Minnesota House Bill HF2245

Minnesota 2023-2024 Regular Session

• Introduced: 2/27/23
• Refer: 2/27/23

Caption

Commissioner of commerce required to create low-cost motor vehicle insurance program for low-income residents, and money appropriated.

Impact

If enacted, HF2245 would directly impact the insurance landscape in Minnesota by introducing a standardized low-cost insurance policy. Eligible applicants must meet specific criteria, including gross annual household income that does not exceed 300% of the federal poverty level and the requirement to demonstrate coverage by medical insurance. The Commissioner will set the premiums for these policies based on a combination of loss data, claims history, and input from qualified consumer organizations, ensuring that the policies remain affordable while covering necessary risks.

Summary

House File 2245, introduced in Minnesota, aims to establish a low-cost motor vehicle insurance program specifically to cater to low-income residents. The legislation mandates that the Commissioner of Commerce create the 'Minnesota lifeline insurance program', which seeks to provide affordable motor vehicle insurance policies. Its main goals include reducing the number of uninsured motorists and enhancing public safety. The program would be operationalized through the establishment of low-cost policies that meet state insurance laws while being tailored for low-income individuals.

Contention

Notably, the bill outlines various eligibility criteria that could provoke discussion, including restrictions on potential applicants with certain driving violations or criminal convictions. These provisions may be contentious, as they essentially limit access to affordable insurance for individuals with a checkered driving history or past legal issues. Opponents might argue that these stipulations create barriers for vulnerable populations, contradicting the bill's aim to support low-income drivers in accessing necessary insurance coverage.