HF 1359

1st Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to insurance; regulating auto insurance; modifying benefits; regulating
certain claims practices; amending Minnesota Statutes 2006, sections 65B.44,
subdivisions 2, 3, 4, 5; 65B.47, subdivision 7; 65B.54, subdivision 1, by adding a
subdivision; 148.102, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2006, section 65B.44, subdivision 2, is amended to read:

Subd. 2.

Medical expense benefits.

(a) Medical expense benefits shall reimburse
all reasonable expenses for necessary:

(1) medical, surgical, x-ray, optical, dental, chiropractic, and rehabilitative services,
including prosthetic devices new text begin and items that provide relief from any injury new text end ;

(2) prescription drugs;

(3) ambulance and all other transportation expenses incurred in traveling to receive
other covered medical expense benefits;

(4) sign interpreting and language translation services, other than such services
provided by a family member of the patient, related to the receipt of medical, surgical,
x-ray, optical, dental, chiropractic, hospital, extended care, nursing, and rehabilitative
services; and

(5) hospital, extended care, and nursing services.

(b) Hospital room and board benefits may be limited, except for intensive care
facilities, to the regular daily semiprivate room rates customarily charged by the institution
in which the recipient of benefits is confined.

(c) Such benefits shall also include necessary remedial treatment and services
recognized and permitted under the laws of this state for an injured person who relies
upon spiritual means through prayer alone for healing in accordance with that person's
religious beliefs.

(d) Medical expense loss includes medical expenses accrued prior to the death of a
person notwithstanding the fact that benefits are paid or payable to the decedent's survivors.

(e) Medical expense benefits for rehabilitative services shall be subject to the
provisions of section 65B.45.

Sec. 2.

Minnesota Statutes 2006, section 65B.44, subdivision 3, is amended to read:

Subd. 3.

Disability and income loss benefits.

Disability and income loss benefits
shall provide compensation for 85 percent of the injured person's loss of present and future
gross income from inability to work proximately caused by the nonfatal injury subject
to a maximum of deleted text begin $250 deleted text end new text begin $500 new text end per week. Loss of income includes the costs incurred by a
self-employed person to hire substitute employees to perform tasks which are necessary to
maintain the income of the injured person, which are normally performed by the injured
person, and which cannot be performed because of the injury.

If the injured person is unemployed at the time of injury and is receiving or is
eligible to receive unemployment benefits under chapter 268, but the injured person loses
eligibility for those benefits because of inability to work caused by the injury, disability
and income loss benefits shall provide compensation for the lost benefits in an amount
equal to the unemployment benefits which otherwise would have been payable, subject to
a maximum of deleted text begin $250 deleted text end new text begin $500 new text end per week.

Compensation under this subdivision shall be reduced by any income from substitute
work actually performed by the injured person or by income the injured person would
have earned in available appropriate substitute work which the injured person was capable
of performing but unreasonably failed to undertake.

For the purposes of this section "inability to work" means disability which prevents
the injured person from engaging in any substantial gainful occupation or employment
on a regular basis, for wage or profit, for which the injured person is or may by training
become reasonably qualified. If the injured person returns to employment and is unable by
reason of the injury to work continuously, compensation for lost income shall be reduced
by the income received while the injured person is actually able to work. The weekly
maximums may not be prorated to arrive at a daily maximum, even if the injured person
does not incur loss of income for a full week.

For the purposes of this section, an injured person who is "unable by reason of the
injury to work continuously" includes, but is not limited to, a person who misses time
from work, including reasonable travel time, and loses income, vacation, or sick leave
benefits, to obtain medical treatment for an injury arising out of the maintenance or use
of a motor vehicle.

Sec. 3.

Minnesota Statutes 2006, section 65B.44, subdivision 4, is amended to read:

Subd. 4.

Funeral and burial expenses.

Funeral and burial benefits shall be
reasonable expenses not in excess of deleted text begin $2,000 deleted text end new text begin $5,000 new text end , including expenses for cremation or
delivery under the Uniform Anatomical Gift Act (1987), sections 525.921 to 525.9224.

Sec. 4.

Minnesota Statutes 2006, section 65B.44, subdivision 5, is amended to read:

Subd. 5.

Replacement service and loss.

