SF 1329

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

A bill for an act
relating to insurance; repealing the Minnesota
No-Fault Automobile Insurance Act; providing an
appropriate premium reduction; requiring liability
coverage; proposing coding for new law in Minnesota
Statutes, chapter 65B; repealing Minnesota Statutes
2004, sections 65B.41; 65B.42; 65B.43; 65B.44; 65B.45;
65B.46; 65B.47; 65B.48; 65B.482; 65B.49; 65B.50;
65B.51; 65B.525; 65B.53; 65B.54; 65B.55; 65B.56;
65B.57; 65B.58; 65B.59; 65B.60; 65B.61; 65B.63;
65B.64; 65B.65; 65B.66; 65B.685; 65B.71.

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

Section 1.

new text begin [65B.30] COMPULSORY INSURANCE.
new text end

new text begin Subdivision 1. new text end

new text begin General requirement and coverages. new text end

new text begin Every
owner of a motor vehicle of a type which is required to be
registered or licensed or is principally garaged in this state
shall maintain during the period in which operation or use is
contemplated insurance under provisions approved by the
commissioner, insuring against loss resulting from liability
imposed by law for injury and property damage sustained by any
person arising out of the ownership, maintenance, operation, or
use of the vehicle. The nonresident owner of a motor vehicle
which is not required to be registered or licensed, or which is
not principally garaged in this state, shall maintain such
insurance in effect continuously throughout the period of the
operation, maintenance, or use of such motor vehicle within this
state with respect to accidents occurring in this state.
new text end

new text begin Subd. 2. new text end

new text begin Types of insurance. new text end

new text begin The insurance required by
subdivision 1 may be provided by a policy of insurance which is
issued by or on behalf of an insurer authorized to transact
business in this state or, if the vehicle is registered in
another state, by a policy of insurance issued by or on behalf
of an insurer authorized to transact business in either this
state or the state in which the vehicle is registered or by
qualifying as a self-insurer.
new text end

new text begin Subd. 3. new text end

new text begin Self-insurance. new text end

new text begin Self-insurance, subject to
approval of the commissioner, is effected by filing with the
commissioner in satisfactory form:
new text end

new text begin (1) a continuing undertaking by the owner or other
appropriate person to pay tort liabilities and to perform all
other obligations imposed by law;
new text end

new text begin (2) evidence that appropriate provision exists for prompt
administration of all claims, benefits, and obligations;
new text end

new text begin (3) evidence that reliable financial arrangements,
deposits, or commitments exist providing assurance for payment
of tort liabilities and all other obligations imposed by law;
and
new text end

new text begin (4) a nonrefundable initial application fee of $1,500 and
an annual renewal fee of $400 for political subdivisions and
$500 for nonpolitical entities.
new text end

new text begin Subd. 3a. new text end

new text begin Rulemaking. new text end

new text begin To carry out the purposes of
subdivision 3, the commissioner may adopt rules pursuant to
chapter 14. These rules may:
new text end

new text begin (1) establish reporting requirements;
new text end

new text begin (2) establish standards or guidelines to assure the
adequacy of the financing and administration of self-insurance
plans;
new text end

new text begin (3) establish bonding requirements or other provisions
assuring the financial integrity of entities that self-insure
other than bonding requirements for self-insuring political
subdivisions; and
new text end

new text begin (4) establish other reasonable requirements to further the
purposes of this section.
new text end

new text begin Subd. 4. new text end

new text begin State or political subdivisions to provide
insurance. new text end

new text begin The state of Minnesota or any agency thereof and any
political subdivision of the state or agency thereof shall
provide insurance, either as a self-insurer pursuant to
subdivision 3, or through purchase of a policy of insurance.
new text end

new text begin Subd. 5. new text end

new text begin Motorcycle coverage. new text end

new text begin Every owner of a
motorcycle registered or required to be registered in this state
or operated in this state by the owner or with the owner's
permission shall provide and maintain insurance for the payment
of tort liabilities arising out of the maintenance or use of the
motorcycle in this state. Insurance may be provided by a policy
of insurance or by qualifying as a self-insurer in the manner
provided in subdivision 3.
new text end

Sec. 2. new text begin PREMIUM REDUCTION.
new text end

new text begin An insurer must provide an appropriate premium reduction of
at least 20 percent on each policy, plan, or contract issued or
renewed on or after January 1, 2006, insuring against loss
resulting from liability imposed by law for injury or property
damage sustained by any person arising out of the operation,
maintenance, or use of a motor vehicle of a type that is
required to be registered or licensed or is principally garaged
in this state.
new text end

Sec. 3. new text begin CONFORMING LEGISLATION.
new text end

new text begin The revisor of statutes shall place a bill before the
legislature no later than January 1, 2006, making all changes in
Minnesota Statutes necessary to conform other provisions of
Minnesota Statutes to this act.
new text end

Sec. 4. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2004, sections 65B.41; 65B.42; 65B.43;
65B.44; 65B.45; 65B.46; 65B.47; 65B.48; 65B.482; 65B.49; 65B.50;
65B.51; 65B.525; 65B.53; 65B.54; 65B.55; 65B.56; 65B.57; 65B.58;
65B.59; 65B.60; 65B.61; 65B.63; 65B.64; 65B.65; 65B.66; 65B.685;
and 65B.71, are repealed effective January 1, 2006.
new text end

Sec. 5. new text begin EFFECTIVE DATE; APPLICABILITY.
new text end

new text begin This act is effective January 1, 2006, and applies to
accidents occurring on or after that date.
new text end