Bill Text: MN SF2713 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Workers compensation insurers permissible administrative expenses limitation
Sponsorship: Partisan Bill (Independent 1)
Status: (Introduced - Dead) 2014-03-17 - Referred to Jobs, Agriculture and Rural Development [SF2713 Detail]
Download: Minnesota-2013-SF2713-Introduced.html
1.2relating to workers' compensation insurance; limiting the insurer's permissible
1.3administrative expenses;amending Minnesota Statutes 2012, section 79.561,
1.4subdivision 1.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 79.561, subdivision 1, is amended to read:
1.7 Subdivision 1. Disapproval; time period. The commissioner may disapprove a rate
1.8and rating plan or amendment thereto prior to its effective date, as provided under section
1.979.56, subdivision 1
, if the commissioner determines that it is excessive, inadequate, or
1.10unfairly discriminatory. If the commissioner disapproves any rate or rating plan filing or
1.11amendment thereto, the commissioner shall advise the filing insurer what rate and rating
1.12plan the commissioner has reason to believe would be in compliance with section79.55 ,
1.13and the reasons for that determination. An insurer may not implement a rate and rating
1.14plan or amendment thereto which has been disapproved under this subdivision. If the
1.15commissioner disapproves any rate and rating plan filing or amendment thereto, an insurer
1.16may use its current rate and rating plan for writing any workers' compensation insurance in
1.17this state. Following any disapproval, the commissioner and insurer may reach agreement
1.18on a rate or rating plan filing or amendment thereto, provided that the insurer's expected
1.19administrative expenses do not exceed 20 percent of the insurer's expected total revenues.
1.20Notwithstanding any law to the contrary, in such cases, the rate or rating plan filing or
1.21amendment thereto may be implemented by the insurer immediately.
1.22EFFECTIVE DATE.This section is effective January 1, 2015, and applies to rates
1.23and rating plans filed on or after that date.
1.3administrative expenses;amending Minnesota Statutes 2012, section 79.561,
1.4subdivision 1.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 79.561, subdivision 1, is amended to read:
1.7 Subdivision 1. Disapproval; time period. The commissioner may disapprove a rate
1.8and rating plan or amendment thereto prior to its effective date, as provided under section
1.10unfairly discriminatory. If the commissioner disapproves any rate or rating plan filing or
1.11amendment thereto, the commissioner shall advise the filing insurer what rate and rating
1.12plan the commissioner has reason to believe would be in compliance with section
1.13and the reasons for that determination. An insurer may not implement a rate and rating
1.14plan or amendment thereto which has been disapproved under this subdivision. If the
1.15commissioner disapproves any rate and rating plan filing or amendment thereto, an insurer
1.16may use its current rate and rating plan for writing any workers' compensation insurance in
1.17this state. Following any disapproval, the commissioner and insurer may reach agreement
1.18on a rate or rating plan filing or amendment thereto, provided that the insurer's expected
1.19administrative expenses do not exceed 20 percent of the insurer's expected total revenues.
1.20Notwithstanding any law to the contrary, in such cases, the rate or rating plan filing or
1.21amendment thereto may be implemented by the insurer immediately.
1.22EFFECTIVE DATE.This section is effective January 1, 2015, and applies to rates
1.23and rating plans filed on or after that date.
