2001 Minnesota Statutes

CHAPTER 65B. Automobile insurance

     65B.001 Definitions. 

    Subdivision 1.    Application.  Unless a different 
 meaning is expressly made applicable, the terms defined in this 
 section shall, for the purposes of this chapter, have the 
 meaning given them. 

    Subd. 2.    Private passenger vehicle insurance.  
 "Private passenger vehicle insurance" means a policy insuring a 
 natural person as named insured, and any relative of the named 
 insured who is a resident of the same household, covering 
 private passenger vehicles or utility vehicles owned by the 
 insured. This term does not include a policy insuring more than 
 four vehicles rated on a fleet basis or covering garage, 
 automobiles sales agency, repair shop, service station or public 
 parking place operation hazards. 

    Subd. 3.    Private passenger vehicle.  "Private 
 passenger vehicle" means a passenger automobile defined in 
 section 168.011, or a jeep type automobile, that is not rented 
 to others or used as a public or livery conveyance for 
 passengers.  

    Subd. 4.    Utility vehicle.  "Utility vehicle" means 
 any four wheel vehicle, other than a private passenger vehicle, 
 which has a pickup, van, or panel truck type body and is not 
 used primarily in the occupation, profession or business of the 
 insured, other than farming or ranching. 

    Subd. 5.    Motorcycle.  "Motorcycle" means a 
 self-propelled vehicle designed to travel on fewer than four 
 wheels that has an engine rated at greater than five horsepower, 
 and includes a trailer with one or more wheels, when the trailer 
 is connected to or being towed by a motorcycle.  For purposes of 
 this chapter, motorcycle includes a motorized bicycle as defined 
 in section 169.01, subdivision 4a, but does not include an 
 electric-assisted bicycle as defined in section 169.01, 
 subdivision 4b.  

    HIST: 1977 c 366 s 1; 1984 c 592 s 52; 1987 c 269 s 1; 1989 c 
 140 s 1; 1996 c 435 s 1 

     65B.01 Purposes, construction and scope. 

    Subdivision 1.    Purpose.  The purposes of sections 
 65B.01 to 65B.12 are to provide the guarantee that automobile 
 insurance coverage will be available to any person who is unable 
 to procure such insurance through ordinary methods by providing 
 a facility for the placement of automobile insurance risks with 
 insurers, and to preserve to the public the benefits of price 
 competition by encouraging maximum use of the normal private 
 insurance system.  Sections 65B.01 to 65B.12 shall be liberally 
 construed to effect the purposes stated.  

    Subd. 2.    Scope and membership.  Every insurer 
 authorized to write automobile liability or physical damage 
 insurance in this state, as a condition precedent to being 
 licensed or to retain such license to write such insurance in 
 this state, shall be a member of the facility and shall 
 participate therein under the terms and provisions of sections 
 65B.01 to 65B.12. 

    HIST: 1971 c 813 s 1; 1983 c 289 s 114 subd 1; 1984 c 655 art 
 1 s 92; 1992 c 520 s 2 

     65B.02 Definitions. 

    Subdivision 1.    Application.  Unless the language or 
 context clearly indicates a different meaning is intended, the 
 following terms shall, for the purposes of sections 65B.01 to 
 65B.12, have the meanings ascribed to them. 

    Subd. 2.    Qualified applicant.  "Qualified applicant" 
 means a person who: 

    (1) is a resident of this state; 

    (2) owns a motor vehicle registered in accordance with the 
 laws of this state, or has a valid driver's license, or is 
 required to file a certificate of insurance with the 
 commissioner of public safety; and 

    (3) has no unpaid premiums with respect to prior automobile 
 insurance. 

    Subd. 3.    Facility.  "Facility" means the organization 
 formed by insurers to carry out the purposes provided in section 
 65B.01, subdivision 1, and shall be known as the Minnesota 
 automobile insurance plan. 

    Subd. 4.    Member.  "Member" means an insurer who is 
 required by sections 65B.01 to 65B.12, to be a member of the 
 facility. 

    Subd. 5.    Car years.  "Car years" means the number of 
 insurance policies written on automobile or licensed drivers by 
 a given insurer in any calendar year; and "voluntary car years" 
 means the number of such policies written by a given insurer, 
 exclusive of policies written through the facility. 

    Subd. 6.    Private passenger nonfleet automobile.  
 "Private passenger nonfleet automobile" means motorized vehicles 
 designed for transporting passengers or goods, subject to 
 specific contemporary definitions for insurance purposes as 
 provided in the plan of operation. 

    Subd. 7.    Participation ratio.  "Participation ratio" 
 means the ratio of the member's Minnesota premiums, or other 
 measure of business written approved by the commissioner, in 
 relation to the comparable statewide totals for all members. 

    (1) For private passenger nonfleet automobile insurance 
 coverages the participation ratio shall be based on voluntary 
 car years written in this state for the calendar year ending 
 December 31 of the second prior year, as reported by the 
 statistical agent of each member as private passenger nonfleet 
 exposures. 

    (2) For insurance coverages on all other automobiles, 
 including insurance for fleets, commercial vehicles, public 
 vehicles and garages, the ratio shall be based on the total 
 Minnesota gross, direct automobile insurance premiums written, 
 including both policy and membership fees less return premiums 
 and premiums on policies not taken, without including 
 reinsurance assumed and without deducting reinsurance ceded, and 
 less the amount of such premiums reported as received for 
 insurance on private passenger nonfleet vehicles, for the 
 calendar year ending December 31 of the second prior year. 

    (3) For the purpose of determining each member's 
 responsibility for expenses and assessments, the ratio shall be 
 based on each member's total Minnesota car years and gross, 
 direct premiums written, including both policy and membership 
 fees less return premiums and premiums on policies not taken, 
 without including reinsurance assumed and without deducting 
 reinsurance ceded, for the calendar year ending December 31 of 
 the second prior year, provided, however, that the preliminary 
 determination of each member's responsibility for expenses and 
 assessments may use the calendar year ending December 31 of the 
 third prior year. 

    Subd. 8.    Commissioner.  "Commissioner" means the 
 commissioner of commerce or one properly acting in the capacity 
 of the commissioner of commerce. 

    HIST: 1971 c 813 s 2; 1974 c 408 s 32 subd 4; 1977 c 276 s 1; 
 1983 c 289 s 114 subd 1; 1984 c 655 art 1 s 92; 1992 c 520 s 
 3-5; 1999 c 177 s 66 

     65B.03 Governing committee. 

    Subdivision 1.    Membership.  An election must be held 
 among every insurer subject to sections 65B.01 to 65B.12, for 
 the election of insurer representatives on the facility 
 governing committee.  The governing committee shall be made up 
 of nine individuals, five of whom shall be elected by members of 
 the facility and four who shall be public members.  Public 
 members may include licensed insurance agents.  The public 
 members shall be appointed by the commissioner.  The term of 
 office for members of the governing committee is two years. 

    Each member serving on the governing committee shall be 
 represented by a salaried employee of that member, and not more 
 than one member in a group under the same management shall serve 
 on the governing committee at the same time.  

    Subd. 2.    Terms of office.  The governing committee 
 members shall serve two-year terms.  Vacancies shall be filled 
 as provided in the plan of operation. 

    HIST: 1971 c 813 s 3; 1973 c 756 s 1; 1983 c 289 s 114 subd 1; 
 1984 c 655 art 1 s 92; 1Sp1985 c 10 s 66; 1986 c 444; 1987 c 337 
 s 96; 1992 c 520 s 6 

     65B.04 Plan of operation. 

    Subdivision 1. Repealed, 1992 c 520 s 18 

    Subd. 1a.    Plan.  The plan of operation consists of 
 the operation procedures of the facility. 

    Subd. 2. Repealed, 1992 c 520 s 18 

    Subd. 3.    Amendments.  The plan of operation may be 
 amended by a majority vote of the governing committee and the 
 approval of the commissioner.  An order by the commissioner 
 disapproving an amendment to the plan of operation must be 
 issued within 30 days of receipt by the commissioner of the 
 proposed amendment, certified by the governing committee as 
 having been adopted by that committee by a majority vote, or the 
 amendment shall be deemed approved by the commissioner.  An 
 order of disapproval may be appealed as provided in chapter 14.  

    Subd. 4.    Adherence to plan.  Every insurer authorized 
 to write automobile bodily injury liability, property damage 
 liability or physical damage insurance in this state, as a 
 condition to maintaining its authorization to transact the 
 business of insurance in this state, shall adhere to the plan of 
 operation.  

    HIST: 1971 c 813 s 4; 1983 c 247 s 34; 1986 c 444; 1992 c 520 
 s 7-9; 2001 c 215 s 29 

     65B.05 Power of facility, governing committee. 

    The governing committee shall have the power to direct the 
 operation of the facility in all pursuits consistent with the 
 purposes and terms of sections 65B.01 to 65B.12, including but 
 not limited to the following: 

    (1) To sue and be sued in the name of the facility and to 
 assess each member in accord with its participation ratio to pay 
 any judgment against the facility as an entity, provided, 
 however, that no judgment against the facility shall create any 
 liabilities in one or more members disproportionate to their 
 participation ratio or an individual representing members on the 
 governing committee. 

    (2) To delegate ministerial duties, to hire a manager and 
 to contract for goods and services from others. 

    (3) To assess members on the basis of participation ratios 
 to cover anticipated costs of operation and administration of 
 the facility. 

    (4) To impose limitations on cancellation or nonrenewal by 
 members of insureds covered pursuant to placement through the 
 facility in addition to the limitations imposed by chapter 72A 
 and sections 65B.1311 to 65B.21. 

    HIST: 1971 c 813 s 5; 1Sp1981 c 4 art 1 s 56; 1992 c 520 s 10; 2001 
 c 7 s 16 

     65B.06 Distribution of risks; coverage. 

    Subdivision 1.  With respect to private passenger, nonfleet 
 automobiles, the facility shall provide for the equitable 
 distribution of qualified applicants to members in accordance 
 with the participation ratio or among these insurance companies 
 as selected under the provisions of the plan of operation. 

    Subd. 2.  With respect to private passenger, nonfleet 
 automobiles, the facility shall provide for the issuance of 
 policies of automobile insurance by members with coverage as 
 follows: 

    (1) Bodily injury liability and property damage liability 
 coverage in the minimum amounts specified in section 65B.49, 
 subdivision 3; 

    (2) Uninsured and underinsured motorist coverages as 
 required by section 65B.49, subdivisions 3a and 4a; 

    (3) A reasonable selection of higher limits of liability 
 coverage up to $50,000 because of bodily injury to or death of 
 one person in any one accident and, subject to such limit for 
 one person, up to $100,000 because of bodily injury to or death 
 of two or more persons in any one accident, and up to $25,000 
 because of injury to or destruction of property of others in any 
 one accident, or higher limits of liability coverage as 
 recommended by the governing committee and approved by the 
 commissioner; 

    (4) Basic economic loss benefits, as required by section 
 65B.44, and other optional coverages as recommended by the 
 governing committee and approved by the commissioner; and 

    (5) Automobile physical damage coverage, including coverage 
 of loss by collision, subject to deductible options. 

    Subd. 3.  With respect to all automobiles not included in 
 subdivisions 1 and 2, the facility shall provide: 

    (1) the minimum limits of coverage required by section 
 65B.49, subdivisions 2, 3, 3a, and 4a, or higher limits of 
 liability coverage as recommended by the governing committee and 
 approved by the commissioner; 

    (2) for the equitable distribution of qualified applicants 
 for this coverage among the members in accord with the 
 applicable participation ratio, or among these insurance 
 companies as selected under the provisions of the plan of 
 operation; and 

    (3) for a school district or contractor transporting school 
 children under contract with a school district, that amount of 
 automobile liability insurance coverage, not to exceed 
 $1,000,000, required by the school district by resolution or 
 contract, or that portion of such $1,000,000 of coverage for 
 which the school district or contractor applies and for which it 
 is eligible under section 65B.10. 

    Subd. 4.  Coverage made available under this section shall 
 be the automobile policy and endorsement forms, as approved by 
 the commissioner, with such changes, additions and amendments as 
 are adopted by the governing committee and approved by the 
 commissioner. 

    HIST: 1971 c 813 s 6; 1974 c 408 s 32 subds 4,5; 1976 c 2 s 
 41; 1977 c 276 s 2; 1Sp1981 c 4 art 1 s 57; 1984 c 592 s 53; 
 1986 c 313 s 9; 1992 c 520 s 11; 1995 c 258 s 47; 2001 c 215 s 
 30,31 

     65B.07 Other provisions and functions. 

    Subdivision 1.  The facility shall provide one or more 
 optional deferred payment plans, which shall include sufficient 
 advance payment to, at all times, equal at least the pro rata 
 earned premium, and such plans shall include additional charges 
 for deferred payments.  

    Subd. 2. Repealed, 1992 c 520 s 18 

    Subd. 3.  The facility shall provide for publicizing its 
 purposes and developing public understanding of the facility.  

    Subd. 4.  The facility shall provide an annual financial 
 statement on the facility's operation to the commissioner, and 
 shall provide an annual report of operations to the commissioner 
 and to all members so requesting.  

    Subd. 5. Repealed, 1995 c 258 s 67 

    HIST: 1971 c 813 s 7; 1986 c 444; 1992 c 520 s 12 

     65B.08 Rates. 

    Subdivision 1.    Filing.  As agent for members, the 
 facility shall file with the commissioner all manuals of 
 classification, all manuals of rules and rates, all rating 
 plans, and any modifications of same, proposed for use for 
 automobile insurance placed through the facility.  The 
 classifications, rules and rates and any amendments thereto 
 shall be subject to prior written approval by the commissioner.  
 Rates, surcharge points, and increased limits factors filed by 
 the facility shall not be excessive, inadequate, or unfairly 
 discriminatory.  No other entity, service or organization shall 
 make filings for the facility or the members to apply to 
 insurance placed through the facility. 

    Subd. 2.    Use of rates.  Every member shall be 
 authorized to use the rates and rules approved by the 
 commissioner for use by the facility on business placed through 
 the facility, and shall use no other rates on automobiles placed 
 through the facility.  

    Subd. 3.    Facility exempt.  Laws relating to rating 
 organizations or advisory organizations shall not apply to 
 functions provided for under this section.  

    HIST: 1971 c 813 s 8; 1992 c 520 s 13,14; 1995 c 258 s 48 

     65B.09 Agents. 

    Subdivision 1.    Agents' responsibility.  Every person 
 licensed under sections 60K.30 to 60K.56 who is authorized to 
 solicit, negotiate or effect automobile insurance on behalf of 
 any member shall: 

    (1) offer to place coverage through the facility for any 
 qualified applicant who is ineligible or unacceptable for 
 coverage in the insurer or insurers for whom the agent is 
 authorized to solicit, negotiate or effect automobile 
 insurance.  Provided, that the failure of an agent to make such 
 an offer to a qualified applicant shall not subject the agent to 
 any liability to the applicant; 

    (2) forward to the facility all applications and any 
 deposit premiums which are required by the plan of operation, 
 rules and procedures of the facility, if the qualified applicant 
 accepts the offer to have coverage placed through the facility; 

    (3) be entitled to receive compensation for placing 
 insurance through the facility at the uniform rates of 
 compensation as provided in the plan of operation, and all 
 members shall pay such compensation. 

