Bill Text: MN HF7 | 2011 | 87th Legislature 1st Special | Introduced
Bill Title: Nonprofit health plan companies maximum financial surplus specified.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-07-19 - House: Introduction and first reading [HF7 Detail]
Download: Minnesota-2011-HF7-Introduced.html
1.2relating to insurance; specifying maximum financial surplus for nonprofit health
1.3plan companies;proposing coding for new law in Minnesota Statutes, chapter
1.460A.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. [60A.7671] LIMIT ON THE SURPLUS OF CERTAIN HEALTH
1.7INSURERS.
1.8(a) Notwithstanding any other law to the contrary, a nonprofit health services
1.9corporation operating under chapter 62C and a health maintenance organization operating
1.10under chapter 62D must not have statutory capital and surplus, as determined in accordance
1.11with the statutory accounting applicable to the annual financial statements required to be
1.12filed, in excess of the product of its authorized control level risk-based capital and 3.5. The
1.13amounts shall be determined from a financial statement and certified audit filed annually
1.14with the commissioner and subject to verification by an examination by the commissioner.
1.15(b) If for any annual financial report the maximum required under this section is
1.16exceeded, an entity regulated under this chapter shall transfer the surplus in excess of the
1.17maximum to the health care access fund on January 2 of each calendar year pursuant
1.18to section 164.724.
1.19EFFECTIVE DATE.This section is effective January 1, 2012, and applies to the
1.20surplus reported for calendar year 2012 and thereafter.
1.3plan companies;proposing coding for new law in Minnesota Statutes, chapter
1.460A.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. [60A.7671] LIMIT ON THE SURPLUS OF CERTAIN HEALTH
1.7INSURERS.
1.8(a) Notwithstanding any other law to the contrary, a nonprofit health services
1.9corporation operating under chapter 62C and a health maintenance organization operating
1.10under chapter 62D must not have statutory capital and surplus, as determined in accordance
1.11with the statutory accounting applicable to the annual financial statements required to be
1.12filed, in excess of the product of its authorized control level risk-based capital and 3.5. The
1.13amounts shall be determined from a financial statement and certified audit filed annually
1.14with the commissioner and subject to verification by an examination by the commissioner.
1.15(b) If for any annual financial report the maximum required under this section is
1.16exceeded, an entity regulated under this chapter shall transfer the surplus in excess of the
1.17maximum to the health care access fund on January 2 of each calendar year pursuant
1.18to section 164.724.
1.19EFFECTIVE DATE.This section is effective January 1, 2012, and applies to the
1.20surplus reported for calendar year 2012 and thereafter.
