HF 1658

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to insurance; prohibiting discrimination in
auto insurance based upon geographic location within
the Twin Cities metropolitan area; amending Minnesota
Statutes 2004, section 72A.20, subdivision 23.

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

Section 1.

Minnesota Statutes 2004, section 72A.20,
subdivision 23, is amended to read:

Subd. 23.

Discrimination in automobile insurance
policies.

(a) No insurer that offers an automobile insurance
policy in this state shall:

(1) use the employment status of the applicant as an
underwriting standard or guideline; or

(2) deny coverage to a policyholder for the same reason.

(b) No insurer that offers an automobile insurance policy
in this state shall:

(1) use the applicant's status as a residential tenant, as
the term is defined in section 504B.001, subdivision 12, as an
underwriting standard or guideline; or

(2) deny coverage to a policyholder for the same reason; or

(3) make any discrimination in offering or establishing
rates, premiums, dividends, or benefits of any kind, or by way
of rebate, for the same reason.

(c) No insurer that offers an automobile insurance policy
in this state shall:

(1) use the failure of the applicant to have an automobile
policy in force during any period of time before the application
is made as an underwriting standard or guideline; or

(2) deny coverage to a policyholder for the same reason.

Paragraph (c) does not apply if the applicant was required
by law to maintain automobile insurance coverage and failed to
do so.

An insurer may require reasonable proof that the applicant
did not fail to maintain this coverage. The insurer is not
required to accept the mere lack of a conviction or citation for
failure to maintain this coverage as proof of failure to
maintain coverage. The insurer must provide the applicant with
information identifying the documentation that is required to
establish reasonable proof that the applicant did not fail to
maintain the coverage.

(d) No insurer that offers an automobile insurance policy
in this state shall use an applicant's prior claims for benefits
paid under section 65B.44 as an underwriting standard or
guideline if the applicant was 50 percent or less negligent in
the accident or accidents causing the claims.

(e) No insurer shall refuse to issue any standard or
preferred policy of motor vehicle insurance or make any
discrimination in the acceptance of risks, in rates, premiums,
dividends, or benefits of any kind, or by way of rebate:

(1) between persons of the same class, or

(2) on account of race, or

(3) on account of physical handicap if the handicap is
compensated for by special training, equipment, prosthetic
device, corrective lenses, or medication and if the physically
handicapped person:

(i) is licensed by the Department of Public Safety to
operate a motor vehicle in this state, and

(ii) operates only vehicles that are equipped with
auxiliary devices and equipment necessary for safe and effective
operation by the handicapped person, or

(4) on account of marital dissolution.

new text begin (f) No insurer that offers an automobile insurance policy
in this state shall:
new text end

new text begin (1) use the geographic area in which the applicant or
policyholder resides within the metropolitan area as an
underwriting standard or guideline. "Metropolitan area" has the
meaning given in section 473.121, subdivision 2;
new text end

new text begin (2) deny coverage to an applicant or policyholder for the
same reason; or
new text end

new text begin (3) make any discrimination in marketing practices or in
offering or establishing rates, premiums, dividends, or benefits
of any kind, or by way of rebate, for the same reason.
new text end

Sec. 2. new text begin EFFECTIVE DATE.
new text end

new text begin Section 1 is effective January 1, 2006.
new text end