Minnesota 2025-2026 Regular Session

Minnesota Senate Bill SF2455 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	25-03199 as introduced02/21/25 REVISOR RSI/KR
25	25	SENATE
26	26	STATE OF MINNESOTA
27	27	S.F. No. 2455NINETY-FOURTH SESSION
28	28	(SENATE AUTHORS: PUTNAM, McEwen and Dibble)
29	29	OFFICIAL STATUSD-PGDATE
30	30	Introduction and first reading03/13/2025
31	31	Referred to Commerce and Consumer Protection 2.1 (j) "Moving violation" means a violation of a law or municipal ordinance regulating the
32	32	2.2operation of motor vehicles on streets or highways. Moving violation does not include a
33	33	2.3law or ordinance related to parking or motor vehicle equipment.
34	34	2.4 (k) "Primary online producer" means the producer of record for a policy sold through
35	35	2.5the website described in subdivision 3, paragraph (g).
36	36	2.6 (l) "Qualified health coverage" means medical assistance, MinnesotaCare, Medicare,
37	37	2.7general assistance medical care, TRICARE, or other medical insurance that covers
38	38	2.8hospitalization and emergency services.
39	39	2.9 Subd. 2.Commissioner duties.(a) The commissioner must consult with the facility to
40	40	2.10develop and operate the program. The program must be developed and operated by the
41	41	2.11facility as described in subdivision 3.
42	42	2.12 (b) By March 1 of each year, the commissioner must present the report issued by the
43	43	2.13facility under subdivision 3 to the chairs and ranking minority members of the legislative
44	44	2.14committees with jurisdiction over motor vehicle insurance. The commissioner must also
45	45	2.15provide a description of marketing and outreach efforts and the commissioner's expenditures
46	46	2.16related to the program, including expenditures from the Minnesota lifeline insurance program
47	47	2.17account under section 297I.12. The commissioner may recommend modifications to this
48	48	2.18section and present any other information that the commissioner determines would enhance
49	49	2.19the legislature's understanding of the program and the program's participants.
50	50	2.20 Subd. 3.Facility duties.(a) The facility must:
51	51	2.21 (1) develop and operate the program in consultation with the commissioner;
52	52	2.22 (2) determine whether an applicant is eligible for the program; and
53	53	2.23 (3) sell, issue, and deliver lifeline policies under the program.
54	54	2.24 (b) The facility must determine the rates charged for lifeline policies and file rates with
55	55	2.25the commissioner, in compliance with section 65B.08. Prior to determining the rates, the
56	56	2.26facility must conduct a meeting to provide an opportunity for public comment on the proposed
57	57	2.27rates and the rate setting process.
58	58	2.28 (c) The facility must set rates for the program in an amount adequate to pay for losses
59	59	2.29incurred for claims filed under the program and program expenses related to selling and
60	60	2.30servicing policies, including:
61	61	2.31 (1) underwriting;
62	62	2.32 (2) producer commissions;
63	63	2Section 1.
64	64	25-03199 as introduced02/21/25 REVISOR RSI/KR 3.1 (3) claims adjusting;
65	65	3.2 (4) subrogation;
66	66	3.3 (5) taxes, licenses, and fees; and
67	67	3.4 (6) other administrative and overhead expenses specifically associated with the servicing
68	68	3.5of lifeline policies.
69	69	3.6The rates must also account for investment income.
70	70	3.7 (d) To determine rates, the facility must rely on:
71	71	3.8 (1) loss data associated with policies sold by the facility under the lifeline program,
72	72	3.9when program loss data is available; and
73	73	3.10 (2) private passenger automobile insurance loss data in Minnesota, adjusted to reflect
74	74	3.11the eligibility factors described in subdivision 6. Private passenger automobile insurance
75	75	3.12loss data must be used only to the extent that program data are not available or in conjunction
76	76	3.13with program data in order to meet actuarial standards of credibility.
77	77	3.14 (e) The rates may include the cost to offer, at no additional cost to insureds, a deferred
78	78	3.15payment plan designed by the facility that allows an insured to pay the insured's premium
79	79	3.16in no fewer than six installments.
80	80	3.17 (f) The facility, in consultation with the commissioner, may establish up to three
81	81	3.18geographic regions of the state and set different premiums by region to reflect different loss
82	82	3.19costs associated with each region, except that the premium charged in a region must not be
83	83	3.20more than 25 percent higher than an otherwise similar policy in another region of the state.