    Subd. 2.    Agents' contracts.  A member may not include 
 the premiums and losses incurred from risks insured through the 
 facility in determining the loss ratio of any of its agents, or 
 otherwise use the experience from such risks as cause for 
 altering the relationship between the member and its agent.  

    HIST: 1971 c 813 s 9; 1986 c 444; 1992 c 520 s 15; 1993 c 13 
 art 2 s 3; 1995 c 258 s 49; 2001 c 117 art 2 s 14 

*   NOTE:  The amendment to subdivision 1 by Laws 2001, chapter 
*117, article 2, section 14, is effective July 1, 2002.  Laws 
*2001, chapter 117, article 2, section 19.

     65B.10 Eligibility. 

    Subdivision 1.    Eligibility for coverage.  To be 
 eligible for coverage through the facility an otherwise 
 qualified applicant must have been rejected, canceled or refused 
 renewal with respect to automobile insurance by a member.  

    Subd. 2.    Termination of eligibility.  Eligibility for 
 placement through the facility will terminate if an insured is 
 offered equivalent coverage in the voluntary market at a rate 
 lower than the facility rate.  If the member that is required to 
 provide coverage by the facility makes such an offer after 
 giving 30 days' advance written notice to the agent of record 
 before making the offer, the member shall have no further 
 obligation to the agent of record.  

    Subd. 3.    Review of insureds.  At least annually, 
 every member shall review every private passenger nonfleet 
 applicant which it insures through the facility and determine 
 whether or not such applicant is acceptable for voluntary 
 insurance at a rate lower than the facility rate.  If such 
 applicant is acceptable, the member shall make an offer to 
 insure the applicant under voluntary coverage at such lower rate.

    HIST: 1971 c 813 s 10; 1986 c 444; 1992 c 520 s 16; 1995 c 258 
 s 50 

     65B.11 Use of the facility by the public.  

    If, upon a formal hearing, the commissioner finds that a 
 large proportion of qualified and eligible persons are failing 
 to gain the benefits of the facility, the facility shall provide 
 service to assist the public in making application to the 
 facility for placement.  

    HIST: 1971 c 813 s 11 

     65B.12 Right to hearing; construction of plan of 
  operation. 

    Subdivision 1.  Any member, applicant or person insured 
 under a policy placed through the facility may request a formal 
 hearing and ruling by the governing committee on any alleged 
 violation of the plan of operation or any alleged improper act 
 or ruling of the facility.  The request for hearing must be 
 filed within 30 days after the date of the alleged act or 
 decision.  

    Subd. 2.  The plan of operation shall provide for prompt 
 and fair hearings, and shall prescribe the procedure to be 
 followed in the hearings.  

    Subd. 3.  Any formal ruling by the governing committee may 
 be appealed to the commissioner by filing notice of appeal with 
 the facility and the commissioner within 30 days after issuance 
 of the ruling.  The hearing shall be governed by the procedures 
 for contested cases.  

    Subd. 4.  Upon a hearing pursuant to chapter 14, the 
 commissioner shall issue an order approving or disapproving the 
 action or decision of the governing committee or directing the 
 governing committee to reconsider the ruling.  

    Subd. 4a.  In lieu of the appeal to the commissioner, a 
 member, applicant, or person may seek judicial review of the 
 governing committee's action.  

    Subd. 5.  The plan of operation shall be interpreted to 
 conform to the laws of this state with respect to automobile 
 insurance coverage and any changes in the laws, unless the 
 facility is specifically excluded from the applicability of 
 these laws. 

    HIST: 1971 c 813 s 12; 1987 c 337 s 97; 1992 c 520 s 17 

  65B.13 Repealed, 2000 c 483 s 55 

  65B.131 Repealed, 1979 c 215 s 2 

     65B.1311 Coverage for former spouse. 

    Subdivision 1.    New policy issued.  An insurer must 
 issue a policy of private passenger insurance to the former 
 spouse of a named insured, within the provisions of subdivision 
 2, if the following conditions are met: 

    (1) the former spouse has been an insured driver under the 
 former policy for at least the six months immediately preceding 
 the entry of a valid decree of dissolution of marriage; 

    (2) the former spouse makes application for a policy before 
 the end of the policy period or within 60 days after the entry 
 of the decree of dissolution of marriage, whichever is later; 

    (3) the appropriate premium is paid; and 

    (4) the former spouse and any person or persons who are to 
 be an insured, as defined in section 65B.43, meets the insurer's 
 eligibility standards for renewal policies. 

    Subd. 2.    Named insured.  A named insured under a 
 policy of private passenger vehicle insurance shall have the 
 premium determined at the first and any subsequent renewals of 
 the policy after entry of a valid decree of dissolution of the 
 marriage of the named insured only on the basis of the driving 
 record and rating classification applicable to the named insured 
 and any person who is to be an insured, as defined in section 
 65B.43, under the policy to be renewed. 

    HIST: 1986 c 455 s 49; 1987 c 337 s 98 

     65B.132 Student discounts; eligibility. 

    Any insurance company providing discounts on automobile 
 insurance premiums to eligible persons attending colleges and 
 universities must provide the discount to eligible students 
 enrolled in technical colleges. 

    HIST: 1975 c 44 s 1; 1987 c 258 s 12; 1989 c 246 s 2; 1Sp1995 
 c 3 art 16 s 13; 1996 c 412 art 13 s 2 

     65B.133 Surcharge disclosure. 

    Subdivision 1.    Definitions.  For the purposes of this 
 section, the terms defined in this section have the meanings 
 given them.  

    (a) "Computed premium" means the rate in effect before the 
 application of a surcharge.  

    (b) "Chargeable accident" means an accident which is taken 
 into consideration in applying a surcharge.  

    (c) "Chargeable traffic violation" means a traffic 
 violation which is taken into consideration in applying a 
 surcharge.  

    (d) "Policy" means a policy providing private passenger 
 vehicle insurance, as defined in section 65B.001, subdivision 2. 

    (e) "Surcharge" means any increase in premium for a policy, 
 including the removal of an accident-free or claim-free 
 discount, based upon an accident or a traffic violation.  

    (f) "Surcharge disclosure statement" means a written 
 statement disclosing the surcharge plan of an insurer, the 
 effective date of the surcharge plan, and the name of the 
 insurer, and any other information which the commissioner may 
 require to be disclosed to assist insureds in comparing 
 surcharge plans among insurers.  

    (g) "Surcharge plan" means the conditions under which an 
 insurer applies a surcharge including but not limited to:  (1) 
 the maximum dollar amount which an insurer pays due to an 
 accident without applying a surcharge, (2) accidents which are 
 not chargeable, (3) chargeable traffic violations, (4) the 
 length of time that an accident or a traffic violation is 
 chargeable, and (5) surcharge rates for the first and each 
 successive accident or traffic violation.  

    (h) "Surcharge rate" means the amount of any surcharge 
 expressed as a percentage of the computed premium rate or as a 
 dollar amount surcharge, if a percentage surcharge is not used.  

    Subd. 2.    Disclosure to applicants.  Before accepting 
 the initial premium payment, an insurer or its agent shall 
 provide a surcharge disclosure statement to any person who 
 applies for a policy which is effective on or after January 1, 
 1983.  

    Subd. 3.    Disclosure to policyholders.  An insurer or 
 its agent shall mail or deliver a surcharge disclosure statement 
 to the named insured either before or with the first notice to 
 renew a policy on or after January 1, 1983.  If a surcharge 
 disclosure statement has been provided pursuant to subdivision 
 2, no surcharge disclosure statement is required to be mailed or 
 delivered to the same named insured pursuant to subdivision 3.  

    Subd. 4.    Notification of change.  No insurer may 
 change its surcharge plan unless a surcharge disclosure 
 statement is mailed or delivered to the named insured before the 
 change is made.  A surcharge disclosure statement disclosing a 
 change applicable on the renewal of a policy, may be mailed with 
 an offer to renew the policy.  Surcharges cannot be applied to 
 accidents or traffic violations that occurred prior to a change 
 in a surcharge plan except to the extent provided under the 
 prior plan.  

    Subd. 5.    Limitation on chargeable traffic violations. 
  No traffic violation is chargeable to a driver unless the 
 driver is convicted of, or forfeits bail for, the offense, or 
 the driver's license is revoked pursuant to section 169A.52.  If 
 a surcharge is applied because bail is forfeited and if the 
 driver is later acquitted of the offense, the insurer shall 
 rebate the surcharge. A violation of section 169.685, 
 subdivision 5 is not chargeable. 

    Subd. 5a.    Surcharge prohibition.  No surcharge is 
 chargeable to an insured who collects benefits under a policy 
 because the insured is a passenger in a bus, taxi, or commuter 
 van involved in an accident. 

    Subd. 6.    Penalty.  Failure to comply with this 
 section constitutes a violation of section 70A.04 and is subject 
 to the penalties prescribed in section 70A.21.  

    Subd. 7.    Commissioner may promulgate rules.  The 
 commissioner may promulgate rules reasonably necessary to carry 
 out and make effective this section. 

    HIST: 1982 c 541 s 1; 1983 c 261 s 2; 1992 c 564 art 1 s 45; 
 1997 c 64 s 1; 2000 c 478 art 2 s 7 

     65B.134 Comprehensive coverage; glass breakage. 

    Any policy of automobile insurance, as defined in section 
 65B.14, subdivision 2, providing comprehensive coverage, whether 
 designated as such or included in a policy providing broader 
 coverage, must provide at the option of the insured complete 
 coverage for repair or replacement of all damaged safety glass 
 without regard to any deductible or minimum amount.  

    HIST: 1983 c 292 s 2 

     65B.135 Limousine insurance. 

    An insurer who provides insurance for limousines, defined 
 in section 168.011, subdivision 35, shall provide insurance in a 
 minimum aggregate amount of $300,000 per accident for each 
 limousine covered. 

    HIST: 1989 c 318 s 3 

     65B.14 Definitions. 

    Subdivision 1.    Application.  For the purposes of 
 sections 65B.14 to 65B.21, the terms defined in this section 
 have the meanings given them. 

    Subd. 2.    Policy of automobile insurance or policy.  
 "Policy of automobile insurance" or "policy" means a policy of 
 private passenger vehicle insurance as defined in section 
 65B.001, or a plan of reparation security as defined in section 
 65B.48 insuring less than five vehicles rated on a commercial or 
 fleet basis, or a policy of insurance covering the use of a 
 motorcycle, delivered or issued for delivery in this state. 

    Subd. 3.    Renewal or to renew.  "Renewal" or "to 
 renew" means the issuance and delivery by an insurer of a policy 
 superseding at the end of the policy period a policy previously 
 issued and delivered by the same insurer on the same rating 
 plan, or the issuance and delivery of a certificate or notice 
 extending the term of a policy beyond its policy period or term; 
 provided, however, that any policy with a policy period or term 
 of less than six months or any policy with no fixed expiration 
 date shall for the purpose of sections 65B.14 to 65B.21 be 
 considered as if written for successive policy periods or terms 
 of six months. 

    Subd. 4.    Nonpayment of premium.  "Nonpayment of 
 premium" means failure of the named insured to discharge when 
 due any obligations in connection with the payment of premiums 
 on a policy of automobile insurance or any installment of such 
 premium, whether the premium is payable directly to the insurer 
 or its agent or indirectly under any premium finance plan or 
 extension of credit. 

    Subd. 5.    Violations.  "Violations" means all moving 
 traffic violations that are recorded by the department of public 
 safety on a household member's motor vehicle record, and 
 violations reported by a similar authority in another state or 
 moving traffic violations reported by the insured. 

    HIST: 1967 c 463 s 1; 1971 c 813 s 13; 1974 c 56 s 1; 1974 c 
 408 s 31; 1977 c 366 s 2; 1984 c 592 s 54,56; 1986 c 444; 1996 c 
 446 art 1 s 56 

     65B.15 Cancellation or reduction in limits during policy 
  period; grounds; notice. 

    Subdivision 1.  No cancellation or reduction in the limits 
 of liability of coverage during the policy period of any policy 
 shall be effective unless notice thereof is given and unless 
 based on one or more reasons stated in the policy which shall be 
 limited to the following: 

    1.  Nonpayment of premium; or 

    2.  The policy was obtained through a material 
 misrepresentation; or 

    3.  Any insured made a false or fraudulent claim or 
 knowingly aided or abetted another in the presentation of such a 
 claim; or 

    4.  The named insured failed to disclose fully motor 
 vehicle accidents and moving traffic violations of the named 
 insured for the preceding 36 months if called for in the written 
 application; or 

    5.  The named insured failed to disclose in the written 
 application any requested information necessary for the 
 acceptance or proper rating of the risk; or 

    6.  The named insured knowingly failed to give any required 
 written notice of loss or notice of lawsuit commenced against 
 the named insured, or, when requested, refused to cooperate in 
 the investigation of a claim or defense of a lawsuit; or 

    7.  The named insured or any other operator who either 
 resides in the same household, or customarily operates an 
 automobile insured under such policy, unless the other operator 
 is identified as a named insured in another policy as an insured:

    (a) has, within the 36 months prior to the notice of 
 cancellation, had that person's driver's license under 
 suspension or revocation because the person committed a moving 
 traffic violation or because the person refused to be tested 
 under section 169A.20, subdivision 1; or 

    (b) is or becomes subject to epilepsy or heart attacks, and 
 such individual does not produce a written opinion from a 
 physician testifying to that person's medical ability to operate 
 a motor vehicle safely, such opinion to be based upon a 
 reasonable medical probability; or 

    (c) has an accident record, conviction record (criminal or 
 traffic), physical condition or mental condition, any one or all 
 of which are such that the person's operation of an automobile 
 might endanger the public safety; or 

    (d) has been convicted, or forfeited bail, during the 24 
 months immediately preceding the notice of cancellation for 
 criminal negligence in the use or operation of an automobile, or 
 assault arising out of the operation of a motor vehicle, or 
 operating a motor vehicle while in an intoxicated condition or 
 while under the influence of drugs; or leaving the scene of an 
 accident without stopping to report; or making false statements 
 in an application for a driver's license, or theft or unlawful 
 taking of a motor vehicle; or 

    (e) has been convicted of, or forfeited bail for, one or 
 more violations within the 18 months immediately preceding the 
 notice of cancellation, of any law, ordinance, or rule which 
 justify a revocation of a driver's license.  

    8.  The insured automobile is: 

    (1) so mechanically defective that its operation might 
 endanger public safety; or 

    (2) used in carrying passengers for hire or compensation, 
 provided however that the use of an automobile for a car pool 
 shall not be considered use of an automobile for hire or 
 compensation; or 

    (3) used in the business of transportation of flammables or 
 explosives; or 

    (4) an authorized emergency vehicle; or 

    (5) subject to an inspection law and has not been inspected 
 or, if inspected, has failed to qualify within the period 
 specified under such inspection law; or 

    (6) substantially changed in type or condition during the 
 policy period, increasing the risk substantially, such as 
 conversion to a commercial type vehicle, a dragster, sports car 
 or so as to give clear evidence of a use other than the original 
 use. 

    Subd. 2.  This section shall not apply to any policy of 
 automobile liability insurance which has been in effect less 
 than 60 days at the time notice of cancellation is mailed or 
 delivered by the insurer unless it is a renewal policy.  

