SF 2457

as introduced - 94th Legislature (2025 - 2026) Posted on 04/02/2025 09:26am

A bill for an act
relating to insurance; authorizing certain data calls; providing for and regulating
limited long-term care insurance; modifying various provisions governing
automobile insurance; classifying certain data; authorizing administrative
rulemaking; providing penalties; making technical changes; amending Minnesota
Statutes 2024, sections 45.027, subdivisions 1, 2, by adding a subdivision; 65B.02,
subdivision 7; 65B.05; 65B.06, subdivisions 1, 2, 3; 65B.10, subdivision 2;
proposing coding for new law in Minnesota Statutes, chapter 62A; repealing
Minnesota Statutes 2024, section 65B.10, subdivision 3.

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

Section 1.

Minnesota Statutes 2024, section 45.027, subdivision 1, is amended to read:

Subdivision 1.

General powers.

new text begin (a) new text end In connection with the duties and responsibilities
entrusted to the commissioner, and Laws 1993, chapter 361, section 2, the commissioner
of commerce may:

(1) make public or private investigations within or without this state as the commissioner
considers necessary to determine whether any person has violated or is about to violate any
law, rule, or order related to the duties and responsibilities entrusted to the commissioner;

(2) require or permit any person to file a statement in writing, under oath or otherwise
as the commissioner determines, as to all the facts and circumstances concerning the matter
being investigated;

(3) hold hearings, upon reasonable notice, in respect to any matter arising out of the
duties and responsibilities entrusted to the commissioner;

(4) conduct investigations and hold hearings for the purpose of compiling information
related to the duties and responsibilities entrusted to the commissioner;

(5) examine the books, accounts, records, and files of every licensee, and of every person
who is engaged in any activity regulated; the commissioner or a designated representative
shall have free access during normal business hours to the offices and places of business of
the person, and to all books, accounts, papers, records, files, safes, and vaults maintained
in the place of business;

(6) publish information which is contained in any order issued by the commissioner;

(7) require any person subject to duties and responsibilities entrusted to the commissioner,
to report all sales or transactions that are regulated. The reports must be made within ten
days after the commissioner has ordered the report. The report is accessible only to the
respondent and other governmental agencies unless otherwise ordered by a court of competent
jurisdiction; deleted text begin and
deleted text end

(8) assess a natural person or entity subject to the jurisdiction of the commissioner the
necessary expenses of the investigation performed by the department when an investigation
is made by order of the commissioner. The cost of the investigation shall be determined by
the commissioner and is based on the salary cost of investigators or assistants and at an
average rate per day or fraction thereof so as to provide for the total cost of the investigation.
All money collected must be deposited into the general fund. A natural person or entity
licensed under chapter 60K, 82, or 82B shall not be charged costs of an investigation if the
investigation results in no finding of a violation. This clause does not apply to a natural
person or entity already subject to the assessment provisions of sections 60A.03 and
60A.031 deleted text begin . deleted text end new text begin ; and
new text end

new text begin (9) issue data calls.
new text end

new text begin (b) For purposes of this section, "data call" means a written request from the
commissioner to two or more companies or persons subject to the commissioner's jurisdiction
to provide data or other information within a reasonable time period for a targeted regulatory
oversight purpose. A data call is not market analysis, as defined under section 60A.031,
subdivision 4, paragraph (f), and is not subject to section 60A.033.
new text end

Sec. 2.

Minnesota Statutes 2024, section 45.027, is amended by adding a subdivision to
read:

new text begin Subd. 1b. new text end

new text begin Data calls. new text end

new text begin (a) Information provided in response to a data call issued by the
commissioner or the commissioner's authorized representative: (1) must be treated as
nonpublic data, as defined under section 13.02, subdivision 9; and (2) is not subject to
subpoena. The commissioner may create and make public summary data derived from data
classified as nonpublic under this paragraph.
new text end

new text begin (b) The commissioner may grant access to data submitted by insurers in response to a
data call issued by the commissioner or the commissioner's authorized representative to the
National Association of Insurance Commissioners (NAIC) if NAIC agrees in writing to
hold the data as nonpublic data.
new text end

Sec. 3.

