HF 3482
Introduction - 94th Legislature (2025 - 2026)
Posted on 02/19/2026 03:23 p.m.
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A bill for an act
relating to automobile insurance; raising liability and uninsured and underinsured
motorist coverage requirements; amending Minnesota Statutes 2024, section
65B.49, subdivisions 3, 3a.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2024, section 65B.49, subdivision 3, is amended to read:
Subd. 3.
Residual liability insurance.
deleted text begin (1)deleted text end new text begin (a)new text end 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 $30,000deleted text end new text begin $100,000new text end because of bodily
injury to one person in any one accident and, subject to said limit for one person, of not less
than deleted text begin $60,000deleted text end new text begin $200,000new text end because of injury to two or more persons in any one accident, and,
if the accident has resulted in injury to or destruction of property, of not less than deleted text begin $10,000deleted text end new text begin
$30,000new text end because of such injury to or destruction of property of others in any one accident.
deleted text begin (2)deleted text end new text begin (b)new text end 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.
deleted text begin (3)deleted text end new text begin (c)new text end Every plan of reparation security shall be subject to the following provisions
which need not be contained therein:
deleted text begin (a)deleted text end new text begin (1)new text end 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.
deleted text begin (b)deleted text end new text begin (2)new text end 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.
deleted text begin (c)deleted text end new text begin (3)new text end 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.
deleted text begin (d)deleted text end new text begin (4)new text end 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, 2026, and applies to plans of
reparation security offered, issued, or renewed on or after that date.
new text end
Sec. 2.
Minnesota Statutes 2024, section 65B.49, subdivision 3a, is amended to read:
Subd. 3a.
Uninsured and underinsured motorist coverages.
deleted text begin (1)deleted text end new text begin (a)new text end 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 $25,000deleted text end new text begin $75,000new text end because of injury to or the death of
one person in any accident and deleted text begin $50,000deleted text end new text begin $150,000new 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.
deleted text begin (2)deleted text end new text begin (b)new text end Every owner of a motor vehicle registered or principally garaged in this state
shall maintain uninsured and underinsured motorist coverages as provided in this subdivision.
deleted text begin (3)deleted text end new text begin (c)new text end 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.
deleted text begin (4)deleted text end new text begin (d)new text end 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.
deleted text begin (5)deleted text end new text begin (e)new text end 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.
new text begin (f) new text end 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.
deleted text begin (6)deleted text end new text begin (g)new text end 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.
deleted text begin (7)deleted text end new text begin (h)new text end The uninsured and underinsured motorist coverages required by this subdivision
do not apply to bodily injury of the insured while occupying a motor vehicle owned by the
insured, unless the occupied vehicle is an insured motor vehicle.
deleted text begin (8)deleted text end new text begin (i)new text end 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.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective August 1, 2026, and applies to plans of
reparation security offered, issued, or renewed on or after that date.
new text end