    Subd. 3. Repealed, 1984 c 592 s 94 

    HIST: 1967 c 463 s 2; 1985 c 248 s 70; 1986 c 444; 1987 c 337 
 s 99; 1989 c 260 s 13; 1996 c 446 art 1 s 57; 2000 c 478 art 2 s 
 7 

     65B.16 Statement of reasons for cancellation or 
  reduction. 

    No notice of cancellation or reduction in the limits of 
 liability of coverage of an automobile insurance policy under 
 section 65B.15 shall be effective unless the specific 
 underwriting or other reason or reasons for such cancellation or 
 reduction in the limits of liability of coverage are stated in 
 such notice and the notice is mailed or delivered by the insurer 
 so as to provide the named insured with at least 30 days' notice 
 prior to the effective date of cancellation; provided, however, 
 that when nonpayment of premium is the reason for cancellation 
 or when the company is exercising its right to cancel insurance 
 which has been in effect for less than 60 days at least ten 
 days' notice of cancellation, and the reasons for the 
 cancellation, shall be given.  Information regarding moving 
 traffic violations or motor vehicle accidents must be 
 specifically requested on the application in order for a company 
 to use those incidents to exercise its right to cancel within 
 the first 59 days of coverage.  When nonpayment of premiums is 
 the reason for cancellation, the reason must be given to the 
 insured with the notice of cancellation; and if the company is 
 exercising its right to cancel within the first 59 days of 
 coverage and notice is given with less than ten days remaining 
 in the 59-day period, the coverage must be extended, to expire 
 ten days after notice was mailed.  

    HIST: 1967 c 463 s 3; 1971 c 696 s 1; 1984 c 592 s 57; 1987 c 
 337 s 100; 2001 c 215 s 32 

     65B.161 Refund of premium on cancellation. 

    Cancellation of a policy of automobile insurance pursuant 
 to sections 65B.15 and 65B.16 shall not be effective unless any 
 unearned premium due the insured is returned to the insured with 
 the notice of cancellation or is delivered or sent by mail to 
 the insured so as to be received by the insured not later than 
 the effective date of cancellation. 

    HIST: 1977 c 366 s 3 

     65B.162 Notice of possible cancellation. 

    A written notice shall be provided to all applicants for 
 private passenger insurance, at the time the application is 
 submitted, containing the following language in bold print:  
 "THE INSURER MAY ELECT TO CANCEL COVERAGE AT ANY TIME DURING THE 
 FIRST 59 DAYS FOLLOWING ISSUANCE OF THE COVERAGE FOR ANY REASON 
 WHICH IS NOT SPECIFICALLY PROHIBITED BY STATUTE." 

    HIST: 1987 c 337 s 101 

     65B.17 Renewal; notice not to renew. 

    Subdivision 1.    General regulations.  No insurer shall 
 fail to renew an automobile insurance policy unless it shall 
 mail or deliver to the named insured, at the address shown in 
 the policy, at least 60 days' advance notice of its intention 
 not to renew.  The notice must contain the specific underwriting 
 or other reason or reasons for the nonrenewal.  When the failure 
 to renew is based upon a termination of the agency contract, the 
 notice must so state.  This section does not apply: 

    (a) If the insurer has manifested its willingness to renew; 
 or 

    (b) In case of nonpayment of the renewal premium; 

    Provided that, notwithstanding the failure of an insurer to 
 comply with this section, the policy terminates on the effective 
 date of any other automobile insurance policy procured by the 
 insured, with respect to any automobile designated in both 
 policies.  Renewal of a policy does not constitute a waiver or 
 estoppel with respect to grounds for cancellation which existed 
 before the effective date of the renewal.  No insurer shall fail 
 to renew an automobile policy solely because of the age of the 
 insured.  No insurer shall refuse to renew an automobile 
 insurance policy for reasons which are arbitrary or capricious.  
 No insurer shall refuse to renew an automobile insurance policy 
 in violation of rules adopted pursuant to subdivision 2.  An 
 insurer may refuse to renew an automobile insurance policy in 
 case of nonpayment of dues to an association or organization, 
 other than an insurance association or organization, where 
 payment of dues is a prerequisite to obtaining or continuing 
 such insurance; provided, however, that this provision for 
 nonrenewal for failure to pay dues shall not be applicable to 
 persons who are retired at age 62 years of age or older or who 
 are disabled, according to social security standards. 

    Subd. 2.    Rulemaking.  The commissioner may adopt 
 rules pursuant to chapter 14 to specify the grounds for 
 nonrenewal of an automobile policy.  The rules must limit the 
 basis for nonrenewal to the following factors:  

    (a) the reasons stated for cancellation in section 65B.15; 

    (b) payments made for collision, bodily injury liability, 
 or property damage liability coverage; 

    (c) moving violations of a driver; and 

    (d) other factors deemed reasonable by the commissioner.  

    The rules must specify the manner in which these factors 
 will be considered and may reflect the severity or recurrence of 
 any moving violation, the amount of any payment made, and the 
 number of vehicles insured.  

    Subd. 3.    Administrative penalty.  The rules adopted 
 under this section may provide for imposition of a monetary 
 penalty not greater than $500 per occurrence upon insurers who 
 are found to be in violation of any rule provision. 

    HIST: 1967 c 463 s 4; 1969 c 845 s 1; 1971 c 696 s 2; 1974 c 
 56 s 2; 1976 c 175 s 1; 1983 c 203 s 2; 1984 c 592 s 58; 1984 c 
 640 s 32; 1995 c 233 art 2 s 56 

     65B.18 Proof of mailing of notice.  

    Proof of mailing of notice of cancellation, reduction in 
 the limits of liability of coverage, or nonrenewal of a policy 
 and, if required herein, the reason or reasons therefor to the 
 named insured at the address shown in the policy, shall be 
 sufficient proof that notice required herein has been given.  

    HIST: 1967 c 463 s 5; 1969 c 6 s 16; 1974 c 56 s 3 

     65B.19 Notice of cancellation or nonrenewal. 

    Subdivision 1.    Disclosure.  No insurer shall take any 
 action in regard to an automobile insurance policy on the 
 statements or charges of any person made to the insurer 
 concerning alleged unsafe driving habits of an insured unless 
 the insurer shall concurrently disclose to the insured the name 
 and address of the person from which the information was 
 received.  

    Subd. 2.    Notice of right to complain.  When the 
 insurer notifies the policyholder of nonrenewal, cancellation or 
 reduction in the limits of liability of coverage under section 
 65B.16 or 65B.17, the insurer shall also notify the named 
 insured of the right to complain within 30 days of receipt by 
 the named insured of notice of nonrenewal, cancellation or 
 reduction in the limits of liability to the commissioner of such 
 action and of the nature of and possible eligibility for 
 insurance through the Minnesota automobile insurance plan.  Such 
 notice shall be included in the notice of nonrenewal, 
 cancellation or reduction in the limits of liability of 
 coverage, and shall state that such notice of the insured's 
 right of complaint to the commissioner and of the availability 
 of insurance through the Minnesota automobile insurance plan is 
 given pursuant to sections 65B.14 to 65B.21.  The notice must 
 state the name of the insurer and the date the notice is issued. 

    HIST: 1967 c 463 s 6; 1969 c 845 s 2; 1971 c 696 s 3; 1971 c 
 813 s 14; 1973 c 610 s 1; 1984 c 592 s 59; 1986 c 444; 2001 c 
 215 s 33 

     65B.20 Immunity of insurer or commissioner; use of 
  reasons for cancellation.  

    There shall be no liability on the part of and no cause of 
 action of any nature shall arise against the commissioner or 
 against any insurer, its authorized representative, its agents, 
 its employees, or any firm, person or corporation furnishing to 
 the insurer information as to reasons for nonrenewal or 
 cancellation, for any statement made by them in any written 
 notice of nonrenewal or cancellation, for the providing of 
 information relating thereto, or for statements made or evidence 
 submitted at any hearings conducted in connection therewith.  

    HIST: 1967 c 463 s 7; 1969 c 845 s 3 

     65B.21 Objections; investigation; determination. 

    Subdivision 1.  Any individual who believes such 
 nonrenewal, cancellation or reduction in the limits of liability 
 of coverage of the individual's policy is arbitrary, capricious 
 or otherwise in violation of this provision, or who believes 
 such notice of nonrenewal and the reason or reasons therefor 
 were not given as provided herein, may, within 30 days after 
 receipt of notice thereof, file in writing an objection to such 
 action with the commissioner.  

    Subd. 2.  Upon receipt of a written objection pursuant to 
 the provisions herein, the commissioner may notify the insurer 
 of receipt of such objection and of the right of the insurer to 
 file a written response thereto within ten days of receipt of 
 such notification.  The commissioner may also order an 
 investigation of the objection or complaint, the submission of 
 additional information by the insured or the insurer about the 
 action by the insurer or the objections of the insured, or such 
 other procedure as the commissioner deems appropriate or 
 necessary.  Within 23 days of receipt of such written objection 
 by an insured the commissioner shall approve or disapprove the 
 insurer's action and shall notify the insured and insurer of the 
 final decision.  Either party may institute proceedings for 
 judicial review of the commissioner's decision; provided, 
 however, that the commissioner's final decision shall be binding 
 pending judicial review.  

    HIST: 1967 c 463 s 8; 1969 c 845 s 4; 1971 c 696 s 4; 1973 c 
 610 s 2; 1986 c 444; 1987 c 337 s 102 

  65B.22 Repealed, 1974 c 408 s 33 

  65B.23 Repealed, 1974 c 408 s 33 

  65B.24 Repealed, 1974 c 408 s 33 

  65B.25 Repealed, 1974 c 408 s 33 

  65B.26 Repealed, 1974 c 408 s 33 

  65B.27 Repealed, 1974 c 408 s 33 

     65B.28 Accident prevention course premium reductions. 

    Subdivision 1.    Required reduction.  An insurer must 
 provide an appropriate premium reduction of at least ten percent 
 on its policies of private passenger vehicle insurance, as 
 defined in section 65B.001, subdivision 2, issued, delivered, or 
 renewed in this state, to insureds 55 years old and older who 
 successfully complete an accident prevention course or refresher 
 course established under subdivisions 2 and 3. 

    Subd. 2.    Accident prevention course; rules.  The 
 commissioner of public safety shall adopt rules establishing and 
 regulating a motor vehicle accident prevention course for 
 persons 55 years old and older.  The rules must, at a minimum, 
 include provisions:  

    (1) establishing curriculum requirements; 

    (2) establishing the number of hours required for 
 successful completion of the course; and 

    (3) providing for the issuance of a course completion 
 certification and requiring its submission to an insured as 
 evidence of completion of the course. 

    Subd. 3.    Refresher course.  The department of public 
 safety, in consultation with other traffic safety and medical 
 professionals, may establish a refresher course for persons who 
 have completed the original course under subdivision 2.  The 
 refresher course shall be no more than four hours, and based on 
 the curriculum established under subdivision 2.  The department 
 of public safety shall establish criteria for and approve 
 training agencies or organizations authorized to conduct the 
 refresher course. 

    Subd. 4.    Completion certificate.  Persons 55 years 
 old and older may retake the original course or take the 
 refresher course every three years and receive a course 
 completion certificate to remain eligible for the premium 
 reduction in subdivision 1.  The department of public safety 
 shall provide criteria for the issuance of the course completion 
 certificates. 

    HIST: 1984 c 532 s 1; 1987 c 337 s 103; 1994 c 547 s 1; 1997 c 
 187 art 3 s 18 

     65B.285 Antitheft protection device premium reduction. 

    Subdivision 1.    Definition.  For the purposes of this 
 section the term "authorized antitheft protection device" means 
 a device provided by the manufacturer of a vehicle as original 
 equipment or installed in a vehicle by the manufacturer of the 
 vehicle or an authorized dealer of that manufacturer that does 
 one or more of the following when activated unless the vehicle 
 is entered and started by means of a lock system:  (1) sound an 
 alarm; (2) cause the vehicle horn to sound; (3) cause the 
 vehicle lights to flash; or (4) cause the vehicle to be rendered 
 inoperable.  The device must be self-activating upon the locking 
 of the passenger doors of the vehicle.  

    Subd. 2.    Required reduction.  An insurer must provide 
 an appropriate premium reduction of at least five percent on the 
 comprehensive coverage on a policy of private passenger vehicle 
 insurance, as defined in section 65B.001, subdivision 2, issued, 
 delivered, or renewed in this state, to an insured whose vehicle 
 is equipped with an authorized antitheft protection device.  The 
 premium reduction required by this subdivision applies to every 
 vehicle of an insured that is equipped with an authorized 
 antitheft protection device. 

    HIST: 1995 c 115 s 1 

     65B.29 Motor vehicle service contracts. 

    Subdivision 1.    Definitions.  For the purposes of this 
 section, the following terms have the meanings given them:  

    (1) "Motor vehicle service contract" or "service contract" 
 means a contract or agreement given for consideration over and 
 above the lease or purchase price of a motor vehicle that 
 undertakes to perform or provide repair or replacement service, 
 or indemnification for that service, for the operational or 
 structural failure of a motor vehicle due to defect in materials 
 or workmanship or normal wear and tear, but does not include 
 mechanical breakdown insurance.  

    (2) "Motor vehicle service contract provider" or "provider" 
 means a person who issues, makes, provides, sells, or offers to 
 sell a motor vehicle service contract.  

    (3) "Commissioner" means the commissioner of commerce.  

    (4) "Department" means the department of commerce.  

    (5) "Mechanical breakdown insurance" means a policy, 
 contract, or agreement that undertakes to perform or provide 
 repair or replacement service, or indemnification for that 
 service, for the operational or structural failure of a motor 
 vehicle due to defect in materials or workmanship or normal wear 
 and tear, and that is issued by an insurance company authorized 
 to do business in this state.  

    (6) "Motor vehicle service contract reimbursement insurance 
 policy" or "reimbursement insurance policy" means a policy of 
 insurance providing coverage for all obligations and liabilities 
 incurred by a motor vehicle service contract provider under the 
 terms of motor vehicle service contracts issued by the provider. 

    (7) "Motor vehicle" means any self-propelled vehicle not 
 operated exclusively upon railroad tracks and any vehicle 
 propelled or drawn by a self-propelled vehicle but does not 
 include snowmobiles and manufactured homes.  

    (8) "Service contract holder" means a person who purchases 
 a motor vehicle service contract.  

    (9) "Motor vehicle service contract administrator" means a 
 person who provides administrative services to motor vehicle 
 service contract providers, including but not limited to: 
 issuing a motor vehicle service contract; reviewing or settling 
 losses arising under the contract; providing or recommending the 
 written contract or form for a contract; providing or 
 recommending advertising or promotional materials.  

    Subd. 2.    Insurance required.  No motor vehicle 
 service contract may be issued, sold, or offered for sale in 
 this state unless the provider of the service contract is 
 insured under a motor vehicle service contract reimbursement 
 insurance policy issued by an insurer authorized to do business 
 in this state.  Insurers issuing such a policy are required to 
 have capital and surplus equal to at least $5,000,000 at the end 
 of the preceding year.  Capital and surplus must be calculated 
 using the accounting standards required by section 60A.13. 

