STATE OF MINNESOTA

DEPARTMENT OF COMMERCE
Issued this 20th day of December, 2010

In the Matter of the Minnesota Workers' ORDER

Compensation Assigned Risk Plan

Pursuant to Minnesota Statutes section 79.251, the Commissioner of Commerce

is required to establish rates applicable to coverage issued through the
Minnesota Workers' Compensation Assigned Risk Plan (the Plan).

By order dated December 31,2009, the Commissioner adjusted the rating

structure of the Plan with a premium effect of 2.3%>, effective April 1, 2010, for
new and renewal policies.

A review subsequent to that order has established the following Findings of Fact.

FINDINGS OF FACT

1. Minn. Stat. §79.251, subd. 3 provides: The commissioner shall annually, not
later than January 1 of each year, establish the schedule of rates applicable
to assigned risk plan business. Assigned risk premiums shall not be lower
than rates generally charged by insurers for the business.

2. The current loss cost multiplier of the Plan of 2.50 will be continued and
applied to the 2011 pure premium base rates. Insurers with loss cost
multipliers less than 2.50 had a market share of 99% in 2009.

3. The cost of losses underlying Plan rates are projected to decrease by 2.7%>
for 2011. This includes a decrease in the pure premium base rates, a
decrease in the loss development for older years, and a decrease in the trend
adjustment for the increasing costs of medical and indemnity benefits.

4. The Plan currently has an expense constant of $180. The average voluntary
market expense constant is $180 and the median expense constant is $180.
The expense constant of the Plan will remain at $180.

5. The Plan will assess policyholders 3.4%> of premium for the Special
Compensation Fund (SCF) and 0.60/0 of premium for the Workers'
Compensation Reinsurance Association (WCRA). The current SCF
surcharge is 3.2%; the current WCRA surcharge is 0.6%.
6. The Federal government has extended the backstop for terrorism exposure
until December 31, 2014, under the Terrorism Risk Insurance Program
Reauthorization Act (TRIPRA). The current surcharge of $0.02 per $100 of
payroll to cover foreign and domestic terrorism will be continued.

7. The combined effect of adopting the 2011 pure premium base rates,
maintaining the current loss cost multiplier of 2.50, maintaining the current
expense constant of $180, increasing the SCF surcharge to 3.4%,
maintaining the WCRA surcharge of 0.6%>, and continuing the TRIPRA
surcharge of $.02 per $100 of payroll is to decrease the Plan's total premium
by 1.2%>.

CONCLUSIONS OF LAW
That the proposed schedule of rates meets all applicable requirements of
Minnesota law and is reasonable and appropriate.

Pursuant to Minnesota Statutes §79.251, it is hereby

ORDERED
1. That effective April 1, 2011, the Minnesota Workers' Compensation Assigned
Risk Plan will use a pure premium multiplier of 2.50 to be applied uniformly to
the pure premium base rates of the 2011 Minnesota Ratemaking Report of
the Minnesota Workers' Compensation Insurers Association.

2. That the expense constant on each policy will be $180.

3. That the policyholder surcharge for the Special Compensation Fund (SCF)
assessments shall be 3.4% of premium.

4. That the policyholder surcharge for the Workers' Compensation Reinsurance

Association (WCRA) Deficiency Assessment shall be 0.6% of premium.

5. That the policyholder surcharge for foreign and domestic terrorism coverage
provided by the Terrorism Risk Insurance Program Reauthorization Act will be
continued at $0.02 per $100 of payroll.

6. That the average premium level, including surcharges, will decrease by 1.2%>.

GLENN WILSON
Commissioner of Commerce
State of Minnesota
Department of Commerce
85 7th Place East, Suite 500
St. Paul, Minnesota 55101-2198