HF 1970

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act
  1.2             relating to insurance; automobile; limiting the amount 
  1.3             of noneconomic detriment claims to the claimant's own 
  1.4             liability coverage limits; amending Minnesota Statutes 
  1.5             1994, section 65B.51, by adding a subdivision. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1994, section 65B.51, is 
  1.8   amended by adding a subdivision to read: 
  1.9      Subd. 6.  [NONECONOMIC DETRIMENT CLAIMS LIMITED BY 
  1.10  CLAIMANT'S COVERAGE LIMIT.] (a) Persons choosing to own or use a 
  1.11  motor vehicle or motorcycle for which reparation security is 
  1.12  required under section 65B.48 shall be deemed to have consented 
  1.13  to this subdivision as a condition of the privileges of motor 
  1.14  vehicle or motorcycle use.  The selection by an insured of a 
  1.15  bodily injury liability coverage limit constitutes a contract in 
  1.16  which the insured agrees to limit the right to sue for 
  1.17  noneconomic detriment to the coverage limit selected.  In 
  1.18  exchange for this chosen limit, the insured shall be charged a 
  1.19  lower premium than the insured would have to pay to choose a 
  1.20  higher limit.  The insured's choice of coverage limit binds the 
  1.21  insured and other affected insureds.  
  1.22     (b) For purposes of this subdivision: 
  1.23     (1) "affected insured" means the owner of a motor vehicle 
  1.24  or motorcycle covered under a plan of reparation security and 
  1.25  the owner's spouse and dependent minor children, if the spouse 
  2.1   and children reside in the same household with the owner, within 
  2.2   the meaning of section 65B.43, subdivision 5; 
  2.3      (2) "noneconomic detriment" means noneconomic detriment as 
  2.4   defined in section 65B.43, subdivision 8, and does not include 
  2.5   loss as defined in section 65B.43, subdivision 7; and 
  2.6      (3) "the person's own residual liability coverage" means a 
  2.7   plan of reparation security in which the person is an "affected 
  2.8   insured" as defined in this subdivision. 
  2.9      (c) In an action described in subdivision 1, no person 
  2.10  shall recover damages for noneconomic detriment resulting from 
  2.11  bodily injury in any one accident that exceed the person's own 
  2.12  residual liability coverage limit that applies to bodily injury 
  2.13  to one person in any one accident. 
  2.14     (d) If more than one affected insured under a plan of 
  2.15  reparation security incur bodily injury in any one accident, the 
  2.16  damages for noneconomic detriment recoverable by all of those 
  2.17  affected insureds under that plan of reparation security in the 
  2.18  aggregate must not exceed the plan's liability coverage limit 
  2.19  for bodily injury to two or more persons in any one accident, 
  2.20  subject also to the restriction in paragraph (c).  If the 
  2.21  aggregate damages for noneconomic detriment that would otherwise 
  2.22  be recoverable exceed the damages for noneconomic detriment 
  2.23  permitted under this paragraph, the damages for noneconomic 
  2.24  detriment must be prorated among the injured affected insureds. 
  2.25     (e) The limit on a person's damages for noneconomic 
  2.26  detriment set by this subdivision applies regardless of the 
  2.27  number of liable parties. 
  2.28     (f) The difference, if any, between a person's damages 
  2.29  recoverable for bodily injury, as limited by this subdivision, 
  2.30  and the residual liability for bodily injury coverage limits of 
  2.31  liable parties is payable under the person's own uninsured and 
  2.32  underinsured motorist coverages, subject to the limits of those 
  2.33  coverages. 
  2.34     (g) This subdivision does not apply to any person who was 
  2.35  not an affected insured as defined in this subdivision at the 
  2.36  time of the accident, except that a person who was required 
  3.1   under section 65B.48 to have coverage at the time of the 
  3.2   accident and who did not have the required coverage at the time 
  3.3   of the accident is subject to this section and may not recover 
  3.4   damages for noneconomic detriment, except from another such 
  3.5   person. 
  3.6      (h) This subdivision does not apply to an accident that 
  3.7   occurs outside of this state. 
  3.8      (i) If a person is an affected insured within the meaning 
  3.9   of this subdivision under more than one plan of reparation 
  3.10  security, the plan of reparation security covering the motor 
  3.11  vehicle or motorcycle involved in the accident determines the 
  3.12  limitations under this subdivision.  If no motor vehicle or 
  3.13  motorcycle for which the person is an affected insured is 
  3.14  involved in the accident, the plan of reparation security under 
  3.15  which the person is an affected insured that has the highest 
  3.16  applicable limit determines the limitation under this 
  3.17  subdivision. 
  3.18     (j) This subdivision does not apply if the person against 
  3.19  whom the claim is made intentionally caused or attempted to 
  3.20  cause injury within the meaning of section 65B.60 or has been 
  3.21  convicted or adjudicated in connection with the accident of an 
  3.22  offense under section 169.121, subdivision 1 or 1a; section 
  3.23  169.1211; or section 609.21. 
  3.24     (k) If the injured person was driving or occupying a motor 
  3.25  vehicle or motorcycle furnished by an employer, as described in 
  3.26  section 65B.47, subdivision 2, the limitations on damages for 
  3.27  noneconomic detriment are determined based upon the plan of 
  3.28  reparation security covering the motor vehicle or motorcycle or 
  3.29  any plan of reparation security under which the injured person 
  3.30  is an affected insured, at the election of the injured person. 
  3.31     (l) Prior to a plan of reparation security's first renewal 
  3.32  date on or after January 1, 1997, the insurer shall inform the 
  3.33  policyholder in writing about this subdivision and recommend 
  3.34  that the policyholder review the relevant coverage limits. 
  3.35     (m) This subdivision does not create a new cause of action 
  3.36  for any type of noneconomic detriment. 
  4.1      Sec. 2.  [EFFECTIVE DATE.] 
  4.2      Section 1 is effective January 1, 1997, and applies to a 
  4.3   person on and after the first renewal of a plan of reparation 
  4.4   security in which that person is an affected insured on or after 
  4.5   that date, except that paragraph (l) of section 1 is effective 
  4.6   the day following final enactment.