1.1                          A bill for an act
  1.2             relating to insurance; automobile; prohibiting 
  1.3             discrimination based upon two or fewer minor traffic 
  1.4             violations; amending Minnesota Statutes 1996, sections 
  1.5             65B.133, subdivision 5; 65B.14, subdivision 5; and 
  1.6             72A.20, subdivision 23. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1996, section 65B.133, 
  1.9   subdivision 5, is amended to read: 
  1.10     Subd. 5.  [LIMITATION ON CHARGEABLE TRAFFIC VIOLATIONS.] No 
  1.11  traffic violation is chargeable to a driver unless the driver is 
  1.12  convicted of, or forfeits bail for, the offense, or the driver's 
  1.13  license is revoked pursuant to section 169.123.  If a surcharge 
  1.14  is applied because bail is forfeited and if the driver is later 
  1.15  acquitted of the offense, the insurer shall rebate the 
  1.16  surcharge. A violation of section 169.685, subdivision 5 is not 
  1.17  chargeable.  No traffic violation is chargeable if the person's 
  1.18  only traffic violations within the preceding three-year period 
  1.19  are two or fewer petty misdemeanor violations of chapter 169. 
  1.20     Sec. 2.  Minnesota Statutes 1996, section 65B.14, 
  1.21  subdivision 5, is amended to read: 
  1.22     Subd. 5.  [VIOLATIONS.] "Violations" means all moving 
  1.23  traffic violations that are recorded by the department of public 
  1.24  safety on a household member's motor vehicle record, and 
  1.25  violations reported by a similar authority in another state or 
  1.26  moving traffic violations reported by the insured.  A person 
  2.1   shall be deemed to have no violations if the person's only 
  2.2   traffic violations within the preceding three-year period are 
  2.3   two or fewer petty misdemeanor violations of chapter 169. 
  2.4      Sec. 23.  Minnesota Statutes 1996, section 72A.20, 
  2.5   subdivision 23, is amended to read: 
  2.6      Subd. 23.  [DISCRIMINATION IN AUTOMOBILE INSURANCE 
  2.7   POLICIES.] (a) No insurer that offers an automobile insurance 
  2.8   policy in this state shall: 
  2.9      (1) use the employment status of the applicant as an 
  2.10  underwriting standard or guideline; or 
  2.11     (2) deny coverage to a policyholder for the same reason. 
  2.12     (b) No insurer that offers an automobile insurance policy 
  2.13  in this state shall: 
  2.14     (1) use the applicant's status as a tenant, as the term is 
  2.15  defined in section 566.18, subdivision 2, as an underwriting 
  2.16  standard or guideline; or 
  2.17     (2) deny coverage to a policyholder for the same reason; or 
  2.18     (3) make any discrimination in offering or establishing 
  2.19  rates, premiums, dividends, or benefits of any kind, or by way 
  2.20  of rebate, for the same reason.  
  2.21     (c) No insurer that offers an automobile insurance policy 
  2.22  in this state shall: 
  2.23     (1) use the failure of the applicant to have an automobile 
  2.24  policy in force during any period of time before the application 
  2.25  is made as an underwriting standard or guideline; or 
  2.26     (2) deny coverage to a policyholder for the same reason. 
  2.27     This provision does not apply if the applicant was required 
  2.28  by law to maintain automobile insurance coverage and failed to 
  2.29  do so. 
  2.30     An insurer may require reasonable proof that the applicant 
  2.31  did not fail to maintain this coverage.  The insurer is not 
  2.32  required to accept the mere lack of a conviction or citation for 
  2.33  failure to maintain this coverage as proof of failure to 
  2.34  maintain coverage.  The insurer must provide the applicant with 
  2.35  information identifying the documentation that is required to 
  2.36  establish reasonable proof that the applicant did not fail to 
  3.1   maintain the coverage. 
  3.2      (d) No insurer that offers an automobile insurance policy 
  3.3   in this state shall use an applicant's prior claims for benefits 
  3.4   paid under section 65B.44 as an underwriting standard or 
  3.5   guideline if the applicant was 50 percent or less negligent in 
  3.6   the accident or accidents causing the claims. 
  3.7      (e) No insurer that offers an automobile insurance policy 
  3.8   in this state shall use an applicant's traffic violations as an 
  3.9   underwriting standard or guideline if the applicant's only 
  3.10  traffic violations within the preceding three-year period are 
  3.11  two or fewer petty misdemeanor violations of chapter 169. 
  3.12     Sec. 4.  [EFFECTIVE DATE.] 
  3.13     Sections 1 to 3 are effective January 1, 1999.