84	84	3.21 (g) The facility, in consultation with the commissioner, must create and maintain a
85	85	3.22website for the program that includes the information necessary for an eligible applicant to
86	86	3.23apply for the program. The website must initially include sufficient functionality to provide
87	87	3.24prospective applicants with information about the program, the lifeline policy, the premium
88	88	3.25the applicant would be charged, and contact information for licensed producers that sell the
89	89	3.26lifeline policy. The website must add functionality necessary to allow a policy to be sold
90	90	3.27online, to the extent possible, in accordance with the following timeline:
91	91	3.28 (1) within one year of enactment of the program, the facility must solicit bids and award
92	92	3.29a contract to a producer licensed to sell insurance in the state, including a policy under this
93	93	3.30section, to become the primary online producer; and
94	94	3.31 (2) the facility must work with the primary online producer to increase the functionality
95	95	3.32of the website in order to allow a prospective lifeline policyholder to apply online no later
96	96	3Section 1.
97	97	25-03199 as introduced02/21/25 REVISOR RSI/KR 4.1than one year after the effective date of the facility's contract with the primary online
98	98	4.2producer.
99	99	4.3 (h) The primary online producer must earn a commission associated with a policy
100	100	4.4produced online and has the same responsibilities to the policyholder as a producer that
101	101	4.5sells a policy without the assistance of the website.
102	102	4.6 (i) The facility may accept funding from sources other than members to support the
103	103	4.7program's marketing, outreach, and public education efforts.
104	104	4.8 (j) Money for marketing, outreach, and public education must be awarded equitably
105	105	4.9among geographic regions, taking into consideration a region's target population and
106	106	4.10marketing goals.
107	107	4.11 (k) The facility must develop a process for applicants to demonstrate program eligibility
108	108	4.12under subdivision 6 that minimizes the burden on the applicant and barriers to participation
109	109	4.13in the program.
110	110	4.14 (l) The facility may require policy holders to recertify eligibility for the program with
111	111	4.15regard to residency, income, and qualified health coverage at intervals no shorter than three
112	112	4.16years.
113	113	4.17 (m) By February 1 of each year, the facility must issue a report to the commissioner that
114	114	4.18presents information regarding the implementation and operation of the program and
115	115	4.19participation in the program. The report must include:
116	116	4.20 (1) the total number of applications received by the facility during the prior year;
117	117	4.21 (2) the total number of policies issued by the facility during the prior year;
118	118	4.22 (3) the total number of policies rejected by the facility during the prior year;
119	119	4.23 (4) the total number of policies in force on March 31, June 30, September 30, and
120	120	4.24December 31 of the prior year;
121	121	4.25 (5) information indicating the geographic distribution of policies throughout the state;
122	122	4.26 (6) the total premium collected during the prior year;
123	123	4.27 (7) the estimate of incurred losses for the prior year or the most recent 12-month period
124	124	4.28for which data are available;
125	125	4.29 (8) a summary of the disputed issues regarding a rate change submitted to the
126	126	4.30commissioner by the facility in the event that the rate change was not adopted unanimously
127	127	4.31by the facility's governing committee;
128	128	4Section 1.
129	129	25-03199 as introduced02/21/25 REVISOR RSI/KR 5.1 (9) any modifications to this section that the facility recommends; and
130	130	5.2 (10) any other information that the facility determines would enhance the legislature's
131	131	5.3understanding of the program and the program's participants.
132	132	5.4 Subd. 4.Producer duties.(a) A licensed producer must provide to an applicant for a
133	133	5.5lifeline policy the following information in no smaller than 14-point type on a form prescribed
134	134	5.6by the commissioner:
135	135	5.7 (1) notice that a lifeline policy under this section satisfies the requirements under section
136	136	5.865B.48 to maintain automobile liability insurance;
137	137	5.9 (2) premium cost;
138	138	5.10 (3) how eligibility is determined; and
139	139	5.11 (4) the difference between the coverage available under a lifeline policy and the minimum
140	140	5.12coverage requirements that apply to policies sold outside of the program and in compliance
141	141	5.13with section 65B.48.
