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SF1758 (Legislative Session 94 (2025-2026))

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

Related bill: HF1014

AI Generated Summary

This bill, Senate File No. 1758, proposes an amendment to Minnesota Statutes 2024, section 60C.09, subdivision 2. The key changes include:

  1. Clarification of Covered Claims:

    • It reiterates that claims from an affiliate of the insurer, claims due to reinsurers, insurers, insurance pools, or underwriting associations, and certain high-net-worth insured claims are not covered.

  2. New Authority for the Minnesota Insurance Guarantee Association Board:

    • The board of directors may request financial information from an insured to determine whether their net worth exceeds $25 million (which affects their eligibility for claims if their insurer becomes insolvent).
    • If the insured fails to respond within 60 days, their net worth will be deemed to exceed $25 million, which means their claims will not be eligible for coverage.
    • The board's request must include a statement explaining the consequences of failing to provide the required information.

  3. Other Non-Covered Claims:

    • Policies with a deductible or self-insured retention of $300,000 or more.
    • Claims for fines, penalties, interest, or punitive/exemplary damages.

In summary, this bill grants the Minnesota Insurance Guarantee Association the authority to request insured parties’ financial records to determine eligibility for claim coverage and establishes consequences for failure to comply.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 23, 2025SenateFloorActionIntroduction and first reading
February 23, 2025SenateFloorActionReferred toCommerce and Consumer Protection
March 02, 2025SenateFloorActionComm report: To pass
March 02, 2025SenateFloorActionSecond reading
SenateFloorActionReferred toRules and Administration
March 31, 2025SenateFloorActionRule 45; subst. General Orders

Citations

 
[
  {
    "analysis": {
      "added": [
        "Allows board of directors to request financial information from insureds to determine net worth."
      ],
      "removed": [],
      "summary": "The bill amends an existing section 60C.09 to further define what constitutes a 'covered claim' in relation to the Minnesota Insurance Guarantee Association.",
      "modified": [
        "Clarification provided on exclusions related to affiliates, reinsurers, and financial thresholds for coverage."
      ]
    },
    "citation": "60C.09"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill implies review procedures for claims under section 60C.10 in relation to net worth thresholds.",
      "modified": [
        "Defines that if financial information is not provided within 60 days, the insured's net worth defaults to above $25000000."
      ]
    },
    "citation": "60C.10"
  }
]

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