The Employee Leasing Company Registration Unit registers employee leasing companies and grants exemption certificates for temporary help agencies that do not enter into any agreements or arrangements involving the lease-back of their client's employees. See Minnesota Statutes: ß 79.255

• Registration form (.pdf) must be completed in order to register as an Employee Leasing Company.
• Sample Affidavit (.pdf) must be completed if the registrant's Workers Compensation insurance has never been canceled or non renewed. 
• Instructions for applying for exemption (.pdf) from registering as an Employee Leasing Company. 

Licensing Requirement

The “Minnesota Pharmacy Benefit Manager Licensure and Regulation Act” was enacted by the 2019 Minnesota legislature. It requires that effective January 1, 2020, a Pharmacy Benefit Manager (PBM) must be licensed to operate within the state of Minnesota. Existing PBM licenses must be renewed annually. Read the text of the new law. Also, read the text of M.R.C 2737 on the Office of the Revisor of Statutes website. 

There are three steps to apply for a license or renewal of a license as a PBM in Minnesota:

1. Submit a network adequacy report, including required documentation, to Minnesota Department of Health (MDH). Return reports 90 days prior to desired license effective date (see instructions below).
2. Complete the PBM Licensing application/renewal form online through Sircon; and
3. Pay the application/renewal fee of $8,500.00 (paid on Sircon’s website).

The renewal application is available on Sircon’s website beginning 90 days prior to your license expiration date.  In order to ensure a timely license renewal, we recommend submitting the renewal application at least 75 days prior to your license expiration date.

In order to assist you in preparing to enter your license application or renewal, we have summarized the items you will need to furnish on the application. You may also view a video tutorial, demonstrating the use of the Sircon online PBM application.

View the application guide
View the tutorial

NOTE: Sircon charges a small Transaction Fee for each application or renewal submitted. Sircon also charges a larger Processing Fee to users who have not created an account with Sircon. Create a Sircon for Agencies account with Sircon (and thus avoid the larger Processing Fee).

Please note that most PBM’s are currently required to be licensed as Third Party Administrators (TPAs) in the state of Minnesota. The new PBM licensing requirement does not replace the TPA licensing requirement; Most PBMs are required to hold both licenses on and after January 1, 2020.

Frequent Questions

Network Adequacy

Under Minnesota Statutes, section 62W.05, pharmacy benefit managers must provide an adequate and accessible pharmacy network that meets the relevant requirements of Minnesota Statutes, section 62K.10.

The Minnesota Department of Health (MDH) evaluates all provider networks submitted by applicants for PBM licensure and renewal. Email pbm.licensing@state.mn.us to initiate the network adequacy review.

Due Date for Initial Network Adequacy Reports and Renewals

Minnesota Rules, part 2737.0400 requires applicants to submit a network report to MDH. A report approval must be issued no less than 90 days prior to desired license effective date. For renewals, submit a complete report to MDH no less than 90 days prior to the date the current license expires per Minnesota Rules, part 2737.0500.

Initiating the Network Adequacy Review Process 

To initiate the network adequacy review and renewal processes, submit an email to PBM.Licensing@state.mn.us. Use the subject line, “MN PBM License – Network Adequacy.” This email must include the following information:

• PBM Corporate Entity name.
• PBM Federal Employer Identification Number (FEIN).
• The total number of networks to be submitted under the license application.
• A name for each network.
• Primary contact name, phone number and email address.

Using this information, MDH will assign network identification numbers (ID). Returning networks will use the same number as the previous year. Via secure email, MDH will provide the network ID(s), templates, and submission guidance.

Network Adequacy Report

Submit the following documents for each network as part of the initial license or renewal application. NOTE: clicking on links below results in the Excel or Word document opening in a new tab or the document may be directly sent to your "download" folder.

• Network Adequacy Attestation
• Network Template (one per PBM entity)
• Provider File Template
• Geographic Access Maps (created by applicant):
  • Network service area
  • Retail pharmacies measured against MDH's time and distance standards
  • Long-term care pharmacies
  • Specialty pharmacies
  • Tribal pharmacies
  • Home infusion pharmacies
  • Mail order pharmacies

• Network Adequacy Waiver Request: required if retail pharmacy access does not meet Minnesota Department of Health’s regulated time and distance standards. Approved waiver requests automatically expire after three years. Waiver requests do not require annual renewal unless there are changes.

The submission of these documents constitutes the Network Adequacy Report for PBM license applications and renewals. Please review Pharmacy Benefit Manager Network Adequacy Submission Instructions for detailed guidance.

Questions:

Please direct Licensing questions to: PBM.Licensing@state.mn.us

A Purchasing Group is a group that:

• purchases liability insurance on a group basis 
• purchases the insurance only for its group members just to cover their similar or related liability exposure 
• is composed of members whose businesses or activities are similar or related 
• is domiciled in a state 

All the requirements governing purchasing groups are found in Minnesota Statute Chapter 60E. 

Any insurance program marketed to purchasing groups in Minnesota must meet all the requirements found in state statutes and administrative rules that apply to liability insurance.  It must also meet all the filing requirements for the line of coverage.

