HF 3972

1st Engrossment - 94th Legislature (2025 - 2026)

Posted on 03/26/2026 03:53 p.m.

A bill for an act
relating to insurance; providing for and regulating short-term rental guarantees
and reimbursement insurance policies; proposing coding for new law as Minnesota
Statutes, chapter 59E.

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

Section 1.

new text begin [59E.01] SHORT TITLE.
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new text begin This chapter shall be known and cited as the "Rental Home Marketplace Guarantees
Act."
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Sec. 2.

new text begin [59E.02] DEFINITIONS.
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new text begin (a) For purposes of this chapter, the following terms have the meanings given.
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new text begin (b) "Commissioner" means the commissioner of commerce.
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new text begin (c) "Person" means an individual or an entity, excluding a state or local governmental
entity.
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new text begin (d) "Platform contract holder" means a platform user who is the beneficiary or holder
of a rental home marketplace guarantee.
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new text begin (e) "Provider" means:
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new text begin (1) a rental home marketplace; or
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new text begin (2) a rental home marketplace affiliate or representative who issues or offers as well as
administers, either directly or through a third party, a rental home marketplace guarantee.
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new text begin (f) "Reimbursement insurance policy" means an insurance policy issued to a provider,
pursuant to which the insurer agrees, for the benefit of a platform contract holder, to discharge
the provider's obligations and liabilities under the terms of the rental home marketplace
guarantee in the event of the provider's default or nonperformance under the rental home
marketplace guarantee.
new text end

new text begin (g) "Rental home marketplace" means a person that:
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new text begin (1) provides an online application, software, website, system, or other medium that: (i)
is used to advertise or offer available property to the public, and (ii) connects and enables
platform users' property;
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new text begin (2) provides, directly or indirectly, or maintains an online platform by:
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new text begin (i) transmitting or otherwise communicating the offer or acceptance of a transaction
between two platform users; or
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new text begin (ii) owning or operating the electronic infrastructure or technology that connects two or
more platform users; and
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new text begin (3) if the person offers rental home marketplace guarantees, the person offers rental
home marketplace guarantees only in a manner that is ancillary to the conduct of the person's
primary legitimate business or activity.
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new text begin (h) "Rental home marketplace guarantee" means a contract or agreement issued in
connection with a rental home marketplace, whether or not the contract or agreement includes
a separate consideration, to reimburse a user sharing property for damages the renter is
responsible for under the rental home marketplace's terms of service, with or without
additional provision for incidental payment of indemnity.
new text end

Sec. 3.

new text begin [59E.03] REQUIREMENTS FOR DOING BUSINESS.
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new text begin (a) A provider is prohibited from issuing or offering a rental home marketplace guarantee
unless the provider has made the rental home marketplace guarantee terms available on the
provider's website and complied with this chapter.
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new text begin (b) A provider that offers rental home marketplace guarantees must file a registration
with the commissioner on a form prescribed by the commissioner and must pay the
commissioner a $750 fee annually.
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new text begin (c) To ensure the faithful performance of a provider's obligations to the provider's
platform contract holders, each provider who is obligated to a platform contract holder shall
insure all rental home marketplace guarantees under a reimbursement insurance policy
issued (1) by an insurer authorized to transact insurance in Minnesota, or (2) pursuant to
sections 60A.195 to 60A.2095.
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new text begin (d) All providers handling rental home marketplace guarantee losses must be trained in
property damage and loss assessment and interpretation of the rental home marketplace
guarantee terms before handling losses. Providers must maintain records demonstrating
completion of the training under this paragraph.
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Sec. 4.

new text begin [59E.04] RENTAL HOME MARKETPLACE GUARANTEES ARE NOT
INSURANCE.
new text end

new text begin A rental home marketplace guarantee does not constitute insurance and is not required
to comply with other Minnesota insurance laws if the provider complies with this chapter.
new text end

Sec. 5.

new text begin [59E.05] REIMBURSEMENT INSURANCE POLICY.
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new text begin (a) A reimbursement insurance policy insuring rental home marketplace guarantees must
clearly state that upon the provider's default or nonperformance under the rental home
marketplace guarantee, the insurer that issued the policy must pay on behalf of the provider
any amount the provider is obligated to pay according to the rental home marketplace
guarantee.
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new text begin (b) A reimbursement insurance policy is subject to the laws and regulations governing
termination and nonrenewal of insurance policies in Minnesota. The termination of a
reimbursement insurance policy does not reduce the issuer's responsibility for rental home
marketplace guarantees issued by providers before the termination's effective date.
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new text begin (c) A provider is the agent of the insurer that issued the reimbursement insurance policy.
The insurer retains the right to seek indemnification or subrogation from the provider if the
insurer pays or is obligated to pay the platform contract holder the amount the provider was
obligated to pay under the rental home marketplace guarantee. This chapter does not prevent
or limit the insurer's right in this regard.
new text end

Sec. 6.

new text begin [59E.06] CONSUMER PROTECTION AND DISCLOSURES.
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new text begin (a) A rental home marketplace guarantee must include a statement in substantially the
following form: "This rental home marketplace guarantee is not an insurance contract."
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new text begin (b) A rental home marketplace guarantee must contain a statement in substantially the
following form: "The provider's obligations are backed by a reimbursement insurance policy.
If the provider is unable or fails to perform on the provider's contractual obligation under
a rental home marketplace guarantee within 90 days after the date proof of loss is filed, a
platform user is entitled to make a claim directly against the insurance company subject to
the terms of the policy."
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new text begin (c) A rental home marketplace guarantee must be written in clear, understandable
language and must specify the terms, limitations, exceptions, conditions, or exclusions,
including conditions governing transferability or termination.
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new text begin (d) A provider is prohibited from making, permitting, or causing to be made a false or
misleading statement, or deliberately omitting a material statement whose omission is
considered misleading, in connection with offering or advertising a rental home marketplace
guarantee.
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Sec. 7.

new text begin [59E.07] ENFORCEMENT.
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new text begin The commissioner must ensure rental home marketplace guarantees comply with this
chapter pursuant to the commissioner's powers under chapter 45. The commissioner must
ensure reimbursement insurance policies insuring rental home marketplace guarantees
comply with applicable law pursuant to the commissioner's powers under chapters 45 and
60A.
new text end