Bill Text: MN HF1405 | 2011-2012 | 87th Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Claims processing regulated for insurance on portable electronics products, and automated claims processing system use permitted to requirements and safeguards.
Spectrum: Partisan Bill (Republican 3-0)
Status: (Passed) 2011-05-27 - Secretary of State Chapter 95 [HF1405 Detail]
Download: Minnesota-2011-HF1405-Introduced.html
Bill Title: Claims processing regulated for insurance on portable electronics products, and automated claims processing system use permitted to requirements and safeguards.
Spectrum: Partisan Bill (Republican 3-0)
Status: (Passed) 2011-05-27 - Secretary of State Chapter 95 [HF1405 Detail]
Download: Minnesota-2011-HF1405-Introduced.html
1.2relating to insurance; regulating claims processing for insurance on portable
1.3electronics products; permitting use of an automated claims processing system
1.4subject to certain requirements and safeguards;amending Minnesota Statutes
1.52010, sections 72B.02, by adding a subdivision; 72B.03, subdivision 1, by
1.6adding a subdivision; 72B.041, subdivision 2, by adding a subdivision.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2010, section 72B.02, is amended by adding a
1.9subdivision to read:
1.10 Subd. 23. Automated claims adjudication system. "Automated claims
1.11adjudication system" means a preprogrammed computer system designed for the
1.12collection, data entry, calculation, and final resolution of portable electronics insurance
1.13claims relating to coverage regulated by section 60K.381, which:
1.14(1) may be utilized only by a licensed independent adjuster; licensed insurance
1.15producer as defined in section 60K.31, subdivision 6; or a supervised individual operating
1.16under section 72B.03, subdivision 1, paragraph (a), clause (14);
1.17(2) must comply with all claims payment requirements of the insurance laws of
1.18this state; and
1.19(3) must be certified as compliant with this section by a licensed independent
1.20adjuster that is an officer of a business entity licensed under this chapter.
1.21EFFECTIVE DATE.This section is effective the day following final enactment.
1.22 Sec. 2. Minnesota Statutes 2010, section 72B.03, subdivision 1, is amended to read:
1.23 Subdivision 1. Requirement; exceptions. (a) A person shall not act or hold out
1.24as an independent adjuster, public adjuster, or public adjuster solicitor unless the person
2.1is licensed as an independent adjuster, public adjuster, or public adjuster solicitor in
2.2accordance with this chapter, or is exempt from licensure as an independent adjuster,
2.3public adjuster, or public adjuster solicitor under this chapter.
2.4(b) The definition of adjuster does not include, and a license as an adjuster is not
2.5required of, the following:
2.6(1) attorneys-at-law admitted to practice in this state, when acting in the attorney's
2.7professional capacity as an attorney;
2.8(2) a person employed solely to obtain facts surrounding a claim or to furnish
2.9technical assistance to a licensed adjuster;
2.10(3) an individual who is employed to investigate suspected fraudulent insurance
2.11claims but who does not adjust losses or determine claims payments;
2.12(4) a person who solely performs executive, administrative, managerial, or clerical
2.13duties or any combination of these duties and who does not investigate, negotiate, or settle
2.14claims with policyholders, claimants, or their legal representative;
2.15(5) a licensed health care provider or its employee who provides managed care
2.16services so long as the services do not include the determination of compensability;
2.17(6) a managed care organization or any of its employees or an employee of any
2.18organization providing managed care services so long as the services do not include the
2.19determination of compensability;
2.20(7) a person who settles only reinsurance or subrogation claims;
2.21(8) an officer, director, manager, or employee of an authorized insurer, a surplus lines
2.22insurer, a risk retention group, or an attorney-in-fact of a reciprocal insurer;
2.23(9) a United States manager of the United States branch of an alien insurer;
2.24(10) a person who investigates, negotiates, or settles life, accident and health,
2.25annuity, or disability insurance claims;
2.26(11) an individual employee, under a self-insured arrangement, who adjusts claims
2.27on behalf of the employee's employer;
2.28(12) a licensed insurance producer, attorney-in-fact of a reciprocal insurer, or
2.29managing general agent of the insurer to whom claim authority has been granted by the
2.30insurer;
2.31(13) a person authorized to adjust workers' compensation or disability claims under
2.32the authority of a third-party administrator license pursuant to section60A.23, subdivision
2.338.; or
2.34(14) an individual who:
2.35(i) collects claim information from, or furnishes claim information to, insureds or
2.36claimants; and
3.1(ii) conducts data entry including entering data into an automated claims adjudication
3.2system, provided that the individual is an employee of a licensed independent adjuster or
3.3its affiliate where no more than 25 such persons are under the supervision of one licensed
3.4independent adjuster or licensed insurance producer who is exempt from licensure under
3.5clause (12).
