Section 60C.01 — Citation.

60C.01 CITATION. This chapter may be cited as the “Minnesota Insurance Guaranty Association Act.” History: 1971 c 145 s 1

Section 60C.02 — Scope, Purposes, And Construction.

60C.02 SCOPE, PURPOSES, AND CONSTRUCTION. Subdivision 1. Scope. This chapter applies to all kinds of direct insurance, except: (1) life; (2) annuity; (3) title; (4) accident and sickness; (5) credit; (6) vendor’s single interest or collateral protection or any similar insurance protecting the interests of a creditor arising out of a creditor debtor transaction; (7) […]

Section 60C.03 — Definitions.

60C.03 DEFINITIONS. Subdivision 1. Scope. For the purposes of this chapter, the following terms have the meanings given in this section. Subd. 2. Account. “Account” means any of the five accounts created under section 60C.04. Subd. 3. Association. “Association” means the Minnesota Insurance Guaranty Association created under section 60C.04. Subd. 4. Net direct written premiums. […]

Section 60C.04 — Creation.

60C.04 CREATION. All insurers subject to the provisions of this chapter shall form an organization to be known as the Minnesota Insurance Guaranty Association. All insurers defined as member insurers in section 60C.03, subdivision 6, are and shall remain members of the association as a condition of their authority to transact insurance business or to […]

Section 60C.05 — Powers And Duties.

60C.05 POWERS AND DUTIES. Subdivision 1. Required duties. The association shall: (a) Be deemed the insurer to the extent of its obligation on the covered claims and have the right to pursue and retain salvage and subrogation recoverables on covered claim obligations to the extent paid or acknowledged in writing as an obligation by the […]

Section 60C.06 — Assessments.

60C.06 ASSESSMENTS. Subdivision 1. Determination of amount. The assessments of each member insurer shall be in the proportion that the net direct written premiums of the member insurer for the preceding calendar year on the kinds of insurance in the account bear to the net direct written premiums of all member insurers for the preceding […]

Section 60C.07 — Plan Of Operation.

60C.07 PLAN OF OPERATION. Subdivision 1. Required submission. The association shall submit to the commissioner a plan of operation and any amendments thereto necessary or suitable to assure the fair, reasonable, and equitable administration of the association. The plan of operation and any amendments thereto become effective upon written approval from the commissioner. If the […]

Section 60C.08 — Board Of Directors.

60C.08 BOARD OF DIRECTORS. Subdivision 1. Composition. The board of directors of the association shall consist of nine persons. Two of the directors shall be public members and seven shall be insurer members. The public members shall be appointed by the commissioner. Public members may include licensed insurance agents. The insurer members of the board […]

Section 60C.09 — Covered Claims.

60C.09 COVERED CLAIMS. Subdivision 1. Definition. A covered claim is any unpaid claim, including one for unearned premium, which: (a) arises out of and is within the coverage of an insurance policy issued by a member insurer if the insurer becomes an insolvent insurer after April 30, 1979; (b) arises out of a class of […]

Section 60C.10 — Evaluation Of Claims.

60C.10 EVALUATION OF CLAIMS. Subdivision 1. Board to determine. The board shall determine whether claims submitted for payment are covered claims. Subd. 2. [Repealed, 1981 c 260 s 4] Subd. 3. Claim denial; notification of appeal and review rights. If the board finds that a claim for which the claimant has requested payment out of […]

Section 60C.11 — Effect Of Paid Claims.

60C.11 EFFECT OF PAID CLAIMS. Subdivision 1. Assignment upon recovery. The rights under the policy of a person recovering under this chapter shall be deemed to have been assigned by the person to the association to the extent of the recovery. Subd. 2. Required cooperation. Every insured or claimant seeking the protection of this chapter […]

Section 60C.12 — Appeal And Review.

60C.12 APPEAL AND REVIEW. Subdivision 1. Appeal. A claimant whose claim has been declared to be not covered or reduced by the board under section 60C.10 may appeal to the board within 30 days after the claimant has been notified of the board’s decision and of the rights of the claimant under this section. Subd. […]

Section 60C.13 — Exhaustion Of Other Coverage.

60C.13 EXHAUSTION OF OTHER COVERAGE. Subdivision 1. Other policy coverage. Any person having a claim under another policy whether or not the policy is a policy of a member insurer, which claim arises out of the same facts which give rise to the covered claim, shall be first required to exhaust the person’s right under […]

Section 60C.14 — Duties And Powers Of Commissioner.

60C.14 DUTIES AND POWERS OF COMMISSIONER. Subdivision 1. Mandatory powers and duties. The commissioner shall: (a) Notify the association of the issuance of any order of liquidation of a member insurer not later than three days after the commissioner has knowledge of the issuance of the order. (b) Upon request of the board of directors […]

Section 60C.15 — Prevention Of Insolvencies.

60C.15 PREVENTION OF INSOLVENCIES. To aid in the detection and prevention of insurer insolvencies: (1) The board of directors may upon majority vote make recommendations to the commissioner on matters generally related to improving or enhancing regulation for solvency. (2) The board of directors may, at the conclusion of any domestic insurer insolvency in which […]

Section 60C.16 — Examination Of Association.

60C.16 EXAMINATION OF ASSOCIATION. The association is subject to examination and regulation by the commissioner. The board of directors shall submit each year a financial report for the preceding calendar year in a form approved by the commissioner. History: 1971 c 145 s 16; 2003 c 74 s 8

Section 60C.17 — Tax Exemption.

60C.17 TAX EXEMPTION. The association is exempt from payment of all taxes imposed under chapter 297I and all fees and all other taxes levied by this state or any of its subdivisions except taxes levied on real or personal property. History: 1971 c 145 s 17; 2000 c 394 art 2 s 9

Section 60C.18 — Recognition Of Assessments In Rates.

60C.18 RECOGNITION OF ASSESSMENTS IN RATES. Subdivision 1. Recognition required. The rates and premiums charged for insurance policies and fidelity and surety bonds to which this chapter applies may include amounts sufficient to recoup a sum equal to the amounts paid to the association by the member insurer less any amounts returned to the member […]

Section 60C.19 — Immunity.

60C.19 IMMUNITY. There shall be no liability on the part of and no cause of action of any nature shall arise against any member insurer, the association or its agents or employees, the board of directors, or a person serving as an alternative or substitute representative of a director, or the commissioner, or the commissioner’s […]

Section 60C.195 — Stay Of Proceedings.

60C.195 STAY OF PROCEEDINGS. All proceedings in which the insolvent insurer is a party or is obligated to defend a party in a court in this state shall, subject to waiver by the association in specific cases involving covered claims, be stayed for six months and additional time that may be determined by the court. […]