Minnesota Insurance Licensing Activity Frozen as Government Shuts Down

The Minnesota Department of Insurance said the shutdown of the state’s government, which became effective July 1, will cause disruption to the regulatory agency’s licensing activities.

The shutdown that began on July 1 — Minnesota’s second in six years — sent 22,000 state workers home, halted road construction and closed state parks leading into the Fourth of July weekend, the Associated Press reported.

Insurance regulation in Minnesota falls under the umbrella of the state’s Department of Commerce. In a letter to licensees, insurance regulators stated that due to the shutdown of state government, “there is not authority for most state agencies, including the Department of Commerce, to continue non-critical services beyond the current biennium, which ends June 30, 2011. As a result, we are advising our stakeholders, including licensees, of a possible disruption in department services.”

The Minnesota Legislature adjourned May 23, 2011, without reaching an agreement on budget to fund state operations for the fiscal year that began on July 1. Gov. Mark Dayton and GOP leaders in the legislature have been unable to negotiate a compromise budget. Although most states struggled with significant budget shortfalls this year, Minnesota is the only one to close its doors, according to the AP.

The insurance department said due to the shutdown it would be unable to:

• Accept or process initial or renewal license applications, license reinstatements or reactivations, license printing, prelicense examinations, name or address changes, letters of certification, letters of clearance, and license education transcripts or uploads.
• Provide online access via its Web site or via Sircon, NIPR, PSI or PULSE to any Licensing functions.
• Respond to inquiries.

Interested parties were advised to monitor updates on the state budget stalemate at www.BeReadyMN.com.

Topics Minnesota