This bill, S.F. No. 2256, aims to prevent fraud in workers' compensation insurance by establishing new verification requirements for certificates of insurance in Minnesota Statutes, Chapter 176.

Key Provisions:

1. Definitions:

   • A certificate of insurance is documented proof of workers' compensation coverage.
   • A QR code (Quick Response Code) is a machine-readable code that links to online insurance verification information.

2. Verification Requirements for Employers:

   • Every workers' compensation certificate of insurance must include a scannable QR code linking to official verification details, including the coverage verification and expiration date.
   • Employers obtaining workers' compensation insurance must report:
     • Number of employees insured, categorized by job classification.
     • Estimated payroll for the coverage period.

3. Requirements for Insurers:

   • Insurers must track the number of certificates of insurance issued by their insurance brokers and report this data to the state’s workers' compensation insurance verification system.
   • Insurers must track information on employers found guilty of workers' compensation premium fraud or those who miss renewal period audits. This information must be reported and maintained in the Insurance Services Office system.

4. Enforcement:

   • The Commissioner of the Department of Labor and Industry is authorized to enforce these provisions under Section 176.184.

Purpose of the Bill:

• To enhance transparency in workers' compensation insurance.
• To prevent fraud by ensuring accurate reporting of insured employees and payroll.
• To create a centralized tracking system for certificates of insurance and fraudulent employers.
• To streamline verification processes using QR codes.

If enacted, the bill would strengthen oversight and enforcement of workers' compensation insurance requirements in Minnesota.