3.6EFFECTIVE DATE.This section is effective the day following final enactment.
3.7 Sec. 3. Minnesota Statutes 2010, section 72B.03, is amended by adding a subdivision
3.8to read:
3.9 Subd. 4. Residents of Canada. An individual resident of Canada may be licensed
3.10pursuant to section 72B.041 and may designate Minnesota as the individual's home state,
3.11complying with the requirements of that section applicable to resident adjusters, and by
3.12submitting to the jurisdiction of the commissioner. An individual resident of Canada
3.13licensed as a resident adjuster under the law of another state must be granted nonresident
3.14independent adjuster licensure in Minnesota if the individual's designated home state
3.15grants licensure to residents of this state on the same basis.
3.16EFFECTIVE DATE.This section is effective the day following final enactment.
3.17 Sec. 4. Minnesota Statutes 2010, section 72B.041, subdivision 2, is amended to read:
3.18 Subd. 2. Criminal history record check; fingerprints. (a) An individual applying
3.19for a resident independent or public adjuster license must:
3.20(1) consent to a criminal history record check;
3.21(2) submit a fingerprint card in a form acceptable to the commissioner; and
3.22(3) pay the fee required to perform criminal history record checks with the Minnesota
3.23Bureau of Criminal Apprehension and the Federal Bureau of Investigation.
3.24(b) The commissioner may contract for the collection and transmission of
3.25fingerprints required under this chapter and may order the fee for collecting and
3.26transmitting fingerprints to be payable directly to the contractor by the applicant. The
3.27commissioner may agree to a reasonable fingerprinting fee to be charged by the contractor.
3.28(c) The commissioner must treat and maintain an applicant's fingerprints and any
3.29criminal history record information obtained under this chapter as confidential and must
3.30apply security measures consistent with the standards specified by the Criminal Justice
3.31Information Services Division of the Federal Bureau of Investigation for the electronic
3.32storage of fingerprints and necessary identifying information. The commissioner must
3.33limit the use of records solely to the purposes authorized in this chapter. The fingerprints
4.1and any criminal history record information must not be subject to subpoena, other than
4.2one issued in a criminal action or investigation.
4.3(d) The commissioner may receive criminal history record information from another
4.4government agency in lieu of the Minnesota Bureau of Criminal Apprehension.
4.5(e) The commissioner may require any documents reasonably necessary to verify the
4.6information contained in the application.
4.7(f) All applicants for a license as a public adjuster must attach to their application
4.8evidence that the bonding requirement in subdivision 3 has been satisfied.
4.9(g) A business entity applying for a resident independent adjuster license shall
4.10submit the names, addresses, Social Security numbers, criminal and administrative history,
4.11background checks, biographical statement, and fingerprints, of all executive officers and
4.12directors of the applicant and of all executive officers and directors of entities owning and
4.13any individuals owning, directly or indirectly, more than 50 percent of the outstanding
4.14voting securities of the applicant.
4.15EFFECTIVE DATE.This section is effective the day following final enactment.
4.16 Sec. 5. Minnesota Statutes 2010, section 72B.041, is amended by adding a subdivision
4.17to read:
4.18 Subd. 10. Business entity. A business entity applying for a nonresident independent
4.19adjuster license shall submit the names, addresses, Social Security numbers, criminal
4.20and administrative history, background checks, biographical statement, and fingerprints,
4.21of all executive officers and directors of the applicant and of all executive officers and
4.22directors of entities owning and any individuals owning, directly or indirectly, more
4.23than 50 percent of outstanding voting securities of the applicant. Any such nonresident
4.24business entity applicant whose home state complies with all of the provisions of this
4.25subdivision is not required to submit a criminal and administrative history, background
4.26check, biographical statement, and fingerprints for its executive officers, directors, and
4.27owners of outstanding voting securities.
