Chairman's Letter September 2011

Dear Member:

As you know, each Minnesota Self-Insurers’ Security Fund (SISF) member is now required to post security with the Minnesota Department of Commerce in the form of a surety bond, letter of credit or cash or cash equivalent.  For the past several months the SISF Board has been extensively reviewing a proposal by MMC Securities to establish a risk pooling fund for SISF in place of that method.  Unfortunately, the Board determined that this proposal was not the best fit for SISF.   

We recognize, however, that establishing a pre-funded pool to pay claims against SISF and to eliminate the current deficit could be advantageous to SISF members and to SISF itself.  To evaluate this possible change, including benefits and difficulties, SISF has engaged Mark Doepke of Actuarial Advisors, Inc.  We are confident that Mark’s thorough knowledge of SISF’s operations and the Minnesota regulatory structure will result in a useful analysis and serve as a basis for future Board action or forbearance. 

We will keep the Minnesota Self-Insurers’ Security Fund membership advised of further developments. 

If you have any questions, please contact Larry Koll, the SISF Executive Director, at 651-291-9155, Ext. 102 or at Koll@kmchlaw.com

Sincerely,

Original signed

David J. Hennes
Chair

Chairman's Letters

September 2011