David J. Hennes,
Chair
The Toro Company

James W. Doyle,
Vice Chair
Hormel Foods
Corporation

Bernard L. Brommer,
Secretary

Janel French
Treasurer
Graco, Inc.

Scott Brener,
Commissioner
Minnesota Department
of Labor and Industry

Gregory Flint
Cold Spring Granite Co.

William Fritts

Gregg Murray
Berkley Risk
Administrators, Co. LLC

Brian Rotty
Mayo Foundation

Wayne Simoneau

Laurence F. Koll
Executive Director

Kim Osthoff
Adminstrator

Andrew J. Morrison
Barbara G. Lawton
General Counsel

Koll. Morrison,
Charpentier & Hagstrom
June 10, 2005

Member
Minnesota Self-Insurer's Security Fund

Re:   MMC Securities Corp Collateral Replacement Program

Dear Member:

I am writing to advise you of a study which the Minnesota Self-Insurers’ Security Fund Board has authorized. MMC Securities Corp. will undertake this study to determine if MMC’s Collateral Replacement Program is appropriate for Minnesota.

The basic principle of this program is that each self-insurers’ individual posted security would be replaced by one blanket posted security for all self-insurers. Each self-insurer would pay its cost of the single posted security, based on a number of factors, but the total cost of this posted security would be less than the aggregate costs of the current posted security of all self-insurers.

This cost factor is a primary reason why we have agreed to undertake this study. The MMC program has worked well in California the last few years and several other states are also considering it.

When the study is complete, the SISF Board will consider whether or not to implement MMC’s proposal. However, because this would be a significant change in SISF’s operation, we are interested in whether or not you have any comments on this matter. We would especially like to know your thoughts if you have any experience in California. Please e-mail any comments you may have to our Executive Director, Larry Koll, at Koll@KMCHlaw.com, and please copy SISF’s Administrator, Kim Osthoff, at Osthoff@KMCHlaw.com. You may also call Larry at 651-291-9155, extension 102 or Kim 651-291-9155, extension 101.

Thank you for taking the time to respond to this letter.



Sincerely

Orignal signed

David J. Hennes
Chair