HF 3836

1st Engrossment - 93rd Legislature (2023 - 2024) Posted on 04/02/2024 12:41pm

A bill for an act
relating to insurance; requiring a disclosure and acknowledgment when applying
for long-term disability insurance; proposing coding for new law in Minnesota
Statutes, chapter 60A.

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

Section 1.

new text begin [60A.43] DISABILITY INCOME COVERAGE; DISCLOSURE.
new text end

new text begin (a) No contract or policy of long-term disability insurance that limits the duration of
coverage for mental health or substance use disorders shall be offered in this state without
a disclosure, provided at the time of application, that includes the following:
new text end

new text begin (1) a notification that the long-term disability coverage selected by the potential
policyholder or plan sponsor limits the duration of coverage for mental health or substance
use disorders; and
new text end

new text begin (2) that the potential policyholder or plan sponsor has the right to request more
information about the limitation and other coverage options that include an unlimited
duration, if available.
new text end

new text begin (b) Receipt of the disclosure described in paragraph (a) must be acknowledged by the
potential policyholder or plan sponsor and evidence of the disclosure and acknowledgment
must be retained by the insurance company offering such coverage for a period of no less
than two years.
new text end