1.1 	A bill for an act
1.2 	relating to insurance; regulating agency terminations,
1.3 	coverages, fees, forms, disclosures, reports,
1.4 	information security, and premiums; amending Minnesota
1.5 	Statutes 2004, sections 59A.12, subdivision 2; 60A.14,
1.6 	subdivision 1; 60A.171, subdivision 11; 60A.23,
1.7 	subdivision 8; 60A.966; 60A.969; 62A.136; 62A.31,
1.8 	subdivision 1h; 62A.315; 62A.316; 62E.13, subdivision
1.9 	2; 62L.03, subdivision 3; 62Q.471; 65A.29, subdivision
1.10 	11; 65B.48, subdivision 3; 72A.20, subdivisions 13,
1.11 	36; 72A.201, subdivisions 3, 4; 79.40; 79.56,
1.12 	subdivisions 1, 3; 79.62, subdivision 3; 79A.04,
1.13 	subdivision 10; 79A.06, subdivision 5; 79A.12,
1.14 	subdivision 2; 79A.22, subdivision 11, by adding a
1.15 	subdivision; 176.191, subdivision 3; proposing coding
1.16 	for new law in Minnesota Statutes, chapter 60A;
1.17 	repealing Minnesota Statutes 2004, sections 61A.072,
1.18 	subdivision 2; 62E.03.
1.19 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.20 	Section 1. Minnesota Statutes 2004, section 59A.12,
1.21 	subdivision 2, is amended to read:
1.22 		Subdivision 1.Fees other than examination fees.  In
2.1 	addition to the fees and charges provided for examinations, the
2.2 	following fees must be paid to the commissioner for deposit in
2.3 	the general fund:
2.4 	(a) by township mutual fire insurance companies;
2.5 	(1) for filing certificate of incorporation $25 and
2.6 	amendments thereto, $10;
2.7 	(2) for filing annual statements, $15;
2.8 	(3) for each annual certificate of authority, $15;
2.9 	(4) for filing bylaws $25 and amendments thereto, $10;
2.10 	(b) by other domestic and foreign companies including
2.11 	fraternals and reciprocal exchanges;
2.12 	(1) for filing certified copy of certificate of articles of
2.13 	incorporation, $100;
2.14 	(2) for filing annual statement, $225;
2.15 	(3) for filing certified copy of amendment to certificate
2.16 	or articles of incorporation, $100;
2.17 	(4) for filing bylaws, $75 or amendments thereto, $75;
2.18 	(5) for each company's certificate of authority, $575,
2.19 	annually;
2.20 	(c) the following general fees apply:
2.21 	(1) for each certificate, including certified copy of
2.22 	certificate of authority, renewal, valuation of life policies,
2.23 	corporate condition or qualification, $25;
2.24 	(2) for each copy of paper on file in the commissioner's
2.25 	office 50 cents per page, and $2.50 for certifying the same;
2.26 	(3) for license to procure insurance in unadmitted foreign
2.27 	companies, $575;
2.28 	(4) for valuing the policies of life insurance companies,
2.29 	one cent per $1,000 of insurance so valued, provided that the
2.30 	fee shall not exceed $13,000 per year for any company.  The
2.31 	commissioner may, in lieu of a valuation of the policies of any
2.32 	foreign life insurance company admitted, or applying for
2.33 	admission, to do business in this state, accept a certificate of
2.34 	valuation from the company's own actuary or from the
2.35 	commissioner of insurance of the state or territory in which the
2.36 	company is domiciled;
3.1 	(5) for receiving and filing certificates of policies by
3.2 	the company's actuary, or by the commissioner of insurance of
3.3 	any other state or territory, $50;
3.4 	(6) for each appointment of an agent filed with the
3.5 	commissioner, $10;
3.6 	(7) for filing forms and rates, ~~$75~~ $90 per filing,
3.7 	~~which~~ or $75 per filing when submitted via electronic filing
3.8 	system.  Filing fees may be paid on a quarterly basis in
3.9 	response to an invoice.  Billing and payment may be made
3.10 	electronically;
3.11 	(8) for annual renewal of surplus lines insurer license,
3.12 	$300~~;~~
3.13 	~~(9) $250 filing fee for a large risk alternative rating~~
3.14 	~~option plan that meets the $250,000 threshold requirement~~.
3.15 	The commissioner shall adopt rules to define filings that
3.16 	are subject to a fee.

3.17 	Sec. 3. Minnesota Statutes 2004, section 60A.171,
3.18 	subdivision 11, is amended to read:
3.19 		Subd. 8.Self-insurance or insurance plan administrators
3.36 	who are vendors of risk management services.  (1)  [SCOPE.] This
4.1 	subdivision applies to any vendor of risk management services
4.2 	and to any entity which administers, for compensation, a
4.3 	self-insurance or insurance plan.  This subdivision does not
4.4 	apply (a) to an insurance company authorized to transact
4.5 	insurance in this state, as defined by section 60A.06,
4.6 	subdivision 1, clauses (4) and (5); (b) to a service plan
4.7 	corporation, as defined by section 62C.02, subdivision 6; (c) to
4.8 	a health maintenance organization, as defined by section 62D.02,
4.9 	subdivision 4; (d) to an employer directly operating a
4.10 	self-insurance plan for its employees' benefits; (e) to an
4.11 	entity which administers a program of health benefits
4.12 	established pursuant to a collective bargaining agreement
4.13 	between an employer, or group or association of employers, and a
4.14 	union or unions; or (f) to an entity which administers a
4.15 	self-insurance or insurance plan if a licensed Minnesota insurer
4.16 	is providing insurance to the plan and if the licensed insurer
4.17 	has appointed the entity administering the plan as one of its
4.18 	licensed agents within this state.
4.19 	(2)  [DEFINITIONS.] For purposes of this subdivision the
4.20 	following terms have the meanings given them.
4.21 	(a) "Administering a self-insurance or insurance plan"
4.22 	means (i) processing, reviewing or paying claims, (ii)
4.23 	establishing or operating funds and accounts, or (iii) otherwise
4.24 	providing necessary administrative services in connection with
4.25 	the operation of a self-insurance or insurance plan.
4.26 	(b) "Employer" means an employer, as defined by section
4.27 	62E.02, subdivision 2.
4.28 	(c) "Entity" means any association, corporation,
4.29 	partnership, sole proprietorship, trust, or other business
4.30 	entity engaged in or transacting business in this state.
4.31 	(d) "Self-insurance or insurance plan" means a plan
4.32 	providing life, medical or hospital care, accident, sickness or
4.33 	disability insurance for the benefit of employees or members of
4.34 	an association, or a plan providing liability coverage for any
4.35 	other risk or hazard, which is or is not directly insured or
4.36 	provided by a licensed insurer, service plan corporation, or
5.1 	health maintenance organization.
5.2 	(e) "Vendor of risk management services" means an entity
5.3 	providing for compensation actuarial, financial management,
5.4 	accounting, legal or other services for the purpose of designing
5.5 	and establishing a self-insurance or insurance plan for an
5.6 	employer.
5.7 	(3)  [LICENSE.] No vendor of risk management services or
5.8 	entity administering a self-insurance or insurance plan may
5.9 	transact this business in this state unless it is licensed to do
5.10 	so by the commissioner.  An applicant for a license shall state
5.11 	in writing the type of activities it seeks authorization to
5.12 	engage in and the type of services it seeks authorization to
5.13 	provide.  The license may be granted only when the commissioner
5.14 	is satisfied that the entity possesses the necessary
5.15 	organization, background, expertise, and financial integrity to
5.16 	supply the services sought to be offered.  The commissioner may
5.17 	issue a license subject to restrictions or limitations upon the
5.18 	authorization, including the type of services which may be
5.19 	supplied or the activities which may be engaged in.  The license
5.20 	fee is ~~$1,000~~ $1,500 for the initial application and
5.21 	~~$1,000~~ $1,500 for each ~~two-year~~ three-year renewal.  All
5.22 	licenses are for a period of ~~two~~ three years.
5.23 	(4)  [REGULATORY RESTRICTIONS; POWERS OF THE COMMISSIONER.]
5.24 	To assure that self-insurance or insurance plans are financially
5.25 	solvent, are administered in a fair and equitable fashion, and
5.26 	are processing claims and paying benefits in a prompt, fair, and
5.27 	honest manner, vendors of risk management services and entities
5.28 	administering insurance or self-insurance plans are subject to
5.29 	the supervision and examination by the commissioner.  Vendors of
5.30 	risk management services, entities administering insurance or
5.31 	self-insurance plans, and insurance or self-insurance plans
5.32 	established or operated by them are subject to the trade
5.33 	practice requirements of sections 72A.19 to 72A.30.  In lieu of
5.34 	an unlimited guarantee from a parent corporation for a vendor of
5.35 	risk management services or an entity administering insurance or
5.36 	self-insurance plans, the commissioner may accept a surety bond
6.1 	in a form satisfactory to the commissioner in an amount equal to
6.2 	120 percent of the total amount of claims handled by the
6.3 	applicant in the prior year.  If at any time the total amount of
6.4 	claims handled during a year exceeds the amount upon which the
6.5 	bond was calculated, the administrator shall immediately notify
6.6 	the commissioner.  The commissioner may require that the bond be
6.7 	increased accordingly.
6.8 	No contract entered into after July 1, 2001, between a
6.9 	licensed vendor of risk management services and a group
6.10 	authorized to self-insure for workers' compensation liabilities
6.11 	under section 79A.03, subdivision 6, may take effect until it
6.12 	has been filed with the commissioner, and either (1) the
6.13 	commissioner has approved it or (2) 60 days have elapsed and the
6.14 	commissioner has not disapproved it as misleading or violative
6.15 	of public policy.
6.16 	(5)  [RULEMAKING AUTHORITY.] To carry out the purposes of
6.17 	this subdivision, the commissioner may adopt rules pursuant to
6.18 	sections 14.001 to 14.69.  These rules may:
6.19 	(a) establish reporting requirements for administrators of
6.20 	insurance or self-insurance plans;
6.21 	(b) establish standards and guidelines to assure the
6.22 	adequacy of financing, reinsuring, and administration of
6.23 	insurance or self-insurance plans;
6.24 	(c) establish bonding requirements or other provisions
6.25 	assuring the financial integrity of entities administering
6.26 	insurance or self-insurance plans; or
6.27 	(d) establish other reasonable requirements to further the
6.28 	purposes of this subdivision.

