HF 2249

as introduced - 93rd Legislature (2023 - 2024) Posted on 02/27/2023 03:06pm

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

new text begin (b) "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:
new text end

new text begin (1) a spouse;
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new text begin (2) a relative of a named insured; or
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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 For purposes of this paragraph, a person resides in the same household with the named
insured if the person's home is usually in the same family unit, even if the person is
temporarily living elsewhere.
new text end

new text begin (c) "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 (d) "Prohibited exclusion" means an exclusion of or limitation on liability for damages
for bodily injury solely because the injured person is (1) a resident or member of the insured's
household, or (2) 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 (1) a resident or member of the insured's household,
or (2) a person that 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.
new text end

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 that increases the premium charged to an insured as a result of this section
must obtain approval from the commissioner of commerce before increasing the premium.
The commissioner must 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 An endorsement, rider, or contract amendment is
not 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.
new text end

new text begin Section 1 may be cited as the "Family Protection Act."
new text end