December 18, 2001

Member
Minnesota Self-Insurers’ Security Fund

Dear Member:

Enclosed please find the preliminary Minutes of the Self-Insurers’ Security Fund Annual Membership Meeting which was held on November 7, 2001. For those of you who were not at the Annual meeting, we are enclosing a copy of the Self-Insurers’ Security Fund audited Financial Statement for the fiscal year 2001. Our Plan of Operation is currently being reviewed by the Plan of Operation Committee, and we will forward a copy to you when the revisions have been completed.

Minnesota Department of Commerce Commissioner James Bernstein addressed the membership. Among other things, he noted that the reinsurance crisis brought about by the terrorist attacks of September 11 will not materially affect the Minnesota Workers’ Compensation System.

Another highlight of the Annual meeting was the announcement by Linda Hanson, Vice President of the Minnesota Workers’ Compensation Insurers’ Association, that a new software package was being developed by the MWCIA for use by self-insurers to meet the self-insurers’ reporting requirements to the MWCIA and other state entities. This software should increase accuracy, eliminate mistakes and save time. It should be available in the near future.

We hope you will review the enclosed material carefully. If you have any questions, call our General Counsel, Larry Koll, at (651)291-9155, ext. 102.

Sincerely,

David J. Hennes