Minnesota 2025-2026 Regular Session

Minnesota House Bill HF2215 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to commerce; requiring the commissioner of commerce to create a low-cost
3	3	1.3 motor vehicle insurance program for low-income residents; requiring a report;
4	4	1.4 appropriating money; amending Minnesota Statutes 2024, section 65B.49, by
5	5	1.5 adding a subdivision; proposing coding for new law in Minnesota Statutes, chapters
6	6	1.6 65B; 297I.
7	7	1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
8	8	1.8 Section 1. [65B.121] MINNESOTA LIFELINE INSURANCE PROGRAM.
9	9	1.9 Subdivision 1.Definitions.(a) For the purposes of this section, the following terms have
10	10	1.10the meanings given.
11	11	1.11 (b) "Commissioner" means the commissioner of commerce or the commissioner's
12	12	1.12representative.
13	13	1.13 (c) "Eligible applicant" means an individual who meets the requirements of subdivision
14	14	1.146 and has applied for a lifeline policy under the program.
15	15	1.15 (d) "Facility" has the meaning given in section 65B.02, subdivision 3.
16	16	1.16 (e) "Insured" means a driver insured under the program.
17	17	1.17 (f) "Lifeline policy" or "policy" means a motor vehicle insurance policy issued in
18	18	1.18compliance with subdivision 5.
19	19	1.19 (g) "Member" has the meaning given in section 65B.02, subdivision 4.
20	20	1.20 (h) "Minnesota lifeline insurance program" or "program" means the program created
21	21	1.21under this section.
22	22	1.22 (i) "Motor vehicle" has the meaning given in section 169.011, subdivision 42.
23	23	1Section 1.
24	24	REVISOR RSI/KR 25-0319902/21/25
25	25	State of Minnesota
26	26	This Document can be made available
27	27	in alternative formats upon request
28	28	HOUSE OF REPRESENTATIVES
29	29	H. F. No. 2215
30	30	NINETY-FOURTH SESSION
31	31	Authored by Hollins, Reyer, Koegel, Smith, Cha and others03/12/2025
32	32	The bill was read for the first time and referred to the Committee on Commerce Finance and Policy 2.1 (j) "Moving violation" means a violation of a law or municipal ordinance regulating the
33	33	2.2operation of motor vehicles on streets or highways. Moving violation does not include a
34	34	2.3law or ordinance related to parking or motor vehicle equipment.
35	35	2.4 (k) "Primary online producer" means the producer of record for a policy sold through
36	36	2.5the website described in subdivision 3, paragraph (g).
37	37	2.6 (l) "Qualified health coverage" means medical assistance, MinnesotaCare, Medicare,
38	38	2.7general assistance medical care, TRICARE, or other medical insurance that covers
39	39	2.8hospitalization and emergency services.
40	40	2.9 Subd. 2.Commissioner duties.(a) The commissioner must consult with the facility to
41	41	2.10develop and operate the program. The program must be developed and operated by the
42	42	2.11facility as described in subdivision 3.
43	43	2.12 (b) By March 1 of each year, the commissioner must present the report issued by the
44	44	2.13facility under subdivision 3 to the chairs and ranking minority members of the legislative
45	45	2.14committees with jurisdiction over motor vehicle insurance. The commissioner must also
46	46	2.15provide a description of marketing and outreach efforts and the commissioner's expenditures
47	47	2.16related to the program, including expenditures from the Minnesota lifeline insurance program
48	48	2.17account under section 297I.12. The commissioner may recommend modifications to this
49	49	2.18section and present any other information that the commissioner determines would enhance
50	50	2.19the legislature's understanding of the program and the program's participants.
51	51	2.20 Subd. 3.Facility duties.(a) The facility must:
52	52	2.21 (1) develop and operate the program in consultation with the commissioner;
53	53	2.22 (2) determine whether an applicant is eligible for the program; and
54	54	2.23 (3) sell, issue, and deliver lifeline policies under the program.
55	55	2.24 (b) The facility must determine the rates charged for lifeline policies and file rates with
56	56	2.25the commissioner, in compliance with section 65B.08. Prior to determining the rates, the
57	57	2.26facility must conduct a meeting to provide an opportunity for public comment on the proposed
58	58	2.27rates and the rate setting process.
59	59	2.28 (c) The facility must set rates for the program in an amount adequate to pay for losses
60	60	2.29incurred for claims filed under the program and program expenses related to selling and
61	61	2.30servicing policies, including:
62	62	2.31 (1) underwriting;
63	63	2.32 (2) producer commissions;
64	64	2Section 1.
