The bill amends Minnesota Statutes 2024, section 60C.09, subdivision 2, to allow the board of directors of the Minnesota Insurance Guarantee Association to request financial information from insureds to determine their net worth. This is particularly relevant for claims that may be excluded based on the insured's financial status. If an insured does not provide the requested financial information within 60 days, their net worth will be deemed to exceed $25,000,000 for the purposes of evaluating claims under section 60C.10. Additionally, the board must inform the insured of the consequences of failing to provide the requested information.

The bill also clarifies the definition of covered claims by specifying exclusions, including claims by affiliates of the insurer, claims due to reinsurers or other entities, and claims resulting from insolvencies after July 31, 1996, for insureds with a net worth exceeding $25,000,000. Furthermore, it excludes claims under policies with deductibles or self-insured retentions of $300,000 or more, as well as claims for fines, penalties, interest, or punitive damages. These changes aim to streamline the claims process and ensure that only eligible claims are covered by the Minnesota Insurance Guarantee Association.

Statutes affected:
Introduction: 60C.09