6.29 	Sec. 5. Minnesota Statutes 2004, section 60A.966, is
6.30 	amended to read:
6.31 	60A.966 APPROVAL OF VIATICAL SETTLEMENTS CONTRACT FORMS.
6.32 	A viatical settlement provider or broker may not use a
6.33 	viatical settlement contract form in this state unless it has
6.34 	been filed with and approved by the commissioner.  A viatical
6.35 	settlement contract form filed with the commissioner is
6.36 	considered to have been approved if it has not been disapproved
7.1 	within 60 days of the filing.  The commissioner shall disapprove
7.2 	a viatical settlement contract form if, in the commissioner's
7.3 	opinion, the contract or contract provisions are unreasonable,
7.4 	contrary to the interests of the public, or otherwise misleading
7.5 	or unfair to the policy owner.

7.6 	Sec. 6. Minnesota Statutes 2004, section 60A.969, is
7.7 	amended to read:
7.8 	60A.969 DISCLOSURE.
7.9 	A viatical settlement provider or a broker shall disclose
7.10 	the following information to the viator no later than the
7.11 	date ~~the viatical settlement contract is signed by all~~
7.12 	~~parties~~ an application is given to the viator:
7.13 	(1) possible alternatives to viatical settlement contracts
7.14 	for persons with catastrophic or life threatening illnesses,
7.15 	including accelerated benefits offered by the issuer of the life
7.16 	insurance policy;
7.17 	(2) the fact that some or all of the proceeds of the
7.18 	viatical settlement may be taxable and that assistance should be
7.19 	sought from a personal tax advisor;
7.20 	(3) the fact that the viatical settlement may be subject to
7.21 	the claims of creditors;
7.22 	(4) the fact that receipt of a viatical settlement may
7.23 	adversely affect the recipients' eligibility for Medicaid or
7.24 	other government benefits or entitlements and that advice should
7.25 	be obtained from the appropriate agencies;
7.26 	(5) the policy owner's right to rescind a viatical
7.27 	settlement contract within 30 days of the date it is executed by
7.28 	all parties or 15 days of the receipt of the viatical settlement
7.29 	proceeds by the viator, whichever is less, as provided in
7.30 	section 60A.970, subdivision 3; and
7.31 	(6) the date by which the funds will be available to the
7.32 	viator and the source of the funds.

7.33 	Sec. 7. [60A.98] DEFINITIONS.
7.34 		Subdivision 1.Scope. For purposes of sections 60A.98
7.35 	and 60A.981, the terms defined in this section have the meanings
7.36 	given them.
8.1 		Subd. 2.Customer. "Customer" means a consumer who has a
8.2 	continuing relationship with a licensee under which the licensee
8.3 	provides one or more insurance products or services to the
8.4 	consumer that are to be used primarily for personal, family, or
8.5 	household purposes.
8.6 		Subd. 3.Customer information. "Customer information"
8.7 	means nonpublic personal information about a customer, whether
8.8 	in paper, electronic, or other form, that is maintained by or on
8.9 	behalf of the licensee.
8.10 		Subd. 4.Customer information systems. "Customer
8.11 	information systems" means the electronic or physical methods
8.12 	used to access, collect, store, use, transmit, protect, or
8.13 	dispose of customer information.
8.14 		Subd. 5.Licensee. "Licensee" means all licensed
8.15 	insurers, producers, and other persons licensed or required to
8.16 	be licensed, authorized or required to be authorized, or
8.17 	registered or required to be registered pursuant to the
8.18 	insurance laws of this state, except that "licensee" does not
8.19 	include a purchasing group or an ineligible insurer in regard to
8.20 	the surplus line insurance conducted pursuant to sections
8.21 	60A.195 to 60A.209.
8.22 		Subd. 6.Nonpublic financial information. "Nonpublic
8.23 	financial information" means:
8.24 	(1) personally identifiable financial information; and 
8.25 	(2) any list, description, or other grouping of consumers,
8.26 	and publicly available information pertaining to them, that is
8.27 	derived using any personally identifiable financial information
8.28 	that is not publicly available.
8.29 		Subd. 7.Nonpublic personal health
8.30 	information. "Nonpublic personal health information" means
8.31 	health information:
8.32 	(1) that identifies an individual who is the subject of the
8.33 	information; or 
8.34 	(2) with respect to which there is a reasonable basis to
8.35 	believe that the information could be used to identify an
8.36 	individual.
9.1 		Subd. 8.Nonpublic personal information. "Nonpublic
9.2 	personal information" means nonpublic financial information and
9.3 	nonpublic personal health information.
9.4 		Subd. 9.Personally identifiable financial
9.5 	information. "Personally identifiable financial information"
9.6 	means any information:
9.7 	(1) a consumer provides to a licensee to obtain an
9.8 	insurance product or service from the licensee;
9.9 	(2) about a consumer resulting from a transaction involving
9.10 	an insurance product or service between a licensee and a
9.11 	consumer; or 
9.12 	(3) the licensee otherwise obtains about a consumer in
9.13 	connection with providing an insurance product or service to
9.14 	that consumer.
9.15 		Subd. 10.Service provider. "Service provider" means a
9.16 	person that maintains, processes, or otherwise is permitted
9.17 	access to customer information through its provision of services
9.18 	directly to the licensee.

9.19 	Sec. 8. [60A.981] INFORMATION SECURITY PROGRAM.
9.20 		Subdivision 1.General requirements. Each licensee shall
9.21 	implement a comprehensive written information security program
9.22 	that includes administrative, technical, and physical safeguards
9.23 	for the protection of customer information.  The administrative,
9.24 	technical, and physical safeguards included in the information
9.25 	security program must be appropriate to the size and complexity
9.26 	of the licensee and the nature and scope of its activities.
9.27 		Subd. 2.Objectives. A licensee's information security
9.28 	program must be designed to:
9.29 	(1) ensure the security and confidentiality of customer
9.30 	information;
9.31 	(2) protect against any anticipated threats or hazards to
9.32 	the security or integrity of the information; and 
9.33 	(3) protect against unauthorized access to or use of the
9.34 	information that could result in substantial harm or
9.35 	inconvenience to any customer.
9.36 		Subd. 3.Examples of methods of development and
10.1 	implementation. The following actions and procedures are
10.2 	examples of methods of implementation of the requirements of
10.3 	subdivisions 1 and 2.  These examples are nonexclusive
10.4 	illustrations of actions and procedures that licensees may
10.5 	follow to implement subdivisions 1 and 2:
10.6 	(1) the licensee:
10.7 	(i) identifies reasonably foreseeable internal or external
10.8 	threats that could result in unauthorized disclosure, misuse,
10.9 	alteration, or destruction of customer information or customer
10.10 	information systems;
10.11 	(ii) assesses the likelihood and potential damage of these
10.12 	threats, taking into consideration the sensitivity of customer
10.13 	information; and 
10.14 	(iii) assesses the sufficiency of policies, procedures,
10.15 	customer information systems, and other safeguards in place to
10.16 	control risks;
10.17 	(2) the licensee:
10.18 	(i) designs its information security program to control the
10.19 	identified risks, commensurate with the sensitivity of the
10.20 	information, as well as the complexity and scope of the
10.21 	licensee's activities;
10.22 	(ii) trains staff, as appropriate, to implement the
10.23 	licensee's information security program; and 
10.24 	(iii) regularly tests or otherwise regularly monitors the
10.25 	key controls, systems, and procedures of the information
10.26 	security program.  The frequency and nature of these tests or
10.27 	other monitoring practices are determined by the licensee's risk
10.28 	assessment;
10.29 	(3) the licensee:
10.30 	(i) exercises appropriate due diligence in selecting its
10.31 	service providers; and 
10.32 	(ii) requires its service providers to implement
10.33 	appropriate measures designed to meet the objectives of this
10.34 	regulation, and, where indicated by the licensee's risk
10.35 	assessment, takes appropriate steps to confirm that its service
10.36 	providers have satisfied these obligations; and 
11.1 	(4) the licensee monitors, evaluates, and adjusts, as
11.2 	appropriate, the information security program in light of any
11.3 	relevant changes in technology, the sensitivity of its customer
11.4 	information, internal or external threats to information, and
11.5 	the licensee's own changing business arrangements, such as
11.6 	mergers and acquisitions, alliances and joint ventures,
11.7 	outsourcing arrangements, and changes to customer information
11.8 	systems.

11.9 	Sec. 9. [60A.982] UNFAIR TRADE PRACTICES.
11.10 	A violation of sections 60A.98 and 60A.981 is considered to
11.11 	be a violation of sections 72A.17 to 72A.32.

11.12 	Sec. 10. Minnesota Statutes 2004, section 62A.136, is
11.13 	amended to read:
11.14 	62A.136 DENTAL AND VISION PLAN COVERAGE.
11.15 	The following provisions do not apply to health plans as
11.16 	defined in section 62A.011, subdivision 3, clause (6),providing
11.17 	dental or vision coverage only:  sections 62A.041; 62A.0411;
11.18 	62A.047; 62A.149; 62A.151; 62A.152; 62A.154; 62A.155; 62A.17,
11.19 	subdivision 6; 62A.21, subdivision 2b; 62A.26; 62A.28; 62A.285;
11.20 	62A.30; 62A.304; 62A.3093; and 62E.16.

