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Continued: Schafer: Insurers aren't in the collection business

  • Article by: LEE SCHAFER , Star Tribune
  • Last update: May 9, 2013 - 11:20 PM

At Leenthrop Farmers Mutual Insurance Co. in Montevideo, manager Paul Larson estimated that between 400 and 500 of his company’s roughly 1,700 policies would be subject to the $5 surcharge.

He said he hasn’t spent much time thinking about the cost of compliance but explained that surcharging 400 to 500 policies, annually raising the $2,000 to $2,500 for the state, is too many to try to do manually. His whole operation is only five people.

If the surcharge gets passed, the insurers say, fine, we will figure out how to collect the money and send it to St. Paul. It is not a game-changer.

“But it’s certainly a burden,” Mauland said. “I think it would be for any business, all of sudden, ‘Oh, would you collect this for us?’ I don’t think that gets thought of enough.”

lee.schafer@startribune.com • 612-673-4302

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