    Subd. 3.    Filing requirements.  No motor vehicle 
 service contract may be issued, sold, or offered for sale in 
 this state unless a true and correct copy of the service 
 contract and the provider's reimbursement insurance policy have 
 been filed with the commissioner and either (1) the commissioner 
 has approved it or (2) 60 days have elapsed and the commissioner 
 has not disapproved it as misleading or violative of public 
 policy.  The commissioner may, by written notice to the 
 provider, extend the review for an additional period not to 
 exceed 60 days. 

    Subd. 4.    Disclosure to provider.  No motor vehicle 
 service contract reimbursement insurance policy may be issued, 
 sold, or offered for sale in this state unless the reimbursement 
 insurance policy conspicuously states that the issuer of the 
 policy will pay on behalf of the provider all sums which the 
 provider is legally obligated to pay in the performance of its 
 contractual obligations under the motor vehicle service 
 contracts issued or sold by the provider.  

    Subd. 5.    Disclosure to service contract holders.  No 
 motor vehicle service contract may be issued, sold, or offered 
 for sale in this state unless the contract conspicuously states 
 that the obligations of the provider to the service contract 
 holder are guaranteed under the service contract reimbursement 
 policy, and unless the contract conspicuously states the name 
 and address of the issuer of the reimbursement policy.  

    Subd. 6.    Commissioner may prohibit certain sales.  
 The commissioner must, upon giving a ten-day notice to a motor 
 vehicle service contract provider, issue an order instructing 
 the provider to cease and desist from selling or offering for 
 sale motor vehicle service contracts if the commissioner 
 determines that the provider has failed to comply with a 
 provision of this section.  The commissioner must, upon giving a 
 ten-day notice to an insurance company, issue an order 
 instructing the insurer to cease and desist from selling or 
 offering for sale motor vehicle service contract reimbursement 
 insurance policies if the commissioner determines that the 
 insurer has failed to comply with a provision of this section.  

    Subd. 7.    Rules.  The commissioner may adopt rules in 
 the manner prescribed by chapter 14 to administer and enforce 
 the provisions of this section and to establish minimum 
 standards for disclosure of motor vehicle service contract 
 coverage limitations and exclusions.  

    Subd. 8.    Inapplicable.  This section does not apply 
 to motor vehicle service contracts issued by a motor vehicle 
 manufacturer, distributor or importer.  

    HIST: 1984 c 568 s 1; 2000 c 483 s 19,20 

     65B.41 Citation. 

    Sections 65B.41 to 65B.71, may be cited as the "Minnesota 
 No-Fault Automobile Insurance Act." 

    HIST: 1974 c 408 s 1; 1978 c 674 s 57 

     65B.42 Purpose. 

    The detrimental impact of automobile accidents on 
 uncompensated injured persons, upon the orderly and efficient 
 administration of justice in this state, and in various other 
 ways requires that sections 65B.41 to 65B.71 be adopted to 
 effect the following purposes: 

    (1) To relieve the severe economic distress of 
 uncompensated victims of automobile accidents within this state 
 by requiring automobile insurers to offer and automobile owners 
 to maintain automobile insurance policies or other pledges of 
 indemnity which will provide prompt payment of specified basic 
 economic loss benefits to victims of automobile accidents 
 without regard to whose fault caused the accident; 

    (2) To prevent the overcompensation of those automobile 
 accident victims suffering minor injuries by restricting the 
 right to recover general damages to cases of serious injury; 

    (3) To encourage appropriate medical and rehabilitation 
 treatment of the automobile accident victim by assuring prompt 
 payment for such treatment; 

    (4) To speed the administration of justice, to ease the 
 burden of litigation on the courts of this state, and to create 
 a system of small claims arbitration to decrease the expense of 
 and to simplify litigation, and to create a system of mandatory 
 intercompany arbitration to assure a prompt and proper 
 allocation of the costs of insurance benefits between motor 
 vehicle insurers; 

    (5) To correct imbalances and abuses in the operation of 
 the automobile accident tort liability system, to provide 
 offsets to avoid duplicate recovery, to require medical 
 examination and disclosure, and to govern the effect of advance 
 payments prior to final settlement of liability. 

    HIST: 1974 c 408 s 2; 1978 c 674 s 57 

     65B.43 Definitions. 

    Subdivision 1.  The following words and phrases, shall, for 
 the purpose of sections 65B.41 to 65B.71, have the meanings 
 ascribed to them, except where the context clearly indicates a 
 different meaning. 

    Subd. 2.  "Motor vehicle" means every vehicle, other than a 
 motorcycle or other vehicle with fewer than four wheels, which 
 (a) is required to be registered pursuant to chapter 168, and 
 (b) is designed to be self-propelled by an engine or motor for 
 use primarily upon public roads, highways or streets in the 
 transportation of persons or property, and includes a trailer 
 with one or more wheels, when the trailer is connected to or 
 being towed by a motor vehicle. 

    Subd. 3.  "Maintenance or use of a motor vehicle" means 
 maintenance or use of a motor vehicle as a vehicle, including, 
 incident to its maintenance or use as a vehicle, occupying, 
 entering into, and alighting from it. Maintenance or use of a 
 motor vehicle does not include (1) conduct within the course of 
 a business of repairing, servicing, or otherwise maintaining 
 motor vehicles unless the conduct occurs off the business 
 premises, or (2) conduct in the course of loading and unloading 
 the vehicle unless the conduct occurs while occupying, entering 
 into or alighting from it. 

    Subd. 4.  "Owner" means a person, other than a lienholder 
 or secured party, who owns or holds legal title to a motor 
 vehicle or is entitled to the use and possession of a motor 
 vehicle subject to a security interest held by another person.  
 If a motor vehicle is the subject of a lease having an initial 
 term of six months or longer, the lessee shall be deemed the 
 owner for the purposes of sections 65B.41 to 65B.71, and 170.54, 
 notwithstanding the fact that the lessor retains title to the 
 vehicle and notwithstanding the fact that the lessee may be the 
 owner for the purposes of chapter 168A. 

    Subd. 5.  "Insured" means an insured under a plan of 
 reparation security as provided by sections 65B.41 to 65B.71, 
 including the named insured and the following persons not 
 identified by name as an insured while (a) residing in the same 
 household with the named insured and (b) not identified by name 
 in any other contract for a plan of reparation security 
 complying with sections 65B.41 to 65B.71 as an insured: 

    (1) a spouse, 

    (2) other relative of a named insured or 

    (3) a minor in the custody of a named insured or of a 
 relative residing in the same household with a named insured. 

    A person resides in the same household with the named 
 insured if that person's home is usually in the same family 
 unit, even though temporarily living elsewhere. 

    Subd. 6.  "Income" means salary, wages, tips, commissions, 
 professional fees, and other earnings from work or tangible 
 things of economic value produced through work in individually 
 owned businesses, farms, ranches or other work. 

    Subd. 7.  "Loss" means economic detriment resulting from 
 the accident causing the injury, consisting only of medical 
 expense, income loss, replacement services loss and, if the 
 injury causes death, funeral expense, survivor's economic loss 
 and survivor's replacement services loss.  Noneconomic detriment 
 is not loss; however, economic detriment is loss although caused 
 by pain and suffering or physical or mental impairment. 

    Subd. 8.  "Noneconomic detriment" means all dignitary 
 losses suffered by any person as a result of injury arising out 
 of the ownership, maintenance, or use of a motor vehicle 
 including pain and suffering, loss of consortium, and 
 inconvenience. 

    Subd. 9.  "Reparation obligor" means an insurer or 
 self-insurer obligated to provide the benefits required by 
 sections 65B.41 to 65B.71, including natural persons, firms, 
 partnerships, associations, corporations, governmental units, 
 trusts and syndicates. 

    Subd. 10.  "Basic economic loss benefits" means benefits as 
 described in section 65B.44. 

    Subd. 11.  "Injury" means bodily harm to a person and death 
 resulting from such harm. 

    Subd. 12.  "Commercial vehicle" means: 

    (a) any motor vehicle used as a common carrier, 

    (b) any motor vehicle, other than a passenger vehicle 
 defined in section 168.011, subdivision 7, which has a curb 
 weight in excess of 5,500 pounds apart from cargo capacity, or 

    (c) any motor vehicle while used in the for-hire 
 transportation of property. 

    Commercial vehicle does not include a "commuter van," which 
 for purposes of this chapter shall mean a motor vehicle having a 
 capacity of seven to 16 persons which is used principally to 
 provide prearranged transportation of persons to or from their 
 place of employment or to or from a transit stop authorized by a 
 local transit authority which vehicle is to be operated by a 
 person who does not drive the vehicle as a principal occupation 
 but is driving it only to or from the principal place of 
 employment, to or from a transit stop authorized by a local 
 transit authority or for personal use as permitted by the owner 
 of the vehicle.  

    Subd. 13.  "Motorcycle" means a self-propelled vehicle 
 designed to travel on fewer than four wheels which has an engine 
 rated at greater than five horsepower, and includes (1) a 
 trailer with one or more wheels, when the trailer is connected 
 to or being towed by a motorcycle; and (2) a motorized bicycle 
 as defined in section 169.01, subdivision 4a, but does not 
 include an electric-assisted bicycle as defined in section 
 169.01, subdivision 4b.  

    Subd. 14.  Except where otherwise indicated, "commissioner" 
 means the commissioner of commerce of the state of Minnesota. 

    Subd. 15.  "Plan of reparation security" means a contract, 
 self-insurance, or other legal means under which there is an 
 obligation to pay the benefits described in section 65B.49.  

    Subd. 16.  "Uninsured motor vehicle" means a motor vehicle 
 or motorcycle for which a plan of reparation security meeting 
 the requirements of sections 65B.41 to 65B.71 is not in effect.  

    Subd. 17.  "Underinsured motor vehicle" means a motor 
 vehicle or motorcycle to which a bodily injury liability policy 
 applies at the time of the accident but its limit for bodily 
 injury liability is less than the amount needed to compensate 
 the insured for actual damages. 

    Subd. 18.  "Uninsured motorist coverage" means coverage for 
 the protection of persons insured under that coverage who are 
 legally entitled to recover damages for bodily injury from 
 owners or operators of uninsured motor vehicles and hit-and-run 
 motor vehicles. 

    Subd. 19.  "Underinsured motorist coverage" means coverage 
 for the protection of persons insured under that coverage who 
 are legally entitled to recover damages for bodily injury from 
 owners or operators of underinsured motor vehicles.  

    Subd. 20.  "Political subdivision" means any statutory or 
 home rule charter city; county; town; school district; or 
 metropolitan council, board or commission operating under 
 chapter 473. 

    HIST: 1974 c 408 s 3; 1975 c 18 s 1,2; 1976 c 233 s 6; 1978 c 
 674 s 57; 1979 c 190 s 1; 1983 c 289 s 114 subd 1; 1984 c 592 s 
 60-62; 1984 c 655 art 1 s 92; 1985 c 168 s 1-5; 1985 c 309 s 
 1-4; 1986 c 444; 1987 c 269 s 2; 1989 c 140 s 2; 1996 c 435 s 2 

     65B.44 Basic economic loss benefits. 

    Subdivision 1.    Inclusions.  Basic economic loss 
 benefits shall provide reimbursement for all loss suffered 
 through injury arising out of the maintenance or use of a motor 
 vehicle, subject to any applicable deductibles, exclusions, 
 disqualifications, and other conditions, and shall provide a 
 minimum of $40,000 for loss arising out of the injury of any one 
 person, consisting of: 

    (a) $20,000 for medical expense loss arising out of injury 
 to any one person; and 

    (b) a total of $20,000 for income loss, replacement 
 services loss, funeral expense loss, survivor's economic loss, 
 and survivor's replacement services loss arising out of the 
 injury to any one person. 

    Subd. 2.    Medical expense benefits.  (a) Medical 
 expense benefits shall reimburse all reasonable expenses for 
 necessary: 

    (1) medical, surgical, x-ray, optical, dental, 
 chiropractic, and rehabilitative services, including prosthetic 
 devices; 

    (2) prescription drugs; 

    (3) ambulance and all other transportation expenses 
 incurred in traveling to receive other covered medical expense 
 benefits; 

    (4) sign interpreting and language translation services, 
 other than such services provided by a family member of the 
 patient, related to the receipt of medical, surgical, x-ray, 
 optical, dental, chiropractic, hospital, extended care, nursing, 
 and rehabilitative services; and 

    (5) hospital, extended care, and nursing services.  

    (b) Hospital room and board benefits may be limited, except 
 for intensive care facilities, to the regular daily semiprivate 
 room rates customarily charged by the institution in which the 
 recipient of benefits is confined.  

    (c) Such benefits shall also include necessary remedial 
 treatment and services recognized and permitted under the laws 
 of this state for an injured person who relies upon spiritual 
 means through prayer alone for healing in accordance with that 
 person's religious beliefs.  

    (d) Medical expense loss includes medical expenses accrued 
 prior to the death of a person notwithstanding the fact that 
 benefits are paid or payable to the decedent's survivors.  

    (e) Medical expense benefits for rehabilitative services 
 shall be subject to the provisions of section 65B.45. 

    Subd. 3.    Disability and income loss benefits.  
 Disability and income loss benefits shall provide compensation 
 for 85 percent of the injured person's loss of present and 
 future gross income from inability to work proximately caused by 
 the nonfatal injury subject to a maximum of $250 per week.  Loss 
 of income includes the costs incurred by a self-employed person 
 to hire substitute employees to perform tasks which are 
 necessary to maintain the income of the injured person, which 
 are normally performed by the injured person, and which cannot 
 be performed because of the injury.  

    If the injured person is unemployed at the time of injury 
 and is receiving or is eligible to receive unemployment benefits 
 under chapter 268, but the injured person loses eligibility for 
 those benefits because of inability to work caused by the 
 injury, disability and income loss benefits shall provide 
 compensation for the lost benefits in an amount equal to the 
 unemployment benefits which otherwise would have been payable, 
 subject to a maximum of $250 per week.  

    Compensation under this subdivision shall be reduced by any 
 income from substitute work actually performed by the injured 
 person or by income the injured person would have earned in 
 available appropriate substitute work which the injured person 
 was capable of performing but unreasonably failed to undertake. 

    For the purposes of this section "inability to work" means 
 disability which prevents the injured person from engaging in 
 any substantial gainful occupation or employment on a regular 
 basis, for wage or profit, for which the injured person is or 
 may by training become reasonably qualified.  If the injured 
 person returns to employment and is unable by reason of the 
 injury to work continuously, compensation for lost income shall 
 be reduced by the income received while the injured person is 
 actually able to work.  The weekly maximums may not be prorated 
 to arrive at a daily maximum, even if the injured person does 
 not incur loss of income for a full week.  

    For the purposes of this section, an injured person who is 
 "unable by reason of the injury to work continuously" includes, 
 but is not limited to, a person who misses time from work, 
 including reasonable travel time, and loses income, vacation, or 
 sick leave benefits, to obtain medical treatment for an injury 
 arising out of the maintenance or use of a motor vehicle. 

    Subd. 3a.    Disability and income loss benefits election; 
 senior citizens.  A plan of reparation security issued to or 
 renewed with a person who has attained the age of 65 years must 
 provide disability and income loss benefits under section 
 65B.44, subdivision 3, unless the insured elects not to have 
 this coverage.  An election by the insured not to have this 
 coverage remains in effect until revoked by the insured.  The 
 reparation obligor shall notify a person of the person's rights 
 under this section at the time of the sale or the first renewal 
 of the policy after the insured has attained the age of 65 
 years, and at least annually after that.  The rate for any plan 
 for which coverage has been excluded or reduced pursuant to this 
 section must be reduced accordingly.  This section does apply to 
 self-insurance. 

