Minnesota Insurance Guaranty Association (property and casualty guaranty: covered claims, limits, assessments)

What this document is

Minnesota Statutes Chapter 60C - Minnesota Insurance Guaranty Association (property and casualty guaranty: covered claims, limits, assessments) is a state statute published by Minnesota Office of the Revisor of Statutes (revisor.mn.gov). It is one of the Minnesota documents that insurance license exam questions are written from, including minnesota property & casualty, minnesota personal lines practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

• Minn. Stat. § 60C.02, subd. 1 (Scope, Purposes, and Construction; Scope)

  “This chapter applies to all kinds of direct insurance, except: (1) life; (2) annuity; (3) title; (4) accident and sickness; (5) credit; (6) vendor's single interest or collateral protection or any similar insurance protecting the interests of a creditor arising out of a creditor debtor transaction;...”

• Minn. Stat. § 60C.06, subd. 1 (Assessments; Determination of Amount)

  “The assessments of each member insurer shall be in the proportion that the net direct written premiums of the member insurer for the preceding calendar year on the kinds of insurance in the account bear to the net direct written premiums of all member insurers for the preceding calendar year on the...”

• Minn. Stat. § 60C.09, subd. 3 (Covered Claims; Limitation of Amount)

  “Payment of a covered claim, whether upon a single policy or multiple policies of insurance, is limited to no more than $300,000. In the case of claim for unearned premium by a single claimant, the entire claim up to $300,000 shall be allowed excluding retrospective or experience-rated insurance...”

• Minn. Stat. § 60C.13, subd. 1 (Exhaustion of Other Coverage; Other Policy Coverage)

  “Any person having a claim under another policy whether or not the policy is a policy of a member insurer, which claim arises out of the same facts which give rise to the covered claim, shall be first required to exhaust the person's right under the other policy. Any amount payable on a covered...”

• Minn. Stat. § 60C.13, subd. 2 (Exhaustion of Other Coverage; Other Guaranty Association Coverage)

  “Any person having a claim which may be recovered under more than one insurance guaranty association or its equivalent shall seek recovery first from the association of the state of residence of the insured except that if the claim is a first party claim for damage to property with a permanent...”

• Minn. Stat. § 60C.11, subd. 1 (Effect of Paid Claims; Assignment upon Recovery)

  “The rights under the policy of a person recovering under this chapter shall be deemed to have been assigned by the person to the association to the extent of the recovery.”

• Minn. Stat. § 60C.21, subd. 1 (Notice for Guaranty Fund Protection; Notice Required)

  “No person, including an insurer, agent, or affiliate of an insurer or agent shall sell, or offer for sale, a covered property and casualty insurance policy, unless the notice, in the form specified in subdivision 2, is given or obtained with or as a part of the application for that policy.”

• Minn. Stat. § 60C.09, subd. 4 (Covered Claims; Aggregate Limitation)

  “Except in the case of a claim for benefits under workers' compensation coverage, any obligation of the association to or on behalf of an insured and its affiliates on covered claims ceases when $10,000,000 has been paid in the aggregate by the association and any one or more associations similar to...”

• Minn. Stat. § 60C.09, subd. 2(3) (Covered Claims; Further Definition)

  “any claims, resulting from insolvencies which occur after July 31, 1996, by an insured whose net worth exceeds $25,000,000 on December 31 of the year prior to the year in which the insurer becomes an insolvent insurer; provided that an insured's net worth on that date shall be deemed to include the...”

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