SF 595

as introduced - 87th Legislature (2011 - 2012) Posted on 02/23/2012 09:07am

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 2010, sections 65B.41; 65B.42; 65B.43; 65B.44; 65B.45;
65B.46; 65B.47; 65B.48, subdivisions 1, 2, 3, 3a, 4, 5, 6, 7; 65B.482; 65B.49,
subdivisions 1, 2, 3, 3a, 4a, 5a, 7, 8, 9; 65B.50; 65B.51; 65B.525; 65B.53;
65B.54; 65B.55; 65B.56; 65B.57; 65B.58; 65B.59; 65B.60; 65B.61, subdivisions
1, 2, 2a, 3; 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 that 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 that is not required to be registered or licensed,
or that is not principally garaged in this state, shall maintain the insurance in effect
continuously throughout the period of the operation, maintenance, or use of the motor
vehicle in 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 that 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. 4. 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 ensure the adequacy of the financing and
administration of self-insurance plans;
new text end

new text begin (3) establish bonding requirements or other provisions ensuring 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. 5. 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 or political subdivision of the state 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. 6. 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, 2012, 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,
2012, 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 2010, sections 65B.41; 65B.42; 65B.43; 65B.44; 65B.45;
65B.46; 65B.47; 65B.48, subdivisions 1, 2, 3, 3a, 4, 5, 6, and 7; 65B.482; 65B.49,
subdivisions 1, 2, 3, 3a, 4a, 5a, 7, 8, and 9; 65B.50; 65B.51; 65B.525; 65B.53; 65B.54;
65B.55; 65B.56; 65B.57; 65B.58; 65B.59; 65B.60; 65B.61, subdivisions 1, 2, 2a, and 3;
65B.63; 65B.64; 65B.65; 65B.66; 65B.685; and 65B.71, new text end new text begin are repealed effective January
1, 2012.
new text end

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

new text begin This act is effective January 1, 2012, and applies to accidents occurring on or after
that date.
new text end