Minnesota Statutes 2024, section 45.027, subdivision 2, is amended to read:

Subd. 2.

Power to compel production of evidence.

For the purpose of any investigation,
hearing, proceeding, or inquiry related to the duties and responsibilities entrusted to the
commissioner, the commissioner or a designated representative may new text begin issue data calls, new text end
administer oaths and affirmations, subpoena witnesses, compel their attendance, take
evidence, and require the production of books, papers, correspondence, memoranda,
agreements, or other documents or records that the commissioner considers relevant or
material to the inquiry.

A subpoena issued pursuant to this subdivision must state that the person to whom the
subpoena is directed may not disclose the fact that the subpoena was issued or the fact that
the requested records have been given to law enforcement personnel except:

(1) insofar as the disclosure is necessary to find and disclose the records; or

(2) pursuant to court order.

Sec. 4.

new text begin [62A.481] LIMITED LONG-TERM CARE INSURANCE.
new text end

new text begin Subdivision 1. new text end

new text begin Short title. new text end

new text begin This section may be known and cited as the "Limited
Long-Term Care Insurance Act."
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

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

new text begin (b) "Applicant" means:
new text end

new text begin (1) in the case of an individual limited long-term care insurance policy, the person who
seeks to contract for benefits; or
new text end

new text begin (2) in the case of a group limited long-term care insurance policy, the proposed certificate
holder.
new text end

new text begin (c) "Certificate" means a certificate issued under a group limited long-term care insurance
policy that has been delivered or issued for delivery in Minnesota.
new text end

new text begin (d) "Commissioner" means the commissioner of commerce.
new text end

new text begin (e) "Elimination period" means the length of time between meeting the eligibility for
benefit payment and receiving benefit payments from an insurer.
new text end

new text begin (f) "Group limited long-term care insurance" means a limited long-term care insurance
policy that is delivered or issued for delivery in Minnesota and issued to:
new text end

new text begin (1) one or more employers or labor organizations, a trust or the trustees of a fund
established by one or more employers, labor organizations, or a combination of employers
and labor organizations for: (i) employees, former employees, or a combination of employees
or former employees; or (ii) members, former members, or a combination of members or
former members of the labor organizations;
new text end

new text begin (2) a professional, trade, or occupational association for the association's members,
former members, retired members, or a combination of members, former members, or retired
members, if the association:
new text end

new text begin (i) is composed of individuals, all of whom are or were actively engaged in the same
profession, trade, or occupation; and
new text end

new text begin (ii) has been maintained in good faith for purposes other than obtaining insurance;
new text end

new text begin (3) an association, a trust, or the trustees of a fund established, created, or maintained
for the benefit of members of one or more associations. Prior to advertising, marketing, or
offering the policy within Minnesota, the association or associations, or the insurer of the
association or associations, must file evidence with the commissioner that the association
or associations have at the outset: (i) a minimum of 100 persons; (ii) been organized and
maintained in good faith for purposes other than obtaining insurance; (iii) been in active
existence for at least one year; and (iv) a constitution and bylaws that provide:
new text end

new text begin (A) the association or associations hold regular meetings not less than annually to further
purposes of the members;
new text end

new text begin (B) except for credit unions, the association or associations collect dues or solicit
contributions from members; and
new text end

new text begin (C) the members have voting privileges and representation on the governing board and
committees.
new text end

new text begin Thirty days after the filing, the association or associations are deemed to satisfy the
organizational requirements unless the commissioner makes a finding that the association
or associations do not satisfy the organizational requirements; or
new text end

new text begin (4) a group other than a group described in clauses (1) to (3), subject to the commissioner
finding that:
new text end

new text begin (i) issuing the policy is not contrary to the public interest;
new text end

new text begin (ii) issuing the policy results in acquisition or administrative economies; and
new text end

new text begin (iii) the policy's benefits are reasonable in relation to the premiums charged.
new text end

new text begin (g) "Limited long-term care insurance" means an insurance policy or rider:
new text end

new text begin (1) issued by: (i) an insurer; (ii) a fraternal benefit society; (iii) a nonprofit health, hospital,
or medical service corporation; (iv) a prepaid health plan; (v) a health maintenance
organization; or (vi) a similar organization, to the extent the organization is authorized to
issue life or health insurance;
new text end

