HF 2668

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to insurance; prohibiting discrimination in 
  1.3             auto insurance based upon geographic location within 
  1.4             the Twin Cities metropolitan area; amending Minnesota 
  1.5             Statutes 1999 Supplement, section 72A.20, subdivision 
  1.6             23. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1999 Supplement, section 
  1.9   72A.20, subdivision 23, is amended to read: 
  1.10     Subd. 23.  [DISCRIMINATION IN AUTOMOBILE INSURANCE 
  1.11  POLICIES.] (a) No insurer that offers an automobile insurance 
  1.12  policy in this state shall: 
  1.13     (1) use the employment status of the applicant as an 
  1.14  underwriting standard or guideline; or 
  1.15     (2) deny coverage to a policyholder for the same reason. 
  1.16     (b) No insurer that offers an automobile insurance policy 
  1.17  in this state shall: 
  1.18     (1) use the applicant's status as a residential tenant, as 
  1.19  the term is defined in section 504B.001, subdivision 12, as an 
  1.20  underwriting standard or guideline; or 
  1.21     (2) deny coverage to a policyholder for the same reason; or 
  1.22     (3) make any discrimination in offering or establishing 
  1.23  rates, premiums, dividends, or benefits of any kind, or by way 
  1.24  of rebate, for the same reason.  
  1.25     (c) No insurer that offers an automobile insurance policy 
  1.26  in this state shall: 
  2.1      (1) use the failure of the applicant to have an automobile 
  2.2   policy in force during any period of time before the application 
  2.3   is made as an underwriting standard or guideline; or 
  2.4      (2) deny coverage to a policyholder for the same reason. 
  2.5      This provision does not apply if the applicant was required 
  2.6   by law to maintain automobile insurance coverage and failed to 
  2.7   do so. 
  2.8      An insurer may require reasonable proof that the applicant 
  2.9   did not fail to maintain this coverage.  The insurer is not 
  2.10  required to accept the mere lack of a conviction or citation for 
  2.11  failure to maintain this coverage as proof of failure to 
  2.12  maintain coverage.  The insurer must provide the applicant with 
  2.13  information identifying the documentation that is required to 
  2.14  establish reasonable proof that the applicant did not fail to 
  2.15  maintain the coverage. 
  2.16     (d) No insurer that offers an automobile insurance policy 
  2.17  in this state shall use an applicant's prior claims for benefits 
  2.18  paid under section 65B.44 as an underwriting standard or 
  2.19  guideline if the applicant was 50 percent or less negligent in 
  2.20  the accident or accidents causing the claims. 
  2.21     (e) No insurer that offers an automobile insurance policy 
  2.22  in this state shall: 
  2.23     (1) use the geographic area in which the applicant or 
  2.24  policyholder resides within the metropolitan area as an 
  2.25  underwriting standard or guideline.  "Metropolitan area" has the 
  2.26  meaning given in section 473.121, subdivision 2; 
  2.27     (2) deny coverage to an applicant or policyholder for the 
  2.28  same reason; or 
  2.29     (3) make any discrimination in marketing practices or in 
  2.30  offering or establishing rates, premiums, dividends, or benefits 
  2.31  of any kind, or by way of rebate, for the same reason. 
  2.32     Sec. 2.  [EFFECTIVE DATE.] 
  2.33     Section 1 is effective January 1, 2001.