SF 1913

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to insurance; prohibiting automobile insurers 
  1.3             from owning repair facilities; amending Minnesota 
  1.4             Statutes 2002, section 72A.20, by adding a subdivision.
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 2002, section 72A.20, is 
  1.7   amended by adding a subdivision to read: 
  1.8      Subd. 37.  [INTEREST IN REPAIR FACILITY.] (a) Except as 
  1.9   provided in paragraph (b), no insurer that offers an automobile 
  1.10  insurance policy in this state shall hold or acquire any 
  1.11  ownership interest in a business that repairs or replaces the 
  1.12  nonmechanical exterior or interior body parts of a damaged motor 
  1.13  vehicle.  For purposes of this subdivision, "insurer" includes 
  1.14  an affiliate of the insurer as defined in section 72A.491, 
  1.15  subdivision 3. 
  1.16     (b) An insurer that has an ownership interest in a business 
  1.17  as described in paragraph (a) as of the effective date of this 
  1.18  act must divest itself of such interest no later than July 1, 
  1.19  2005.  The maintenance of such interest by the insurer pending 
  1.20  divestment pursuant to this paragraph shall not be deemed a 
  1.21  violation under paragraph (a). 
  1.22     Sec. 2.  [EFFECTIVE DATE.] 
  1.23     This act is effective the day following final enactment.