Replacement service loss benefits shall
reimburse all expenses reasonably incurred by or on behalf of the nonfatally injured
person in obtaining usual and necessary substitute services in lieu of those that, had the
injured person not been injured, the injured person would have performed not for income
but for direct personal benefit or for the benefit of the injured person's household; if
the nonfatally injured person normally, as a full time responsibility, provides care and
maintenance of a home with or without children, the benefit to be provided under this
subdivision shall be the reasonable value of such care and maintenance or the reasonable
expenses incurred in obtaining usual and necessary substitute care and maintenance of
the home, whichever is greater. These benefits shall be subject to a maximum of deleted text begin $200 deleted text end
new text begin $600 new text end per week. All replacement services loss sustained on the date of injury and the first
seven days thereafter is excluded in calculating replacement services loss.

Sec. 5.

Minnesota Statutes 2006, section 65B.47, subdivision 7, is amended to read:

Subd. 7.

Adding policies together.

Unless a policyholder makes a specific election
new text begin not new text end to have two or more policies added together the limit of liability for basic economic
loss benefits for two or more motor vehicles deleted text begin may not deleted text end new text begin must new text end be added together to determine
the limit of insurance coverage available to an injured person for any one accident. An
insurer shall notify policyholders that they may elect new text begin not new text end to have two or more policies
added together.

Sec. 6.

Minnesota Statutes 2006, section 65B.54, subdivision 1, is amended to read:

Subdivision 1.

Payment of basic economic loss benefits.

Basic economic loss
benefits are payable monthly as loss accrues. Loss accrues not when injury occurs, but as
income loss, replacement services loss, survivor's economic loss, survivor's replacement
services loss, or medical or funeral expense is incurred. Benefits are overdue if not
paid within 30 days after the reparation obligor receives reasonable proof of the fact
and amount of loss realized, unless the reparation obligor elects to accumulate claims
for periods not exceeding 31 days and pays them within 15 days after the period of
accumulation. new text begin However, if the insurer notifies the insured that it is denying benefits, the
insured need not continue to provide the insurer with proof of the bills, losses, or expenses. new text end
If reasonable proof is supplied as to only part of a claim, and the part totals $100 or more,
the part is overdue if not paid within the time provided by this section. Medical or funeral
expense benefits may be paid by the reparation obligor directly to persons supplying
products, services, or accommodations to the claimant.

Sec. 7.

Minnesota Statutes 2006, section 65B.54, is amended by adding a subdivision
to read:

new text begin Subd. 6. new text end

new text begin Unethical practices. new text end

new text begin (a) A licensed health care provider shall not initiate
direct contact, in person, over the telephone, or by other electronic means, with any person
who has suffered an injury arising out of the maintenance or use of an automobile, for the
purpose of influencing that person to receive treatment or to purchase any good or item
from the licensee or anyone associated with the licensee. This subdivision prohibits such
direct contact whether initiated by the licensee individually or on behalf of the licensee by
any employee, independent contractor, agent, or third party. This subdivision does not
apply when an injured person voluntarily initiates contact with a licensee.
new text end

new text begin (b) This subdivision does not prohibit licensees from mailing advertising literature
directly to such persons, so long as:
new text end

new text begin (1) the word "ADVERTISEMENT" appears clearly and conspicuously at the
beginning of the written materials;
new text end

new text begin (2) the name of the individual licensee appears clearly and conspicuously within
the written materials;
new text end

new text begin (3) the licensee is clearly identified as a licensed health care provider within the
written materials; and
new text end

new text begin (4) the licensee does not initiate, individually or through any employee, independent
contractor, agent, or third party, direct contact with the person after the written materials
are sent.
new text end

new text begin (c) This subdivision does not apply to:
new text end

new text begin (1) advertising that does not involve direct contact with specific prospective patients,
in public media such as telephone directories, professional directories, ads in newspapers
and other periodicals, radio or television ads, Web sites, billboards, or similar media; or
new text end

new text begin (2) general marketing practices such as giving lectures; participating in special
events, trade shows, or meetings of organizations; or making presentations relative to
the benefits of chiropractic treatment; or
new text end

new text begin (3) contact with friends or relatives, or statements made in a social setting.
new text end

new text begin (d) A violation of this subdivision is grounds for the licensing authority to take
disciplinary action against the licensee, including revocation in appropriate cases.
new text end

Sec. 8.

Minnesota Statutes 2006, section 148.102, is amended by adding a subdivision
to read:

new text begin Subd. 3a. new text end

new text begin Reparation obligors. new text end

new text begin A reparation obligor as defined in section 65B.43,
subdivision 9, may submit any relevant information to the board in any case in which
the reparation obligor has reason to believe that charges being billed by a licensee are
fraudulent, unreasonable, or inconsistent with treatment actually received by the injured
party involved.
new text end

new text begin A reparation obligor that makes a report under this section shall provide the board
with any additional information, related to the reported activities, requested by the board.
new text end