4.28EFFECTIVE DATE.This section is effective the day following final enactment.
1.3electronics products; permitting use of an automated claims processing system
1.4subject to certain requirements and safeguards;amending Minnesota Statutes
1.52010, sections 72B.02, by adding a subdivision; 72B.03, subdivision 1, by
1.6adding a subdivision; 72B.041, subdivision 2, by adding a subdivision.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2010, section 72B.02, is amended by adding a
1.9subdivision to read:
1.10 Subd. 23. Automated claims adjudication system. "Automated claims
1.11adjudication system" means a preprogrammed computer system designed for the
1.12collection, data entry, calculation, and final resolution of portable electronics insurance
1.13claims relating to coverage regulated by section 60K.381, which:
1.14(1) may be utilized only by a licensed independent adjuster; licensed insurance
1.15producer as defined in section 60K.31, subdivision 6; or a supervised individual operating
1.16under section 72B.03, subdivision 1, paragraph (a), clause (14);
1.17(2) must comply with all claims payment requirements of the insurance laws of
1.18this state; and
1.19(3) must be certified as compliant with this section by a licensed independent
1.20adjuster that is an officer of a business entity licensed under this chapter.
1.21EFFECTIVE DATE.This section is effective the day following final enactment.
1.22 Sec. 2. Minnesota Statutes 2010, section 72B.03, subdivision 1, is amended to read:
1.23 Subdivision 1. Requirement; exceptions. (a) A person shall not act or hold out
1.24as an independent adjuster, public adjuster, or public adjuster solicitor unless the person
2.1is licensed as an independent adjuster, public adjuster, or public adjuster solicitor in
2.2accordance with this chapter, or is exempt from licensure as an independent adjuster,
2.3public adjuster, or public adjuster solicitor under this chapter.
2.4(b) The definition of adjuster does not include, and a license as an adjuster is not
2.5required of, the following:
2.6(1) attorneys-at-law admitted to practice in this state, when acting in the attorney's
2.7professional capacity as an attorney;
2.8(2) a person employed solely to obtain facts surrounding a claim or to furnish
2.9technical assistance to a licensed adjuster;
2.10(3) an individual who is employed to investigate suspected fraudulent insurance
2.11claims but who does not adjust losses or determine claims payments;
2.12(4) a person who solely performs executive, administrative, managerial, or clerical
2.13duties or any combination of these duties and who does not investigate, negotiate, or settle
2.14claims with policyholders, claimants, or their legal representative;
2.15(5) a licensed health care provider or its employee who provides managed care
2.16services so long as the services do not include the determination of compensability;
2.17(6) a managed care organization or any of its employees or an employee of any
2.18organization providing managed care services so long as the services do not include the
2.19determination of compensability;
2.20(7) a person who settles only reinsurance or subrogation claims;
2.21(8) an officer, director, manager, or employee of an authorized insurer, a surplus lines
2.22insurer, a risk retention group, or an attorney-in-fact of a reciprocal insurer;
2.23(9) a United States manager of the United States branch of an alien insurer;
2.24(10) a person who investigates, negotiates, or settles life, accident and health,
2.25annuity, or disability insurance claims;
2.26(11) an individual employee, under a self-insured arrangement, who adjusts claims
2.27on behalf of the employee's employer;
2.28(12) a licensed insurance producer, attorney-in-fact of a reciprocal insurer, or
2.29managing general agent of the insurer to whom claim authority has been granted by the
2.30insurer;
2.31(13) a person authorized to adjust workers' compensation or disability claims under
2.32the authority of a third-party administrator license pursuant to section
2.34(14) an individual who:
2.35(i) collects claim information from, or furnishes claim information to, insureds or
2.36claimants; and
3.1(ii) conducts data entry including entering data into an automated claims adjudication
3.2system, provided that the individual is an employee of a licensed independent adjuster or
3.3its affiliate where no more than 25 such persons are under the supervision of one licensed
3.4independent adjuster or licensed insurance producer who is exempt from licensure under
3.5clause (12).
