Minnesota 2023-2024 Regular Session

Minnesota Senate Bill SF5267

Introduced
4/2/24  

Caption

Insurers authorization to use certain weather-related losses for purposes of underwriting and rating

Impact

The changes proposed in SF5267 could significantly impact homeowners across Minnesota. By allowing insurers to use weather-related losses as part of their underwriting criteria, the bill may lead to higher premiums or reduced coverage for homeowners who have experienced such losses. Additionally, it introduces regulations on how insurers must notify homeowners regarding nonrenewal and changes to their policies, aiming to enhance transparency and consumer rights. Proponents of the bill argue it is essential for ensuring that insurance companies can maintain their financial viability in the wake of increasing weather-related losses.

Summary

Senate File 5267 is a proposed legislation that aims to authorize insurers in Minnesota to consider certain weather-related losses in underwriting and rating processes. This legislation specifically targets how homeowner's insurance policies are managed, especially in regards to renewal and coverage adjustments. The bill amends Minnesota Statutes regarding insurance practices to provide a clearer framework for when an insurer can refuse renewal or reduce coverage limits based on underwriting criteria and the insured's claim history related to natural disasters.

Contention

There are notable concerns regarding the implications of this bill on consumer protection and insurance accessibility. Opponents express that allowing insurers to base decisions on weather-related losses could disproportionately affect homeowners in regions frequently impacted by natural disasters, making insurance only accessible to those with favorable loss histories. Critics are wary about potential discriminatory practices resulting from such regulations, fearing that high-risk areas could find themselves without adequate insurance options, which could lead to increased financial strain for residents in vulnerable communities.

Companion Bills

MN HF4960

Similar To Insurers authorized to use weather-related losses for purposes of underwriting and rating.

Previously Filed As

MN HF4960

Insurers authorized to use weather-related losses for purposes of underwriting and rating.

MN HF1754

Automobile insurers prohibited from using sex, gender, location, or credit information for underwriting auto insurance.

MN SB2908

MS Rating Bureau & MS Windstorm Underwriting Association; transfer powers and duties and bring forward sections.

MN SB72

Relating to prohibition of the use of credit scoring in underwriting and rating certain personal lines of insurance coverage.

MN SB79

Relating to prohibition of the use of credit scoring in underwriting and rating certain personal lines of insurance coverage.

MN HB2819

Residential property insurance; fire; underwriting

MN SB110

Relating to prohibition of the use of credit scoring in underwriting and rating certain personal lines of insurance coverage.

MN SB739

Relating to prohibition of the use of credit scoring in underwriting and rating certain personal lines of insurance coverage.

MN A1674

Prohibits use of education, occupation, and credit score as rating factors in automobile insurance underwriting.

MN A1104

Prohibits use of gap in automobile insurance coverage as rating factor in automobile insurance underwriting under certain circumstances.

Similar Bills

No similar bills found.