Minnesota Session Laws - 1996, Regular Session

  
    
KEY: stricken = old language to be removed
     underscored = new language to be added
    
                            CHAPTER 278-S.F.No. 1815 
                  An act relating to insurance; regulating the 
                  underwriting of life and health coverages for victims 
                  of domestic abuse; amending Minnesota Statutes 1994, 
                  section 72A.20, subdivision 8. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1994, section 72A.20, 
        subdivision 8, is amended to read: 
           Subd. 8.  [DISCRIMINATION.] (a) Making or permitting any 
        unfair discrimination between individuals of the same class and 
        equal expectation of life in the rates charged for any contract 
        of life insurance or of annuity or in the dividends or other 
        benefits payable thereon, or in any other of the terms and 
        conditions of such contract or in making or permitting the 
        rejection of an individual's application for life insurance 
        coverage, as well as the determination of the rate class for 
        such individual, on the basis of a disability, shall constitute 
        an unfair method of competition and an unfair and deceptive act 
        or practice, unless the claims experience and actuarial 
        projections and other data establish significant and substantial 
        differences in class rates because of the disability. 
           (b) Refusing to insure or refusing to continue to insure 
        the life of a member of a reserve component of the armed forces 
        of the United States, or the national guard due to that person's 
        status as a member, or duty assignment while a member of any of 
        these military organizations, constitutes an unfair method of 
        competition and an unfair and deceptive act or practice unless 
        the individual has received an order for active duty. 
           (c) Refusing to reinstate coverage for the insured or any 
        covered dependents under an individual or group life or health 
        insurance policy or contract of a member of a reserve component 
        of the armed forces of the United States or the national guard 
        whose coverage or dependent coverage was terminated, canceled, 
        or nonrenewed while that person was on active duty constitutes 
        an unfair method of competition and an unfair and deceptive act 
        or practice.  For purposes of this section paragraphs (a) to 
        (c), "health insurance policy or contract" means any policy, 
        contract, or certificate providing benefits regulated under 
        chapter 62A, 62C, 62D, or 64B. 
           For purposes of reinstatement of an individual policy, the 
        person shall apply for reinstatement within 90 days after 
        removal from active duty. 
           The reinstated coverage must not contain any new 
        preexisting condition or other exclusion or limitation, except a 
        condition determined by the Veterans Administration to be a 
        disability incurred or aggravated in the line of duty.  The 
        remainder of a preexisting condition limitation that was not 
        satisfied before the coverage was terminated may be applied once 
        the person returns and coverage is reinstated.  Reinstatement is 
        effective upon the payment of any required premiums. 
           (d) Refusing to offer, sell, or renew coverage; limiting 
        coverage; or charging a rate different from that normally 
        charged for the same coverage under a life insurance policy or 
        health plan because the applicant who is also the proposed 
        insured has been or is a victim of domestic abuse is an unfair 
        method of competition and an unfair and deceptive act or 
        practice. 
           Nothing in this paragraph prevents an insurer from 
        underwriting a risk on the basis of the physical or mental 
        history of an individual if the insurer does not take into 
        consideration whether the individual's condition was caused by 
        an act of domestic abuse. 
           For purposes of this paragraph, "domestic abuse" has the 
        meaning given in section 518B.01, subdivision 2; and "health 
        plan" has the meaning given in section 62Q.01, subdivision 3, 
        and includes the coverages referred to in section 62A.011, 
        subdivision 3, clauses (1), (7), (9), and (10). 
           Sec. 2.  [EFFECTIVE DATE; APPLICABILITY.] 
           Section 1 is effective August 1, 1996, and applies to 
        applications for coverage made on or after that date and to 
        health plans issued or renewed on or after that date to provide 
        coverage to a Minnesota resident. 
           Presented to the governor February 20, 1996 
           Signed by the governor February 21, 1996, 10:14 a.m.