The bill amends Minnesota Statutes 2024, section 60C.09, subdivision 2, to clarify the definition of covered claims under the Minnesota Insurance Guaranty Association. It specifies that covered claims do not include those made by affiliates of the insurer, claims due to reinsurers or other insurance entities, and claims resulting from insolvencies occurring after July 31, 1996, by insureds with a net worth exceeding $25,000,000. Additionally, it introduces a provision allowing the association to request financial information from insureds to determine their net worth. If an insured fails to provide this information within 60 days, their net worth will be deemed to exceed the threshold for claim evaluation.

Furthermore, the bill stipulates that claims under policies with a deductible or self-insured retention of $300,000 or more, as well as claims for fines, penalties, interest, or punitive damages, are also excluded from covered claims. The new language emphasizes the importance of the insured's cooperation in providing financial information and outlines the consequences of non-compliance, ensuring that the association can effectively assess claims based on the insured's financial status.

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