new text begin (2) advertised, marketed, offered, or designed to provide coverage for less than 12
consecutive months for each covered person on an expense-incurred, indemnity, prepaid,
or other basis; and
new text end

new text begin (3) for one or more necessary or medically necessary diagnostic, preventive, therapeutic,
rehabilitative, maintenance, or personal care service provided in a setting other than a
hospital's acute care unit.
new text end

new text begin Limited long-term care insurance includes a policy or rider that provides for payment of
benefits based upon cognitive impairment or the loss of functional capacity. Limited
long-term care insurance does not include an insurance policy that is offered primarily to
provide basic Medicare supplement coverage, basic hospital expense coverage, basic
medical-surgical expense coverage, hospital confinement indemnity coverage, major medical
expense coverage, disability income or related asset-protection coverage, accident-only
coverage, specified disease or specified accident coverage, or limited benefit health coverage.
new text end

new text begin (h) "Policy" means a policy, contract, subscriber agreement, rider, or endorsement
delivered or issued for delivery in Minnesota by an insurer; fraternal benefit society; nonprofit
health, hospital, or medical service corporation; prepaid health plan; health maintenance
organization; or any similar organization.
new text end

new text begin (i) "Waiting period" means the time an insured individual must wait before some or all
of the insured individual's coverage becomes effective.
new text end

new text begin Subd. 3. new text end

new text begin Scope. new text end

new text begin (a) This section applies to policies delivered or issued for delivery in
Minnesota on or after January 1, 2026. This section does not supersede an obligation that
an entity subject to this section has to comply with other applicable insurance laws to the
extent the other insurance laws do not conflict with this section, except that laws and
regulations designed and intended to apply to Medicare supplement insurance policies must
not be applied to limited long-term care insurance.
new text end

new text begin (b) Notwithstanding any other provision of this section, a product, policy, certificate, or
rider advertised, marketed, or offered as limited long-term care insurance is subject to this
section.
new text end

new text begin Subd. 4. new text end

new text begin Group limited long-term care insurance; extra-territorial jurisdiction. new text end

new text begin Group
limited long-term care insurance coverage must not be offered to a Minnesota resident under
a group policy issued in another state to a group described in subdivision 2, paragraph (f),
clause (4), unless Minnesota or another state having statutory and regulatory limited
long-term care insurance requirements substantially similar to those adopted in Minnesota
makes a determination that the statutory and regulatory limited long-term care insurance
requirements have been met.
new text end

new text begin Subd. 5. new text end

new text begin Limited long-term care insurance; disclosure and performance
standards. new text end

new text begin (a) A limited long-term care insurance policy must not:
new text end

new text begin (1) cancel, not renew, or otherwise terminate on the basis of the insured individual's or
certificate holder's age, gender, or deterioration of mental or physical health;
new text end

new text begin (2) contain a provision that establishes a new waiting period in the event existing coverage
is converted to or replaced by a new or other form of coverage within the same company,
except with respect to an increase in benefits voluntarily selected by the insured individual
or group policyholder; or
new text end

new text begin (3) provide coverage for only skilled nursing care or provide significantly more coverage
for skilled nursing care in a facility than coverage provided for lower levels of care.
new text end

new text begin (b) A limited long-term care insurance policy or certificate issued to a group identified
in subdivision 2, paragraph (f), clauses (2) to (4), is prohibited from: (1) using a definition
for preexisting condition that is more restrictive than or excludes a condition for which
medical advice or treatment was recommended by or received from a health care services
provider within the six months preceding the date an insured individual's coverage is
effective; and (2) excluding coverage for a loss or confinement that is the result of a
preexisting condition unless the loss or confinement begins within six months of the date
an insured individual's coverage is effective. The commissioner may extend the limitation
periods established in clauses (1) and (2) with respect to specific age group categories in
specific policy forms upon a finding that the extension is in the public interest. The definition
of preexisting condition required under clause (1) does not prohibit an insurer from using
an application form designed to elicit the complete health history of an applicant and, on
the basis of the applicant's answers on the application, from underwriting in accordance
with that insurer's established underwriting standards. Unless otherwise provided in the
policy or certificate, an insurer is not required to cover a preexisting condition, regardless
of whether the preexisting condition is disclosed on the application, until the waiting period
under clause (2) expires. A limited long-term care insurance policy or certificate is prohibited
from excluding or using waivers or riders of any kind to exclude, limit, or reduce coverage
or benefits for specifically named or described preexisting diseases or physical conditions
beyond the waiting period established in clause (2).
new text end

