The bill amends Minnesota Statutes 2024, section 60C.09, subdivision 2, to allow the Minnesota Insurance Guaranty Association to request financial information from insureds to determine their net worth. This is particularly relevant for claims that arise from insolvencies occurring after July 31, 1996, where the insured's net worth exceeds $25,000,000. If an insured does not provide the requested financial information within 60 days, their net worth will be deemed to exceed the threshold for the purposes of evaluating claims. Additionally, the association must inform the insured of the consequences of failing to provide this information.

The bill also clarifies that certain claims are excluded from being covered, including those by affiliates of the insurer, claims due to reinsurers or other insurance entities, and claims under policies with high deductibles or self-insured retentions. Furthermore, it specifies that claims resulting in fines, penalties, interest, or punitive damages are not covered. The amendments aim to streamline the claims process and ensure that the association has the necessary information to assess claims accurately.

Statutes affected:
Introduction: 60C.09
1st Engrossment: 60C.09
1st Unofficial Engrossment: 60C.09