11.21 	Sec. 11. Minnesota Statutes 2004, section 62A.31,
11.22 	subdivision 1h, is amended to read:
11.23 		Subd. 1h.Limitations on denials, conditions, and pricing
11.24 	of coverage.  No health carrier issuing Medicare-related
11.25 	coverage in this state may impose preexisting condition
11.26 	limitations or otherwise deny or condition the issuance or
11.27 	effectiveness of any such coverage available for sale in this
11.28 	state, nor may it discriminate in the pricing of such coverage,
11.29 	because of the health status, claims experience, receipt of
11.30 	health care, medical condition, or age of an applicant where an
11.31 	application for such coverage is submitted prior to or during
11.32 	the six-month period beginning with the first day of the month
11.33 	in which an individual first enrolled for benefits under
11.34 	Medicare Part B.  This subdivision applies to each
11.35 	Medicare-related coverage offered by a health carrier regardless
11.36 	of whether the individual has attained the age of 65 years.  If
12.1 	an individual who is enrolled in Medicare Part B due to
12.2 	disability status is involuntarily disenrolled due to loss of
12.3 	disability status, the individual is eligible for another
12.4 	six-month enrollment period provided under this subdivision
12.5 	beginning the first day of the month in which the individual
12.6 	later becomes eligible for and enrolls again in Medicare Part
12.7 	B.  An individual who is or was previously enrolled in Medicare
12.8 	Part B due to disability status is eligible for another
12.9 	six-month enrollment period under this subdivision beginning the
12.10 	first day of the month in which the individual has attained the
12.11 	age of 65 years and either maintains enrollment in, or enrolls
12.12 	again in, Medicare Part B.  If an individual enrolled in
12.13 	Medicare Part B voluntarily disenrolls from Medicare Part B
12.14 	because the individual becomes ~~reemployed and is~~ enrolled under
12.15 	an employee welfare benefit plan, the individual is eligible for
12.16 	another six-month enrollment period, as provided in this
12.17 	subdivision, beginning the first day of the month in which the
12.18 	individual later becomes eligible for and enrolls again in
12.19 	Medicare Part B.

12.20 	Sec. 12. Minnesota Statutes 2004, section 62A.315, is
12.21 	amended to read:
12.22 	62A.315 EXTENDED BASIC MEDICARE SUPPLEMENT PLAN;
12.23 	COVERAGE.
12.24 	The extended basic Medicare supplement plan must have a
12.25 	level of coverage so that it will be certified as a qualified
12.26 	plan pursuant to section 62E.07, and will provide:
12.27 	(1) coverage for all of the Medicare Part A inpatient
12.28 	hospital deductible and coinsurance amounts, and 100 percent of
12.29 	all Medicare Part A eligible expenses for hospitalization not
12.30 	covered by Medicare;
12.31 	(2) coverage for the daily co-payment amount of Medicare
12.32 	Part A eligible expenses for the calendar year incurred for
12.33 	skilled nursing facility care;
12.34 	(3) coverage for the coinsurance amount or in the case of
12.35 	hospital outpatient department services paid under a prospective
12.36 	payment system, the co-payment amount, of Medicare eligible
13.1 	expenses under Medicare Part B regardless of hospital
13.2 	confinement, and the Medicare Part B deductible amount;
13.3 	(4) 80 percent of the usual and customary hospital and
13.4 	medical expenses and supplies described in section 62E.06,
13.5 	subdivision 1, not to exceed any charge limitation established
13.6 	by the Medicare program or state law, the usual and customary
13.7 	hospital and medical expenses and supplies, described in section
13.8 	62E.06, subdivision 1, while in a foreign country, and
13.9 	prescription drug expenses, not covered by Medicare;
13.10 	(5) coverage for the reasonable cost of the first three
13.11 	pints of blood, or equivalent quantities of packed red blood
13.12 	cells as defined under federal regulations under Medicare parts
13.13 	A and B, unless replaced in accordance with federal regulations;
13.14 	(6) 100 percent of the cost of immunizations and routine
13.15 	screening procedures for cancer, including mammograms and pap
13.16 	smears;
13.17 	(7) preventive medical care benefit:  coverage for the
13.18 	following preventive health services not covered by Medicare:
13.19 	(i) an annual clinical preventive medical history and
13.20 	physical examination that may include tests and services from
13.21 	clause (ii) and patient education to address preventive health
13.22 	care measures;
13.23 	(ii) ~~any one or a combination of the following~~ preventive
13.24 	screening tests or preventive services, the selection and 
13.25 	frequency of which is ~~considered~~ determined to be medically
13.26 	appropriate~~:~~by the attending physician.
13.27 	~~(A) fecal occult blood test and/or digital rectal~~
13.28 	~~examination;~~
13.29 	~~(B) dipstick urinalysis for hematuria, bacteriuria, and~~
13.30 	~~proteinuria;~~
13.31 	~~(C) pure tone (air only) hearing screening test~~
13.32 	~~administered or ordered by a physician;~~
13.33 	~~(D) serum cholesterol screening every five years;~~
13.34 	~~(E) thyroid function test;~~
13.35 	~~(F) diabetes screening;~~
13.36 	~~(iii) any other tests or preventive measures determined~~
14.1 	~~appropriate by the attending physician.~~
14.2 	Reimbursement shall be for the actual charges up to 100
14.3 	percent of the Medicare-approved amount for each service as if
14.4 	Medicare were to cover the service as identified in American
14.5 	Medical Association current procedural terminology (AMA CPT)
14.6 	codes to a maximum of $120 annually under this benefit.  This
14.7 	benefit shall not include payment for any procedure covered by
14.8 	Medicare;
14.9 	(8) at-home recovery benefit:  coverage for services to
14.10 	provide short-term at-home assistance with activities of daily
14.11 	living for those recovering from an illness, injury, or surgery:
14.12 	(i) for purposes of this benefit, the following definitions
14.13 	shall apply:
14.14 	(A) "activities of daily living" include, but are not
14.15 	limited to, bathing, dressing, personal hygiene, transferring,
14.16 	eating, ambulating, assistance with drugs that are normally
14.17 	self-administered, and changing bandages or other dressings;
14.18 	(B) "care provider" means a duly qualified or licensed home
14.19 	health aide/homemaker, personal care aide, or nurse provided
14.20 	through a licensed home health care agency or referred by a
14.21 	licensed referral agency or licensed nurses registry;
14.22 	(C) "home" means a place used by the insured as a place of
14.23 	residence, provided that the place would qualify as a residence
14.24 	for home health care services covered by Medicare.  A hospital
14.25 	or skilled nursing facility shall not be considered the
14.26 	insured's place of residence;
14.27 	(D) "at-home recovery visit" means the period of a visit
14.28 	required to provide at-home recovery care, without limit on the
14.29 	duration of the visit, except each consecutive four hours in a
14.30 	24-hour period of services provided by a care provider is one
14.31 	visit;
14.32 	(ii) coverage requirements and limitations:
14.33 	(A) at-home recovery services provided must be primarily
14.34 	services that assist in activities of daily living;
14.35 	(B) the insured's attending physician must certify that the
14.36 	specific type and frequency of at-home recovery services are
15.1 	necessary because of a condition for which a home care plan of
15.2 	treatment was approved by Medicare;
15.3 	(C) coverage is limited to:
15.4 	(I) no more than the number and type of at-home recovery
15.5 	visits certified as medically necessary by the insured's
15.6 	attending physician.  The total number of at-home recovery
15.7 	visits shall not exceed the number of Medicare-approved home
15.8 	health care visits under a Medicare-approved home care plan of
15.9 	treatment;
15.10 	(II) the actual charges for each visit up to a maximum
15.11 	reimbursement of $100 per visit;
15.12 	(III) $4,000 per calendar year;
15.13 	(IV) seven visits in any one week;
15.14 	(V) care furnished on a visiting basis in the insured's
15.15 	home;
15.16 	(VI) services provided by a care provider as defined in
15.17 	this section;
15.18 	(VII) at-home recovery visits while the insured is covered
15.19 	under the policy or certificate and not otherwise excluded;
15.20 	(VIII) at-home recovery visits received during the period
15.21 	the insured is receiving Medicare-approved home care services or
15.22 	no more than eight weeks after the service date of the last
15.23 	Medicare-approved home health care visit;
15.24 	(iii) coverage is excluded for:
15.25 	(A) home care visits paid for by Medicare or other
15.26 	government programs; and
15.27 	(B) care provided by unpaid volunteers or providers who are
15.28 	not care providers.

