HF 848

as introduced - 92nd Legislature (2021 - 2022) Posted on 02/08/2021 02:12pm

A bill for an act
relating to insurance; modifying provisions governing policies for certain day care
providers; amending Minnesota Statutes 2020, section 65A.30, subdivision 2, by
adding a subdivision.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2020, section 65A.30, subdivision 2, is amended to read:

Subd. 2.

Prohibited underwriting practices.

new text begin (a) new text end No insurer shall refuse to renew, or
decline to offer or write, homeowner's insurance coverage solely because the property to
be covered houses day care services for five or fewer children.

new text begin (b) An insurer is prohibited from refusing to renew, declining to offer or write, reducing
the limits of, canceling, or charging differential rates for equivalent coverage in a
homeowner's policy if the day care provider (1) maintains a separate business coverage
policy that covers losses or damages arising from the operation of the day care services,
and (2) is operating within licensing capacity.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2022, and applies to policies
issued, sold, or renewed on or after that date.
new text end

Sec. 2.

Minnesota Statutes 2020, section 65A.30, is amended by adding a subdivision to
read:

new text begin Subd. 3. new text end

new text begin Temporary suspension of coverage. new text end

new text begin (a) A day care provider that maintains a
separate business coverage policy or has a rider for business coverage attached to a
homeowner's policy may temporarily suspend the business coverage policy or rider if the
day care provider temporarily closes or suspends the day care service. An insurer is prohibited
from requiring a day care provider to pay premiums on the business coverage policy or rider
during the period the policy or rider is suspended.
new text end

new text begin (b) If a separate business coverage policy is temporarily suspended under paragraph (a),
the business coverage policy insurer must notify the homeowner's policy insurer of the
temporary suspension within ..... days of the date the policy suspension is effective.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2022, and applies to policies
issued, sold, or renewed on or after that date.
new text end