2000 Minnesota Statutes

     62I.10 Disposition of application. 

    Subdivision 1.    Action upon application.  Upon receipt 
 of an application, the committee or persons the committee 
 appoints or designates will immediately review the application 
 to determine what assistance the committee can give.  The 
 assistance may include:  (1) discussion with the applicant's 
 most recent underwriter, if any, to determine if the applicant's 
 coverage can be maintained with the most recent carrier; (2) 
 discussion with other known available insurance markets to 
 determine if any other carrier will accept the applicant; (3) 
 negotiating extensions of coverage with the most recent carrier 
 or a temporary carrier, if possible, to permit additional 
 exploration of insurance markets or accumulation of essential 
 underwriting data; and (4) referring the application to the 
 first five participating insurers (participants) on the relevant 
 list provided in subdivision 2.  Subsequent applications will be 
 sent to the next five participants on a rotating basis.  If at 
 any time there are less than ten participants on the master list 
 then the master list will no longer be utilized. 

    Subd. 2.    List of participating insurers.  A list of 
 participants shall be prepared and updated at least every two 
 years in the following manner:  (1) the committee will secure a 
 mailing list from the department of commerce of every licensed 
 insurer admitted to do business as well as every eligible 
 licensed surplus lines licensee; (2) the committee will mail to 
 each admitted insurer and eligible surplus lines licensee an 
 outline of the conditions of participation; (3) a master list of 
 participants willing to take part in the market assistance 
 program will be created from the responses to the initial 
 mailing.  The master list will be updated at least every two 
 years pursuant to clauses (1) and (2).  Order on the master list 
 will be determined by random selection. 

    Subd. 3.    Referral to participants.  Upon receipt of 
 an application, the committee or the persons the committee 
 appoints or designates may mail or telex copies of the 
 application to the first five participants on the master list. 

    Subd. 4.    Quotes.  Participants must quote on at least 
 one out of every three applications submitted.  Each participant 
 will have the right to individually evaluate the risk the 
 applicant poses and develop a price commensurate with that risk. 

    Subd. 5.    Referral.  If no quote is received from the 
 first five participants on the list, the next five participants 
 on the list shall receive the application and the same procedure 
 shall be followed until a quote is obtained or the list is 
 exhausted.  All participants may, if the committee feels it 
 appropriate, be given the application at once. 

    Subd. 6.    Response from participant.  Participants may 
 provide a quote on the same coverage basis they normally provide 
 for similar coverage for that type of insurance in Minnesota.  
 Participants will return their quotations or refusals to quote 
 to the committee within ten days.  The applicant or the 
 applicant's agent, if any, will be notified of the quotations.  
 The agent will then complete the placement of the insurance, if 
 the applicant accepts coverage from the participant at the price 
 quoted, without need for an agency appointment from that 
 participant.  The insurer is not required to pay the agent any 
 commission, but the agent may negotiate a fee with the applicant 
 prior to initial submission of the application. 

    Subd. 7.    Limitation on reapplication.  An applicant 
 provided a quotation in accordance with the above procedure will 
 not be eligible to seek additional quotations from the market 
 assistance plan or to obtain coverage from the association if 
 the quotation received would not be deemed to be a notice of 
 refusal for purposes of determining eligibility for 
 participation in the association. 

    Subd. 8.    Review by the committee.  If the procedures 
 in subdivisions 1 to 7 do not produce a quote, the application 
 may be submitted to the committee.  The committee after 
 reviewing the application shall proceed as follows:  (1) attempt 
 to place the applicant with a single carrier; or (2) attempt to 
 arrange coverage on a quota share basis with a number of 
 carriers. 

    Subd. 9.    Disqualification after coverage granted.  If 
 an application is filed with the market assistance program less 
 than 30 business days before the expiration date of the 
 applicant's current insurance coverage the market assistance 
 program may continue to seek coverage for the applicant after 
 coverage is extended by the association.  The market assistance 
 program will have 30 business days from the date of filing of 
 the application with the market assistance program to obtain an 
 offer of coverage for the applicant.  If the market assistance 
 program is able to secure an offer of coverage for the applicant 
 within 30 business days of filing of the application and if the 
 offer of coverage would not otherwise be considered a refusal 
 for purposes of the association, the applicant will be deemed to 
 not be qualified to participate in the association and coverage, 
 if any, shall be terminated.  If the applicant accepts the 
 coverage obtained by the market assistance plan, coverage from 
 the association will terminate when the new coverage begins. 

    Subd. 10.    Notification of failure to place.  If the 
 market assistance program does not produce a quote, it shall 
 notify the submitting agent or the applicant at least 24 hours 
 before the time the applicant's current insurance coverage 
 terminates.  A copy of the notification must be submitted to the 
 commissioner and the association at the same time notice is made 
 to the agent or applicant.  Notwithstanding the foregoing, the 
 market assistance program may continue to act pursuant to 
 subdivision 9.  Notice that the market assistance program is 
 continuing to act pursuant to subdivision 9 shall be included in 
 the notice required by this subdivision. 

    HIST: 1986 c 455 s 29