15.29 	Sec. 13. Minnesota Statutes 2004, section 62A.316, is
15.30 	amended to read:
15.31 	62A.316 BASIC MEDICARE SUPPLEMENT PLAN; COVERAGE.
15.32 	(a) The basic Medicare supplement plan must have a level of
15.33 	coverage that will provide:
15.34 	(1) coverage for all of the Medicare part A inpatient
15.35 	hospital coinsurance amounts, and 100 percent of all Medicare
15.36 	part A eligible expenses for hospitalization not covered by
16.1 	Medicare, after satisfying the Medicare part A deductible;
16.2 	(2) coverage for the daily co-payment amount of Medicare
16.3 	part A eligible expenses for the calendar year incurred for
16.4 	skilled nursing facility care;
16.5 	(3) coverage for the coinsurance amount, or in the case of
16.6 	outpatient department services paid under a prospective payment
16.7 	system, the co-payment amount, of Medicare eligible expenses
16.8 	under Medicare part B regardless of hospital confinement,
16.9 	subject to the Medicare part B deductible amount;
16.10 	(4) 80 percent of the hospital and medical expenses and
16.11 	supplies incurred during travel outside the United States as a
16.12 	result of a medical emergency;
16.13 	(5) coverage for the reasonable cost of the first three
16.14 	pints of blood, or equivalent quantities of packed red blood
16.15 	cells as defined under federal regulations under Medicare parts
16.16 	A and B, unless replaced in accordance with federal regulations;
16.17 	(6) 100 percent of the cost of immunizations and routine
16.18 	screening procedures for cancer screening including mammograms
16.19 	and pap smears; and
16.20 	(7) 80 percent of coverage for all physician prescribed
16.21 	medically appropriate and necessary equipment and supplies used
16.22 	in the management and treatment of diabetes.  Coverage must
16.23 	include persons with gestational, type I, or type II diabetes.
16.24 	(b) Only the following optional benefit riders may be added
16.25 	to this plan:
16.26 	(1) coverage for all of the Medicare part A inpatient
16.27 	hospital deductible amount;
16.28 	(2) a minimum of 80 percent of eligible medical expenses
16.29 	and supplies not covered by Medicare part B, not to exceed any
16.30 	charge limitation established by the Medicare program or state
16.31 	law;
16.32 	(3) coverage for all of the Medicare part B annual
16.33 	deductible;
16.34 	(4) coverage for at least 50 percent, or the equivalent of
16.35 	50 percent, of usual and customary prescription drug expenses;
16.36 	(5) ~~coverage for the following~~ preventive ~~health services~~ 
17.1 	medical care benefit coverage for the following preventative
17.2 	health services not covered by Medicare:
17.3 	(i) an annual clinical preventive medical history and
17.4 	physical examination that may include tests and services from
17.5 	clause (ii) and patient education to address preventive health
17.6 	care measures;
17.7 	(ii) ~~any one or a combination of the following~~ preventive
17.8 	screening tests or preventive services, the selection and 
17.9 	frequency of which is ~~considered~~ determined to be medically
17.10 	appropriate~~:~~by the attending physician.
17.11 	~~(A) fecal occult blood test and/or digital rectal~~
17.12 	~~examination;~~
17.13 	~~(B) dipstick urinalysis for hematuria, bacteriuria, and~~
17.14 	~~proteinuria;~~
17.15 	~~(C) pure tone (air only) hearing screening test,~~
17.16 	~~administered or ordered by a physician;~~
17.17 	~~(D) serum cholesterol screening every five years;~~
17.18 	~~(E) thyroid function test;~~
17.19 	~~(F) diabetes screening;~~
17.20 	~~(iii) any other tests or preventive measures determined~~
17.21 	~~appropriate by the attending physician.~~
17.22 	Reimbursement shall be for the actual charges up to 100
17.23 	percent of the Medicare-approved amount for each service, as if
17.24 	Medicare were to cover the service as identified in American
17.25 	Medical Association current procedural terminology (AMA CPT)
17.26 	codes, to a maximum of $120 annually under this benefit.  This
17.27 	benefit shall not include payment for a procedure covered by
17.28 	Medicare;
17.29 	(6) coverage for services to provide short-term at-home
17.30 	assistance with activities of daily living for those recovering
17.31 	from an illness, injury, or surgery:
17.32 	(i) For purposes of this benefit, the following definitions
17.33 	apply:
17.34 	(A) "activities of daily living" include, but are not
17.35 	limited to, bathing, dressing, personal hygiene, transferring,
17.36 	eating, ambulating, assistance with drugs that are normally
18.1 	self-administered, and changing bandages or other dressings;
18.2 	(B) "care provider" means a duly qualified or licensed home
18.3 	health aide/homemaker, personal care aid, or nurse provided
18.4 	through a licensed home health care agency or referred by a
18.5 	licensed referral agency or licensed nurses registry;
18.6 	(C) "home" means a place used by the insured as a place of
18.7 	residence, provided that the place would qualify as a residence
18.8 	for home health care services covered by Medicare.  A hospital
18.9 	or skilled nursing facility shall not be considered the
18.10 	insured's place of residence;
18.11 	(D) "at-home recovery visit" means the period of a visit
18.12 	required to provide at-home recovery care, without limit on the
18.13 	duration of the visit, except each consecutive four hours in a
18.14 	24-hour period of services provided by a care provider is one
18.15 	visit;
18.16 	(ii) Coverage requirements and limitations:
18.17 	(A) at-home recovery services provided must be primarily
18.18 	services that assist in activities of daily living;
18.19 	(B) the insured's attending physician must certify that the
18.20 	specific type and frequency of at-home recovery services are
18.21 	necessary because of a condition for which a home care plan of
18.22 	treatment was approved by Medicare;
18.23 	(C) coverage is limited to:
18.24 	(I) no more than the number and type of at-home recovery
18.25 	visits certified as necessary by the insured's attending
18.26 	physician.  The total number of at-home recovery visits shall
18.27 	not exceed the number of Medicare-approved home care visits
18.28 	under a Medicare-approved home care plan of treatment;
18.29 	(II) the actual charges for each visit up to a maximum
18.30 	reimbursement of $40 per visit;
18.31 	(III) $1,600 per calendar year;
18.32 	(IV) seven visits in any one week;
18.33 	(V) care furnished on a visiting basis in the insured's
18.34 	home;
18.35 	(VI) services provided by a care provider as defined in
18.36 	this section;
19.1 	(VII) at-home recovery visits while the insured is covered
19.2 	under the policy or certificate and not otherwise excluded;
19.3 	(VIII) at-home recovery visits received during the period
19.4 	the insured is receiving Medicare-approved home care services or
19.5 	no more than eight weeks after the service date of the last
19.6 	Medicare-approved home health care visit;
19.7 	(iii) Coverage is excluded for:
19.8 	(A) home care visits paid for by Medicare or other
19.9 	government programs; and
19.10 	(B) care provided by family members, unpaid volunteers, or
19.11 	providers who are not care providers;
19.12 	(7) coverage for at least 50 percent, or the equivalent of
19.13 	50 percent, of usual and customary prescription drug expenses to
19.14 	a maximum of $1,200 paid by the issuer annually under this
19.15 	benefit.  An issuer of Medicare supplement insurance policies
19.16 	that elects to offer this benefit rider shall also make
19.17 	available coverage that contains the rider specified in clause
19.18 	(4).

19.19 	Sec. 14. Minnesota Statutes 2004, section 62E.13,
19.20 	subdivision 2, is amended to read:
19.21 		Subd. 2.Selection of writing carrier.  The association
19.22 	may select policies and contracts, or parts thereof, submitted
19.23 	by a member or members of the association, or by the association
19.24 	or others, to develop specifications for bids from any entity
19.25 	which wishes to be selected as a writing carrier to administer
19.26 	the state plan.  The selection of the writing carrier shall be
19.27 	based upon criteria established by the board of directors of the
19.28 	association and approved by the commissioner.  The criteria
19.29 	shall outline specific qualifications that an entity must
19.30 	satisfy in order to be selected and, at a minimum, shall include
19.31 	the entity's proven ability to handle large group accident and
19.32 	health insurance cases, efficient claim paying capacity, and the
19.33 	estimate of total charges for administering the plan.  The
19.34 	association may select separate writing carriers for the two
19.35 	types of qualified plans and the $2,000, $5,000, and $10,000
19.36 	deductible plans, the ~~qualified~~ Medicare supplement ~~plan~~ plans,
20.1 	and the health maintenance organization contract.

20.2 	Sec. 15. Minnesota Statutes 2004, section 62L.03,
20.3 	subdivision 3, is amended to read:
20.4 		Subd. 3.Minimum participation and contribution.  (a) A
20.5 	small employer that has at least 75 percent of its eligible
20.6 	employees who have not waived coverage participating in a health
20.7 	benefit plan and that contributes at least 50 percent toward the
20.8 	cost of coverage of each eligible employee must be guaranteed
20.9 	coverage on a guaranteed issue basis from any health carrier
20.10 	participating in the small employer market.  The participation
20.11 	level of eligible employees must be determined at the initial
20.12 	offering of coverage and at the renewal date of coverage.  A
20.13 	health carrier must not increase the participation requirements
20.14 	applicable to a small employer at any time after the small
20.15 	employer has been accepted for coverage.  For the purposes of
20.16 	this subdivision, waiver of coverage includes only waivers due
20.17 	to:  (1) coverage under another group health plan; (2) coverage
20.18 	under Medicare Parts A and B; (3) coverage under MCHA permitted
20.19 	under section 62E.141; or (4) coverage under medical assistance
20.20 	under chapter 256B or general assistance medical care under
20.21 	chapter 256D or MinnesotaCare under chapter 256L.
20.22 	(b) If a small employer does not satisfy the contribution
20.23 	or participation requirements under this subdivision, a health
20.24 	carrier may voluntarily issue or renew individual health plans,
20.25 	or a health benefit plan which must fully comply with this
20.26 	chapter.  A health carrier that provides a health benefit plan
20.27 	to a small employer that does not meet the contribution or
20.28 	participation requirements of this subdivision must maintain
20.29 	this information in its files for audit by the commissioner.  A
20.30 	health carrier may not offer an individual health plan,
20.31 	purchased through an arrangement between the employer and the
20.32 	health carrier, to any employee unless the health carrier also
20.33 	offers the individual health plan, on a guaranteed issue basis,
20.34 	to all other employees of the same employer.
20.35 	(c) Nothing in this section obligates a health carrier to
20.36 	issue coverage to a small employer that currently offers
21.1 	coverage through a health benefit plan from another health
21.2 	carrier, unless the new coverage will replace the existing
21.3 	coverage and not serve as one of two or more health benefit
21.4 	plans offered by the employer.  This paragraph does not apply if
21.5 	the small employer will meet the required participation level
21.6 	with respect to the new coverage.

