The Automobile Self-Insurance Unit is responsible for approving or disapproving a company's request to self-insure its liabilities under the Minnesota No-Fault Automobile Insurance Act. Approval is granted when the Commissioner of Commerce is satisfied that the applicant has the financial strength and administrative resources needed to satisfy all obligations and responsibilities under the No-Fault Act.
The minimum requirements for an entity to be considered for exemption from insuring liabilities under the Minnesota No-Fault Insurance Act are as follows:
Applicant must have at least 25 motor vehicles registered in its name;
Applicant must have, or have contracted with a licensed vendor of risk management services* to provide, the administrative resources needed to:
1) Process, review and pay claims;
2) Evaluate the medical and rehabilitation needs of automobile accident victims; and
3) Estimate current and future loss liabilities
*Please refer to Minn. Stat. 60A.23 Subd. 8 and Minn. Rule 2767 for licensing requirements for "vendors of risk management services".
Applicant must have existed for at least five years;
Applicant must have a current net worth, or equivalent, of at least $5,000,000;
Applicant must have had positive net income, or the equivalent, during the last five-year period and in at least three of those years; and
Applicant must have had positive cash flow during from operating activities during the last five-year period and in at least three of those years.
Neither the applicant nor its parent company, if one exists, must have sought protection under the United States Bankruptcy Code during the last three years;
Applicant's funds flow, debt structure, profitability, and overall financial integrity of itself and its parent company, if one exists, must demonstrate a continuing ability to satisfy any financial obligations that have been and might be incurred under the No-Fault Act.
Post a surety bond with a minimum limit of $100,000.
For more detailed information, refer to Minnesota Statues 65B.48 and Minnesota Rules: Chapter 2770.6100 through 2770.7400 or call Mary Lou Houde at 651-539-1744.
Request for Exemption (Non-Political Subdivisions) must be completed when applying for exemption from insuring liabilities under the Minnesota No-fault automobile insurance act. A new form (download here) is required each year.
Request for Exemption (Political Subdivisions) is the application form that must be completed when applying for exemption from insuring liabilities under the Minnesota No-fault automobile insurance act. A new form (download here) is required each year. Updated Feb., 2011.
Agreement and Acknowledgement must be completed with the initial application and when a new signature is required. By signing this form the self-insurer agrees to participate in the Minnesota Assigned Claims Plan. Both Political and Non-political.
Notice states the applicant's Minnesota Tax Identification Number and Social Security Number. This form MUST be included along with the application. Both Political and Non-political.
Agreement by Parent company (download here) must be completed when it is necessary for the parent to assume the liabilities of a subsidiary. This normally occurs when a subsidiary entity is applying for self insurance and they are using their parents financial statements as evidence of satisfactory financial strength. Non-political only.
Form (download here) of the surety bond that is required in order to qualify as an auto self-insurer. Non-political only.