US Laws, Codes, Statutes & Cases

     79.081 Mandatory deductibles. 

    Subdivision 1.    Premium reduction.  Each insurer, 
 including the assigned risk plan, issuing a policy of insurance, 
 must make available to an employer, upon request, the option to 
 agree to pay an amount per claim selected by the employer and 
 specified in the policy toward the total of any claim payable 
 under chapter 176.  The amount of premium to be paid by an 
 employer who selects a policy with a deductible shall be reduced 
 based upon a rating schedule or rating plan filed with and 
 approved by the commissioner of commerce.  Administration of 
 claims shall remain with the insurer as provided in the terms 
 and conditions of the policy.  Each insurer shall notify its 
 agents authorized to write workers' compensation insurance about 
 the availability and terms and conditions of deductibles 
 required by this section, using a brochure in a format approved 
 by the commissioner. 

    Subd. 2.    Procedure for paying deductible.  If an 
 insured employer chooses a deductible, the insured employer is 
 liable for the amount of the deductible.  The insurer shall 
 administer the claim as provided in the terms and conditions of 
 the insurance policy and seek reimbursement from the insured 
 employer for the deductible.  The payment or nonpayment of 
 deductible amounts by the insured employer to the insurer shall 
 be treated under the policy insuring the liability for workers' 
 compensation in the same manner as payment or nonpayment of 
 premiums. 

    Subd. 3.    Credit risk; exception.  An insurer is not 
 required to offer a deductible to an employer if, as a result of 
 a credit investigation, the insurer determines that the employer 
 is not sufficiently financially stable to be responsible for the 
 payment of deductible amounts. 

    Subd. 4.    Reporting requirement.  The existence of an 
 insurance contract with a deductible or the fact of payment as a 
 result of a deductible does not affect the requirement of an 
 employer to report an injury or death to an insurer or the 
 commissioner of labor and industry. 

    Subd. 5.    No employee liability.  Nothing in this 
 section alters the obligation of the employer to provide the 
 benefits required by this chapter.  An employee is not 
 responsible to pay all or a part of the deductible chosen by an 
 employer. 

    HIST: 1992 c 510 art 3 s 1 

Copyright 2005 by the Office of Revisor of Statutes, State of Minnesota.