65	65	REVISOR RSI/KR 25-0319902/21/25 3.1 (3) claims adjusting;
66	66	3.2 (4) subrogation;
67	67	3.3 (5) taxes, licenses, and fees; and
68	68	3.4 (6) other administrative and overhead expenses specifically associated with the servicing
69	69	3.5of lifeline policies.
70	70	3.6The rates must also account for investment income.
71	71	3.7 (d) To determine rates, the facility must rely on:
72	72	3.8 (1) loss data associated with policies sold by the facility under the lifeline program,
73	73	3.9when program loss data is available; and
74	74	3.10 (2) private passenger automobile insurance loss data in Minnesota, adjusted to reflect
75	75	3.11the eligibility factors described in subdivision 6. Private passenger automobile insurance
76	76	3.12loss data must be used only to the extent that program data are not available or in conjunction
77	77	3.13with program data in order to meet actuarial standards of credibility.
78	78	3.14 (e) The rates may include the cost to offer, at no additional cost to insureds, a deferred
79	79	3.15payment plan designed by the facility that allows an insured to pay the insured's premium
80	80	3.16in no fewer than six installments.
81	81	3.17 (f) The facility, in consultation with the commissioner, may establish up to three
82	82	3.18geographic regions of the state and set different premiums by region to reflect different loss
83	83	3.19costs associated with each region, except that the premium charged in a region must not be
84	84	3.20more than 25 percent higher than an otherwise similar policy in another region of the state.
85	85	3.21 (g) The facility, in consultation with the commissioner, must create and maintain a
86	86	3.22website for the program that includes the information necessary for an eligible applicant to
87	87	3.23apply for the program. The website must initially include sufficient functionality to provide
88	88	3.24prospective applicants with information about the program, the lifeline policy, the premium
89	89	3.25the applicant would be charged, and contact information for licensed producers that sell the
90	90	3.26lifeline policy. The website must add functionality necessary to allow a policy to be sold
91	91	3.27online, to the extent possible, in accordance with the following timeline:
92	92	3.28 (1) within one year of enactment of the program, the facility must solicit bids and award
93	93	3.29a contract to a producer licensed to sell insurance in the state, including a policy under this
94	94	3.30section, to become the primary online producer; and
95	95	3.31 (2) the facility must work with the primary online producer to increase the functionality
96	96	3.32of the website in order to allow a prospective lifeline policyholder to apply online no later
97	97	3Section 1.
98	98	REVISOR RSI/KR 25-0319902/21/25 4.1than one year after the effective date of the facility's contract with the primary online
99	99	4.2producer.
100	100	4.3 (h) The primary online producer must earn a commission associated with a policy
101	101	4.4produced online and has the same responsibilities to the policyholder as a producer that
102	102	4.5sells a policy without the assistance of the website.
103	103	4.6 (i) The facility may accept funding from sources other than members to support the
104	104	4.7program's marketing, outreach, and public education efforts.
105	105	4.8 (j) Money for marketing, outreach, and public education must be awarded equitably
106	106	4.9among geographic regions, taking into consideration a region's target population and
107	107	4.10marketing goals.
108	108	4.11 (k) The facility must develop a process for applicants to demonstrate program eligibility
109	109	4.12under subdivision 6 that minimizes the burden on the applicant and barriers to participation
110	110	4.13in the program.
111	111	4.14 (l) The facility may require policy holders to recertify eligibility for the program with
112	112	4.15regard to residency, income, and qualified health coverage at intervals no shorter than three
113	113	4.16years.
114	114	4.17 (m) By February 1 of each year, the facility must issue a report to the commissioner that
115	115	4.18presents information regarding the implementation and operation of the program and
116	116	4.19participation in the program. The report must include:
117	117	4.20 (1) the total number of applications received by the facility during the prior year;
118	118	4.21 (2) the total number of policies issued by the facility during the prior year;
119	119	4.22 (3) the total number of policies rejected by the facility during the prior year;
120	120	4.23 (4) the total number of policies in force on March 31, June 30, September 30, and
121	121	4.24December 31 of the prior year;
122	122	4.25 (5) information indicating the geographic distribution of policies throughout the state;
123	123	4.26 (6) the total premium collected during the prior year;
124	124	4.27 (7) the estimate of incurred losses for the prior year or the most recent 12-month period
125	125	4.28for which data are available;
126	126	4.29 (8) a summary of the disputed issues regarding a rate change submitted to the
127	127	4.30commissioner by the facility in the event that the rate change was not adopted unanimously
128	128	4.31by the facility's governing committee;
129	129	4Section 1.
130	130	REVISOR RSI/KR 25-0319902/21/25 5.1 (9) any modifications to this section that the facility recommends; and
131	131	5.2 (10) any other information that the facility determines would enhance the legislature's
132	132	5.3understanding of the program and the program's participants.