21.7 	Sec. 16. Minnesota Statutes 2004, section 62Q.471, is
21.8 	amended to read:
21.9 	62Q.471 EXCLUSION FOR SUICIDE ATTEMPTS PROHIBITED.
21.10 	(a) No health plan may exclude or reduce coverage for
21.11 	health care for an enrollee who is otherwise covered under the
21.12 	health plan on the basis that the need for the health care arose
21.13 	out of a suicide or suicide attempt by the enrollee.
21.14 	(b) For purposes of this section, "health plan" has the
21.15 	meaning given in section 62Q.01, subdivision 3, but includes the
21.16 	coverages described in section 62A.011, clauses (4), (6),
21.17 	and (7) ~~and~~ through (10).

21.18 	Sec. 17. Minnesota Statutes 2004, section 65A.29,
21.19 	subdivision 11, is amended to read:
21.20 		Subd. 11.Nonrenewal.  Every insurer shall establish a
21.21 	plan that sets out the minimum number and amount of claims
21.22 	during an experience period that may result in a
21.23 	nonrenewal. For purposes of the plan, the insurer may not
21.24 	consider as a claim the insured's inquiry about a hypothetical
21.25 	claim, or the insured's inquiry to the insured's agent regarding
21.26 	a potential claim.
21.27 	No homeowner's insurance policy may be nonrenewed based on
21.28 	the insured's loss experience unless the insurer has sent a
21.29 	written notice that any future losses may result in nonrenewal
21.30 	due to loss experience.
21.31 	Any nonrenewal of a homeowner's insurance policy must, at a
21.32 	minimum, comply with the requirements of subdivision 8 and the
21.33 	rules adopted by the commissioner.

21.34 	Sec. 18. Minnesota Statutes 2004, section 65B.48,
21.35 	subdivision 3, is amended to read:
21.36 		Subd. 13.Refusal to renew.  Refusing to renew, declining
22.23 	to offer or write, or charging differential rates for an
22.24 	equivalent amount of homeowner's insurance coverage, as defined
22.25 	by section 65A.27, for property located in a town or statutory
22.26 	or home rule charter city, in which the insurer offers to sell
22.27 	or writes homeowner's insurance, solely because:
22.28 	(a) of the geographic area in which the property is
22.29 	located;
22.30 	(b) of the age of the primary structure sought to be
22.31 	insured;
22.32 	(c) the insured or prospective insured was denied coverage
22.33 	of the property by another insurer, whether by cancellation,
22.34 	nonrenewal or declination to offer coverage, for a reason other
22.35 	than those specified in section 65A.01, subdivision 3a, clauses
22.36 	(a) to (e); ~~or~~ 
23.1 	(d) the property of the insured or prospective insured has
23.2 	been insured under the Minnesota FAIR Plan Act, shall constitute
23.3 	an unfair method of competition and an unfair and deceptive act
23.4 	or practice; or 
23.5 	(e) the insured has inquired about coverage for a
23.6 	hypothetical claim or has made an inquiry to the insured's agent
23.7 	regarding a potential claim.
23.8 	This subdivision prohibits an insurer from filing or
23.9 	charging different rates for different zip code areas within the
23.10 	same town or statutory or home rule charter city.
23.11 	This subdivision shall not prohibit the insurer from
23.12 	applying underwriting or rating standards which the insurer
23.13 	applies generally in all other locations in the state and which
23.14 	are not specifically prohibited by clauses (a) to ~~(d)~~ (e).  Such
23.15 	underwriting or rating standards shall specifically include but
23.16 	not be limited to standards based upon the proximity of the
23.17 	insured property to an extraordinary hazard or based upon the
23.18 	quality or availability of fire protection services or based
23.19 	upon the density or concentration of the insurer's risks.
23.20 	Clause (b) shall not prohibit the use of rating standards based
23.21 	upon the age of the insured structure's plumbing, electrical,
23.22 	heating or cooling system or other part of the structure, the
23.23 	age of which affects the risk of loss.  Any insurer's failure to
23.24 	comply with section 65A.29, subdivisions 2 to 4, either (1) by
23.25 	failing to give an insured or applicant the required notice or
23.26 	statement or (2) by failing to state specifically a bona fide
23.27 	underwriting or other reason for the refusal to write shall
23.28 	create a presumption that the insurer has violated this
23.29 	subdivision.

23.30 	Sec. 20. Minnesota Statutes 2004, section 72A.20,
23.31 	subdivision 36, is amended to read:
23.32 		Subd. 36.Limitations on the use of credit information.
 23.33 	(a) No insurer or group of affiliated insurers may reject,
23.34 	cancel, or nonrenew a policy of private passenger motor vehicle
23.35 	insurance as defined under section 65B.01 or a policy of
23.36 	homeowner's insurance as defined under section 65A.27, for any
24.1 	person in whole or in part on the basis of credit information,
24.2 	including a credit reporting product known as a "credit score"
24.3 	or "insurance score," without consideration and inclusion of any
24.4 	other applicable underwriting factor.
24.5 	(b) If credit information, credit scoring, or insurance
24.6 	scoring is to be used in underwriting, the insurer must disclose
24.7 	to the consumer that credit information will be obtained and
24.8 	used as part of the insurance underwriting process.
24.9 	(c) Insurance inquiries and non-consumer-initiated
24.10 	inquiries must not be used as part of the credit scoring or
24.11 	insurance scoring process.
24.12 	(d) If a credit score, insurance score, or other credit
24.13 	information relating to a consumer, with respect to the types of
24.14 	insurance referred to in paragraph (a), is adversely impacted or
24.15 	cannot be generated because of the absence of a credit history,
24.16 	the insurer must exclude the use of credit as a factor in the
24.17 	decision to reject, cancel, or nonrenew.
24.18 	(e) Insurers must upon the request of a policyholder
24.19 	reevaluate the policyholder's score.  Any change in premium
24.20 	resulting from the reevaluation must be effective upon the
24.21 	renewal of the policy.  An insurer is not required to reevaluate
24.22 	a policyholder's score pursuant to this paragraph more than
24.23 	twice in any given calendar year.
24.24 	(f) Insurers must upon request of the applicant or
24.25 	policyholder provide reasonable underwriting exceptions based
24.26 	upon prior credit histories for persons whose credit information
24.27 	is unduly influenced by expenses related to a catastrophic
24.28 	injury or illness, temporary loss of employment, or the death of
24.29 	an immediate family member.  The insurer may require reasonable
24.30 	documentation of these events prior to granting an exception.
24.31 	~~(f)~~ (g) A credit scoring or insurance scoring methodology
24.32 	must not be used by an insurer if the credit scoring or
24.33 	insurance scoring methodology incorporates the gender, race,
24.34 	nationality, or religion of an insured or applicant.
24.35 	~~(g)~~ (h) Insurers that employ a credit scoring or insurance
24.36 	scoring system in underwriting of coverage described in
25.1 	paragraph (a) must have on file with the commissioner:
25.2 	(1) the insurer's credit scoring or insurance scoring
25.3 	methodology; and
25.4 	(2) information that supports the insurer's use of a credit
25.5 	score or insurance score as an underwriting criterion.
25.6 	~~(h)~~ (i) Insurers described in paragraph (g) shall file the
25.7 	required information with the commissioner within 120 days of
25.8 	August 1, 2002, or prior to implementation of a credit scoring
25.9 	or insurance scoring system by the insurer, if that date is
25.10 	later.
25.11 	~~(i)~~ (j) Information provided by, or on behalf of, an
25.12 	insurer to the commissioner under this subdivision is trade
25.13 	secret information under section 13.37.