3.6EFFECTIVE DATE.This section is effective the day following final enactment.
3.7 Sec. 3. Minnesota Statutes 2010, section 72B.03, is amended by adding a subdivision
3.8to read:
3.9 Subd. 4. Residents of Canada. An individual resident of Canada may be licensed
3.10pursuant to section 72B.041 and may designate Minnesota as the individual's home state,
3.11complying with the requirements of that section applicable to resident adjusters, and by
3.12submitting to the jurisdiction of the commissioner. An individual resident of Canada
3.13licensed as a resident adjuster under the law of another state must be granted nonresident
3.14independent adjuster licensure in Minnesota if the individual's designated home state
3.15grants licensure to residents of this state on the same basis.
3.16EFFECTIVE DATE.This section is effective the day following final enactment.
3.17 Sec. 4. Minnesota Statutes 2010, section 72B.041, subdivision 2, is amended to read:
3.18 Subd. 2. Criminal history record check; fingerprints. (a) An individual applying
3.19for a resident independent or public adjuster license must:
3.20(1) consent to a criminal history record check;
3.21(2) submit a fingerprint card in a form acceptable to the commissioner; and
3.22(3) pay the fee required to perform criminal history record checks with the Minnesota
3.23Bureau of Criminal Apprehension and the Federal Bureau of Investigation.
3.24(b) The commissioner may contract for the collection and transmission of
3.25fingerprints required under this chapter and may order the fee for collecting and
3.26transmitting fingerprints to be payable directly to the contractor by the applicant. The
3.27commissioner may agree to a reasonable fingerprinting fee to be charged by the contractor.
3.28(c) The commissioner must treat and maintain an applicant's fingerprints and any
3.29criminal history record information obtained under this chapter as confidential and must
3.30apply security measures consistent with the standards specified by the Criminal Justice
3.31Information Services Division of the Federal Bureau of Investigation for the electronic
3.32storage of fingerprints and necessary identifying information. The commissioner must
3.33limit the use of records solely to the purposes authorized in this chapter. The fingerprints
4.1and any criminal history record information must not be subject to subpoena, other than
4.2one issued in a criminal action or investigation.
4.3(d) The commissioner may receive criminal history record information from another
4.4government agency in lieu of the Minnesota Bureau of Criminal Apprehension.
4.5(e) The commissioner may require any documents reasonably necessary to verify the
4.6information contained in the application.
4.7(f) All applicants for a license as a public adjuster must attach to their application
4.8evidence that the bonding requirement in subdivision 3 has been satisfied.
4.9(g) A business entity applying for a resident independent adjuster license shall
4.10submit the names, addresses, Social Security numbers, criminal and administrative history,
4.11background checks, biographical statement, and fingerprints, of all executive officers and
4.12directors of the applicant and of all executive officers and directors of entities owning and
4.13any individuals owning, directly or indirectly, more than 50 percent of the outstanding
4.14voting securities of the applicant.
4.15EFFECTIVE DATE.This section is effective the day following final enactment.
4.16 Sec. 5. Minnesota Statutes 2010, section 72B.041, is amended by adding a subdivision
4.17to read:
4.18 Subd. 10. Business entity. A business entity applying for a nonresident independent
4.19adjuster license shall submit the names, addresses, Social Security numbers, criminal
4.20and administrative history, background checks, biographical statement, and fingerprints,
4.21of all executive officers and directors of the applicant and of all executive officers and
4.22directors of entities owning and any individuals owning, directly or indirectly, more
4.23than 50 percent of outstanding voting securities of the applicant. Any such nonresident
4.24business entity applicant whose home state complies with all of the provisions of this
4.25subdivision is not required to submit a criminal and administrative history, background
4.26check, biographical statement, and fingerprints for its executive officers, directors, and
4.27owners of outstanding voting securities.
4.28EFFECTIVE DATE.This section is effective the day following final enactment.