new text begin (c) A limited long-term care insurance policy must not be delivered or issued for delivery
in Minnesota if the policy conditions eligibility: new text end new text begin (1) for any benefits, on a prior hospitalization
requirement; (2) for benefits provided in an institutional care setting, on the receipt of a
higher level of institutional care; or (3) for any benefits other than waiver of premium,
post-confinement, post-acute care, or recuperative benefits, on a prior institutionalization
requirement. A limited long-term care insurance policy, certificate, or rider is prohibited
from conditioning eligibility for noninstitutional benefits on the prior or continuing receipt
of skilled care services.
new text end

new text begin (d) The commissioner may adopt administrative rules that establish loss ratio standards
for limited long-term care insurance policies if a specific reference to limited long-term
care insurance policies is contained in the administrative rule.
new text end

new text begin (e) A limited long-term care insurance applicant has the right to: (1) return the policy,
certificate, or rider to the company or the company's agent or insurance producer within 30
days of the date the policy, certificate, or rider is received; and (2) have the premium refunded
if, after examination of the policy, certificate, or rider, the applicant is not satisfied with the
policy, certificate, or rider for any reason.
new text end

new text begin (f) A limited long-term care insurance policy, certificate, or rider must have a notice
prominently printed on the first page or attached to the policy, certificate, or rider that
includes specific instructions for a limited long-term care insurance applicant to return a
policy, certificate, or rider under paragraph (e). The following statement or a substantially
similar statement must be included with the instructions:
new text end

new text begin "You have 30 days from the date you receive this policy, certificate, or rider to review
and return it to the company if you decide not to keep it. You do not have to tell the company
why you are returning it. If you decide to not keep the policy, certificate, or rider, simply
return it to the company at the company's administrative office, or you may return it to the
agent or insurance producer that you bought it from. You must return the policy, certificate,
or rider within 30 days of the date you first received it. The company must refund the full
amount of any premium paid within 30 days of the date the company receives the returned
policy, certificate, or rider. The premium refund is sent directly to the person who paid it.
A returned policy, certificate, or rider is void, as if it never was issued."
new text end

new text begin This paragraph does not apply to certificates issued pursuant to a policy issued to a group
defined in subdivision 2, paragraph (f), clause (1).
new text end

new text begin (g) A coverage outline must be delivered to a prospective applicant for limited long-term
care insurance at the time an initial solicitation is made, using a means that prominently
directs the recipient's attention to the coverage outline and the coverage outline's purpose.
The commissioner must prescribe: (1) a standard format, including style, arrangement, and
overall appearance; and (2) the content that must be contained on a coverage outline. With
respect to an agent solicitation, the agent must deliver the coverage outline before presenting
an application or enrollment form. With respect to a direct response solicitation, the coverage
outline must be provided in conjunction with an application or enrollment form. Delivery
of a coverage outline is not required for a policy issued to a group defined in subdivision
2, paragraph (f), clause (1), if the information described in paragraph (h) is contained in
other materials relating to enrollment. A copy of the other materials must be made available
to the commissioner upon request.
new text end

new text begin (h) The coverage outline provided under paragraph (g) must include:
new text end

new text begin (1) a description of the principal benefits and coverage provided in the policy;
new text end

new text begin (2) a description of the eligibility triggers for benefits and how the eligibility triggers
are met;
new text end

new text begin (3) a statement identifying the principal exclusions, reductions, and limitations contained
in the policy;
new text end

new text begin (4) a statement describing the terms under which the policy, certificate, or both may be
continued in force or discontinued, including any reservation in the policy of a right to
change premium. A continuation or conversion provision for group coverage must be
specifically described;
new text end

new text begin (5) a statement indicating that coverage outline is a summary only and not an insurance
contract, and that the policy or group master policy contains the governing contractual
provisions;
new text end