25.14 	Sec. 21. Minnesota Statutes 2004, section 72A.201,
25.15 	subdivision 3, is amended to read:
25.16 		Subd. 3.Definitions.  For the purposes of this section,
25.17 	the following terms have the meanings given them.
25.18 	(1) [ACCIDENT AND SICKNESS INSURANCE.] "Accident and
25.19 	sickness insurance" means any policy covering the kind of
25.20 	insurance described in section 60A.06, subdivision 1, clause
25.21 	(5)(a).
25.22 	(2) [ADJUSTER OR ADJUSTERS.] "Adjuster" or "adjusters" is
25.23 	as defined in section 72B.02.
25.24 	~~(2)~~ (3) [AGENT.] "Agent" means insurance agents or
25.25 	insurance agencies licensed pursuant to sections 60K.30 to
25.26 	60K.56, and representatives of these agents or agencies.
25.27 	~~(3)~~ (4) [CLAIM.] "Claim" means a request or demand made
25.28 	with an insurer for the payment of funds or the provision of
25.29 	services under the terms of any policy, certificate, contract of
25.30 	insurance, binder, or other contracts of temporary insurance.
25.31 	The term does not include a claim under a health insurance
25.32 	policy made by a participating provider with an insurer in
25.33 	accordance with the participating provider's service agreement
25.34 	with the insurer which has been filed with the commissioner of
25.35 	commerce prior to its use.
25.36 	~~(4)~~ (5) [CLAIM SETTLEMENT.] "Claim settlement" means all
26.1 	activities of an insurer related directly or indirectly to the
26.2 	determination of the extent of liabilities due or potentially
26.3 	due under coverages afforded by the policy, and which result in
26.4 	claim payment, claim acceptance, compromise, or other
26.5 	disposition.
26.6 	~~(5)~~ (6) [CLAIMANT.] "Claimant" means any individual,
26.7 	corporation, association, partnership, or other legal entity
26.8 	asserting a claim against any individual, corporation,
26.9 	association, partnership, or other legal entity which is insured
26.10 	under an insurance policy or insurance contract of an insurer.
26.11 	~~(6)~~ (7) [COMPLAINT.] "Complaint" means a communication
26.12 	primarily expressing a grievance.
26.13 	~~(7)~~ (8) [INSURANCE POLICY.] "Insurance policy" means any
26.14 	evidence of coverage issued by an insurer including all
26.15 	policies, contracts, certificates, riders, binders, and
26.16 	endorsements which provide or describe coverage.  The term
26.17 	includes any contract issuing coverage under a self-insurance
26.18 	plan, group self-insurance plan, or joint self-insurance
26.19 	employee health plans.
26.20 	~~(8)~~ (9) [INSURED.] "Insured" means an individual,
26.21 	corporation, association, partnership, or other legal entity
26.22 	asserting a right to payment under their insurance policy or
26.23 	insurance contract arising out of the occurrence of the
26.24 	contingency or loss covered by the policy or contract.  The term
26.25 	does not apply to a person who acquires rights under a mortgage.
26.26 	~~(9)~~ (10) [INSURER.] "Insurer" includes any individual,
26.27 	corporation, association, partnership, reciprocal exchange,
26.28 	Lloyds, fraternal benefits society, self-insurer, surplus line
26.29 	insurer, self-insurance administrator, and nonprofit service
26.30 	plans under the jurisdiction of the Department of Commerce.
26.31 	~~(10)~~ (11) [INVESTIGATION.] "Investigation" means a
26.32 	reasonable procedure adopted by an insurer to determine whether
26.33 	to accept or reject a claim.
26.34 	~~(11)~~ (12) [NOTIFICATION OF CLAIM.] "Notification of claim"
26.35 	means any communication to an insurer by a claimant or an
26.36 	insured which reasonably apprises the insurer of a claim brought
27.1 	under an insurance contract or policy issued by the insurer.
27.2 	Notification of claim to an agent of the insurer is notice to
27.3 	the insurer.
27.4 	~~(12)~~ (13) [PROOF OF LOSS.] "Proof of loss" means the
27.5 	necessary documentation required from the insured to establish
27.6 	entitlement to payment under a policy.
27.7 	~~(13)~~ (14) [SELF-INSURANCE ADMINISTRATOR.] "Self-insurance
27.8 	administrator" means any vendor of risk management services or
27.9 	entities administering self-insurance plans, licensed pursuant
27.10 	to section 60A.23, subdivision 8.
27.11 	~~(14)~~ (15) [SELF-INSURED OR SELF-INSURER.] "Self-insured" or
27.12 	"self-insurer" means any entity authorized pursuant to section
27.13 	65B.48, subdivision 3; chapter 62H; section 176.181, subdivision
27.14 	2; Laws of Minnesota 1983, chapter 290, section 171; section
27.15 	471.617; or section 471.981 and includes any entity which, for a
27.16 	fee, employs the services of vendors of risk management services
27.17 	in the administration of a self-insurance plan as defined by
27.18 	section 60A.23, subdivision 8, clause (2), subclauses (a) and
27.19 	(d).

27.20 	Sec. 22. Minnesota Statutes 2004, section 72A.201,
27.21 	subdivision 4, is amended to read:
27.22 		Subd. 4.Standards for claim filing and handling.  The
27.23 	following acts by an insurer, an adjuster, a self-insured, or a
27.24 	self-insurance administrator constitute unfair settlement
27.25 	practices:
27.26 	(1) except for claims made under a ~~health insurance~~ policy
27.27 	of accident and sickness insurance, after receiving notification
27.28 	of claim from an insured or a claimant, failing to acknowledge
27.29 	receipt of the notification of the claim within ten business
27.30 	days, and failing to promptly provide all necessary claim forms
27.31 	and instructions to process the claim, unless the claim is
27.32 	settled within ten business days.  The acknowledgment must
27.33 	include the telephone number of the company representative who
27.34 	can assist the insured or the claimant in providing information
27.35 	and assistance that is reasonable so that the insured or
27.36 	claimant can comply with the policy conditions and the insurer's
28.1 	reasonable requirements.  If an acknowledgment is made by means
28.2 	other than writing, an appropriate notation of the
28.3 	acknowledgment must be made in the claim file of the insurer and
28.4 	dated.  An appropriate notation must include at least the
28.5 	following information where the acknowledgment is by telephone
28.6 	or oral contact:
28.7 	(i) the telephone number called, if any;
28.8 	(ii) the name of the person making the telephone call or
28.9 	oral contact;
28.10 	(iii) the name of the person who actually received the
28.11 	telephone call or oral contact;
28.12 	(iv) the time of the telephone call or oral contact; and
28.13 	(v) the date of the telephone call or oral contact;
28.14 	(2) failing to reply, within ten business days of receipt,
28.15 	to all other communications about a claim from an insured or a
28.16 	claimant that reasonably indicate a response is requested or
28.17 	needed;
28.18 	(3) unless provided otherwise by law or in the policy,
28.19 	failing to complete its investigation and inform the insured or
28.20 	claimant of acceptance or denial of a claim within 30 business
28.21 	days after receipt of notification of claim unless the
28.22 	investigation cannot be reasonably completed within that time.
28.23 	In the event that the investigation cannot reasonably be
28.24 	completed within that time, the insurer shall notify the insured
28.25 	or claimant within the time period of the reasons why the
28.26 	investigation is not complete and the expected date the
28.27 	investigation will be complete.  For claims made under a ~~health~~ 
28.28 	policy of accident and sickness insurance the notification of
28.29 	claim must be in writing;
28.30 	(4) where evidence of suspected fraud is present, the
28.31 	requirement to disclose their reasons for failure to complete
28.32 	the investigation within the time period set forth in clause (3)
28.33 	need not be specific.  The insurer must make this evidence
28.34 	available to the Department of Commerce if requested;
28.35 	(5) failing to notify an insured who has made a
28.36 	notification of claim of all available benefits or coverages
29.1 	which the insured may be eligible to receive under the terms of
29.2 	a policy and of the documentation which the insured must supply
29.3 	in order to ascertain eligibility;
29.4 	(6) unless otherwise provided by law or in the policy,
29.5 	requiring an insured to give written notice of loss or proof of
29.6 	loss within a specified time, and thereafter seeking to relieve
29.7 	the insurer of its obligations if the time limit is not complied
29.8 	with, unless the failure to comply with the time limit
29.9 	prejudices the insurer's rights and then only if the insurer
29.10 	gave prior notice to the insured of the potential prejudice;
29.11 	(7) advising an insured or a claimant not to obtain the
29.12 	services of an attorney or an adjuster, or representing that
29.13 	payment will be delayed if an attorney or an adjuster is
29.14 	retained by the insured or the claimant;
29.15 	(8) failing to advise in writing an insured or claimant who
29.16 	has filed a notification of claim known to be unresolved, and
29.17 	who has not retained an attorney, of the expiration of a statute
29.18 	of limitations at least 60 days prior to that expiration.  For
29.19 	the purposes of this clause, any claim on which the insurer has
29.20 	received no communication from the insured or claimant for a
29.21 	period of two years preceding the expiration of the applicable
29.22 	statute of limitations shall not be considered to be known to be
29.23 	unresolved and notice need not be sent pursuant to this clause;
29.24 	(9) demanding information which would not affect the
29.25 	settlement of the claim;
29.26 	(10) unless expressly permitted by law or the policy,
29.27 	refusing to settle a claim of an insured on the basis that the
29.28 	responsibility should be assumed by others;
29.29 	(11) failing, within 60 business days after receipt of a
29.30 	properly executed proof of loss, to advise the insured of the
29.31 	acceptance or denial of the claim by the insurer.  No insurer
29.32 	shall deny a claim on the grounds of a specific policy
29.33 	provision, condition, or exclusion unless reference to the
29.34 	provision, condition, or exclusion is included in the denial.
29.35 	The denial must be given to the insured in writing with a copy
29.36 	filed in the claim file;
30.1 	(12) denying or reducing a claim on the basis of an
30.2 	application which was altered or falsified by the agent or
30.3 	insurer without the knowledge of the insured;
30.4 	(13) failing to notify the insured of the existence of the
30.5 	additional living expense coverage when an insured under a
30.6 	homeowners policy sustains a loss by reason of a covered
30.7 	occurrence and the damage to the dwelling is such that it is not
30.8 	habitable;
30.9 	(14) failing to inform an insured or a claimant that the
30.10 	insurer will pay for an estimate of repair if the insurer
30.11 	requested the estimate and the insured or claimant had
30.12 	previously submitted two estimates of repair.

30.13 	Sec. 23. Minnesota Statutes 2004, section 79.40, is
30.14 	amended to read:
30.15 	79.40 PREMIUM INCLUSION IN RATEMAKING.
30.16 	Premiums charged members by the reinsurance association
30.17 	shall be recognized in the ratemaking procedures for insurance
30.18 	rates ~~in the same manner as assessments for the special~~
30.19 	~~compensation fund~~.

