Why the MJUA?
The Minnesota Joint Underwriting Association (MJUA) was created by the 1986 Minnesota State Legislature. MJUA provides liability insurance coverage only to persons or entities unable to obtain insurance through ordinary methods if the insurance is required by statue, ordinance or otherwise required by law, or is necessary to earn a livelihood or conduct a business and serves a public purpose (Minnesota Statue 62I). The Legislature specifically authorized the MJUA to provide insurance coverage to day care providers, foster parents, foster homes, developmental achievement centers, group homes, sheltered workshops for mentally, emotionally, or physically handicapped persons and citizen participation groups. The eligibility of other classes of the business for MJUA coverage is to be determined on a class by class basis through a process described below.
What are Ordinary Methods of obtaining insurance?
It is to your advantage to make a reasonable search of existing markets before applying to the MJUA for insurance coverage. Your search should include contacting at least three licensed Insurance Agents, preferably agents who have had experience in placing commercial liability insurance risks. The types of risks that have contacted the MJUA in the past have, in some cases, obtained insurance through the surplus insurance market. Surplus markets are accessed through a number of insurance brokers in the Twin Cities Metro area. These insurance brokers work only through licensed agents; consumers cannot contact them directly.
Who cannot obtain insurance with the MJUA?
The statute specifically prohibits the MJUA from issuing either product liability coverage or environmental impairment liability coverage. Further, the MJUA cannot issue coverage to any business which is conducted substantially outside the State of Minnesota unless the insurance is required by statute, ordinance, or otherwise required by law. The MJUA Board of Directors may also deny coverage if the gravity of the risk is judged to be so great that it falls outside the intended scope and purpose of the MJUA.
Making application to the MJUA
If you have taken the above steps to find coverage and you are denied coverage or are unable to find an insurer willing to write the coverage you seek, you are eligible to make an application to the MJUA. Application forms can be obtained by calling the MJUA at: 952-641-0260 or toll free: 1-800-552-0013 outside the metro area. Office hours are Monday through Friday 8:30 to 4:30.
We do not require that an insurance agent is used in making application to the MJUA, but you may find an agents assistance helpful.
Administrative Hearings
Upon receipt of an application, the MJUA will also determined whether the risk falls within a class for which the association has already been activated to provide assistance. (See current list). The Commerce Commissioner may publish notices of activation of the MJUA for specified new classes of business each week in the State Register. The MJUA has the authority to insure classes of business for 180 days from the time notice is published. A public hearing date is scheduled and published with notice of activation. Representatives of each class of business must give testimony at the hearing proving that they meet the statutory requirements for coverage by the MJUA. The requirements are as follows:
1. Those members of the class are unable to obtain insurance through ordinary means;
2. That business activity serves a public purpose, and
3. That the insurance being sought is required by statute, ordinance or otherwise required by law, or
4. That the insurance is necessary to earn a livelihood or conduct business.
A pre-hearing conference date is also scheduled and published in the activation notice which applicants from classes to be considered at the hearing are strongly urged to attend. In addition, the Department of Commerce sends an information packet out to each MJUA applicant regarding the hearing process and explains that each class of business is responsible for making their own case at the hearing. Neither the Department of Commerce nor the MJUA can represent an applicant or class. If your line of business has already been through the hearing process with a positive outcome, you are exempt from the above hearing process.
Policy issuance by MJUA
The actual time frame for issuing a policy is dependent on several factors including:
1. Whether the appropriate policy form has been approved for use by the MJUA Board of Directors;
2. Whether a rate schedule has been adopted for that class; or
3. Whether the class or particular applicant requires committee or Board review prior to quoting;
4. Whether the applicants current coverage has expired;
5. Whether the MAP has reported to the MJUA that no market for the risk can be found;
What are Ordinary Methods of obtaining insurance?
It is to your advantage to make a reasonable search of existing markets before applying to the MJUA for insurance coverage. Your search should include contacting at least three licensed Insurance Agents, preferably agents who have had experience in placing commercial liability insurance risks. The types of risks that have contacted the MJUA in the past have, in some cases, obtained insurance through the surplus insurance market. Surplus markets are accessed through a number of insurance brokers in the Twin Cities Metro area. These insurance brokers work only through licensed agents; consumers cannot contact them directly.
Who cannot obtain insurance with the MJUA?
The statute specifically prohibits the MJUA from issuing either product liability coverage or environmental impairment liability coverage. Further, the MJUA cannot issue coverage to any business which is conducted substantially outside the State of Minnesota unless the insurance is required by statute, ordinance, or otherwise required by law. The MJUA Board of Directors may also deny coverage if the gravity of the risk is judged to be so great that it falls outside the intended scope and purpose of the MJUA.
Making application to the MJUA
If you have taken the above steps to find coverage and you are denied coverage or are unable to find an insurer willing to write the coverage you seek, you are eligible to make an application to the MJUA. Application forms can be obtained by calling the MJUA at: 952-641-0260 or toll free: 1-800-552-0013 outside the metro area. Office hours are Monday through Friday 8:30 to 4:30.
We do not require that an insurance agent is used in making application to the MJUA, but you may find an agents assistance helpful.
Administrative Hearings
Upon receipt of an application, the MJUA will also determined whether the risk falls within a class for which the association has already been activated to provide assistance. (See current list). The Commerce Commissioner may publish notices of activation of the MJUA for specified new classes of business each week in the State Register. The MJUA has the authority to insure classes of business for 180 days from the time notice is published. A public hearing date is scheduled and published with notice of activation. Representatives of each class of business must give testimony at the hearing proving that they meet the statutory requirements for coverage by the MJUA. The requirements are as follows:
1. Those members of the class are unable to obtain insurance through ordinary means;
2. That business activity serves a public purpose, and
3. That the insurance being sought is required by statute, ordinance or otherwise required by law, or
4. That the insurance is necessary to earn a livelihood or conduct business.
A pre-hearing conference date is also scheduled and published in the activation notice which applicants from classes to be considered at the hearing are strongly urged to attend. In addition, the Department of Commerce sends an information packet out to each MJUA applicant regarding the hearing process and explains that each class of business is responsible for making their own case at the hearing. Neither the Department of Commerce nor the MJUA can represent an applicant or class. If your line of business has already been through the hearing process with a positive outcome, you are exempt from the above hearing process.
Policy issuance by MJUA
The actual time frame for issuing a policy is dependent on several factors including:
1. Whether the appropriate policy form has been approved for use by the MJUA Board of Directors;
2. Whether a rate schedule has been adopted for that class; or
3. Whether the class or particular applicant requires committee or Board review prior to quoting;
4. Whether the applicants current coverage has expired;
5. Whether the MAP has reported to the MJUA that no market for the risk can be found;
Ready?
Download & fill out your Insurance Application
Should you have questions regarding the MJUA application process, please feel free to call our office.
office: 952-641-0260 or outside the metro area: 1-800-552-0013
office: 952-641-0260 or outside the metro area: 1-800-552-0013