142	142	5.14 (b) A licensed producer is entitled to receive a commission on each lifeline policy sold
143	143	5.15that is equal to 12 percent of the policy premiums, provided that the commission is not less
144	144	5.16than $50. The facility or any insurance company issuing a lifeline policy under this section
145	145	5.17is prohibited from requiring a producer to return any portion of the commission paid for the
146	146	5.18sale of a lifeline policy if the insured, facility, or issuing carrier cancels the policy before
147	147	5.19the end of the policy term.
148	148	5.20 (c) A licensed producer that complies with the disclosure requirements of this subdivision
149	149	5.21in conjunction with the sale of a lifeline policy is not liable for selling a policy that does
150	150	5.22not provide the coverage required in section 65B.49.
151	151	5.23 (d) A licensed producer must accept payment for premiums under the program by cash
152	152	5.24and by all other methods approved by the facility.
153	153	5.25 (e) Payment of premiums for a lifeline policy through an insurance premium finance
154	154	5.26agreement, as defined under section 59A.02, is prohibited.
155	155	5.27 Subd. 5.Lifeline policies.The program must include and the facility must offer a lifeline
156	156	5.28policy, with a length of six or 12 months, that includes:
157	157	5.29 (1) basic economic loss benefits that provide a minimum of $5,000 for income loss,
158	158	5.30replacement services loss, funeral expense loss, survivor's economic loss, and survivor's
159	159	5.31replacement services loss arising out of the injury to any one person;
160	160	5Section 1.
161	161	25-03199 as introduced02/21/25 REVISOR RSI/KR 6.1 (2) the payment of claims for bodily injury or death arising from an accident of $30,000
162	162	6.2for any one person and $60,000 for any two or more persons, in addition to interest and
163	163	6.3costs;
164	164	6.4 (3) the payment of claims for property of others damaged or destroyed in an accident
165	165	6.5of $10,000, in addition to interest and costs; and
166	166	6.6 (4) uninsured and underinsured motorist coverage with limits of $25,000 because of
167	167	6.7injury to or the death of one person in any accident and $50,000 because of injury to or the
168	168	6.8death of two or more persons in any accident.
169	169	6.9 Subd. 6.Eligible applicant.(a) An eligible applicant must:
170	170	6.10 (1) be a resident of Minnesota;
171	171	6.11 (2) have a household adjusted gross income that is no more than 300 percent of the
172	172	6.12federal poverty level at the time the policy is issued or reissued;
173	173	6.13 (3) demonstrate that all household members are enrolled in qualified health coverage;
174	174	6.14and
175	175	6.15 (4) have been continuously licensed as a driver for the three years immediately preceding
176	176	6.16application, except that a license suspension or revocation does not constitute a break in
177	177	6.17continuous licensure for the purposes of satisfying this requirement if the revocation or
178	178	6.18suspension was due to any of the following:
179	179	6.19 (i) a conviction for a violation under section 169.791, 169.797, or 171.24, subdivision
180	180	6.201 or 2;
181	181	6.21 (ii) a violation of section 171.18, subdivision 1, paragraph (a), clause (1), for being cited
182	182	6.22for a violation of section 169.791 or 169.797;
183	183	6.23 (iii) failure to appear in court under section 171.16, subdivision 3a, for a petty
184	184	6.24misdemeanor; or
185	185	6.25 (iv) failure to pay a fine under section 171.16, subdivision 3.
186	186	6.26 (b) A policy may be issued to an eligible applicant who has had continuous licensure
187	187	6.27for less than three years. The facility, in consultation with the commissioner, may establish
188	188	6.28different premiums for an insured with less than three years' continuous licensure to reflect
189	189	6.29different loss costs associated with insureds with less that three years' continuous licensure,
190	190	6.30except that the premium charged must not be more than 25 percent higher than the premium
191	191	6.31charged to an insured with three years of continuous licensure in the same region of the
192	192	6.32state.
193	193	6Section 1.
194	194	25-03199 as introduced02/21/25 REVISOR RSI/KR 7.1 (c) An eligible applicant must not, within the three years immediately preceding
195	195	7.2application, be:
196	196	7.3 (1) at fault in a motor vehicle accident involving bodily injury or death;
197	197	7.4 (2) convicted of a misdemeanor, gross misdemeanor, or felony for a violation arising
198	198	7.5out of the use of a motor vehicle other than for a violation of section 171.24, subdivisions
199	199	7.61 or 2; 169.791; or 169.797;
200	200	7.7 (3) convicted of a violation of section 84.765; 84.795, subdivision 5; 86B.33; or a
201	201	7.8Minnesota statute or a statute in another state that is equivalent to the sections identified in
202	202	7.9this clause;
203	203	7.10 (4) convicted of more than two moving violations; or
204	204	7.11 (5) at fault in more than one motor vehicle accident that involved only damage to property.