30.20 	Sec. 24. Minnesota Statutes 2004, section 79.56,
30.21 	subdivision 1, is amended to read:
30.22 		Subdivision 1.Prefiling of rates. (a) Each insurer
30.23 	shall file with the commissioner a complete copy of its rates
30.24 	and rating plan, and all changes and amendments thereto, and
30.25 	such supporting data and information that the commissioner may
30.26 	by rule require, at least 60 days prior to its effective date.
30.27 	The commissioner shall advise an insurer within 30 days of the
30.28 	filing if its submission is not accompanied with such supporting
30.29 	data and information that the commissioner by rule may require.
30.30 	The commissioner may extend the filing review period and
30.31 	effective date for an additional 30 days if an insurer, after
30.32 	having been advised of what supporting data and information is
30.33 	necessary to complete its filing, does not provide such
30.34 	information within 15 days of having been so notified.  If any
30.35 	rate or rating plan filing or amendment thereto is not
30.36 	disapproved by the commissioner within the filing review period,
31.1 	the insurer may implement it.  For the period August 1, 1995, to
31.2 	December 31, 1995, the filing shall be made at least 90 days
31.3 	prior to the effective date and the department shall advise an
31.4 	insurer within 60 days of such filing if the filing is
31.5 	insufficient under this section.
31.6 	(b) A rating plan or rates are not subject to the
31.7 	requirements of paragraph (a), where the insurer files a
31.8 	certification verifying that it will use the mutually agreed
31.9 	upon rating plan or rates only to write a specific employer that
31.10 	generates $250,000 in annual written workers' compensation
31.11 	premiums before the application of any large deductible rating
31.12 	plan.  The certification must be refiled upon each renewal of
31.13 	the employer's policy.  The $250,000 threshold includes premiums
31.14 	generated in any state.  The designation and certification must
31.15 	be submitted in substantially the following form:
31.16 	Name and address of insurer:.................................
31.17 	Name and address of insured employer:........................
31.18 	Policy period:...............................................
31.19 	I certify that the employer named above generates $250,000 or
31.20 	more in annual countrywide written workers' compensation
31.21 	premiums, and that the calculation of this threshold is based on
31.22 	the rates and rating plans that have been approved by the
31.23 	appropriate state regulatory authority.  The filing of this
31.24 	certification authorizes the use of this rate or rating plan
31.25 	only for the named employer.
31.26 	Name of responsible officer:.................................
31.27 	Title:.......................................................
31.28 	Signature:...................................................

31.29 	Sec. 25. Minnesota Statutes 2004, section 79.56,
31.30 	subdivision 3, is amended to read:
31.31 		Subd. 3.Penalties. ~~(a)~~ Any insurer using a rate or a
31.32 	rating plan which has not been filed or certified under
31.33 	subdivision 1 shall be subject to a fine of up to $100 for each
31.34 	day the failure to file continues.  The commissioner may, after
31.35 	a hearing on the record, find that the failure is willful.  A
31.36 	willful failure to meet filing requirements shall be punishable
32.1 	by a fine of up to $500 for each day during which a willful
32.2 	failure continues.  These penalties shall be in addition to any
32.3 	other penalties provided by law.
32.4 	~~(b) Notwithstanding this subdivision, an employer that~~
32.5 	~~generates $250,000 in annual written workers' compensation~~
32.6 	~~premium under the rates and rating plan of an insurer before the~~
32.7 	~~application of any large deductible rating plans, may be written~~
32.8 	~~by that insurer using rates or rating plans that are not subject~~
32.9 	~~to disapproval but which have been filed.  For the purposes of~~
32.10 	~~this paragraph, written workers' compensation premiums generated~~
32.11 	~~from states other than Minnesota are included in calculating the~~
32.12 	~~$250,000 threshold for large risk alternative rating option~~
32.13 	~~plans.~~

32.14 	Sec. 26. Minnesota Statutes 2004, section 79.62,
32.15 	subdivision 3, is amended to read:
32.16 		Subd. 3.Issuance.  The commissioner, upon finding that
32.17 	the applicant organization is qualified to provide the services
32.18 	required and proposed, or has contracted with a licensed data
32.19 	service organization to purchase these services which are
32.20 	required by this chapter but are not provided directly by the
32.21 	applicant, and that all requirements of law are met, shall issue
32.22 	a license.  Each license is subject to annual renewal effective
32.23 	June 30.  Each new or renewal license application must be
32.24 	accompanied by a fee of ~~$50~~ $1,000.

32.25 	Sec. 27. Minnesota Statutes 2004, section 79A.04,
32.26 	subdivision 10, is amended to read:
32.27 		Subd. 10.Notice; obligation of fund.  In the event of
32.28 	bankruptcy, insolvency, or certificate of default, the
32.29 	commissioner shall immediately notify by certified mail the
32.30 	commissioner of finance, the surety, the issuer of an
32.31 	irrevocable letter of credit, and any custodian of the security
32.32 	required in this chapter.  At the time of notification, the
32.33 	commissioner shall also call the security and transfer and
32.34 	assign it to the self-insurers' security fund.  The commissioner
32.35 	shall also immediately notify by certified mail the
32.36 	self-insurers' security fund, and order the security fund to
33.1 	assume the insolvent self-insurers' obligations for which it is
33.2 	liable under chapter 176.  The security fund shall commence
33.3 	payment of these obligations within 14 days of receipt of this
33.4 	notification and order.  Payments shall be made to claimants
33.5 	whose entitlement to benefits can be ascertained by the security
33.6 	fund, with or without proceedings before the Department of Labor
33.7 	and Industry, the Office of Administrative Hearings, the
33.8 	Workers' Compensation Court of Appeals, or the Minnesota Supreme
33.9 	Court.  Upon the assumption of obligations by the security fund
33.10 	pursuant to the commissioner's notification and order, the
33.11 	security fund has the right to immediate possession of any
33.12 	posted or deposited security and the custodian, surety, or
33.13 	issuer of any irrevocable letter of credit or the commissioner,
33.14 	if in possession of it, shall turn over the security, proceeds
33.15 	of the surety bond, or letter of credit to the security fund
33.16 	together with the interest that has accrued since the date of
33.17 	the self-insured employer's insolvency. The security fund has
33.18 	the right to the immediate possession of all relevant worker's
33.19 	compensation claim files and data of the self-insurer, and the
33.20 	possessor of the files and data must turn the files and data, or
33.21 	complete copies of them, over to the security fund within five
33.22 	days of the notification provided under this subdivision.  If
33.23 	the possessor of the files and data fails to timely turn over
33.24 	the files and data to the security fund, it is liable to the
33.25 	security fund for a penalty of $500 per day for each day after
33.26 	the five-day period has expired.  The security fund is entitled
33.27 	to recover its reasonable attorney fees and costs in any action
33.28 	brought to obtain possession of the worker's compensation claim
33.29 	files and data of the self-insurer, and for any action to
33.30 	recover the penalties provided by this subdivision.The
33.31 	self-insurers' security fund may administer payment of benefits
33.32 	or it may retain a third-party administrator to do so.

