The bill amends Minnesota Statutes 2024, section 60C.09, subdivision 2, to enhance the authority of the Minnesota Insurance Guarantee Association's board of directors regarding the assessment of claims. Specifically, it allows the board to request financial information from insureds to determine their net worth, which is crucial for evaluating claims. If an insured does not provide the requested information within 60 days, their net worth will be presumed to exceed $25,000,000 for the purposes of claim evaluation. Additionally, the board must inform the insured of the consequences of failing to provide this information.

The bill also clarifies the definition of covered claims by specifying exclusions. It maintains existing exclusions for claims by affiliates of the insurer and claims due to reinsurers or insurers, while adding new exclusions for claims resulting from insolvencies after July 31, 1996, for insureds with a net worth exceeding $25,000,000. Furthermore, it specifies that claims under policies with deductibles or self-insured retentions of $300,000 or more are also excluded, along with claims that involve fines, penalties, interest, or punitive damages.

Statutes affected:
Introduction: 60C.09