by the
Division of Insurance Fraud Prevention for an offense within its jurisdiction is the responsibility
of the Division of Insurance Fraud Prevention unless otherwise directed by the law enforcement
agency with primary jurisdiction. Subsequent investigation shall be the responsibility of the
Division of Insurance Fraud Prevention unless otherwise directed by the law enforcement agency
with primary jurisdiction. At the request of the primary jurisdiction, the Division of Insurance
Fraud Prevention may assist in a subsequent investigation being carried out by the primary
jurisdiction.
    Subd. 2d. Policy for notice of investigations. The Division of Insurance Fraud Prevention
must develop a policy for notifying the law enforcement agency with primary jurisdiction when it
has initiated investigation of any person within the jurisdiction of that agency.
    Subd. 2e. Chief law enforcement officer. The commissioner shall appoint a peace officer
employed full time to be the chief law enforcement officer and to be responsible for the
management of the Division of Insurance Fraud Prevention. The chief law enforcement officer
shall possess the necessary police and management experience to manage a law enforcement
agency. The chief law enforcement officer may appoint, discipline, and discharge all employees
of the Division of Insurance Fraud Prevention. All police managerial and supervisory personnel
must be full-time employees of the Division of Insurance Fraud Prevention. Supervisory
personnel must be on duty and available any time peace officers of the Division of Insurance
Fraud Prevention are on duty.
    Subd. 2f. Compliance. Except as otherwise provided in this section, the Division of
Insurance Fraud Prevention shall comply with all statutes and administrative rules relating to the
operation and management of a law enforcement agency.
    Subd. 3. Evidence, documentation, and related materials. If the division seeks evidence,
documentation, and related materials pertinent to an investigation, and the matter is located
outside of this state, the division may designate representatives, including officials of the state
where the matter is located, to secure the matter or inspect the matter on its behalf.
    Subd. 4. Confidentiality and immunity. The provisions of chapter 13, including, but not
limited to, section 13.82, apply to the classification, disclosure, and collection of data relating to
the Division of Insurance Fraud Prevention.
    Subd. 5. Annual report on activities and cost-effectiveness. The Division of Insurance
Fraud Prevention shall maintain records and information in order to produce an annual report of its
activities as may be prescribed by the commissioner of commerce. The commissioner shall report
annually to the house and senate standing committees with jurisdiction over insurance issues as to
the activities of the division and the cost-effectiveness of the programs established by the division.
    Subd. 6. Insurance fraud prevention account. The insurance fraud prevention account is
created in the state treasury. Money received from assessments under subdivision 7 is deposited
in the account. Money in this fund is appropriated to the commissioner of commerce for the
purposes specified in this section and sections 60A.951 to 60A.956.
    Subd. 7. Assessment. Each insurer authorized to sell insurance in the state of Minnesota
shall remit an assessment to the commissioner for deposit in the insurance fraud prevention
account on or before June 1 of each year. The amount of the assessment shall be based on the
insurer's total assets and on the insurer's total written Minnesota premium, for the preceding fiscal
year, as reported pursuant to section 60A.13. The assessment is calculated as follows:

	Total Assets	Assessment
	Less than $100,000,000		$	200
	$100,000,000 to $1,000,000,000		$	750
	Over $1,000,000,000		$	2,000
	Minnesota Written Premium	Assessment
	Less than $10,000,000		$	200
	$10,000,000 to $100,000,000		$	750
	Over $100,000,000		$	2,000

For purposes of this subdivision, the following entities are not considered to be insurers
authorized to sell insurance in the state of Minnesota: risk retention groups; or township mutuals
organized under chapter 67A.
    Subd. 8. Investigations; health-related boards. (a) The Division of Insurance Fraud
Prevention may consult with the appropriate health-related board when a licensee, licensed under
chapter 144E, 147, 148, 148B, or 150A, is suspected of insurance fraud.
(b) The division shall, for any conviction involving or related to insurance, send copies of all
public data in its possession to the appropriate health-related licensing board.
History: 2002 c 331 s 1; 2004 c 269 art 1 s 2-9; 2005 c 10 art 2 s 4; 2005 c 77 s 1; 2005 c
147 art 11 s 1