This bill, S.F. No. 2256, proposes new regulations in Minnesota to prevent workers' compensation insurance fraud by establishing stricter certificate of insurance requirements.

Key Provisions:

1. Definitions:

   • Defines a Certificate of Insurance as documentation proving workers' compensation coverage.
   • Requires a QR code on each certificate to verify coverage and expiration details online.

2. Employer Verification Requirements:

   • Employers must ensure every certificate of insurance includes a scannable QR code linked to the state's workers' compensation verification system.
   • Employers must report:
     • Number of employees being insured by classification.
     • Estimated payroll for the coverage period.

3. Insurer Requirements:

   • Track the number of certificates issued and report the data to the Department of Labor.
   • Monitor employers with fraud history, including:
     • Those found guilty of workers' compensation premium fraud.
     • Employers who missed a renewal period audit.
   • Maintain fraud-related records in the Insurance Services Office system.

4. Enforcement:

   • The Commissioner of Labor has the authority to enforce these requirements under Minnesota’s existing workers' compensation laws (Section 176.184).

Purpose of the Bill:

• Strengthen fraud prevention in workers' compensation insurance.
• Increase transparency and accuracy in insurance coverage verification.
• Ensure better tracking of policies and employer compliance.

This bill aims to reduce fraudulent activity and enhance accountability in Minnesota's workers' compensation system through enhanced reporting and tracking mechanisms.