Minn. R. agency 120, ch. 2770, AUTO SELF-INSURANCE, pt. 2770.6500

Current through Register Vol. 49, No. 27, December 30, 2024

Part 2770.6500 - AUTHORIZATION STANDARDS

Subpart 1.Political subdivisions.

The commissioner shall grant self-insurance authority to an applicant that is a political subdivision if it satisfies these conditions:

A. at least 25 motor vehicles are registered in its name; and

B. it has, or has contracted with a licensed vendor of risk management services to provide, the administrative resources needed to:

(1) process, review, and pay claims;

(2) evaluate the medical and rehabilitation needs of automobile accident victims; and

(3) estimate current and future loss liabilities.

A political subdivision that has satisfied the foregoing conditions is not required to satisfy the security requirement of part 2770.6800.

Subp. 2.All other applicants.

The commissioner shall grant self-insurance authority to an applicant that is not a political subdivision if the following conditions are satisfied:

A. the applicant satisfies subpart 1, item B;

B. either the applicant alone or the parent company alone:

(1) satisfies subpart 1, item A;

(2) has existed for at least five years;

(3) has a current net worth, or the equivalent, of at least $5,000,000;

(4) had positive net income, or the equivalent, during the last five-year period and in at least three of those years; and

(5) had positive working capital during the last five-year period and in at least three of those years; and

C. neither the applicant nor its parent company, if one exists, has sought protection under the United States Bankruptcy Code during the last three years.

Notwithstanding the conditions under items A to C, the commissioner may grant self-insurance authority to an applicant that is not a political subdivision and that has not had positive working capital in at least three years of the last five-year period if the working capital, debt structure, profitability, and overall financial integrity of the applicant and its parent company, if one exists, demonstrate a continuing ability of the applicant to satisfy any financial obligations that have been and might be incurred under the no-fault act.

Minn. R. agency 120, ch. 2770, AUTO SELF-INSURANCE, pt. 2770.6500

9 SR 734; 9 SR 764; 10 SR 1265

48 SR 841

Statutory Authority: MS s 65B.48