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, with specific consequences for failure to provide this information.

Furthermore, the bill stipulates that if an insured does not respond to the financial information request within 60 days, their net worth will be deemed to exceed the $25,000,000 threshold for evaluating claims. It also clarifies that 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, are not covered. These changes aim to enhance the operational efficiency of the Minnesota Insurance Guaranty Association and ensure that only eligible claims are processed.

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