SF 2639

Introduction - 94th Legislature (2025 - 2026)

Posted on 04/11/2025 09:10 a.m.

A bill for an act
relating to commerce; raising liability and uninsured and underinsured motorist
coverage amounts; requiring motorcycle insurance to include uninsured and
underinsured coverage; establishing the traumatic brain injury recovery account
and program; establishing arbitration timelines; requiring a surcharge on automobile
insurance for the traumatic brain injury recovery account and program; requiring
a report; amending Minnesota Statutes 2024, sections 65B.133, by adding a
subdivision; 65B.43, by adding a subdivision; 65B.44, subdivision 1; 65B.48,
subdivision 5; 65B.49, subdivisions 3, 3a; proposing coding for new law in
Minnesota Statutes, chapters 65B; 297I.

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

Section 1.

Minnesota Statutes 2024, section 65B.133, is amended by adding a subdivision
to read:

new text begin Subd. 8. new text end

new text begin Traumatic brain injury recovery program surcharge; notice. new text end

new text begin An insurer
must notify an insured of the surcharge collected under section 297I.12 and all application
procedures and program information related to the traumatic brain injury program under
section 65B.85. The notice must include information that describes how an injured person
may access the expedited application for a certified life care planner under section 65B.85,
subdivision 7.
new text end

Sec. 2.

Minnesota Statutes 2024, section 65B.43, is amended by adding a subdivision to
read:

new text begin Subd. 21. new text end

new text begin Traumatic brain injury. new text end

new text begin "Traumatic brain injury" has the meaning given in
section 144.661, subdivision 2.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2025, and applies to policies
of motor vehicle and motorcycle coverage offered, issued, or renewed on or after that date.
new text end

Sec. 3.

Minnesota Statutes 2024, section 65B.44, subdivision 1, is amended to read:

Subdivision 1.

Inclusions.

(a) Basic economic loss benefits shall provide reimbursement
for all loss suffered through injury arising out of the maintenance or use of a motor vehicle,
subject to any applicable deductibles, exclusions, disqualifications, and other conditions,
and shall provide a minimum of $40,000 for loss arising out of the injury of any one person,
consisting of:

(1) $20,000 for medical expense loss arising out of injury to any one person; and

(2) a total of $20,000 for income loss, replacement services loss, funeral expense loss,
survivor's economic loss, and survivor's replacement services loss arising out of the injury
to any one person.

new text begin (b) Basic economic loss benefits must provide reimbursement for all loss suffered through
a traumatic brain injury arising out of the maintenance or use of a motor vehicle, subject to
applicable deductibles, exclusions, disqualifications, and other conditions, and must provide
a minimum of $80,000 for loss arising out of the traumatic brain injury to any one person,
consisting of:
new text end

new text begin (1) $40,000 for medical expense loss arising out of the traumatic brain injury to any one
person; and
new text end

new text begin (2) a total of $40,000 for income loss, replacement services loss, funeral expense loss,
survivor's economic loss, and survivor's replacement services loss arising out of the traumatic
brain injury to any one person.
new text end

deleted text begin (b) deleted text end new text begin (c) new text end Notwithstanding any other law to the contrary, a person entitled to basic economic
loss benefits under this chapter is entitled to the full medical expense benefits set forth in
subdivision 2, and may not receive medical expense benefits that are in any way less than
those provided for in subdivision 2, or that involve any preestablished limitations on the
benefits. Medical expenses must be reasonable and must be for necessary medical care as
provided in subdivision 2. This paragraph shall not be deemed to alter the obligations of an
insured or the rights of a reparation obligor as set forth in section 65B.56.

deleted text begin (c) deleted text end new text begin (d) new text end No reparation obligor or health plan company as defined in section 62Q.01,
subdivision 4, may enter into or renew any contract that provides, or has the effect of
providing, managed care services to no-fault claimants. For the purposes of this section,
"managed care services" is defined as any program of medical services that uses health care
providers managed, owned, employed by, or under contract with a health plan company.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2025, and applies to policies
of motor vehicle and motorcycle coverage offered, issued, or renewed on or after that date.
new text end

Sec. 4.

