HF2235

Purpose of the Bill

The purpose of the bill is to update the existing Minnesota statutes related to commerce by removing outdated language and clarifying the process for insurance companies to remit assessments for the insurance fraud prevention account.

Main Provisions

• The bill amends Minnesota Statutes 2024, section 45.0135, subdivision 7, specifically focusing on how insurance companies in Minnesota are assessed.
• It requires insurers authorized to sell insurance in Minnesota, including surplus lines carriers, to pay an annual assessment to the insurance fraud prevention account.

Significant Changes

• The assessment that each insurer must pay is based on the insurer's total assets and total written Minnesota premiums from the previous year.
• Three tiers of asset-based assessments are introduced:
  • Insurers with assets less than $100,000,000 pay $400.
  • Insurers with assets from $100,000,000 to $1,000,000,000 pay $1,500.
  • Insurers with assets over $1,000,000,000 pay $4,000.
• Similarly, three tiers of premium-based assessments are outlined:
  • Insurers with written premiums less than $10,000,000 pay $400.
  • Insurers with written premiums from $10,000,000 to $100,000,000 pay $1,500.
  • Insurers with written premiums over $100,000,000 pay $4,000.
• The bill clarifies that risk retention groups and township mutuals are not considered insurers authorized to sell insurance for assessment purposes.

Relevant Terms

• Insurance fraud prevention account
• Insurer assessments
• Surplus lines carriers
• Minnesota written premiums
• Risk retention groups
• Township mutuals