    Subd. 4.    Funeral and burial expenses.  Funeral and 
 burial benefits shall be reasonable expenses not in excess of 
 $2,000, including expenses for cremation or delivery under the 
 Uniform Anatomical Gift Act (1987), sections 525.921 to 525.9224.

    Subd. 5.    Replacement service and loss.  Replacement 
 service loss benefits shall reimburse all expenses reasonably 
 incurred by or on behalf of the nonfatally injured person in 
 obtaining usual and necessary substitute services in lieu of 
 those that, had the injured person not been injured, the injured 
 person would have performed not for income but for direct 
 personal benefit or for the benefit of the injured person's 
 household; if the nonfatally injured person normally, as a full 
 time responsibility, provides care and maintenance of a home 
 with or without children, the benefit to be provided under this 
 subdivision shall be the reasonable value of such care and 
 maintenance or the reasonable expenses incurred in obtaining 
 usual and necessary substitute care and maintenance of the home, 
 whichever is greater.  These benefits shall be subject to a 
 maximum of $200 per week.  All replacement services loss 
 sustained on the date of injury and the first seven days 
 thereafter is excluded in calculating replacement services loss. 

    Subd. 6.    Survivors economic loss benefits.  
 Survivors economic loss benefits, in the event of death 
 occurring within one year of the date of the accident, caused by 
 and arising out of injuries received in the accident, are 
 subject to a maximum of $200 per week and shall cover loss 
 accruing after decedent's death of contributions of money or 
 tangible things of economic value, not including services, that 
 surviving dependents would have received from the decedent for 
 their support during their dependency had the decedent not 
 suffered the injury causing death. 

    For the purposes of definition under sections 65B.41 to 
 65B.71, the following described persons shall be presumed to be 
 dependents of a deceased person:  (a) a wife is dependent on a 
 husband with whom she lives at the time of his death; (b) a 
 husband is dependent on a wife with whom he lives at the time of 
 her death; (c) any child while under the age of 18 years, or 
 while over that age but physically or mentally incapacitated 
 from earning, is dependent on the parent with whom the child is 
 living or from whom the child is receiving support regularly at 
 the time of the death of such parent. Questions of the existence 
 and the extent of dependency shall be questions of fact, 
 considering the support regularly received from the deceased. 

    Payments shall be made to the dependent, except that 
 benefits to a dependent who is a child or an incapacitated 
 person may be paid to the dependent's surviving parent or 
 guardian.  Payments shall be terminated whenever the recipient 
 ceases to maintain a status which if the decedent were alive 
 would be that of dependency. 

    Subd. 7.    Survivors replacement services loss.  
 Survivors replacement services loss benefits shall reimburse 
 expenses reasonably incurred by surviving dependents after the 
 date of the decedent's death in obtaining ordinary and necessary 
 services in lieu of those the deceased would have performed for 
 their benefit had the decedent not suffered the injury causing 
 death, minus expenses of the survivors avoided by reason of the 
 decedent's death.  These benefits shall be subject to a maximum 
 of $200 per week. 

    Subd. 8.    Property damage exclusion.  "Basic economic 
 loss benefits" do not include benefits for physical damage done 
 to property including motor vehicles and their contents. 

    HIST: 1974 c 408 s 4; 1975 c 18 s 3-6; 1976 c 2 s 42; 1977 c 
 266 s 1; 1978 c 674 s 57; 1979 c 221 s 1,2; 1983 c 345 s 1; 1984 
 c 602 s 5; 1985 c 168 s 6,7; 1Sp1985 c 10 s 67; 1986 c 444; 1989 
 c 260 s 14; 1991 c 202 s 1; 1997 c 66 s 80; 1999 c 107 s 66; 
 1999 c 134 s 1; 1999 c 177 s 67; 1987 c 337 s 107; 2001 c 124 s 
 1,2 

     65B.45 Rehabilitation treatment and occupational 
  training.  

    Subdivision 1.  A reparation obligor is responsible for the 
 cost of a procedure or treatment for rehabilitation or a course 
 of rehabilitative occupational training if the procedure, 
 treatment, or training is reasonable and appropriate for the 
 particular case, its cost is reasonable in relation to its 
 probable rehabilitative effects, and it is likely to contribute 
 substantially to medical or occupational rehabilitation.  

    Subd. 2.  An injured person who has undertaken a procedure 
 or treatment for rehabilitation or a course of rehabilitative 
 occupational training, other than medical rehabilitation 
 procedure or treatment, shall give notice to the reparation 
 obligor of having undertaken the procedure, treatment, or 
 training within 60 days after a rehabilitation expense exceeding 
 $1,000 has been incurred for the procedure, treatment, or 
 training, unless the reparation obligor knows or has reason to 
 know of the undertaking.  If the injured person does not give 
 the required notice within the prescribed time, the reparation 
 obligor is responsible only for $1,000 or the expense incurred 
 after the notice is given and within the 60 days before the 
 notice, whichever is greater, unless failure to give timely 
 notice is the result of excusable neglect.  

    Subd. 3.  If the injured person notifies the reparation 
 obligor of a proposed specified procedure or treatment for 
 rehabilitation, or a proposed specified course of rehabilitative 
 occupational training, and the reparation obligor does not 
 promptly thereafter accept responsibility for its cost, the 
 injured person may make a motion in an action to adjudicate the 
 claim, or, if no action is pending, bring an action in the 
 district court, for a determination that the reparation obligor 
 is responsible for its costs.  A reparation obligor may make a 
 motion in an action to adjudicate the injured person's claim, 
 or, if no action is pending, bring an action in the district 
 court, for a determination that it is not responsible for the 
 cost of a procedure, treatment, or course of training which the 
 injured person has undertaken or proposes to undertake.  A 
 determination by the court that the reparation obligor is not 
 responsible for the cost of a procedure, treatment, or course of 
 training is not res judicata as to the propriety of any other 
 proposal or the injured person's right to other benefits.  This 
 subdivision does not preclude an action by the reparation 
 obligor or the injured person for declaratory relief under any 
 other law of this state, nor an action by the injured person to 
 recover basic economic loss benefits.  

    Subd. 4.  If an injured person unreasonably refuses to 
 accept a rehabilitative procedure, treatment, or course of 
 occupational training, a reparation obligor may make a motion in 
 an action to adjudicate the injured person's claim, or if no 
 action is pending, may bring an action in the district court, 
 for a determination that future benefits will be reduced or 
 terminated to limit recovery of benefits to an amount equal to 
 benefits that in reasonable probability would be due if the 
 injured person had submitted to the procedure, treatment, or 
 training, and for other reasonable orders.  In determining 
 whether an injured person has reasonable ground for refusal to 
 undertake the procedure, treatment, or training, the court shall 
 consider all relevant factors, including the risks to the 
 injured person, the extent of the probable benefit, the place 
 where the procedure, treatment, or training is offered, the 
 extent to which the procedure, treatment, or training is 
 recognized as standard and customary, and whether the imposition 
 of sanctions because of the person's refusal would abridge the 
 right to the free exercise of religion.  

    HIST: 1974 c 408 s 5; 1986 c 444 

     65B.46 Right to benefits. 

    Subdivision 1.  If the accident causing injury occurs in 
 this state, every person suffering loss from injury arising out 
 of maintenance or use of a motor vehicle or as a result of being 
 struck as a pedestrian by a motorcycle has a right to basic 
 economic loss benefits. 

    Subd. 2.  If the accident causing injury occurs outside 
 this state in the United States, United States possessions, or 
 Canada, the following persons and their surviving dependents 
 suffering loss from injury arising out of maintenance or use of 
 a motor vehicle or as a result of being struck as a pedestrian 
 by a motorcycle have a right to basic economic loss benefits: 

    (1) Insureds, and 

    (2) the driver and other occupants of a secured vehicle, 
 other than (a) a vehicle which is regularly used in the course 
 of the business of transporting persons or property and which is 
 one of five or more vehicles under common ownership, or (b) a 
 vehicle owned by a government other than this state, its 
 political subdivisions, municipal corporations, or public 
 agencies.  The reparation obligor may, if the policy expressly 
 states, extend the basic economic loss benefits to any stated 
 area beyond the limits of the United States, United States 
 possessions and Canada.  

    Subd. 3.  For the purposes of sections 65B.41 to 65B.71, 
 injuries suffered by a person while on, mounting or alighting 
 from a motorcycle do not arise out of the maintenance or use of 
 a motor vehicle although a motor vehicle is involved in the 
 accident causing the injury. 

    HIST: 1974 c 408 s 6; 1978 c 674 s 57; 1980 c 539 s 1; 1987 c 
 337 s 104 

     65B.47 Priority of applicability of security for payment 
  of basic economic loss benefits. 

    Subdivision 1.    Injury resulting from business use.  
 In case of injury to the driver or other occupant of a motor 
 vehicle, if the accident causing the injury occurs while the 
 vehicle is being used in the business of transporting persons or 
 property, the security for payment of basic economic loss 
 benefits is the security covering the vehicle or, if none, the 
 security under which the injured person is an insured. 

    Subd. 1a.    Exemptions.  Subdivision 1 does not apply 
 to:  

    (1) a commuter van; 

    (2) a vehicle being used to transport children as part of a 
 family or group family day care program; 

    (3) a vehicle being used to transport children to school or 
 to a school-sponsored activity; 

    (4) a bus while it is in operation within the state of 
 Minnesota as to any Minnesota resident who is an insured as 
 defined in section 65B.43, subdivision 5; 

    (5) a passenger in a taxi; or 

    (6) a taxi driver, provided that this clause applies only 
 to policies issued or renewed on or after September 1, 1996, and 
 prior to September 1, 1997. 

    Subd. 2.    Injury resulting from use of vehicle provided 
 by employer.  In case of injury to an employee, or to the 
 employee's spouse or other relative residing in the same 
 household, if the accident causing the injury occurs while the 
 injured person is driving or occupying a motor vehicle other 
 than a commuter van furnished by the employer, the security for 
 payment of basic economic loss benefits is the security covering 
 the vehicle or, if none, the security under which the injured 
 person is an insured. 

    Subd. 3.    Injury to other persons.  In the case of any 
 other person whose injury arises from the maintenance or use of 
 a motor vehicle described in subdivision 1 or 2 who is not a 
 driver or occupant of another involved motor vehicle, the 
 security for the payment of basic economic loss benefits is the 
 security covering the vehicle, or if none, the security under 
 which the injured person is an insured. 

    Subd. 4.    Other cases.  In all other cases, the 
 following priorities apply: 

    (a) The security for payment of basic economic loss 
 benefits applicable to injury to an insured is the security 
 under which the injured person is an insured.  

    (b) The security for payment of basic economic loss 
 benefits applicable to injury to the driver or other occupant of 
 an involved motor vehicle who is not an insured is the security 
 covering that vehicle.  

    (c) The security for payment of basic economic loss 
 benefits applicable to injury to a person not otherwise covered 
 who is not the driver or other occupant of an involved motor 
 vehicle is the security covering any involved motor vehicle.  An 
 unoccupied parked vehicle is not an involved motor vehicle 
 unless it was parked so as to cause unreasonable risk of injury. 

    Subd. 5.    Contribution.  If two or more obligations to 
 pay basic economic loss benefits are applicable to an injury 
 under the priorities set out in this section, benefits are 
 payable only once and the reparation obligor against whom a 
 claim is asserted shall process and pay the claim as if wholly 
 responsible, but the reparation obligor is thereafter entitled 
 to recover contribution pro rata for the basic economic loss 
 benefits paid and the costs of processing the claim.  Where 
 contribution is sought among reparation obligors responsible 
 under subdivision 4, clause (c), proration shall be based on the 
 number of involved motor vehicles.  

    Subd. 6.    Subrogation.  Where a reparation obligor 
 pays basic economic loss benefits which another reparation 
 obligor is obligated to pay under the priority provided in this 
 section, the reparation obligor that pays is subrogated to all 
 rights of the person to whom benefits are paid. 

    Subd. 7.    Adding policies together.  Unless a 
 policyholder makes a specific election to have two or more 
 policies added together the limit of liability for basic 
 economic loss benefits for two or more motor vehicles may not be 
 added together to determine the limit of insurance coverage 
 available to an injured person for any one accident.  An insurer 
 shall notify policyholders that they may elect to have two or 
 more policies added together.  

    HIST: 1974 c 408 s 7; 1976 c 180 s 1; 1976 c 233 s 7,8; 1985 c 
 168 s 8; 1986 c 444; 1986 c 455 s 50; 1990 c 496 s 1,2; 1995 c 
 227 s 1; 1996 c 446 art 1 s 58 

     65B.48 Reparation security compulsory. 

    Subdivision 1.  Every owner of a motor vehicle of a type 
 which 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 a plan of reparation security 
 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 
 plan of reparation security shall provide for basic economic 
 loss benefits and residual liability coverage in amounts not 
 less than those specified in section 65B.49, subdivision 3, 
 clauses (1) and (2).  The nonresident owner of a motor vehicle 
 which is not required to be registered or licensed, or which is 
 not principally garaged in this state, shall maintain such 
 security in effect continuously throughout the period of the 
 operation, maintenance or use of such motor vehicle within this 
 state with respect to accidents occurring in this state; such 
 security shall include coverage for property damage to a motor 
 vehicle rented or leased within this state by a nonresident. 

    Subd. 2.  The security required by sections 65B.41 to 
 65B.71 may be provided by a policy of insurance complying with 
 sections 65B.41 to 65B.71 which 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. 

    Subd. 3.  Self-insurance, subject to approval of the 
 commissioner, is effected by filing with the commissioner in 
 satisfactory form: 

    (1) a continuing undertaking by the owner or other 
 appropriate person to pay tort liabilities or basic economic 
 loss benefits, or both, and to perform all other obligations 
 imposed by sections 65B.41 to 65B.71; 

    (2) evidence that appropriate provision exists for prompt 
 administration of all claims, benefits, and obligations provided 
 by sections 65B.41 to 65B.71; 

    (3) evidence that reliable financial arrangements, 
 deposits, or commitments exist providing assurance, 
 substantially equivalent to that afforded by a policy of 
 insurance complying with sections 65B.41 to 65B.71, for payment 
 of tort liabilities, basic economic loss benefits, and all other 
 obligations imposed by sections 65B.41 to 65B.71; and 

    (4) a nonrefundable initial application fee of $1,500 and 
 an annual renewal fee of $400 for political subdivisions and 
 $500 for nonpolitical entities.  

    Subd. 3a.  To carry out the purposes of subdivision 3, the 
 commissioner may adopt rules pursuant to chapter 14. These rules 
 may:  

    (a) establish reporting requirements; 

    (b) establish standards or guidelines to assure the 
 adequacy of the financing and administration of self-insurance 
 plans; 

    (c) establish bonding requirements or other provisions 
 assuring the financial integrity of entities that self-insure 
 other than bonding requirements for self-insuring political 
 subdivisions; and 

    (d) establish other reasonable requirements to further the 
 purposes of this section.  

