Membership Eligibility

The Minnesota Self-Insurers’ Security Fund is an authorized non-profit corporation created by Minn. Stat. §79A.09. Each private self-insurer shall participate as a member of the Security Fund. The only exceptions are commercial self-insured groups authorized under Minn. Stat. §79A.19. Applications to self-insure must be submitted to the Commissioner of Commerce on forms provided by the Commissioner.

The Commissioner of Commerce approves applications for workers’ compensation self-insurance in the State of Minnesota. The application requirements are set forth in Minn. Stat. §79A.03. The applicant must submit a current certified financial statement to the Department of Commerce.

The individual self-insurer’s net worth must be at least 10% of its total assets and at least ten times the retention level it selects with the WCRA. It must also have sufficient assets, net worth and liquidity to promptly and completely pay its workers’ compensation obligations. In addition, it must have had positive net income during three of the last five years, and cumulatively over the five year period. It also must have had cash generated from operations during three of the last five years and cumulatively over the five year period. Other requirements and qualifications for individual self-insurers are set forth in §79A.03.

Applications for group self-insurance authority are governed by §79A.03, Subd. 6. et. seq.

Pursuant to §79A.04, a private self-insurer must post security with the Department of Commerce in an amount equal to 110% of its estimated future workers’ compensation liability as a minimum. The Commissioner of Commerce can require an increase in that amount.

Members’ posted security may be in the form of a letter of credit, surety bond or cash or cash equivalents and are deposited with the Commissioner under §79A.071. An acceptable letter of credit is defined by §79A.14, and the surety bond is defined by §79A.15.

A self-insured member can self-administer their claims or hire a third-party administrator pursuant to §79A.06.