Minnesota Statutes 79A.12 – Maintenance of Assets or Line of Credit to Continue Payment of Compensation Obligations
Subdivision 1.Assets maintained.
The security fund shall maintain cash, readily marketable securities, or other assets, or a line of credit, approved by the commissioner, sufficient to immediately continue the payment of the compensation obligations of an insolvent private self-insurer pending receipt of the security deposit, surety bond proceeds, irrevocable letter of credit, or, if necessary, assessment of the members. The commissioner may establish the minimum amount to be maintained by, or immediately available to, the security fund for this purpose.
Subd. 2.Assessment.
Terms Used In Minnesota Statutes 79A.12
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Irrevocable: means a letter of credit that cannot be modified or revoked without the consent of the beneficiary, once the beneficiary is established. See Minnesota Statutes 79A.04
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- private self-insurer: includes both current and former members of the self-insurers' security fund; and "private self-insurers' estimated future liability" means the private self-insurers' total of estimated future liability as determined by an Associate or Fellow of the Casualty Actuarial Society every year for group member private self-insurers and, for a nongroup member private self-insurer's authority to self-insure, every year for the first five years. See Minnesota Statutes 79A.04
Terms Used In Minnesota Statutes 79A.12
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Irrevocable: means a letter of credit that cannot be modified or revoked without the consent of the beneficiary, once the beneficiary is established. See Minnesota Statutes 79A.04
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- private self-insurer: includes both current and former members of the self-insurers' security fund; and "private self-insurers' estimated future liability" means the private self-insurers' total of estimated future liability as determined by an Associate or Fellow of the Casualty Actuarial Society every year for group member private self-insurers and, for a nongroup member private self-insurer's authority to self-insure, every year for the first five years. See Minnesota Statutes 79A.04
The security fund may assess each of its members a pro rata share of the funding necessary to carry out its obligation and the purposes of this chapter. Total annual assessments in any calendar year shall not exceed ten percent of paid indemnity losses, as defined in section 176.129, made by the self-insured employer during the preceding calendar year. The annual assessment calculation shall not include supplementary benefits paid which will be reimbursed by the special compensation fund. Funds obtained by assessments pursuant to this subdivision may only be used for the purposes of this chapter. The trustees shall certify to the commissioner the collection and receipt of all money from assessments, noting any delinquencies. The trustees shall take any action deemed appropriate to collect any delinquent assessments.