    Subd. 4.  The state of Minnesota or any agency thereof and 
 any political subdivision of the state or agency thereof shall 
 provide security by lawfully obligating itself to pay benefits 
 in accordance with sections 65B.41 to 65B.71, either as a 
 self-insurer pursuant to subdivision 3, or through purchase of a 
 plan of reparation security. 

    Subd. 5.  (a) 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 security for the payment of tort liabilities 
 arising out of the maintenance or use of the motorcycle in this 
 state.  Security may be provided by a contract of liability 
 insurance complying with section 65B.49, subdivision 3, or by 
 qualifying as a self insurer in the manner provided in 
 subdivision 3. 

    (b) At the time an application for motorcycle insurance 
 without personal injury protection coverage is completed, there 
 must be attached to the application a separate form containing a 
 written notice in at least 10-point bold type, if printed, or in 
 capital letters, if typewritten that states: 

    "Under Minnesota law, a policy of motorcycle coverage 
    issued in the State of Minnesota must provide liability 
    coverage only, and there is no requirement that the policy 
    provide personal injury protection (PIP) coverage in the 
    case of injury sustained by the insured.  No PIP coverage 
    provided by an automobile insurance policy you may have in 
    force will extend to provide coverage in the event of a 
    motorcycle accident." 

    Subd. 6.  A person providing security pursuant to 
 subdivision 3 is a "self-insurer." 

    Subd. 7.  "Security covering the vehicle" is the insurance 
 or other security so provided.  The vehicle for which the 
 security is so provided is the "secured vehicle." 

    Subd. 8. Repealed, 1984 c 592 s 94 

    HIST: 1974 c 408 s 8; 1975 c 160 s 1; 1978 c 674 s 57; 1983 c 
 203 s 3,4; 1984 c 640 s 32; 1985 c 168 s 9; 1986 c 444; 1987 c 
 337 s 105; 1995 c 233 art 2 s 56; 1997 c 200 art 1 s 44; 1999 c 
 177 s 68; 1999 c 223 art 2 s 8 

  65B.481 Repealed, 1989 c 321 s 18 

     65B.482 Insurance identification cards. 

    Subdivision 1.    Issuance of card.  Every obligor 
 transacting business in this state shall provide an insurance 
 identification card for each vehicle covered at the time of 
 initiating each policy of automobile insurance, as defined in 
 section 65B.14, subdivision 2, and at the time of policy 
 renewal.  When an insured has five or more vehicles registered 
 in this state, the obligor may use the designation "all owned 
 vehicles" on each identification card in lieu of a specified 
 description.  The card must state:  

    (1) the insured's name; 

    (2) the policy number; 

    (3) the policy dates of coverage; 

    (4) the make, model, and year of the vehicle being covered; 

    (5) the vehicle identification number or at least the last 
 three digits of that number; and 

    (6) the name of the obligor providing coverage.  

    Subd. 2.    Notice of criminal penalties.  Every obligor 
 transacting business in this state shall provide to the insured 
 at the time of issuing an insurance identification card under 
 subdivision 1 a plain-language summary of the criminal penalties 
 imposed by sections 169.791, 169.793, and 169.797.  

    HIST: 1989 c 321 s 1; 1992 c 571 art 14 s 13 

     65B.49 Insurers. 

    Subdivision 1.    Mandatory offer of insurance benefits.  
  On and after January 1, 1975, no insurance policy providing 
 benefits for injuries arising out of the maintenance or use of a 
 motor vehicle shall be issued, renewed, continued, delivered, 
 issued for delivery, or executed in this state with respect to 
 any motor vehicle registered or principally garaged in this 
 state unless coverage is provided therein or supplemental 
 thereto, under provisions approved by the commissioner, 
 requiring the insurer to pay, regardless of the fault of the 
 insured, basic economic loss benefits. 

    A plan of reparation security shall state the name and 
 address of the named insured, the coverage afforded by the 
 policy, the premium charged, the term and limits of liability, 
 and shall contain an agreement or endorsement that insurance is 
 provided thereunder in accordance with and subject to the 
 provisions of sections 65B.41 to 65B.71. 

    Subd. 2.    Basic economic loss.  Each plan of 
 reparation security shall provide for payment of basic economic 
 loss benefits. 

    Subd. 3.    Residual liability insurance.  (1) Each plan 
 of reparation security shall also contain stated limits of 
 liability, exclusive of interest and costs, with respect to each 
 vehicle for which coverage is thereby granted, of not less than 
 $30,000 because of bodily injury to one person in any one 
 accident and, subject to said limit for one person, of not less 
 than $60,000 because of injury to two or more persons in any one 
 accident, and, if the accident has resulted in injury to or 
 destruction of property, of not less than $10,000 because of 
 such injury to or destruction of property of others in any one 
 accident. 

    (2) Under residual liability insurance the reparation 
 obligor shall be liable to pay, on behalf of the insured, sums 
 which the insured is legally obligated to pay as damages because 
 of bodily injury and property damage arising out of the 
 ownership, maintenance or use of a motor vehicle if the injury 
 or damage occurs within this state, the United States of 
 America, its territories or possessions, or Canada.  A 
 reparation obligor shall also be liable to pay sums which 
 another reparation obligor is entitled to recover under the 
 indemnity provisions of section 65B.53, subdivision 1. 

    (3) Every plan of reparation security shall be subject to 
 the following provisions which need not be contained therein: 

    (a) The liability of the reparation obligor with respect to 
 the residual liability coverage required by this clause shall 
 become absolute whenever injury or damage occurs; such liability 
 may not be canceled or annulled by any agreement between the 
 reparation obligor and the insured after the occurrence of the 
 injury or damage; no statement made by the insured or on the 
 insured's behalf and no violation of said policy shall defeat or 
 void said policy. 

    (b) The satisfaction by the insured of a judgment for such 
 injury or damage shall not be a condition precedent to the right 
 or duty of the reparation obligor to make payment on account of 
 such injury or damage. 

    (c) The reparation obligor shall have the right to settle 
 any claim covered by the residual liability insurance policy, 
 and if such settlement is made in good faith, the amount thereof 
 shall be deductible from the limits of liability for the 
 accident out of which such claim arose. 

    (d) Except as provided in subdivision 5a, a residual 
 liability insurance policy shall be excess of a nonowned vehicle 
 policy whether the nonowned vehicle is borrowed or rented, or 
 used for business or pleasure.  A nonowned vehicle is one not 
 used or provided on a regular basis.  

    Subd. 3a.    Uninsured and underinsured motorist 
 coverages.  (1) No plan of reparation security may be renewed, 
 delivered or issued for delivery, or executed in this state with 
 respect to any motor vehicle registered or principally garaged 
 in this state unless separate uninsured and underinsured 
 motorist coverages are provided therein.  Each coverage, at a 
 minimum, must provide limits of $25,000 because of injury to or 
 the death of one person in any accident and $50,000 because of 
 injury to or the death of two or more persons in any accident.  
 In the case of injury to, or the death of, two or more persons 
 in any accident, the amount available to any one person must not 
 exceed the coverage limit provided for injury to, or the death 
 of, one person in any accident.  

    (2) Every owner of a motor vehicle registered or 
 principally garaged in this state shall maintain uninsured and 
 underinsured motorist coverages as provided in this subdivision. 

    (3) No reparation obligor is required to provide limits of 
 uninsured and underinsured motorist coverages in excess of the 
 bodily injury liability limit provided by the applicable plan of 
 reparation security.  

    (4) No recovery shall be permitted under the uninsured and 
 underinsured motorist coverages of this section for basic 
 economic loss benefits paid or payable, or which would be 
 payable but for any applicable deductible.  

    (5) If at the time of the accident the injured person is 
 occupying a motor vehicle, the limit of liability for uninsured 
 and underinsured motorist coverages available to the injured 
 person is the limit specified for that motor vehicle.  However, 
 if the injured person is occupying a motor vehicle of which the 
 injured person is not an insured, the injured person may be 
 entitled to excess insurance protection afforded by a policy in 
 which the injured party is otherwise insured.  The excess 
 insurance protection is limited to the extent of covered damages 
 sustained, and further is available only to the extent by which 
 the limit of liability for like coverage applicable to any one 
 motor vehicle listed on the automobile insurance policy of which 
 the injured person is an insured exceeds the limit of liability 
 of the coverage available to the injured person from the 
 occupied motor vehicle.  

    If at the time of the accident the injured person is not 
 occupying a motor vehicle or motorcycle, the injured person is 
 entitled to select any one limit of liability for any one 
 vehicle afforded by a policy under which the injured person is 
 insured.  

    (6) Regardless of the number of policies involved, vehicles 
 involved, persons covered, claims made, vehicles or premiums 
 shown on the policy, or premiums paid, in no event shall the 
 limit of liability for uninsured and underinsured motorist 
 coverages for two or more motor vehicles be added together to 
 determine the limit of insurance coverage available to an 
 injured person for any one accident.  

    (7) The uninsured and underinsured motorist coverages 
 required by this subdivision do not apply to bodily injury of 
 the insured while occupying a motor vehicle owned by the 
 insured, unless the occupied vehicle is an insured motor vehicle.

    (8) The uninsured and underinsured motorist coverages 
 required by this subdivision do not apply to bodily injury of 
 the insured while occupying a motorcycle owned by the insured.  

    Subd. 4. Repealed, 1Sp1985 c 10 s 123 subd 5 

    Subd. 4a.    Liability on underinsured motor vehicles.  
 With respect to underinsured motorist coverage, the maximum 
 liability of an insurer is the amount of damages sustained but 
 not recovered from the insurance policy of the driver or owner 
 of any underinsured at fault vehicle.  If a person is injured by 
 two or more vehicles, underinsured motorist coverage is payable 
 whenever any one of those vehicles meets the definition of 
 underinsured motor vehicle in section 65B.43, subdivision 17.  
 However, in no event shall the underinsured motorist carrier 
 have to pay more than the amount of its underinsured motorist 
 limits. 

    Subd. 5. Repealed, 1980 c 539 s 7 

    Subd. 5a.    Rental vehicles.  (a) Every plan of 
 reparation security insuring a natural person as named insured, 
 covering private passenger vehicles as defined under section 
 65B.001, subdivision 3, and pickup trucks and vans as defined 
 under section 168.011 must provide that all of the obligation 
 for damage and loss of use to a rented private passenger 
 vehicle, including pickup trucks and vans as defined under 
 section 168.011, and rented trucks with a registered gross 
 vehicle weight of 26,000 pounds or less would be covered by the 
 property damage liability portion of the plan.  This subdivision 
 does not apply to plans of reparation security covering only 
 motor vehicles registered under section 168.10, subdivision 1a, 
 1b, 1c, or 1d, or recreational equipment as defined under 
 section 168.011.  The obligation of the plan must not be 
 contingent on fault or negligence.  In all cases where the 
 plan's property damage liability coverage is less than $35,000, 
 the coverage available under the subdivision must be $35,000.  
 Other than as described in this paragraph or in paragraph (j), 
 nothing in this section amends or alters the provisions of the 
 plan of reparation security as to primacy of the coverages in 
 this section. 

    (b) A vehicle is rented for purposes of this subdivision: 

    (1) if the rate for the use of the vehicle is determined on 
 a monthly, weekly, or daily basis; or 

    (2) during the time that a vehicle is loaned as a 
 replacement for a vehicle being serviced or repaired regardless 
 of whether the customer is charged a fee for the use of the 
 vehicle. 

    A vehicle is not rented for the purposes of this 
 subdivision if the rate for the vehicle's use is determined on a 
 period longer than one month or if the term of the rental 
 agreement is longer than one month.  A vehicle is not rented for 
 purposes of this subdivision if the rental agreement has a 
 purchase or buyout option or otherwise functions as a substitute 
 for purchase of the vehicle.  

    (c) The policy or certificate issued by the plan must 
 inform the insured of the application of the plan to private 
 passenger rental vehicles, including pickup trucks and vans as 
 defined under section 168.011, and that the insured may not need 
 to purchase additional coverage from the rental company. 

    (d) Where an insured has two or more vehicles covered by a 
 plan or plans of reparation security containing the rented motor 
 vehicle coverage required under paragraph (a), the insured may 
 select the plan the insured wishes to collect from and that plan 
 is entitled to a pro rata contribution from the other plan or 
 plans based upon the property damage limits of liability.  If 
 the person renting the motor vehicle is also covered by the 
 person's employer's insurance policy or the employer's 
 automobile self-insurance plan, the reparation obligor under the 
 employer's policy or self-insurance plan has primary 
 responsibility to pay claims arising from use of the rented 
 vehicle. 

    (e) A notice advising the insured of rental vehicle 
 coverage must be given by the reparation obligor to each current 
 insured with the first renewal notice after January 1, 1989.  
 The notice must be approved by the commissioner of commerce.  
 The commissioner may specify the form of the notice.  

    (f) When a motor vehicle is rented in this state, there 
 must be attached to the rental contract a separate form 
 containing a written notice in at least 10-point bold type, if 
 printed, or in capital letters, if typewritten, which states: 

    Under Minnesota law, a personal automobile insurance policy 
    issued in Minnesota must cover the rental of this motor 
    vehicle against damage to the vehicle and against loss of 
    use of the vehicle.  Therefore, purchase of any collision 
    damage waiver or similar insurance affected in this rental 
    contract is not necessary if your policy was issued in 
    Minnesota. 

 No collision damage waiver or other insurance offered as part of 
 or in conjunction with a rental of a motor vehicle may be sold 
 unless the person renting the vehicle provides a written 
 acknowledgment that the above consumer protection notice has 
 been read and understood. 

    (g) When damage to a rented vehicle is covered by a plan of 
 reparation security as provided under paragraph (a), the rental 
 contract must state that payment by the reparation obligor 
 within the time limits of section 72A.201 is acceptable, and 
 prior payment by the renter is not required. 

    (h) Compensation for the loss of use of a damaged rented 
 motor vehicle is limited to a period no longer than 14 days. 

    (i)(1) For purposes of this paragraph, "rented motor 
 vehicle" means a rented vehicle described in paragraph (a), 
 using the definition of "rented" provided in paragraph (b). 

    (2) Notwithstanding section 170.54, an owner of a rented 
 motor vehicle is not vicariously liable for legal damages 
 resulting from the operation of the rented motor vehicle in an 
 amount greater than $100,000 because of bodily injury to one 
 person in any one accident and, subject to the limit for one 
 person, $300,000 because of injury to two or more persons in any 
 one accident, and $50,000 because of injury to or destruction of 
 property of others in any one accident, if the owner of the 
 rented motor vehicle has in effect, at the time of the accident, 
 a policy of insurance or self-insurance, as provided in section 
 65B.48, subdivision 3, covering losses up to at least the 
 amounts set forth in this paragraph.  Nothing in this paragraph 
 alters or affects the obligations of an owner of a rented motor 
 vehicle to comply with the requirements of compulsory insurance 
 through a policy of insurance as provided in section 65B.48, 
 subdivision 2, or through self-insurance as provided in section 
 65B.48, subdivision 3; or with the obligations arising from 
 section 72A.125 for products sold in conjunction with the rental 
 of a motor vehicle.  Nothing in this paragraph alters or affects 
 liability, other than vicarious liability, of an owner of a 
 rented motor vehicle. 