33.33 	Sec. 28. Minnesota Statutes 2004, section 79A.06,
33.34 	subdivision 5, is amended to read:
33.35 		Subd. 5.Private employers who have ceased to be
33.36 	self-insured.  (a) Private employers who have ceased to be
34.1 	private self-insurers shall discharge their continuing
34.2 	obligations to secure the payment of compensation which is
34.3 	accrued during the period of self-insurance, for purposes of
34.4 	Laws 1988, chapter 674, sections 1 to 21, by compliance with all
34.5 	of the following obligations of current certificate holders:
34.6 	(1) Filing reports with the commissioner to carry out the
34.7 	requirements of this chapter;
34.8 	(2) Depositing and maintaining a security deposit for
34.9 	accrued liability for the payment of any compensation which may
34.10 	become due, pursuant to chapter 176.  However, if a private
34.11 	employer who has ceased to be a private self-insurer purchases
34.12 	an insurance policy from an insurer authorized to transact
34.13 	workers' compensation insurance in this state which provides
34.14 	coverage of all claims for compensation arising out of injuries
34.15 	occurring during the entire period the employer was
34.16 	self-insured, whether or not reported during that period, the
34.17 	policy will:
34.18 	(i) discharge the obligation of the employer to maintain a
34.19 	security deposit for the payment of the claims covered under the
34.20 	policy;
34.21 	(ii) discharge any obligation which the self-insurers'
34.22 	security fund has or may have for payment of all claims for
34.23 	compensation arising out of injuries occurring during the period
34.24 	the employer was self-insured, whether or not reported during
34.25 	that period; and
34.26 	(iii) discharge the obligations of the employer to pay any
34.27 	future assessments to the self-insurers' security fund.
34.28 	A private employer who has ceased to be a private
34.29 	self-insurer may instead buy an insurance policy described
34.30 	above, except that it covers only a portion of the period of
34.31 	time during which the private employer was self-insured;
34.32 	purchase of such a policy discharges any obligation that the
34.33 	self-insurers' security fund has or may have for payment of all
34.34 	claims for compensation arising out of injuries occurring during
34.35 	the period for which the policy provides coverage, whether or
34.36 	not reported during that period.
35.1 	A policy described in this clause may not be issued by an
35.2 	insurer unless it has previously been approved as to form and
35.3 	substance by the commissioner; and
35.4 	(3) Paying within 30 days all assessments of which notice
35.5 	is sent by the security fund, for a period of seven years from
35.6 	the last day its certificate of self-insurance was in effect.
35.7 	Thereafter, the private employer who has ceased to be a private
35.8 	self-insurer may either:  (i) continue to pay within 30 days all
35.9 	assessments of which notice is sent by the security fund until
35.10 	it has no incurred liabilities for the payment of compensation
35.11 	arising out of injuries during the period of self-insurance; or
35.12 	(ii) pay the security fund a cash payment equal to four percent
35.13 	of the net present value of all remaining incurred liabilities
35.14 	for the payment of compensation under sections 176.101 and
35.15 	176.111 as certified by a member of the casualty actuarial
35.16 	society.  Assessments shall be based on the benefits paid by the
35.17 	employer during the calendar year immediately preceding the
35.18 	calendar year in which the employer's right to self-insure is
35.19 	terminated or withdrawn.
35.20 	(b) With respect to a self-insurer who terminates its
35.21 	self-insurance authority after April 1, 1998, that member shall
35.22 	obtain and file with the commissioner an actuarial opinion of
35.23 	its outstanding liabilities as determined by an associate or
35.24 	fellow of the Casualty Actuarial Society within 120 days of the
35.25 	date of its termination.  If the actuarial opinion is not timely
35.26 	filed, the self-insurers' security fund may, at its discretion,
35.27 	engage the services of an actuary for this purpose.  The expense
35.28 	of this actuarial opinion must be assessed against and be the
35.29 	obligation of the self-insurer.  The commissioner may issue a
35.30 	certificate of default against the self-insurer for failure to
35.31 	pay this assessment to the self-insurers' security fund as
35.32 	provided by section 79A.04, subdivision 9.  The opinion must
35.33 	separate liability for indemnity benefits from liability from
35.34 	medical benefits, and must discount each up to four percent per
35.35 	annum to net present value.  Within 30 days after notification
35.36 	of approval of the actuarial opinion by the commissioner, the
36.1 	member shall pay to the security fund an amount equal to 120
36.2 	percent of that discounted outstanding indemnity liability,
36.3 	multiplied by the greater of the average annualized assessment
36.4 	rate since inception of the security fund or the annual rate at
36.5 	the time of the most recent assessment before termination. If
36.6 	the payment is not made within 30 days of the notification,
36.7 	interest on it at the rate prescribed by section 549.09 must be
36.8 	paid by the former member to the security fund until the
36.9 	principal amount is paid in full.
36.10 	(c) A former member who terminated its self-insurance
36.11 	authority before April 1, 1998, who has paid assessments to the
36.12 	self-insurers' security fund for seven years, and whose
36.13 	annualized assessment is $500 or less, may buy out of its
36.14 	outstanding liabilities to the self-insurers' security fund by
36.15 	an amount calculated as follows:  1.35 multiplied by the
36.16 	indemnity case reserves at the time of the calculation,
36.17 	multiplied by the then current self-insurers' security fund
36.18 	annualized assessment rate.
36.19 	(d) A former member who terminated its self-insurance
36.20 	authority before April 1, 1998, and who is paying assessments
36.21 	within the first seven years after ceasing to be self-insured
36.22 	under paragraph (a), clause (3), may elect to buy out its
36.23 	outstanding liabilities to the self-insurers' security fund by
36.24 	obtaining and filing with the commissioner an actuarial opinion
36.25 	of its outstanding liabilities as determined by an associate or
36.26 	fellow of the Casualty Actuarial Society.  The opinion must
36.27 	separate liability for indemnity benefits from liability for
36.28 	medical benefits, and must discount each up to four percent per
36.29 	annum to net present value.  Within 30 days after notification
36.30 	of approval of the actuarial opinion by the commissioner, the
36.31 	member shall pay to the security fund an amount equal to 120
36.32 	percent of that discounted outstanding indemnity liability,
36.33 	multiplied by the greater of the average annualized assessment
36.34 	rate since inception of the security fund or the annual rate at
36.35 	the time of the most recent assessment.
36.36 	(e) A former member who has paid the security fund
37.1 	according to paragraphs (b) to (d) and subsequently receives
37.2 	authority from the commissioner to again self-insure shall be
37.3 	assessed under section 79A.12, subdivision 2, only on indemnity
37.4 	benefits paid on injuries that occurred after the former member
37.5 	received authority to self-insure again; provided that the
37.6 	member furnishes verified data regarding those benefits to the
37.7 	security fund.
37.8 	(f) In addition to proceedings to establish liabilities and
37.9 	penalties otherwise provided, a failure to comply may be the
37.10 	subject of a proceeding before the commissioner.  An appeal from
37.11 	the commissioner's determination may be taken pursuant to the
37.12 	contested case procedures of chapter 14 within 30 days of the
37.13 	commissioner's written determination.
37.14 	Any current or past member of the self-insurers' security
37.15 	fund is subject to service of process on any claim arising out
37.16 	of chapter 176 or this chapter in the manner provided by section
37.17 	5.25, or as otherwise provided by law.  The issuance of a
37.18 	certificate to self-insure to the private self-insured employer
37.19 	shall be deemed to be the agreement that any process which is
37.20 	served in accordance with this section shall be of the same
37.21 	legal force and effect as if served personally within this state.

37.22 	Sec. 29. Minnesota Statutes 2004, section 79A.12,
37.23 	subdivision 2, is amended to read:
37.24 		Subd. 2.Assessment.  The security fund may assess each
37.25 	of its members a pro rata share of the funding necessary to
37.26 	carry out its obligation and the purposes of this chapter.
37.27 	Total annual assessments in any calendar year shall not exceed
37.28 	ten percent of ~~the workers' compensation benefits paid under~~
37.29 	~~sections 176.101 and 176.111 during the previous~~ paid indemnity
37.30 	losses, as defined in section 176.129, made by the self-insured
37.31 	employer during the preceding calendar year.  The annual
37.32 	assessment calculation shall not include supplementary benefits
37.33 	paid which will be reimbursed by the special compensation fund.
37.34 	Funds obtained by assessments pursuant to this subdivision may
37.35 	only be used for the purposes of this chapter.  The trustees
37.36 	shall certify to the commissioner the collection and receipt of
38.1 	all money from assessments, noting any delinquencies.  The
38.2 	trustees shall take any action deemed appropriate to collect any
38.3 	delinquent assessments.

38.4 	Sec. 30. Minnesota Statutes 2004, section 79A.22,
38.5 	subdivision 11, is amended to read:
38.6 		Subd. 11.Disbursement of fund surplus.  (a) ~~One~~
38.7 	~~hundred~~ Except as otherwise provided in paragraphs (b) and (c),
38.8 	100 percent of any surplus money for a fund year in excess of
38.9 	125 percent of the amount necessary to fulfill all obligations
38.10 	under the Workers' Compensation Act, chapter 176, for that fund
38.11 	year may be declared refundable to ~~a member~~ eligible members at
38.12 	any time. ~~The date shall be no earlier than 18 months following~~
38.13 	~~the end of such fund year.  The first disbursement of fund~~
38.14 	~~surplus may not be made prior to the written approval of the~~
38.15 	~~commissioner.  There can be no more than one refund made in any~~
38.16 	~~12-month period.~~
38.17 	(b) Except as otherwise provided in paragraph (c), for
38.18 	groups that have been in existence for five years or more, 100
38.19 	percent of any surplus money for a fund year in excess of 110
38.20 	percent of the amount necessary to fulfill all obligations under
38.21 	the Workers' Compensation Act, chapter 176, for that fund year
38.22 	may be declared refundable to eligible members at any time.
38.23 	(c) Excess surplus distributions under paragraphs (a) and
38.24 	(b) may not be greater than the combined surplus of the group at
38.25 	the time of the distribution.
38.26 	(d) When all the claims of any one fund year have been
38.27 	fully paid, as certified by an actuary, all surplus money from
38.28 	that fund year may be declared refundable.
38.29 	~~(b)~~ (e) The commercial self-insurance group shall give ten
38.30 	days' prior notice to the commissioner of any refund. ~~Said~~ The 
38.31 	notice ~~shall~~ must be accompanied by a statement from the
38.32 	commercial self-insurer group's certified public accountant
38.33 	certifying that the proposed refund is in compliance
38.34 	with ~~paragraph (a)~~ this subdivision.

38.35 	Sec. 31. Minnesota Statutes 2004, section 79A.22, is
38.36 	amended by adding a subdivision to read:
39.1 		Subd. 14.All states coverage. Policies issued by
39.2 	commercial self-insurance groups pursuant to this chapter may
39.3 	also provide workers' compensation coverage required under the
39.4 	laws of states other than Minnesota, commonly known as "all
39.5 	states coverage."  The coverage must be provided to members of
39.6 	the group which are temporarily performing work in another state.

39.7 	Sec. 32. Minnesota Statutes 2004, section 176.191,
39.8 	subdivision 3, is amended to read:
39.9 		Subd. 3.Insurer payment.  If a dispute exists as to
39.10 	whether an employee's injury is compensable under this chapter
39.11 	and the employee is otherwise covered by an insurer or entity 
39.12 	pursuant to chapters 62A, 62C ~~and~~ ,62D, 62E, 62R, and 62T,that
39.13 	insurer or entity shall pay any medical costs incurred by the
39.14 	employee for the injury up to the limits of the applicable
39.15 	coverage and shall make any disability payments otherwise
39.16 	payable by that insurer or entity in the absence of or in
39.17 	addition to workers' compensation liability.  If the injury is
39.18 	subsequently determined to be compensable pursuant to this
39.19 	chapter, the workers' compensation insurer shall be ordered to
39.20 	reimburse the insurer or entity that made the payments for all
39.21 	payments made under this subdivision by the insurer or entity,
39.22 	including interest at a rate of 12 percent a year.  If a payment
39.23 	pursuant to this subdivision exceeds the reasonable value as
39.24 	permitted by sections 176.135 and 176.136, the provider shall
39.25 	reimburse the workers' compensation insurer for all the excess
39.26 	as provided by rules promulgated by the commissioner.

39.27 	Sec. 33. REPEALER.
 39.28 	Minnesota Statutes 2004, sections 61A.072, subdivision 2;
39.29 	and 62E.03 are repealed.

39.30 	Sec. 34. EFFECTIVE DATES.
 39.31 	Sections 10, 14, 15, 17, 19, 20, 23, and 27 to 32 are
39.32 	effective the day following final enactment.  Sections 2, 4, 18,
39.33 	and 24 to 26 are effective July 1, 2005.  The remaining sections
39.34 	are effective August 1, 2005.