The Purchasing Group itself must register with the Minnesota Department of Commerce using this application.

General Information

Each provider of service contracts sold in Minnesota must file a registration with the Department of Commerce. The registration fee is $750 annually. The statutes covering Service Contract Providers are found in M.S. 59B. All the information needed for registration is available in this file.

Guarantee of Payment (.doc)

Information About Bonding

A Surety Bond example has been provided for one form that would be acceptable in Minnesota, similar forms may be submitted for approval.

In establishing, pursuant to 59B.03, Subd. 4(2) (ii), a funded reserve account and financial security deposit, the type of financial institution must be at least a federally chartered bank or a bank that is chartered under the Commerce Commissioner in the State of Minnesota. 

For further questions on the Service Contract Providers Application, you may write or call:

Marie R. Douglas, Insurance Division – Workers’ Compensation Self-Insurance
Minnesota Department of Commerce
Phone: 651-539-1743
Fax: 651-539-1550
Email: marie.douglas@state.mn.us

The Third Party Administrator Unit licenses third party administrators as defined by Minnesota Statutes 60A.23, Subdivision 8. Licenses are granted when the Commissioner of Commerce is satisfied that the administrator is capable of providing TPA services, is financially solvent and (if applicable) is able to process claims in a prompt and equitable manner.

See Minnesota Statutes: 60A.23, Subdivision 8 and Minnesota Rules: Chapter 2767

Licensing Forms

• Application/Renewal form(.pdf)
  • Must be completed to be considered for TPA licensing or the renewal of a TPA license
• Online application is also available for new and renewal applications  (Note that the online renewal form is available on SIRCON’s website beginning 90 days prior to the license expiration date.)
• Guarantee form (.pdf)
  • Must be completed when applying for a TPA license when an applicant uses the financial statements of a parent or other related entity to meet the financial requirements. The guarantee must be accompanied by a resolution by the guarantor's board of directors authorizing the guarantee.
• Third Party Administrator Bond form (.pdf)
• M.S. 270C.72 (Tax Clearance; Issuance of Licenses) (.pdf)
• Annual Activity Report (.xlsx)

License Reporting Requirements

(Minnesota Rules: 2767.0700)

Subp. 3 Report compliance. Each licensee shall file or ensure that the clients it services file all required reports relating to those services which the administrator provides within the times established by statute, rule, or order of the commissioner.  Required reports include an annual activity report, filed within 60 days of the end of the calendar year, stating:

1. the name and address of clients administered by the licensee in Minnesota during the previous calendar year; 
2. the area and type of service provided to each plan; 
3. the starting and/or termination date each client was serviced; 
4. the total number and total amount of claims paid and loss payments disbursed on behalf of each client; and 
5. the reserves established for each client.

The annual activity report should be filed on the Excel spreadsheet form. The spreadsheet should be emailed to: tuan.tran@state.mn.us 

Contact
Tuan Tran, Self-Insurance Analyst
Minnesota Department of Commerce
Email: tuan.tran@state.mn.us
Phone: 651-539-1748
Fax: 651-539-1550

The statutes covering UROs are found in M.S. 62M. The URO Application Package (.pdf) contains all the forms and information you will need and also a copy of the Medical Necessity Evaluation Review Annual Report.

Contact

Tuan Tran, Self-Insurance Analyst
Minnesota Department of Commerce
E-mail: tuan.tran@state.mn.us
Phone: 651-539-1748 
Fax: 651-539-1550

General Information

Each provider of vehicle protection warranties sold in Minnesota must file an Application/Record containing the information required by Minn. Stat. 59C.04. The registration fee is $250 annually. Necessary forms may be downloaded below.  

• Vehicle Protection Product Warrantor Application (.pdf)
• Guarantee of Payment (.doc)

For questions on the Vehicle Protection Product Warrantors Application, you can write or call:

Marie Douglas, Insurance Division-Workers’ Compensation Self-Insurance
Minnesota Department of Commerce
E-Mail: marie.douglas@state.mn.us
Phone: 651-539-1743
Fax: 651-539-1550 

Minnesota defines the business of viatical settlements to include any method of offering, soliciting, negotiating, or acquiring an interest in a life insurance policy by means of a viatical settlement contract, whether referred to as "life settlement", "viatical settlement," or any other term.

All providers and brokers of viatical settlements must be licensed in Minnesota before operating in the state.  An insurance producer who is currently licensed with the life line of authority and has been licensed in good standing for at least one year is exempt from licensure as a viatical settlement broker but must file an exemption form not later than 30 days from the first day of operating as a viatical settlement broker.

In addition, any person who is an appointed or contracted agent of a licensed viatical settlement provider who solicits or arranges the funding for the purchase of a viatical settlement by a viatical settlement purchaser and who is acting on behalf of a viatical settlement provider must now obtain a "viatical settlement investment agent" license in Minnesota before operating in the state.

All viatical settlement license applications must be made on the paper forms that are available for download below.

