1998 Minnesota Code
Chapters 175 - 186 Labor, Industry
Chapter 176A Insurance Fund
Section 176A.02 Creation; purpose; organization of the fund.

176A.02 Creation; purpose; organization of the fund.

Subdivision 1. Fund created. The fund is created as a nonprofit independent public corporation for the purpose of insuring employers against liability for personal injuries for which their employees may be entitled to benefits under chapter 176. The fund must be organized as a domestic mutual insurance company.

Subd. 2. Board of directors. The board of directors consists of seven members and the commissioner of labor and industry and the manager of the fund who shall be ex officio members. Each director shall hold office until a successor is appointed and qualifies. Each director shall represent a policyholder and may be an employee of a policyholder. A policyholder may designate a person to represent them on the board. The initial board of directors shall be appointed by the governor and shall consist of seven members and the commissioner of labor and industry. Each member of the initial board shall be either an employer or employee. If the fund is operational and issuing policies upon the expiration of the terms of the initial board and thereafter, the governor shall appoint every other director until the governor has made four appointments. The remaining three directors shall be chosen by the fund's policyholders. In addition to the commissioner, no more than one member of the board shall be a representative of a governmental entity. At least two members of the board shall represent private, for profit, enterprises. No member of the board may represent or be an employee of an insurance company.

The membership terms shall be as provided in section 15.0575. The membership compensation shall be set by the board.

The board shall annually elect a chair from among its members and other officers it deems necessary for the performance of its duties.

Subd. 2a. Workers' compensation reinsurance association directors. Until the obligation owed to the workers' compensation reinsurance association pursuant to section 79.371 has been satisfied, the workers' compensation reinsurance association shall be entitled to designate two persons to represent the workers' compensation reinsurance association on the board of directors.

The workers' compensation reinsurance association's designees shall be appointed to the first available directorships, which the governor is to appoint, which becomes available after the creation of the obligation authorized by section 79.371.

The workers' compensation reinsurance association's designees shall resign immediately upon satisfaction of the obligation authorized by section 79.371.

Subd. 3. Fund management. The management and control of the fund is vested solely in the board.

Subd. 4. Powers and duties of the board. The board is vested with full power, authority, and jurisdiction over the fund. The board may perform all acts necessary or convenient in the exercise of any power, authority, or jurisdiction over the fund, either in the administration of the fund or in connection with the insurance business to be carried on by it under the provisions of this chapter, as fully and completely as the governing body of a private insurance carrier to fulfill the objectives and intent of this chapter.

Subd. 5. Manager. The fund is under the administrative control of the manager appointed by the board pursuant to section 176A.05.

Subd. 6. Personal liability, excluded. The members of the board and officers or employees of the fund are not liable personally, either jointly or severally, for any debt or obligation created or incurred by the fund.

HIST: 1983 c 287 art 2 s 2; 1986 c 444; 1987 c 72 s 2,3; 1993 c 228 s 2

* NOTE: Subdivision 2a, as added by Laws 1993, chapter 228, *section 2, is repealed effective March 1, 2009. Laws 1993, *chapter 228, section 4.