    (3) The dollar amounts stated in this paragraph shall be 
 adjusted for inflation based upon the consumer price index for 
 all urban consumers, known as the CPI-U, published by the United 
 States Bureau of Labor Statistics.  The dollar amounts stated in 
 this paragraph are based upon the value of that index for July 
 1995, which is the reference base index for purposes of this 
 paragraph.  The dollar amounts in this paragraph shall change 
 effective January 1 of each odd-numbered year based upon the 
 percentage difference between the index for July of the 
 preceding year and the reference base index, calculated to the 
 nearest whole percentage point.  The commissioner shall announce 
 and publish, on or before September 30 of the preceding year, 
 the changes in the dollar amounts required by this paragraph to 
 take effect on January 1 of each odd-numbered year.  The 
 commissioner shall use the most recent revision of the July 
 index available as of September 1.  Changes in the dollar 
 amounts must be in increments of $5,000, and no change shall be 
 made in a dollar amount until the change in the index requires 
 at least a $5,000 change.  If the United States Bureau of Labor 
 Statistics changes the base year upon which the CPI-U is based, 
 the commissioner shall make the calculations necessary to 
 convert from the old base year to the new base year.  If the 
 CPI-U is discontinued, the commissioner shall use the available 
 index that is most similar to the CPI-U. 

    (j) The plan of reparation security covering the owner of a 
 rented motor vehicle is excess of any residual liability 
 coverage insuring an operator of a rented motor vehicle if the 
 vehicle is loaned as a replacement for a vehicle being serviced 
 or repaired, regardless of whether a fee is charged for use of 
 the vehicle, provided that the vehicle so loaned is owned by the 
 service or repair business. 

    Subd. 6. Repealed, 1980 c 539 s 7 

    Subd. 7.    Additional benefits and coverage not 
 prohibited.  Nothing in sections 65B.41 to 65B.71 shall be 
 construed as preventing the insurer from offering other benefits 
 or coverages in addition to those required to be offered under 
 this section. 

    Subd. 8.    Compliance.  Any coverage issued by a 
 participating member of the Minnesota automobile insurance plan 
 shall comply with the provisions of this section, any provisions 
 of law or of the contract notwithstanding. 

    Subd. 9.    Family or group family day care provider 
 coverage.  No plan of reparation security shall exclude 
 coverage for a vehicle when used to transport children as part 
 of a family or group family day care program. 

    HIST: 1974 c 408 s 9; 1977 c 266 s 2,3; 1977 c 276 s 3; 1978 c 
 674 s 57; 1985 c 168 s 10-12; 1985 c 309 s 5,6; 1Sp1985 c 10 s 
 68,123 subd 5; 1Sp1985 c 13 s 191; 1986 c 444; 1987 c 337 s 106; 
 1988 c 611 s 2; 1989 c 213 s 1,2; 1989 c 260 s 15; 1989 c 356 s 
 20,41; 1990 c 394 s 1; 1990 c 496 s 3; 1990 c 504 s 1; 1991 c 
 207 s 6; 1994 c 465 art 3 s 6; 1994 c 485 s 53; 1995 c 140 s 1; 
 1995 c 225 s 1; 1996 c 446 art 1 s 72; 2000 c 309 s 1 

  65B.491 Renumbered 65B.44 subd 3a 

     65B.50 Insurers' certification of basic coverage. 

    Subdivision 1.  Every insurer licensed to write motor 
 vehicle accident reparation and liability insurance in this 
 state shall, on or before January 1, 1975, or as a condition to 
 such licensing, file with the commissioner and thereafter 
 maintain a written certification that it will afford at least 
 the minimum security provided by section 65B.49 to all 
 policyholders, except that in the case of nonresident 
 policyholders it need only certify that security is provided 
 with respect to accidents occurring in this state. 

    Subd. 2.  Notwithstanding any contrary provision in it, 
 every contract of liability insurance for injury, wherever 
 issued, covering obligations arising from ownership, 
 maintenance, or use of a motor vehicle, except a contract which 
 provides coverage only for liability in excess of required 
 minimum tort liability coverages, includes basic economic loss 
 benefit coverages and residual liability coverages required by 
 sections 65B.41 to 65B.71, while the vehicle is in this state, 
 and qualifies as security covering the vehicle. 

    HIST: 1974 c 408 s 10; 1978 c 674 s 57 

     65B.51 Deduction of collateral benefits from tort 
  recovery; limitation on right to recover damages. 

    Subdivision 1.    Deduction of basic economic loss 
 benefits.  With respect to a cause of action in negligence 
 accruing as a result of injury arising out of the operation, 
 ownership, maintenance or use of a motor vehicle with respect to 
 which security has been provided as required by sections 65B.41 
 to 65B.71, the court shall deduct from any recovery the value of 
 basic or optional economic loss benefits paid or payable, or 
 which would be payable but for any applicable deductible.  In 
 any case where the claimant is found to be at fault under 
 section 604.01, the deduction for basic economic loss benefits 
 must be made before the claimant's damages are reduced under 
 section 604.01, subdivision 1. 

    Subd. 2.    Right to recover economic loss not covered in 
 first party benefits.  A person may bring a negligence action 
 for economic loss not paid or payable by a reparation obligor or 
 through the assigned claims plan because of any lack of 
 insurance coverage for the economic loss described in section 
 65B.44, daily or weekly dollar limitations of section 65B.44, 
 the seven-day services exclusion of section 65B.44, the 
 limitations of benefits contained in section 65B.44, subdivision 
 1, or an exclusion from coverage by sections 65B.58 to 65B.60. 

    Subd. 3.    Limitation of damages for noneconomic 
 detriment.  In an action described in subdivision 1, no 
 person shall recover damages for noneconomic detriment unless: 

    (a) The sum of the following exceeds $4,000: 

    (1) Reasonable medical expense benefits paid, payable or 
 payable but for any applicable deductible, plus 

    (2) The value of free medical or surgical care or ordinary 
 and necessary nursing services performed by a relative of the 
 injured person or a member of the injured person's household, 
 plus 

    (3) The amount by which the value of reimbursable medical 
 services or products exceeds the amount of benefit paid, 
 payable, or payable but for an applicable deductible for those 
 services or products if the injured person was charged less than 
 the average reasonable amount charged in this state for similar 
 services or products, minus 

    (4) The amount of medical expense benefits paid, payable, 
 or payable but for an applicable deductible for diagnostic 
 X-rays and for a procedure or treatment for rehabilitation and 
 not for remedial purposes or a course of rehabilitative 
 occupational training; or 

    (b) the injury results in: 

    (1) permanent disfigurement; 

    (2) permanent injury; 

    (3) death; or 

    (4) disability for 60 days or more. 

    (c) For the purposes of clause (a) evidence of the 
 reasonable value of medical services and products shall be 
 admissible in any action brought in this state. 

    For the purposes of this subdivision disability means the 
 inability to engage in substantially all of the injured person's 
 usual and customary daily activities. 

    Subd. 4.  Nothing in this section shall impair or limit the 
 liability of a person in the business of manufacturing, 
 distributing, retailing, repairing, servicing or maintaining 
 motor vehicles arising from a defect in a motor vehicle caused 
 or not corrected by an act or omission in manufacture, 
 inspection, repair, servicing or maintenance of a vehicle in the 
 course of the business. 

    Subd. 5.  Nothing in this section shall impair or limit 
 tort liability or limit the damages recoverable from any person 
 for negligent acts or omissions other than those committed in 
 the operation, ownership, maintenance, or use of a motor vehicle.

    HIST: 1974 c 408 s 11; 1975 c 18 s 7; 1977 c 266 s 4; 1978 c 
 711 s 1; 1983 c 243 s 1; 1986 c 444; 1989 c 58 s 1; 1990 c 555 s 
 6 

  65B.52 Repealed, 1975 c 18 s 17 

     65B.525 Arbitration procedure; rules of court. 

    Subdivision 1.  Except as otherwise provided in section 
 72A.327, the supreme court and the several courts of general 
 trial jurisdiction of this state shall by rules of court or 
 other constitutionally allowable device, provide for the 
 mandatory submission to binding arbitration of all cases at 
 issue where the claim at the commencement of arbitration is in 
 an amount of $10,000 or less against any insured's reparation 
 obligor for no-fault benefits or comprehensive or collision 
 damage coverage. 

    Subd. 2.  The rules of court may provide that cases which 
 are not at issue, whether or not suit has been filed, may be 
 referred to arbitration by agreement of reference signed by 
 counsel for both sides, or by the parties themselves.  Such 
 agreement of reference shall define the issues to be arbitrated 
 and, shall also contain any stipulations with respect to facts 
 submitted or agreed or defenses waived.  In such cases, the 
 agreement of reference shall take the place of the pleadings in 
 the case and be filed of record. 

    HIST: 1975 c 160 s 2; 1978 c 674 s 57; 1985 c 168 s 13; 1987 c 
 337 s 108; 1989 c 260 s 16; 1989 c 330 s 26; 1991 c 321 s 1 

     65B.53 Indemnity; arbitration between obligors; 
  subrogation. 

    Subdivision 1.  A reparation obligor paying or obligated to 
 pay basic or optional economic loss benefits is entitled to 
 indemnity subject to the limits of the applicable residual 
 liability coverage from a reparation obligor providing residual 
 liability coverage on a commercial vehicle of more than 5,500 
 pounds curb weight if negligence in the operation, maintenance 
 or use of the commercial vehicle was the direct and proximate 
 cause of the injury for which the basic economic loss benefits 
 were paid or payable to the extent that the insured would have 
 been liable for damages but for the deduction provisions of 
 section 65B.51, subdivision 1. 

    For purposes of this subdivision, a "commercial vehicle of 
 more than 5,500 pounds curb weight" does not include a vehicle 
 listed in section 65B.47, subdivision 1a. 

    Subd. 2.  A reparation obligor paying or obligated to pay 
 basic or optional economic loss benefits is subrogated to the 
 claim for the recovery of damages for economic loss that the 
 person to whom the basic or optional economic loss benefits were 
 paid or payable has against another person whose negligence in 
 another state was the direct and proximate cause of the injury 
 for which the basic economic loss benefits were paid or 
 payable.  This right of subrogation exists only to the extent 
 that basic economic loss benefits are paid or payable and only 
 to the extent that recovery on the claim absent subrogation 
 would produce a duplication of benefits or reimbursement of the 
 same loss. 

    Subd. 3.  A reparation obligor paying or obligated to pay 
 basic economic loss benefits is subrogated to a claim based on 
 an intentional tort, strict or statutory liability, or 
 negligence other than negligence in the maintenance, use, or 
 operation of a motor vehicle.  This right of subrogation exists 
 only to the extent that basic economic loss benefits are paid or 
 payable and only to the extent that recovery on the claim absent 
 subrogation would produce a duplication of benefits or 
 reimbursement of the same loss. 

    Subd. 4.  The right of indemnity provided in subdivision 1 
 shall be enforceable only through mandatory good-faith and 
 binding arbitration procedures established by rule of the 
 commissioner of commerce.  These procedures shall utilize 
 determinations of comparative negligence.  No evidence nor the 
 decision in such an arbitration proceeding shall be admissible 
 in any action by any party. 

    Subd. 5.  Except as provided in this section nothing in 
 sections 65B.41 to 65B.71 shall limit or abridge the subrogation 
 rights of a reparation obligor providing collision coverage to a 
 policyholder. 

    Subd. 6.  No reparation obligor shall include in its 
 contract any provision which would require a person to commence 
 a negligence action as a condition precedent to the payment of 
 basic economic loss benefits or which permits the reparation 
 obligor to determine whether such an action will be commenced.  
 No reparation obligor shall contract for a right of 
 reimbursement or subrogation greater than or in addition to 
 those permitted by this chapter. 

    Subd. 7.  Arbitration proceedings need not await final 
 payment of benefits, and the award, if any, shall include 
 provision for reimbursement of subsequent benefits, but no 
 question of fact decided by a prior award shall be reconsidered 
 in any such subsequent arbitration hearing. 

    Subd. 8.  Notwithstanding any law to the contrary, in any 
 action brought for the recovery of damages allegedly caused by 
 the negligent operation, ownership, maintenance or use of a 
 motor vehicle or motorcycle where the right of subrogation is 
 claimed or may be claimed under this section, or in any 
 counterclaim to such an action, the right of an insurer to be 
 subrogated to all or a portion of the claim of an insured, 
 whether the right to subrogation arises from contract, statute 
 or any other source, shall be enforceable against the insured 
 only if the insurer, upon demand by the insured, agrees to pay a 
 share of the attorney fees and costs incurred to prosecute the 
 claim, in such proportion as the insurer's subrogated interest 
 in the claim bears to any eventual recovery on the claim. 

    HIST: 1974 c 408 s 13; 1976 c 79 s 1; 1977 c 188 s 1,2; 1977 c 
 266 s 5; 1979 c 190 s 2; 1983 c 289 s 114 subd 1; 1984 c 655 art 
 1 s 92; 1993 c 362 s 1 

     65B.54 Reparation obligor's duty to respond to claims. 

    Subdivision 1.  Basic economic loss benefits are payable 
 monthly as loss accrues.  Loss accrues not when injury occurs, 
 but as income loss, replacement services loss, survivor's 
 economic loss, survivor's replacement services loss, or medical 
 or funeral expense is incurred.  Benefits are overdue if not 
 paid within 30 days after the reparation obligor receives 
 reasonable proof of the fact and amount of loss realized, unless 
 the reparation obligor elects to accumulate claims for periods 
 not exceeding 31 days and pays them within 15 days after the 
 period of accumulation.  If reasonable proof is supplied as to 
 only part of a claim, and the part totals $100 or more, the part 
 is overdue if not paid within the time provided by this 
 section.  Medical or funeral expense benefits may be paid by the 
 reparation obligor directly to persons supplying products, 
 services, or accommodations to the claimant. 

    Subd. 2.  Overdue payments shall bear simple interest at 
 the rate of 15 percent per annum.  

    Subd. 3.  A claim for basic economic loss benefits shall be 
 paid without deduction for the benefits which are to be 
 subtracted pursuant to section 65B.61, if these benefits have 
 not been paid to the claimant before the reparation benefits are 
 overdue or the claim is paid.  The obligor is entitled to 
 reimbursement from the person obligated to make the payments or 
 from the claimant who actually receives the payments.  

    Subd. 4.  A reparation obligor may bring an action to 
 recover benefits which are not payable, but are in fact paid, 
 because of an intentional misrepresentation of a material fact, 
 upon which the reparation obligor relies, by the claimant or by 
 a person providing products or services for which basic economic 
 loss benefits are payable. The action may be brought only 
 against the person providing the products or services, unless 
 the claimant has intentionally misrepresented the facts or knew 
 of the misrepresentation.  A reparation obligor may offset 
 amounts the reparation obligor is entitled to recover from the 
 claimant under this subdivision against any basic economic loss 
 benefits otherwise due the claimant.  

    Subd. 5.  A reparation obligor who rejects a claim for 
 benefits shall give to the claimant prompt written notice of the 
 rejection, specifying the reason.  If a claim is rejected for a 
 reason other than that the person is not entitled to the basic 
 economic loss benefits claimed, the written notice shall inform 
 the claimant that the claimant may file the claim with the 
 assigned claims bureau and shall give the name and address of 
 the bureau.  

