HF 4047

as introduced - 90th Legislature (2017 - 2018) Posted on 04/25/2018 11:52am

A bill for an act
relating to insurance; regulating certain coverage exclusions; proposing coding
for new law in Minnesota Statutes, chapter 60A.

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

Section 1.

new text begin [60A.0812] PROPERTY AND CASUALTY POLICY EXCLUSIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of this section, the following terms have the
meanings given them.
new text end

new text begin (a) "Insured" means an insured under a policy specified in subdivisions 2 and 3 including
the named insured and the following persons not identified by name as an insured while
residing in the same household with the named insured including:
new text end

new text begin (1) a spouse;
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new text begin (2) other relative of a named insured residing in the same household; or
new text end

new text begin (3) a minor in the custody of a named insured or of a relative residing in the same
household with a named insured.
new text end

new text begin A person resides in the same household with the named insured if that person's home is
usually in the same family unit, even though temporarily living elsewhere.
new text end

new text begin (b) "Permitted exclusion" means an exclusion of, or limitation on liability for, damages
for bodily injury resulting from fraud, intentional or criminal conduct, and other exclusions
permitted by law.
new text end

new text begin (c) "Prohibited exclusion" means an exclusion of, or limitation on, liability for damages
for bodily injury solely because the injured person is a resident or member of the insured's
household, or is related to the insured by blood or marriage.
new text end

new text begin Subd. 2. new text end

new text begin Prohibited exclusions. new text end

new text begin A boat insurance policy or personal umbrella policy
must not contain a prohibited exclusion. A policy subject to this section containing a
definition of an insured that excludes a resident or member of the insured's household or is
related to the insured by blood or marriage is against public policy and is void.
new text end

new text begin Subd. 3. new text end

new text begin Permitted exclusions. new text end

new text begin A boat insurance policy or personal umbrella policy
may contain a permitted exclusion.
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new text begin Subd. 4. new text end

new text begin Effect on premium costs. new text end

new text begin An insurance company issuing or reissuing a policy
in Minnesota seeking to increase the premium charged to an insured as a result of this section
must first obtain approval of the premium increase from the commissioner of commerce.
The commissioner shall not deny a premium increase request that is supported by actuarial
and claim data. A hearing on a rate increase must be conducted pursuant to chapters 14, 45,
and 70A.
new text end

new text begin Subd. 5. new text end

new text begin No endorsement required. new text end

new text begin No endorsement, rider, or contract amendment is
required for the definitions in this section to be effective.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to policies in effect on or after that date.
new text end

Sec. 2. new text begin FAMILY PROTECTION ACT.
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new text begin Section 1 may be cited as the "Family Protection Act."
new text end