205	205	7.12 (d) If an applicant is rejected by the facility, the facility must allow the applicant to cure
206	206	7.13the deficiency and must accept the cured application if the applicant is otherwise eligible
207	207	7.14for the program.
208	208	7.15 (e) An enrollee may be required to provide proof of qualified health insurance.
209	209	7.16 (f) A lifeline policy may be nonrenewed if the insured no longer meets the requirements
210	210	7.17under this subdivision.
211	211	7.18 Sec. 2. Minnesota Statutes 2024, section 65B.49, is amended by adding a subdivision to
212	212	7.19read:
213	213	7.20 Subd. 11.Minnesota lifeline automobile insurance program.Notwithstanding this
214	214	7.21section or any law to the contrary, a policy issued pursuant to the Minnesota lifeline
215	215	7.22automobile insurance program under section 65B.121, meets the requirements of this section.
216	216	7.23 Sec. 3. [297I.12] LIFELINE PROGRAM MARKETING AND OUTREACH FUND.
217	217	7.24 Subdivision 1.Surcharge.(a) Each insurer engaged in writing policies of automobile
218	218	7.25insurance must collect a surcharge, at the rate of 10 cents per vehicle for every six months
219	219	7.26of coverage, on each policy of automobile insurance providing comprehensive insurance
220	220	7.27coverage issued or renewed in Minnesota. The surcharge is not considered premium for
221	221	7.28any purpose, including the computation of premium tax or agents' commissions. The amount
222	222	7.29of the surcharge must be separately stated on either a billing or policy declaration sent to
223	223	7.30an insured. An insurer must remit the revenue derived from the surcharge under this
224	224	7Sec. 3.
225	225	25-03199 as introduced02/21/25 REVISOR RSI/KR 8.1subdivision to the commissioner of revenue for marketing and outreach for the Minnesota
226	226	8.2lifeline insurance program under section 65B.121.
227	227	8.3 (b) For purposes of this subdivision, "policy of automobile insurance" has the meaning
228	228	8.4given in section 65B.14, and covers only the following types of vehicles, as defined in
229	229	8.5section 168.002, if the vehicle's gross vehicle weight does not exceed 10,000 pounds:
230	230	8.6 (1) a passenger automobile;
231	231	8.7 (2) a pickup truck;
232	232	8.8 (3) a van, but not commuter vans as defined in section 168.126; or
233	233	8.9 (4) a motorcycle.
234	234	8.10 Subd. 2.Minnesota lifeline insurance program account.The Minnesota lifeline
235	235	8.11insurance program account is created in the special revenue fund. The proceeds of surcharges
236	236	8.12imposed under subdivision 1 must be deposited in the Minnesota lifeline insurance program
237	237	8.13account. Money in the account is appropriated to the commissioner for marketing and
238	238	8.14outreach activities to promote enrollment in the Minnesota lifeline insurance program
239	239	8.15described under section 65B.121. Allowable uses include but are not limited to:
240	240	8.16 (1) grants to nonprofit organizations that provide direct services to individuals likely to
241	241	8.17benefit from information about the lifeline insurance program; and
242	242	8.18 (2) a contract with a marketing company with demonstrated success in public relations
243	243	8.19to populations likely to benefit from information about the lifeline insurance program.
244	244	8.20 Sec. 4. APPROPRIATION; MINNESOTA LIFELINE AUTOMOBILE INSURANCE
245	245	8.21PROGRAM.
246	246	8.22 (a) $....... in fiscal year 2026 is appropriated from the general fund to the commissioner
247	247	8.23of commerce to establish the Minnesota lifeline automobile insurance program.
248	248	8.24 (b) $20,000 in fiscal year 2026 and $20,000 in fiscal year 2027 are appropriated from
249	249	8.25the general fund to the commissioner of commerce to retain an independent actuary to
250	250	8.26provide actuarial consulting services to the public members of the facility.
251	251	8Sec. 4.
252	252	25-03199 as introduced02/21/25 REVISOR RSI/KR