Purpose of the Bill

The purpose of this bill is to establish requirements for certificates of insurance related to workers' compensation to prevent fraud in Minnesota. It aims to ensure transparency and verification of insurance coverage for workers.

Main Provisions

• Certificates of Insurance: The bill mandates that all certificates of insurance for workers' compensation must include a scannable QR code. This QR code should link to the original certificate information, including the verification of coverage and expiration date.

• Employer Reporting Requirements: Employers obtaining a certificate of insurance must report the number of employees being insured, classified by employee type, and provide an estimated payroll for the coverage period to the commissioner.

• Insurer Tracking: Insurers are required to track and report the number of certificates of insurance issued. This data should be submitted to both the insurer and the department for inclusion in the workers' compensation insurance verification system.

• Fraud Detection: The bill requires insurers to track information about employers found to have committed workers compensation premium fraud or missed renewal period audits. This information needs to be maintained within the Insurance Services Office systems.

• Enforcement Measures: The commissioner will have the authority to enforce these provisions as per the guidelines set forth in section 176.184.

Significant Changes to Existing Law

The bill introduces new measures for fraud prevention that are not currently present in the existing workers' compensation insurance laws in Minnesota. It incorporates modern technology, like QR codes, to improve transparency and verification processes, aiming to reduce the instances of fraud.

Relevant Terms

• Workers' compensation insurance
• Certificate of insurance
• QR code
• Verification system
• Premium fraud
• Insurance Services Office
• Enforcement