Minnesota Statutes 2024, section 65B.48, subdivision 5, is amended to read:

Subd. 5.

Motorcycle coverage.

(a) Every owner of a motorcycle registered or required
to be registered in this state or operated in this state by the owner or with the owner's
permission shall provide and maintain security for the payment of tort liabilities arising out
of the maintenance or use of the motorcycle in this state. Security may be provided by a
contract of liability insurance complying with section 65B.49, deleted text begin subdivision deleted text end new text begin subdivisions new text end 3
new text begin and 3a new text end , or by qualifying as a self insurer in the manner provided in deleted text begin subdivision deleted text end new text begin subdivisions new text end
3 new text begin and 3a new text end .

(b) At the time an application for motorcycle insurance without personal injury protection
coverage is completed, there must be attached to the application a separate form containing
a written notice in at least 10-point bold type, if printed, or in capital letters, if typewritten
that states:

"Under Minnesota law, a policy of motorcycle coverage issued in the State of Minnesota
must provide liability coverage only, and there is no requirement that the policy provide
personal injury protection (PIP) coverage in the case of injury sustained by the insured.
No PIP coverage provided by an automobile insurance policy you may have in force
will extend to provide coverage in the event of a motorcycle accident."

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2025, and applies to policies
of motor vehicle and motorcycle coverage offered, issued, or renewed on or after that date.
new text end

Sec. 5.

Minnesota Statutes 2024, section 65B.49, subdivision 3, is amended to read:

Subd. 3.

Residual liability insurance.

(1) Each plan of reparation security shall also
contain stated limits of liability, exclusive of interest and costs, with respect to each vehicle
for which coverage is thereby granted, of not less than deleted text begin $30,000 deleted text end new text begin $60,000 new text end because of bodily
injury to one person in any one accident deleted text begin and, deleted text end new text begin ; new text end subject to said limit for one person, of not
less than deleted text begin $60,000 deleted text end new text begin $120,000 new text end because of injury to two or more persons in any one accident deleted text begin , deleted text end new text begin ; new text end
and deleted text begin , deleted text end if the accident has resulted in injury to or destruction of property, of not less than
deleted text begin $10,000 deleted text end new text begin $20,000 new text end because of such injury to or destruction of property of others in any one
accident.

(2) Under residual liability insurance the reparation obligor shall be liable to pay, on
behalf of the insured, sums which the insured is legally obligated to pay as damages because
of bodily injury and property damage arising out of the ownership, maintenance or use of
any motor vehicle, including a motor vehicle permissively operated by an insured as that
term is defined in section 65B.43, subdivision 5, if the injury or damage occurs within this
state, the United States of America, its territories or possessions, or Canada. A reparation
obligor shall also be liable to pay sums which another reparation obligor is entitled to recover
under the indemnity provisions of section 65B.53, subdivision 1.

(3) Every plan of reparation security shall be subject to the following provisions which
need not be contained therein:

(a) The liability of the reparation obligor with respect to the residual liability coverage
required by this clause shall become absolute whenever injury or damage occurs; such
liability may not be canceled or annulled by any agreement between the reparation obligor
and the insured after the occurrence of the injury or damage; no statement made by the
insured or on the insured's behalf and no violation of said policy shall defeat or void said
policy.

(b) The satisfaction by the insured of a judgment for such injury or damage shall not be
a condition precedent to the right or duty of the reparation obligor to make payment on
account of such injury or damage.

(c) The reparation obligor shall have the right to settle any claim covered by the residual
liability insurance policy, and if such settlement is made in good faith, the amount thereof
shall be deductible from the limits of liability for the accident out of which such claim arose.

(d) Except as provided in subdivision 5a, a residual liability insurance policy shall be
excess of a nonowned vehicle policy whether the nonowned vehicle is borrowed or rented,
or used for business or pleasure. A nonowned vehicle is one not used or provided on a
regular basis.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2025, and applies to policies
of motor vehicle and motorcycle coverage offered, issued, or renewed on or after that date.
new text end

Sec. 6.