• Broker Application - Business Entity (.pdf)
• Broker Exemption (.pdf)
• Broker Renewal - Business Entity (.pdf)
• Individual Broker Application (.pdf)
• Individual Broker - Renewal (.pdf)
• Investment Agent Renewal (.pdf)
• Provider Application (.pdf)
• Provider Renewal (.pdf)
• Viatical Settlement Annual Statement (.pdf)

Viatical FAQ

Does Minnesota consider life settlements and viatical settlements to be the same for licensing purposes?  Are “senior life settlements” outside the scope of the licensing law?
Life settlements and viatical settlements are the same for licensing purposes, as are “senior life settlements” and the like.  In enacting and modifying the Viatical Settlements Model Act of the National Association of Insurance Commissioners, Minnesota defined the business of viatical settlements to include any method of offering, soliciting, negotiating, or acquiring an interest in a life insurance policy by means of a viatical settlement contract, whether referred to as “life settlement,” “viatical settlement”, or any other term.

Are there new license application forms for Viatical Settlement Brokers and Providers?
Yes, applicants should use the 2011 forms that are available on the Department of Commerce Insurance website.

How frequently must a viatical settlement provider, broker, or investment agent license be renewed?
Annual

What is the initial cost of a viatical settlement provider, broker, or investment agent license?
$750

How should viatical settlement contract forms or disclosure statement forms be submitted?
Eventually we will require viatical settlement contract forms and disclosure statement forms to be submitted via SERFF. Until then, they should be submitted either (1) by e-mail (attached as a PDF file) to insurance.commerce@state.mn.us, with “Viatical Settlement Form Submission” as the subject: (2) by fax to 651-539-1550, with “ATTN: Viatical Settlement Form Submission” on the cover page; or 3) by mail to Minnesota Department of Commerce, ATTN: Viatical Settlement Form Submission, 85-7th Place East, Suite 500, St. Paul, MN  55101.

If a company becomes license as a viatical settlement broker, is an individual agent at that company required to be licensed a as a viatical settlement broker as well?
No.  A license issued to a legal entity authorizes all partners, officers, members, and designated employees to act as viatical settlement brokers under the license.  All individuals to be covered by the license, however, must be listed on the license application or in a subsequent supplement to it, and a biographical statement (as provided with application or in a supplement to it) must be submitted for each individual to be covered by the license.

Does a bond need to be secured by the time of application?
By the time of application, a viatical settlement provider or a viatical settlement broker must demonstrate evidence of financial responsibility through either (1) a surety bond using the State of Minnesota Viatical Settlement Broker or Provider Surety Bond form or (2) evidence of the existence of a deposit of cash, certificates of deposit, or securities or any combination thereof in the amount of $250,000.  We accept proof of the cash, certificates or securities that have been filed in another state where the applicant is licensed as a viatical settlement provider or broker or provider.

What is the renewal cost for a viatical settlement provider, broker, or investment agent license?
$250

Does E & O coverage of at least $250,000 meet the financial responsibility requirement?
No

Is there a financial responsibility requirement for viatical settlement providers and brokers?
By the time of application, a viatical settlement provider or a viatical settlement broker must demonstrate evidence of financial responsibility through either (1) a surety bond using the State of Minnesota Viatical Settlement Broker or Provider Surety Bond form or (2) evidence of the existence of a deposit of cash, certificates of deposit, or securities or any combination thereof in the amount of $250,000.  We accept proof of the cash, certificates or securities that have been filed in another state where the applicant is licensed as a viatical settlement provider or broker or provider.

Is an insurance producer with the life line of authority who is operating as a viatical settlement broker under the exemption from licensing requirements required to post a bond?
No

Will the Department of Commerce accept NAIC biographical affidavits for officers/directors?
Yes 

Must we submit a copy of a driver’s license for all officers/directors?
No

What is the process to add an individual to a business entity license once that license is issued?  What is the process if an individual must be deleted from a business entity license mid-year? Is there a cost associated with adding or deleting an individual to a business entity license?
A licensed viatical settlement provider, broker, or investment agent business entity must provide to the Department of Commerce new or revised information about officers, ten percent or more stockholders, partners, directors, members, or designated employees within 30 days of the change.  There is no associated fee.

According to the law, an insurance producer with the life line of authority is permitted to operate as viatical settlement broker, as long as the requirements for an exemption are met and the proper form is filed.  Does this include a nonresident insurance producer with the life line of authority?
Yes

Does the broker exemption apply to agencies?
No, only individual producers.

In order to operate as a viatical settlement broker without a separate license, does an insurance producer with the life line of authority need to be licensed as such in Minnesota for at least one year, or is it sufficient to have been a licensed insurance producer in another state for at least one year and licensed as a producer in Minnesota?
The producer must be currently licensed in Minnesota with the life line of authority and must have been so licensed in Minnesota in good standing for at least one year.  Place note that Minnesota did not adopt the corresponding NAIC Model Act language for this provision.

An insurance producer with the life line of authority is permitted to operate as a viatical settlement broker as long as the requirement for an exemption are met and the proper form is filed. Does this exemption expire?
No, as long as the producer remains active and in good standing.

Will I receive an exemption certificate?
No.  You will receive an e-mail from our department stating that the exemption has been granted.