new text begin (6) a description of the terms under which the policy or certificate may be returned and
premium refunded;
new text end

new text begin (7) a brief description of the relationship between cost of care and benefits; and
new text end

new text begin (8) a statement that discloses to the policyholder or certificate holder that the policy is
not long-term care insurance.
new text end

new text begin (i) A certificate issued pursuant to a group limited long-term care insurance policy that
is delivered or issued for delivery in Minnesota must include:
new text end

new text begin (1) a description of the principal benefits and coverage provided in the policy;
new text end

new text begin (2) a statement identifying the principal exclusions, reductions, and limitations contained
in the policy; and
new text end

new text begin (3) a statement indicating that the group master policy determines governing contractual
provisions.
new text end

new text begin (j) If an application for a limited long-term care insurance contract or certificate is
approved, the issuer must deliver the contract or certificate of insurance to the applicant no
later than 30 days after the date the application is approved.
new text end

new text begin (k) If a claim under a limited long-term care insurance contract is denied, the issuer
must, within 60 days of the date the policyholder, certificate holder, or a representative of
the policyholder or certificate holder submits a written request:
new text end

new text begin (1) provide a written explanation detailing the reasons for the denial; and
new text end

new text begin (2) make available all information directly related to the denial.
new text end

new text begin (l) A disclosure, statement, or written information and explanation required in this section,
whether in print or electronic form, must accommodate the communication needs of
individuals with disabilities and persons with limited English proficiency, as required by
law.
new text end

new text begin Subd. 6. new text end

new text begin Incontestability period. new text end

new text begin (a) An insurer may (1) rescind a limited long-term
care insurance policy or certificate, or (2) deny an otherwise valid limited long-term care
insurance claim, for a policy or certificate that has been in force for less than six months
upon a showing of misrepresentation that is material to the coverage acceptance.
new text end

new text begin (b) An insurer may (1) rescind a limited long-term care insurance policy or certificate,
or (2) deny an otherwise valid limited long-term care insurance claim, for a policy or
certificate that has been in force for at least six months but less than two years upon a
showing of misrepresentation that is both material to the coverage acceptance and that
pertains to the condition for which benefits are sought.
new text end

new text begin (c) A policy or certificate that has been in force for two years is not contestable upon
the grounds of misrepresentation alone. A policy or certificate that has been in force for
two years may be contested only upon a showing that the insured knowingly and intentionally
misrepresented relevant facts relating to the insured individual's health.
new text end

new text begin (d) A limited long-term care insurance policy or certificate may be field issued if
compensation to the field issuer is not based on the number of policies or certificates issued.
For purposes of this paragraph, "field issued" means a policy or certificate issued by a
producer or a third-party administrator (1) pursuant to the underwriting authority granted
to the producer or third-party administrator by an insurer, and (2) using the insurer's
underwriting guidelines.
new text end

new text begin (e) If an insurer paid benefits under the limited long-term care insurance policy or
certificate, the benefit payments are not recoverable by the insurer if the policy or certificate
is rescinded.
new text end

new text begin Subd. 7. new text end

new text begin Nonforfeiture benefits. new text end

new text begin (a) A limited long-term care insurance policy may
offer the option to purchase a policy or certificate that includes a nonforfeiture benefit. A
nonforfeiture benefit may be offered in the form of a rider that is attached to the policy. If
the policyholder or certificate holder does not purchase the nonforfeiture benefit, the insurer
must provide a contingent benefit upon lapse that must be available for a specified period
of time after a substantial increase in premium rates, as determined by the commissioner
under paragraph (c).
new text end

new text begin (b) When a group limited long-term care insurance policy is issued, a nonforfeiture
benefit offer must be made to the group policyholder. If the policy is issued as group limited
long-term care insurance, as defined in subdivision 2, paragraph (f), clause (4), to an entity
other than a continuing care retirement community or other similar entity, a nonforfeiture
benefit offer must be made to each proposed certificate holder.
new text end