Minnesota Statutes 2024, section 65B.49, subdivision 3a, is amended to read:

Subd. 3a.

Uninsured and underinsured motorist coverages.

(1) No plan of reparation
security may be renewed, delivered or issued for delivery, or executed in this state with
respect to any motor vehicle registered or principally garaged in this state unless separate
uninsured and underinsured motorist coverages are provided therein. Each coverage, at a
minimum, must provide limits of deleted text begin $25,000 deleted text end new text begin $50,000 new text end because of injury to or the death of one
person in any accident and deleted text begin $50,000 deleted text end new text begin $100,000 new text end because of injury to or the death of two or
more persons in any accident. In the case of injury to, or the death of, two or more persons
in any accident, the amount available to any one person must not exceed the coverage limit
provided for injury to, or the death of, one person in any accident.

(2) Every owner of a motor vehicle new text begin or motorcycle new text end registered or principally garaged in
this state shall maintain uninsured and underinsured motorist coverages as provided in this
subdivision.

(3) No reparation obligor is required to provide limits of uninsured and underinsured
motorist coverages in excess of the bodily injury liability limit provided by the applicable
plan of reparation security.

(4) No recovery shall be permitted under the uninsured and underinsured motorist
coverages of this section for basic economic loss benefits paid or payable, or which would
be payable but for any applicable deductible.

(5) If at the time of the accident the injured person is occupying a motor vehicle, the
limit of liability for uninsured and underinsured motorist coverages available to the injured
person is the limit specified for that motor vehicle. However, if the injured person is
occupying a motor vehicle of which the injured person is not an insured, the injured person
may be entitled to excess insurance protection afforded by a policy in which the injured
party is otherwise insured. The excess insurance protection is limited to the extent of covered
damages sustained, and further is available only to the extent by which the limit of liability
for like coverage applicable to any one motor vehicle listed on the automobile insurance
policy of which the injured person is an insured exceeds the limit of liability of the coverage
available to the injured person from the occupied motor vehicle.

If at the time of the accident the injured person is not occupying a motor vehicle or
motorcycle, the injured person is entitled to select any one limit of liability for any one
vehicle afforded by a policy under which the injured person is insured.

(6) Regardless of the number of policies involved, vehicles involved, persons covered,
claims made, vehicles or premiums shown on the policy, or premiums paid, in no event
shall the limit of liability for uninsured and underinsured motorist coverages for two or
more motor vehicles be added together to determine the limit of insurance coverage available
to an injured person for any one accident.

(7) The uninsured and underinsured motorist coverages required by this subdivision do
not apply to bodily injury of the insured while occupying a motor vehicle new text begin or motorcycle
new text end owned by the insured, unless the occupied vehicle is an insured motor vehicle new text begin or motorcycle new text end .

deleted text begin (8) The uninsured and underinsured motorist coverages required by this subdivision do
not apply to bodily injury of the insured while occupying a motorcycle owned by the insured.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2025, and applies to policies
of motor vehicle and motorcycle coverage offered, issued, or renewed on or after that date.
new text end

Sec. 7.

new text begin [65B.536] ARBITRATION TIMELINES.
new text end

new text begin The timeline and staffing for binding arbitration must occur in a manner to limit delay.
The standing committee must be comprised of no less than 24 members. Within seven days
after the date the itemization of benefits claimed and supporting documentation are received
from the claimant, the respondent must serve a response to the petition setting forth the
grounds upon which the claim is denied, accompanied by the documents supporting the
denial of the benefits claimed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2025, and applies to policies
of motor vehicle and motorcycle coverage offered, issued, or renewed on or after that date.
new text end

Sec. 8.

