SF 2403

as introduced - 90th Legislature (2017 - 2018) Posted on 05/19/2017 09:05am

A bill for an act
relating to insurance; authorizing affinity group discounts in certain auto or
homeowner's insurance policies; proposing coding for new law in Minnesota
Statutes, chapter 72A.

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

Section 1.

new text begin [72A.328] AFFINITY GROUP.
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.
new text end

new text begin (b) "Affinity group" means an entity that offers individuals benefits based on their
membership in a group. Affinity group does not include an entity that obtains group
insurance, as defined in section 60A.02, subdivision 28, or risk retention groups as defined
in section 60E.02, subdivision 12.
new text end

new text begin (c) "Policy" means an individually underwritten policy of private passenger vehicle
insurance, as defined in section 65B.001, subdivision 2, or an individually underwritten
policy of homeowner's insurance, as defined in section 65A.27, subdivision 4.
new text end

new text begin Subd. 2. new text end

new text begin Discount. new text end

new text begin An insurance company may offer an individual a discount or other
benefit relating to a policy based on the individual's membership in an affinity group if:
new text end

new text begin (1) the benefit or discount is based on an actuarial justification; and
new text end

new text begin (2) the insurance company offers the benefit or discount to all members of the affinity
group eligible for the discount or benefit.
new text end