HF 3409

as introduced - 90th Legislature (2017 - 2018) Posted on 03/08/2018 02:18pm

A bill for an act
relating to insurance; regulating affinity group coverages and insurance fraud;
amending Minnesota Statutes 2016, section 65B.44, subdivision 2a; Minnesota
Statutes 2017 Supplement, section 72A.328, subdivision 1.

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

Section 1.

Minnesota Statutes 2016, section 65B.44, subdivision 2a, is amended to read:

Subd. 2a.

Person convicted of insurance fraud.

(a) A person convicted of new text begin or pleading
guilty to new text end insurance fraud under section 609.611 in a case related to this chapter or of
employment of runners under section 609.612 new text begin , or convicted under or pleading guilty to any
federal or state law criminalizing fraud in a case related to no-fault automobile insurance, new text end
may not enforce a contract for payment of services eligible for reimbursement under
subdivision 2 against an insured or reparation obligor.

(b) After a period of five years from the date of conviction, a person described in
paragraph (a) may apply to district court to extinguish the collateral sanction set forth in
paragraph (a), which the court may grant in its reasonable discretion.

Sec. 2.

Minnesota Statutes 2017 Supplement, section 72A.328, subdivision 1, is amended
to read:

Subdivision 1.

Definitions.

(a) For purposes of this section the following terms have
the meanings given.

(b) "Affinity program" means a group of individuals who are members of an entity that
offers individuals benefits based on their membership in that entity. Affinity program does
not include an entity that obtains group insurance, as defined in section 60A.02, subdivision
28, or risk retention groups as defined in section 60E.02, subdivision 12.

(c) "Policy" means an individually underwritten policy of private passenger vehicle
insurance, as defined in section 65B.001, subdivision 2, an individually underwritten policy
of homeowner's insurance, as defined in section 65A.27, subdivision 4, or an individually
underwritten policy issued under section 60A.06, subdivision 1, clause (10) deleted text begin . deleted text end new text begin , or an
individually underwritten policy issued under section 60A.06, subdivision 1, clause (12),
or a commercial policy as defined by the commissioner in rule.
new text end