new text begin (c) The commissioner must adopt administrative rules that specify: (1) the type or types
of nonforfeiture benefits that must be offered as part of limited long-term care insurance
policies and certificates; (2) the standards for nonforfeiture benefits; and (3) requirements
regarding contingent benefit upon lapse, including determining the specified period of time
during which a contingent benefit upon lapse is available and the substantial premium rate
increase that triggers a contingent benefit upon lapse, as described in paragraph (a).
new text end

new text begin Subd. 8. new text end

new text begin Administrative rulemaking. new text end

new text begin (a) The commissioner must adopt reasonable
administrative rules to: (1) promote premium adequacy; (2) protect a policyholder in the
event of a substantial rate increase; and (3) establish minimum standards for producer
education, marketing practices, producer compensation, producer testing, independent
review of benefit determinations, penalties, and reporting practices for limited long-term
care insurance.
new text end

new text begin (b) Administrative rules adopted under this section are subject to chapter 14.
new text end

new text begin Subd. 9. new text end

new text begin Severability. new text end

new text begin If any provision of this section or the application of the provision
to any person or circumstance is held invalid for any reason, the remainder of the section
and the application of the invalid provision to other persons or circumstances is not affected.
new text end

new text begin Subd. 10. new text end

new text begin Penalties. new text end

new text begin In addition to any other penalties provided by the laws of Minnesota,
an insurer or producer that violates any requirement under this section or other law relating
to the regulation of limited long-term care insurance or the marketing of limited long-term
care insurance is subject to a fine of up to three times the amount of commissions paid for
each policy involved in the violation or up to $10,000, whichever is greater.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026.
new text end

Sec. 5.

Minnesota Statutes 2024, section 65B.02, subdivision 7, is amended to read:

Subd. 7.

Participation ratio.

"Participation ratio" means the ratio of the member's
Minnesota premiums, or other measure of business written approved by the commissioner,
in relation to the comparable statewide totals for all members.

(1) For private passenger nonfleet automobile insurance coverages the participation ratio
shall be based on voluntary car years written in this state for the calendar year ending
December 31 of the second prior year, as reported by the statistical agent of each member
as private passenger nonfleet exposures.

(2) For insurance coverages on all other automobiles, including insurance for fleets,
commercial vehicles, public vehicles and garages, the ratio shall be based on the total
Minnesota gross, direct automobile insurance premiums written, including both policy and
membership fees less return premiums and premiums on policies not taken, without including
reinsurance assumed and without deducting reinsurance ceded, and less the amount of such
premiums reported as received for insurance on private passenger nonfleet vehicles, for the
calendar year ending December 31 of the second prior year.

(3) For the purpose of determining each member's responsibility for expenses and
assessments new text begin to operate the facility new text end , the ratio shall be based on each member's total Minnesota
car years and gross, direct premiums written, including both policy and membership fees
less return premiums and premiums on policies not taken, without including reinsurance
assumed and without deducting reinsurance ceded, for the calendar year ending December
31 of the second prior year, provided, however, that the preliminary determination of each
member's responsibility for expenses and assessments may use the calendar year ending
December 31 of the third prior year.

Sec. 6.

Minnesota Statutes 2024, section 65B.05, is amended to read:

65B.05 POWER OF FACILITY, GOVERNING COMMITTEE.

new text begin (a) The facility is authorized to: (1) issue or cause to be issued insurance policies in the
name of the Minnesota automobile insurance plan to applicants for the types of insurance
available under the plan, subject to limits specified in the plan of operation; (2) underwrite
the insurance and adjust and pay losses with respect to the plan; and (3) retain, hire, or
appoint an individual or company to perform a function under clause (1) or (2).
new text end

new text begin (b) new text end The governing committee shall have the power to direct the operation of the facility
in all pursuits consistent with the purposes and terms of sections 65B.01 to 65B.12, including
but not limited to deleted text begin the following deleted text end :

(1) deleted text begin To deleted text end sue and be sued in the name of the facility and deleted text begin to deleted text end assess each member in accord
with its participation ratio to pay any judgment against the facility as an entity, provided,
however, that no judgment against the facility shall create any liabilities in one or more
members disproportionate to their participation ratio or an individual representing members
on the governing committee deleted text begin . deleted text end new text begin ;
new text end

(2) deleted text begin To deleted text end delegate ministerial duties, deleted text begin to deleted text end hire a manager new text begin , new text end and deleted text begin to deleted text end contract for goods and
services from others deleted text begin . deleted text end new text begin ;
new text end

(3) deleted text begin To deleted text end assess members on the basis of participation ratios to cover anticipated costs of
operation and administration of the facility deleted text begin . deleted text end new text begin ; and
new text end

(4) deleted text begin To deleted text end impose limitations on cancellation or nonrenewal by members of insureds covered
pursuant to placement through the facility in addition to the limitations imposed by chapter
72A and sections 65B.1311 to 65B.21.

