2007 Minnesota Statutes

62F.04 AUTHORIZATION TO ISSUE INSURANCE.
    Subdivision 1. Commissioner's determination. If the commissioner determines after a
hearing that medical malpractice insurance cannot be made available for either physicians,
hospitals or other specific types of health care providers in the voluntary market, the commissioner
shall authorize the association to issue medical malpractice insurance on a primary basis for
physicians, hospitals or other health care providers. If the commissioner determines after a
hearing that insurance issued by the association can be made available in the voluntary market,
the commissioner shall revoke the association's authorization to issue that insurance which can be
made available.
    Subd. 1a.[Repealed, 2002 c 307 art 1 s 2]
    Subd. 2. Association's duty. If the association is authorized by the commissioner to issue
insurance, it shall:
(a) issue or cause to be issued insurance policies to applicants, including incidental
coverages, subject to limits as specified in the plan of operation but not to exceed $1,000,000 for
each claimant under one policy and $3,000,000 for all claimants under one policy in any one year;
(b) underwrite the insurance and adjust and pay losses with respect thereto, or appoint
service companies to perform those functions;
(c) assume reinsurance from its members; and
(d) cede reinsurance.
    Subd. 2a. Higher limits for long-term care providers. In addition to the policies described
in subdivision 2, the association may issue policies to long-term care providers who are members
of an activated class with limits not to exceed $2,000,000 for each claimant under one policy and
$4,000,000 for all claimants under one policy in any one year, provided that the association
finds that the applicant needs the higher limits in order to conduct its business. Prudent business
practice or mere desire to have higher limits is not a sufficient standard for the association to
issue such policies.
    Subd. 3. Avoidance of grave risk. Because the activities of certain persons or entities
present a risk that is so great, the association shall not offer insurance coverage to any person
or entity the board of directors of the association determines is outside the intended scope and
purpose of the association because of the gravity of the risk of offering insurance coverage.
History: 1976 c 242 s 5; 1986 c 444; 1986 c 455 s 18; 1996 c 446 art 1 s 44; 2002 c 307 art
1 s 1; 2004 c 212 s 1