133	133	5.4 Subd. 4.Producer duties.(a) A licensed producer must provide to an applicant for a
134	134	5.5lifeline policy the following information in no smaller than 14-point type on a form prescribed
135	135	5.6by the commissioner:
136	136	5.7 (1) notice that a lifeline policy under this section satisfies the requirements under section
137	137	5.865B.48 to maintain automobile liability insurance;
138	138	5.9 (2) premium cost;
139	139	5.10 (3) how eligibility is determined; and
140	140	5.11 (4) the difference between the coverage available under a lifeline policy and the minimum
141	141	5.12coverage requirements that apply to policies sold outside of the program and in compliance
142	142	5.13with section 65B.48.
143	143	5.14 (b) A licensed producer is entitled to receive a commission on each lifeline policy sold
144	144	5.15that is equal to 12 percent of the policy premiums, provided that the commission is not less
145	145	5.16than $50. The facility or any insurance company issuing a lifeline policy under this section
146	146	5.17is prohibited from requiring a producer to return any portion of the commission paid for the
147	147	5.18sale of a lifeline policy if the insured, facility, or issuing carrier cancels the policy before
148	148	5.19the end of the policy term.
149	149	5.20 (c) A licensed producer that complies with the disclosure requirements of this subdivision
150	150	5.21in conjunction with the sale of a lifeline policy is not liable for selling a policy that does
151	151	5.22not provide the coverage required in section 65B.49.
152	152	5.23 (d) A licensed producer must accept payment for premiums under the program by cash
153	153	5.24and by all other methods approved by the facility.
154	154	5.25 (e) Payment of premiums for a lifeline policy through an insurance premium finance
155	155	5.26agreement, as defined under section 59A.02, is prohibited.
156	156	5.27 Subd. 5.Lifeline policies.The program must include and the facility must offer a lifeline
157	157	5.28policy, with a length of six or 12 months, that includes:
158	158	5.29 (1) basic economic loss benefits that provide a minimum of $5,000 for income loss,
159	159	5.30replacement services loss, funeral expense loss, survivor's economic loss, and survivor's
160	160	5.31replacement services loss arising out of the injury to any one person;
161	161	5Section 1.
162	162	REVISOR RSI/KR 25-0319902/21/25 6.1 (2) the payment of claims for bodily injury or death arising from an accident of $30,000
163	163	6.2for any one person and $60,000 for any two or more persons, in addition to interest and
164	164	6.3costs;
165	165	6.4 (3) the payment of claims for property of others damaged or destroyed in an accident
166	166	6.5of $10,000, in addition to interest and costs; and
167	167	6.6 (4) uninsured and underinsured motorist coverage with limits of $25,000 because of
168	168	6.7injury to or the death of one person in any accident and $50,000 because of injury to or the
169	169	6.8death of two or more persons in any accident.
170	170	6.9 Subd. 6.Eligible applicant.(a) An eligible applicant must:
171	171	6.10 (1) be a resident of Minnesota;
172	172	6.11 (2) have a household adjusted gross income that is no more than 300 percent of the
173	173	6.12federal poverty level at the time the policy is issued or reissued;
174	174	6.13 (3) demonstrate that all household members are enrolled in qualified health coverage;
175	175	6.14and
176	176	6.15 (4) have been continuously licensed as a driver for the three years immediately preceding
177	177	6.16application, except that a license suspension or revocation does not constitute a break in
178	178	6.17continuous licensure for the purposes of satisfying this requirement if the revocation or
179	179	6.18suspension was due to any of the following:
180	180	6.19 (i) a conviction for a violation under section 169.791, 169.797, or 171.24, subdivision
181	181	6.201 or 2;
182	182	6.21 (ii) a violation of section 171.18, subdivision 1, paragraph (a), clause (1), for being cited
183	183	6.22for a violation of section 169.791 or 169.797;
184	184	6.23 (iii) failure to appear in court under section 171.16, subdivision 3a, for a petty
185	185	6.24misdemeanor; or
186	186	6.25 (iv) failure to pay a fine under section 171.16, subdivision 3.
187	187	6.26 (b) A policy may be issued to an eligible applicant who has had continuous licensure
188	188	6.27for less than three years. The facility, in consultation with the commissioner, may establish
189	189	6.28different premiums for an insured with less than three years' continuous licensure to reflect
190	190	6.29different loss costs associated with insureds with less that three years' continuous licensure,
191	191	6.30except that the premium charged must not be more than 25 percent higher than the premium
192	192	6.31charged to an insured with three years of continuous licensure in the same region of the
193	193	6.32state.
194	194	6Section 1.
