HF 2042

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/09/2021 11:42am

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.

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new text begin (c) If the business coverage policy lapses or is no longer in force, there is no coverage
under the day care provider's homeowner's policy for losses related to day care operations.
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