If your Minnesota-domiciled organization self-insures its workers compensation exposure, it likely needs a regular actuarial certification from a member of the Casualty Actuarial Society.
New self-insurers in Minnesota are required to provide an estimate of future liability as determined by a qualified actuary annually for the first five years. Subsequent actuarial updates need be performed at least every two years.
Minnesota statute 79A.04 contains some requirements unique to the state, including the following:
- New self-insurers are required to deposit, as security, a minimum of 110% of the actuarially estimated future liability.
- A self-insurer’s security deposit needs to be adjusted based on updated actuarial reports, as determined by the Commissioner of Commerce.
- All payroll, paid loss, and case reserve data provided to the actuary must be certified by an officer of the self-insured via a sworn affidavit.
- The self-insured’s gross actuarial estimated future liability should reflect the benefit of excess coverage; however, coverage provided through captive insurance company wholly owned by the self-insured is not deductible.
More information can be found on the website of the Minnesota Legislature, here.
Archer Actuarial Consulting can help your company meet its filing obligations in a, straightforward, timely and cost-effective manner. Email Don at firstname.lastname@example.org or call him at (215) 205-9425.