Sec. 7.

Minnesota Statutes 2024, section 65B.06, subdivision 1, is amended to read:

Subdivision 1.

Distribution of private passenger, nonfleet auto risks.

With respect
to private passenger, nonfleet automobiles, the facility shall provide for deleted text begin the equitable
distribution of qualified applicants to deleted text end members new text begin to share premium, losses, costs, and expenses new text end
in accordance with the participation ratio deleted text begin or among these insurance companies as selected
under the provisions of the plan of operation deleted text end .

Sec. 8.

Minnesota Statutes 2024, section 65B.06, subdivision 2, is amended to read:

Subd. 2.

Private passenger; nonfleet auto coverage.

With respect to private passenger,
nonfleet automobiles, the facility shall provide for the issuance of policies of automobile
insurance deleted text begin by members deleted text end with coverage as follows:

(1) bodily injury liability and property damage liability coverage in the minimum amounts
specified in section 65B.49, subdivision 3;

(2) uninsured and underinsured motorist coverages as required by section 65B.49,
subdivisions 3a and 4a;

(3) a reasonable selection of higher limits of liability coverage up to $50,000 because
of bodily injury to or death of one person in any one accident and, subject to such limit for
one person, up to $100,000 because of bodily injury to or death of two or more persons in
any one accident, and up to $25,000 because of injury to or destruction of property of others
in any one accident, or higher limits of liability coverage as recommended by the governing
committee and approved by the commissioner;

(4) basic economic loss benefits, as required by section 65B.44, and other optional
coverages as recommended by the governing committee and approved by the commissioner;
and

(5) automobile physical damage coverage, including coverage of loss by collision, subject
to deductible options.

Sec. 9.

Minnesota Statutes 2024, section 65B.06, subdivision 3, is amended to read:

Subd. 3.

Other auto coverage.

With respect to all automobiles not included in
subdivisions 1 and 2, the facility shall provide:

(1) the minimum limits of coverage required by section 65B.49, subdivisions 2, 3, 3a,
and 4a, or higher limits of liability coverage as recommended by the governing committee
and approved by the commissioner;

(2) for the equitable deleted text begin distribution of qualified applicants deleted text end new text begin sharing of premium, losses,
costs, and expenses new text end for this coverage among the members in deleted text begin accord deleted text end new text begin accordance new text end with the
applicable participation ratio deleted text begin , or among these insurance companies as selected under the
provisions of the plan of operation deleted text end ; and

(3) for a school district or contractor transporting school children under contract with a
school district, that amount of automobile liability insurance coverage, not to exceed
$1,000,000, required by the school district by resolution or contract, or that portion of such
$1,000,000 of coverage for which the school district or contractor applies and for which it
is eligible under section 65B.10.

Sec. 10.

Minnesota Statutes 2024, section 65B.10, subdivision 2, is amended to read:

Subd. 2.

Termination of eligibility.

Eligibility for placement through the facility will
terminate if an insured is offered equivalent coverage in the voluntary market at a rate lower
than the facility rate. deleted text begin If the member that is required to provide coverage by the facility makes
such an offer after giving 30 days' advance written notice to the agent of record before
making the offer, the member shall have no further obligation to the agent of record.
deleted text end

Sec. 11. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2024, section 65B.10, subdivision 3, new text end new text begin is repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: 25-00481

65B.10 ELIGIBILITY.

Subd. 3.

Review of insureds.

At least annually, every member shall review every private passenger nonfleet applicant which it insures through the facility and determine whether or not such applicant is acceptable for voluntary insurance at a rate lower than the facility rate. If such applicant is acceptable, the member shall make an offer to insure the applicant under voluntary coverage at such lower rate.