Minneslate Logo

HF1014 (Legislative Session 94 (2025-2026))

Board of directors of the Minnesota Insurance Guarantee Association permission to request financial information from insureds

Related bill: SF1758

AI Generated Summary

Purpose of the Bill

This bill aims to modify the existing law regarding the financial obligations and operations of the Minnesota Insurance Guarantee Association. The primary focus is to allow this board to request financial information from policyholders (insureds).

Main Provisions

  • Requesting Financial Information: The bill allows the board of directors of the Minnesota Insurance Guarantee Association to request financial information from insured individuals to assess their net worth.
  • Net Worth Threshold: If an insured's net worth is determined to be more than $25,000,000, this impacts the processing of claims when an insurer becomes insolvent.
  • Deadline for Information Submission: Insured individuals must provide the requested financial information within 60 days. If they fail to do so, their net worth is automatically considered to exceed the $25,000,000 threshold.

Significant Changes to Existing Law

  • The bill amends Minnesota Statutes 2024 section 60C.09, subdivision 2, specifically altering how claims are processed in case of insurer insolvency.
  • It redefines exclusions of covered claims, specifically dealing with the financial status of insured individuals when determining compensation eligibility.
  • Provides the board with the authority to inform insured individuals of the consequences if they do not submit the necessary financial documents.

Relevant Terms

  • Minnesota Insurance Guarantee Association
  • Financial information
  • Insolvent insurer
  • Net worth
  • Deductible
  • Self-insured retention

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 26, 2025SenateFloorActionReceived from House
February 16, 2025HouseFloorActionIntroduction and first reading, referred toCommerce Finance and Policy
March 26, 2025SenateFloorActionIntroduction and first reading
February 19, 2025HouseFloorActionAuthor added
February 23, 2025HouseFloorActionCommittee report, to adopt
March 26, 2025SenateFloorActionReferred toRules and Administration
March 31, 2025SenateFloorActionComm report: Subst. for SF on General Orders
February 23, 2025HouseFloorActionSecond reading
March 31, 2025SenateFloorActionSecond reading
March 19, 2025HouseFloorActionHouse rule 1.21, placed on Calendar for the Day
March 23, 2025HouseFloorActionThird reading
March 23, 2025HouseFloorActionBill was passed

Citations

 
[
  {
    "analysis": {
      "added": [
        "Allows the board of directors to request financial information from insureds to determine net worth."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill amends the Minnesota Statutes section 60C.09, subdivision 2, which delineates what constitutes a covered claim by the Minnesota Insurance Guarantee Association.",
      "modified": [
        "Clarifies the conditions under which an insured's net worth is deemed to exceed $25,000,000."
      ]
    },
    "citation": "60C.09",
    "subdivision": "subdivision 2"
  }
]

Sponsors