195	195	REVISOR RSI/KR 25-0319902/21/25 7.1 (c) An eligible applicant must not, within the three years immediately preceding
196	196	7.2application, be:
197	197	7.3 (1) at fault in a motor vehicle accident involving bodily injury or death;
198	198	7.4 (2) convicted of a misdemeanor, gross misdemeanor, or felony for a violation arising
199	199	7.5out of the use of a motor vehicle other than for a violation of section 171.24, subdivisions
200	200	7.61 or 2; 169.791; or 169.797;
201	201	7.7 (3) convicted of a violation of section 84.765; 84.795, subdivision 5; 86B.33; or a
202	202	7.8Minnesota statute or a statute in another state that is equivalent to the sections identified in
203	203	7.9this clause;
204	204	7.10 (4) convicted of more than two moving violations; or
205	205	7.11 (5) at fault in more than one motor vehicle accident that involved only damage to property.
206	206	7.12 (d) If an applicant is rejected by the facility, the facility must allow the applicant to cure
207	207	7.13the deficiency and must accept the cured application if the applicant is otherwise eligible
208	208	7.14for the program.
209	209	7.15 (e) An enrollee may be required to provide proof of qualified health insurance.
210	210	7.16 (f) A lifeline policy may be nonrenewed if the insured no longer meets the requirements
211	211	7.17under this subdivision.
212	212	7.18 Sec. 2. Minnesota Statutes 2024, section 65B.49, is amended by adding a subdivision to
213	213	7.19read:
214	214	7.20 Subd. 11.Minnesota lifeline automobile insurance program.Notwithstanding this
215	215	7.21section or any law to the contrary, a policy issued pursuant to the Minnesota lifeline
216	216	7.22automobile insurance program under section 65B.121, meets the requirements of this section.
217	217	7.23 Sec. 3. [297I.12] LIFELINE PROGRAM MARKETING AND OUTREACH FUND.
218	218	7.24 Subdivision 1.Surcharge.(a) Each insurer engaged in writing policies of automobile
219	219	7.25insurance must collect a surcharge, at the rate of 10 cents per vehicle for every six months
220	220	7.26of coverage, on each policy of automobile insurance providing comprehensive insurance
221	221	7.27coverage issued or renewed in Minnesota. The surcharge is not considered premium for
222	222	7.28any purpose, including the computation of premium tax or agents' commissions. The amount
223	223	7.29of the surcharge must be separately stated on either a billing or policy declaration sent to
224	224	7.30an insured. An insurer must remit the revenue derived from the surcharge under this
225	225	7Sec. 3.
226	226	REVISOR RSI/KR 25-0319902/21/25 8.1subdivision to the commissioner of revenue for marketing and outreach for the Minnesota
227	227	8.2lifeline insurance program under section 65B.121.
228	228	8.3 (b) For purposes of this subdivision, "policy of automobile insurance" has the meaning
229	229	8.4given in section 65B.14, and covers only the following types of vehicles, as defined in
230	230	8.5section 168.002, if the vehicle's gross vehicle weight does not exceed 10,000 pounds:
231	231	8.6 (1) a passenger automobile;
232	232	8.7 (2) a pickup truck;
233	233	8.8 (3) a van, but not commuter vans as defined in section 168.126; or
234	234	8.9 (4) a motorcycle.
235	235	8.10 Subd. 2.Minnesota lifeline insurance program account.The Minnesota lifeline
236	236	8.11insurance program account is created in the special revenue fund. The proceeds of surcharges
237	237	8.12imposed under subdivision 1 must be deposited in the Minnesota lifeline insurance program
238	238	8.13account. Money in the account is appropriated to the commissioner for marketing and
239	239	8.14outreach activities to promote enrollment in the Minnesota lifeline insurance program
240	240	8.15described under section 65B.121. Allowable uses include but are not limited to:
241	241	8.16 (1) grants to nonprofit organizations that provide direct services to individuals likely to
242	242	8.17benefit from information about the lifeline insurance program; and
243	243	8.18 (2) a contract with a marketing company with demonstrated success in public relations
244	244	8.19to populations likely to benefit from information about the lifeline insurance program.
245	245	8.20 Sec. 4. APPROPRIATION; MINNESOTA LIFELINE AUTOMOBILE INSURANCE
246	246	8.21PROGRAM.
247	247	8.22 (a) $....... in fiscal year 2026 is appropriated from the general fund to the commissioner
248	248	8.23of commerce to establish the Minnesota lifeline automobile insurance program.
249	249	8.24 (b) $20,000 in fiscal year 2026 and $20,000 in fiscal year 2027 are appropriated from
250	250	8.25the general fund to the commissioner of commerce to retain an independent actuary to
251	251	8.26provide actuarial consulting services to the public members of the facility.
252	252	8Sec. 4.
253	253	REVISOR RSI/KR 25-0319902/21/25