new text begin [65B.85] TRAUMATIC BRAIN INJURY RECOVERY ACCOUNT AND
PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Account" means the traumatic brain injury and spinal cord injury recovery account
established under this section.
new text end

new text begin (c) "Account administrator" means a person appointed by the attorney general as an
account administrator under this section.
new text end

new text begin (d) "Eligible beneficiary" means a person who suffered a traumatic brain injury in an
automobile accident and qualifies for a monetary payment from the account.
new text end

new text begin (e) "Traumatic brain injury" has the meaning given in section 144.661, subdivision 2.
new text end

new text begin Subd. 2. new text end

new text begin Creation of account. new text end

new text begin The traumatic brain injury recovery account is established
in the special revenue fund. Money in the account is annually appropriated to the
commissioner of human services for the purposes under subdivision 3.
new text end

new text begin Subd. 3. new text end

new text begin Permissible use of account. new text end

new text begin Money in the account must be used only to
distribute compensation to eligible beneficiaries under subdivision 4 and to pay for costs
incurred to administer the account.
new text end

new text begin Subd. 4. new text end

new text begin Distributions to eligible beneficiaries. new text end

new text begin The commissioner must develop
procedures to adequately and fairly disperse the funds from the account, including a common
application, timelines, and appeals process.
new text end

new text begin Subd. 5. new text end

new text begin Eligibility criteria. new text end

new text begin The commissioner must develop criteria to determine and
assess eligibility based on the eligibility requirements under section 256B.49. The
commissioner may require applicants to use an application form and method determined
by the commissioner.
new text end

new text begin Subd. 6. new text end

new text begin Compensation amount. new text end

new text begin The commissioner must develop criteria to determine
the monthly, annual, and total amount of funding provided to each eligible beneficiary. The
commissioner must consider whether and for how long the compensation amount defers or
delays an applicant from enrolling in medical assistance.
new text end

new text begin Subd. 7. new text end

new text begin Special uses. new text end

new text begin The commissioner must develop an expedited application form
and procedure for eligible applicants who are actively engaged in litigation or arbitration
related to the automobile accident that caused the applicant's injuries. An additional award
beyond compensation granted under subdivision 6 may be awarded to applicants who
demonstrate the need to hire a certified life care planner for the litigation or arbitration.
new text end

new text begin Subd. 8. new text end

new text begin Annual report. new text end

new text begin The commissioner must submit an annual report that provides
a financial overview of the account activities to the chairs and ranking minority members
of the legislative committees with jurisdiction over the account.
new text end

new text begin Subd. 9. new text end

new text begin No private right of action. new text end

new text begin A person does not have a private right of action
with respect to a payment from the account or the administration of the account.
new text end

Sec. 9.

new text begin [297I.12] TRAUMATIC BRAIN INJURY RECOVERY SURCHARGE.
new text end

new text begin Subdivision 1. new text end

new text begin Surcharge. new text end

new text begin (a) An insurer engaged in the writing of policies of automobile
insurance must collect a surcharge at the rate of ... cents per vehicle for every six months
of coverage on each policy of automobile insurance that provides comprehensive insurance
coverage issued or renewed in Minnesota. The surcharge must not be considered premium
for any purpose, including the computation of premium tax or agents' commissions. The
surcharge amount must be separately stated on either a billing or policy declaration sent to
the insured. An insurer must remit the revenue derived from the surcharge under this section
to the commissioner of revenue for the traumatic brain injury recovery program under
section 65B.85.
new text end

new text begin (b) For purposes of this subdivision, "policy of automobile insurance" has the meaning
given in section 65B.14, covering only the following types of vehicles defined in section
168.002, if the vehicle has a gross vehicle weight that does not exceed 10,000 pounds:
new text end

new text begin (1) a passenger automobile;
new text end

new text begin (2) a pickup truck;
new text end

new text begin (3) a van, but not a commuter van as defined in section 168.126; or
new text end

new text begin (4) a motorcycle.
new text end

new text begin Subd. 2. new text end

new text begin Traumatic brain injury recovery account. new text end

new text begin A special revenue account in the
state treasury must be credited with the proceeds of the surcharge imposed under subdivision
1. Revenue may be used only for the traumatic brain injury recovery program under section
65B.85.
new text end

new text begin Subd. 3. new text end

new text begin Collection and administration. new text end

new text begin The commissioner must collect and administer
the surcharge imposed by this section in the same manner as the taxes imposed by this
chapter.
new text end