Minnesota Senate Bill SF2168

Minnesota 2023-2024 Regular Session

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

Caption

Family Protection Act

Impact

The passage of SF2168 would significantly alter the landscape of property and casualty insurance in Minnesota by nullifying any insurance policy that attempts to exclude coverage for bodily injury claims made by individuals residing in the same household as the insured, or those related to the insured by blood or marriage. This change promotes a public policy stance that favors consumer protection, especially for families, ensuring they are not left vulnerable when it comes to matters of liability coverage. Additionally, it places the responsibility on insurance companies to justify any premium increases that arise as a consequence of these changes, thus creating an accountability mechanism for the insurers.

Summary

SF2168, known as the Family Protection Act, is a piece of legislation introduced in Minnesota aimed at modifying the exclusions typically seen in property and casualty insurance policies. This bill delineates specific conditions under which insurance policies must operate, providing definitions for 'insured' and establishing prohibited exclusions that prevent insurers from denying liability coverage to individuals related to or residing within the same household as the insured. Such a change is intended to ensure that family members are adequately protected under these insurance contracts, broadening the scope of coverage available to families where previously certain liabilities could have been excluded based on narrow clauses in policies.

Contention

While the bill primarily aims to protect families, it may face contention from within the insurance industry, which may argue that the imposition of such regulations could lead to increased costs and implications for underwriting practices. Insurers could potentially express concerns that these changes might limit their ability to manage risk effectively. Additionally, discussions surrounding the approval process for premium increases associated with these changes might be hotly debated, especially regarding the balance between corporate profitability and consumer protection. Stakeholders from both sides of the aisle, including consumer advocates and insurance professionals, are likely to weigh in on the implications of the Family Protection Act.