    HIST: 1974 c 408 s 14; 1979 c 190 s 3; 1986 c 444 

     65B.55 Application for benefits under plan of security. 

    Subdivision 1.  A plan of reparation security may prescribe 
 a period of not less than six months after the date of accident 
 within which an insured or any other person entitled to claim 
 basic economic loss benefits, or anyone acting on their behalf, 
 must notify the reparation obligor or its agent, of the accident 
 and the possibility of a claim for economic loss benefits.  
 Failure to provide notice will not render a person ineligible to 
 receive benefits unless actual prejudice is shown by the 
 reparation obligor, and then only to the extent of the 
 prejudice.  The notice may be given in any reasonable fashion. 

    Subd. 2.  A plan of reparation security may provide that in 
 any instance where a lapse occurs in the period of disability or 
 in the medical treatment of a person with respect to whose 
 injury basic economic loss benefits have been paid and a person 
 subsequently claims additional benefits based upon an alleged 
 recurrence of the injury for which the original claim for 
 benefits was made, the obligor may require reasonable medical 
 proof of such alleged recurrence; provided, that in no event 
 shall the aggregate benefits payable to any person exceed the 
 maximum limits specified in the plan of security, and provided 
 further that such coverages may contain a provision terminating 
 eligibility for benefits after a prescribed period of lapse of 
 disability and medical treatment, which period shall not be less 
 than one year.  

    HIST: 1974 c 408 s 15; 1984 c 592 s 55 

     65B.56 Cooperation of person claiming benefits. 

    Subdivision 1.    Medical examinations and discovery of 
 condition of claimant.  Any person with respect to whose 
 injury benefits are claimed under a plan of reparation security 
 shall, upon request of the reparation obligor from whom recovery 
 is sought, submit to a physical examination by a physician or 
 physicians selected by the obligor as may reasonably be required.

    The costs of any examinations requested by the obligor 
 shall be borne entirely by the requesting obligor.  Such 
 examinations shall be conducted within the city, town, or 
 statutory city of residence of the injured person.  If there is 
 no qualified physician to conduct the examination within the 
 city, town, or statutory city of residence of the injured 
 person, then such examination shall be conducted at another 
 place of the closest proximity to the injured person's 
 residence.  Obligors are authorized to include reasonable 
 provisions in policies for mental and physical examination of 
 those injured persons. 

    If requested by the person examined, a party causing an 
 examination to be made shall deliver to the examinee a copy of 
 every written report concerning the examination rendered by an 
 examining physician to that person, at least one of which 
 reports must set out in detail the findings and conclusions of 
 such examining physician. 

    An injured person shall also do all things reasonably 
 necessary to enable the obligor to obtain medical reports and 
 other needed information to assist in determining the nature and 
 extent of the injured person's injuries and loss, and the 
 medical treatment received.  If the claimant refuses to 
 cooperate in responding to requests for examination and 
 information as authorized by this section, evidence of such 
 noncooperation shall be admissible in any suit or arbitration 
 filed for damages for such personal injuries or for the benefits 
 provided by sections 65B.41 to 65B.71. 

    The provisions of this section apply before and after the 
 commencement of suit. 

    Subd. 2.    Claimant's participation in arbitration 
 between obligors.  Any person receiving benefits under 
 sections 65B.41 to 65B.71 shall participate and cooperate, as 
 reasonably required under the coverage, in any and all 
 arbitration proceedings as provided in section 65B.53 by or on 
 behalf of the obligor paying the benefits, and the obligor may 
 require in the furnishing of proof of loss the claimant's 
 statement that the claimant shall so participate and cooperate 
 as consideration for the payment of such benefits. However, no 
 claimant may be required by any obligor which has paid or is 
 obligated to pay benefits as herein provided to personally 
 attend an arbitration proceeding which shall take place more 
 than 50 miles from the usual residence of the claimant; and 
 provided that in no event shall the claimant have to attend such 
 an arbitration proceeding if, at the time scheduled for that 
 meeting, travel thereto by the claimant is not recommended by a 
 physician treating the claimant for injuries.  Any claimant 
 required to personally attend an arbitration proceeding shall be 
 compensated by the reparation obligor requiring attendance for 
 actual income loss and expenses reasonably incurred. 

    HIST: 1974 c 408 s 16; 1975 c 18 s 8; 1978 c 674 s 57; 1986 c 
 444 

     65B.57 Economic loss benefits; exemptions from legal 
  attachment. 

    All economic loss benefits provided by sections 65B.41 to 
 65B.71, whether paid or payable to any claimant shall not be 
 subject to garnishment, sequestration, attachment or execution, 
 or any other legal process which would deny their receipt and 
 use by that person; provided, however, that this section shall 
 not apply to any person who has provided treatment or services, 
 as described in section 65B.44, subdivision 2, to the victim of 
 a motor vehicle accident. 

    HIST: 1974 c 408 s 17; 1978 c 674 s 57 

     65B.58 Converted motor vehicles.  

    A person who converts a motor vehicle is disqualified from 
 basic or optional economic loss benefits, including benefits 
 otherwise due as a survivor, from any source other than an 
 insurance contract under which the converter is an insured, for 
 injuries arising from maintenance or use of the converted 
 vehicle.  If the converter dies from the injuries, survivors are 
 not entitled to basic or optional economic loss benefits from 
 any source other than an insurance contract under which the 
 converter is a basic economic loss insured.  For the purpose of 
 this section, a person is not a converter if that person uses 
 the motor vehicle in the good faith belief that the person is 
 legally entitled to do so.  

    HIST: 1974 c 408 s 18; 1986 c 444 

     65B.59 Races.  

    A person who is injured in the course of an official racing 
 contest, other than a rally held in whole or in part on public 
 roads, or in practice or preparation therefor is disqualified 
 from basic or optional economic loss benefits.  Survivors are 
 not entitled to basic or optional economic loss benefits for 
 loss arising from the death.  

    HIST: 1974 c 408 s 19; 1975 c 18 s 9; 1986 c 444 

     65B.60 Intentional injuries.  

    A person intentionally causing or attempting to cause 
 injury to self or another person is disqualified from basic or 
 optional economic loss benefits for injury arising from those 
 acts, including benefits otherwise due the person as a 
 survivor.  If a person dies as a result of intentionally causing 
 or attempting to cause injury to self, survivors are not 
 entitled to basic or optional economic loss benefits for loss 
 arising from the death.  A person intentionally causes or 
 attempts to cause injury if the person acts or fails to act for 
 the purpose of causing injury or with knowledge that injury is 
 substantially certain to follow.  A person does not 
 intentionally cause or attempt to cause injury (1) merely 
 because the act or failure to act is intentional or done with 
 the realization that it creates a grave risk of causing injury 
 or (2) if the act or omission causing the injury is for the 
 purpose of averting bodily harm to the person or another person. 

    HIST: 1974 c 408 s 20; 1986 c 444 

     65B.605 Liability for loss suffered as a result of peace 
  officer pursuit; penalties. 

    Subdivision 1.    Flee; definition.  For purposes of 
 this section, the term "flee" means to increase speed, 
 extinguish motor vehicle headlights or taillights, or to use 
 other means with intent to attempt to elude a peace officer 
 following a signal given by any peace officer to the driver of a 
 motor vehicle.  

    Subd. 2.    Peace officer; definition.  For purposes of 
 this section, "peace officer" means an employee of a political 
 subdivision or state law enforcement agency who is licensed by 
 the Minnesota board of peace officer standards and training, 
 charged with the prevention and detection of crime and the 
 enforcement of the general criminal laws of the state and who 
 has the full power of arrest, and shall also include the 
 Minnesota state patrol and Minnesota conservation officers.  

    Subd. 3.    Liability for loss.  If a peace officer is 
 acting in the lawful discharge of an official duty, a person 
 fleeing the peace officer by means of a motor vehicle or 
 motorcycle is liable for all bodily injury and property damage 
 suffered by any other person, except another person fleeing from 
 a peace officer, arising out of the operation or use of a 
 pursuing peace officer's vehicle, unless the peace officer is 
 not exercising reasonable care.  

    HIST: 1981 c 37 s 2; 1981 c 312 s 3; 1984 c 445 s 1 

     65B.61 Benefits primary; subtractions; coordination. 

    Subdivision 1.  Basic economic loss benefits shall be 
 primary with respect to benefits, except for those paid or 
 payable under a workers' compensation law, which any person 
 receives or is entitled to receive from any other source as a 
 result of injury arising out of the maintenance or use of a 
 motor vehicle.  Where workers' compensation benefits paid or 
 payable are primary, the reparation obligor shall make an 
 appropriate rebate or reduction in the premiums of the plan of 
 reparation security.  The amount of the rebate or rate reduction 
 shall be not less than the amount of the projected reduction in 
 benefits and claims for which the reparation obligor will be 
 liable on that class of risks.  The projected reduction or 
 rebate in benefits and claims shall be based upon sound 
 actuarial principles.  

    Subd. 2.  If benefits are paid or payable under a workers' 
 compensation law because of the injury, no disability income 
 loss benefits are payable unless the weekly workers' 
 compensation disability benefits are less than the weekly 
 disability benefit as set out in section 65B.44, subdivision 3, 
 in which case the reparation obligor shall pay to the injured 
 person the amount that the weekly disability and income loss 
 benefits payable under section 65B.44, subdivision 3, exceeds 
 the weekly workers' compensation disability benefits. 

    Subd. 2a.  If benefits are paid or payable under a workers' 
 compensation law because of death, no survivors' economic loss 
 benefits are payable unless the weekly workers' compensation 
 dependency allowance is less than the weekly survivors' economic 
 loss benefit rate as set out in section 65B.44, subdivision 6, 
 in which case the reparation obligor shall pay to the surviving 
 dependents the amount that the weekly survivors' economic loss 
 benefits payable under section 65B.44, subdivision 6, exceed the 
 weekly workers' compensation dependency allowances.  

    Subd. 2b. Repealed, 1984 c 420 s 2 

    Subd. 3.  Any legal entity, other than a reparation obligor 
 obligated to pay benefits under a plan of reparation security or 
 an insurer or employer obligated to pay benefits under a 
 workers' compensation law, may coordinate any benefits it is 
 obligated to pay for loss incurred as a result of injury arising 
 out of the maintenance or use of a motor vehicle with basic 
 economic loss benefits.  No entity may coordinate benefits 
 pursuant to this subdivision, unless it provides an 
 appropriately reduced premium rate.  The amount of this rate 
 reduction shall be not less than the amount of the projected 
 reduction in benefits and claims for which the entity will be 
 liable on that class of risks, less the additional reasonable 
 expenses incurred to administer the plan coordinating benefits.  
 The projected reduction in benefits and claims shall be based 
 upon sound actuarial principles.  

    Subd. 4. Repealed, 1979 c 57 s 2 

    HIST: 1974 c 408 s 21; 1975 c 359 s 23; 1979 c 57 s 1; 1980 c 
 539 s 2-5; 1984 c 420 s 1; 1995 c 258 s 51 

  65B.62 Repealed, 1976 c 79 s 2 

     65B.63 Assigned claims plan. 

    Subdivision 1.  Reparation obligors providing basic 
 economic loss insurance in this state shall organize and 
 maintain, subject to approval and regulation by the 
 commissioner, an assigned claims bureau and an assigned claims 
 plan, and adopt rules for their operation and for the assessment 
 of costs on a fair and equitable basis consistent with sections 
 65B.41 to 65B.71.  The assigned claims bureau shall be managed 
 by a governing committee made up of four individuals selected by 
 the insurer members, one individual selected by the self-insurer 
 members, and two public members appointed by the governor to 
 two-year terms.  Public members may include licensed insurance 
 agents.  If such obligors do not organize and continuously 
 maintain an assigned claims bureau and an assigned claims plan 
 in a manner considered by the commissioner of commerce to be 
 consistent with sections 65B.41 to 65B.71, the commissioner 
 shall organize and maintain an assigned claims bureau and an 
 assigned claims plan.  Each reparation obligor providing basic 
 economic loss insurance in this state shall participate in the 
 assigned claims bureau and the assigned claims plan.  Costs 
 incurred shall be allocated fairly and equitably among the 
 reparation obligors. 

    A ruling, action, or decision of the governing committee 
 may be appealed to the commissioner within 30 days.  A final 
 action or order of the commissioner is subject to judicial 
 review in the manner provided by chapter 14.  In lieu of an 
 appeal to the commissioner, judicial review of the governing 
 committee's ruling, action, or decision may be sought. 

    Subd. 2.  The assigned claims bureau shall promptly assign 
 each claim and notify the claimant of the identity and address 
 of the assignee-obligor of the claim.  Claims shall be assigned 
 so as to minimize inconvenience to claimants.  The assignee 
 thereafter has rights and obligations as if the assignee had 
 issued a policy of basic economic loss insurance complying with 
 sections 65B.41 to 65B.71 applicable to the injury or, in case 
 of financial inability of a reparation obligor to perform its 
 obligations, as if the assignee had written the applicable 
 reparation insurance, undertaken the self-insurance, or lawfully 
 obligated itself to pay basic economic loss benefits. 

    HIST: 1974 c 408 s 23; 1978 c 674 s 57; 1983 c 289 s 114 subd 
 1; 1984 c 655 art 1 s 92; 1Sp1985 c 10 s 69; 1986 c 444; 1987 c 
 337 s 109 

     65B.64 Persons entitled to participate in assigned 
  claims plan. 

    Subdivision 1.  A person entitled to basic economic loss 
 benefits because of injury covered by sections 65B.41 to 65B.71 
 may obtain basic economic loss benefits through the assigned 
 claims plan or bureau established pursuant to section 65B.63 and 
 in accordance with the provisions for making assigned claims 
 provided in sections 65B.41 to 65B.71, if:  

    (a) The person is 14 years old or younger and basic 
 economic loss benefits are not applicable to the injury because 
 of section 65B.58; 

    (b) Basic economic loss benefits are not applicable to the 
 injury for some reason other than those specified in section 
 65B.58, 65B.59, or 65B.60; 

    (c) The plan of reparation security applicable to the 
 injury cannot be identified; or 

    (d) A claim for basic economic loss benefits is rejected by 
 a reparation obligor on some ground other than the person is not 
 entitled to basic economic loss benefits under sections 65B.41 
 to 65B.71. 

    In addition to the requirements for eligibility contained 
 in section 65B.48, a nonresident is not entitled to basic 
 economic loss benefits if the nonresident is the owner of a 
 motor vehicle and does not carry the minimum automobile 
 insurance coverage required by the state in which the vehicle is 
 registered. 

    Subd. 2.  If a claim qualifies for assignment under 
 subdivision 1, the assigned claims bureau or any reparation 
 obligor to whom the claim is assigned shall have the right to 
 seek indemnification from an uninsured tortfeasor.  Except as 
 otherwise provided in section 340A.801, subdivision 4, the 
 reparation obligor to whom the claim is assigned shall further 
 be subrogated to all of the rights of the claimant against any 
 person for economic loss benefits provided by the obligor to 
 whom the claim was assigned. 

    Subd. 3.  A person shall not be entitled to basic economic 
 loss benefits through the assigned claims plan with respect to 
 injury which was sustained if at the time of such injury the 
 injured person was the owner of a private passenger motor 
 vehicle for which security is required under sections 65B.41 to 
 65B.71 and that person failed to have such security in effect. 

    For purposes of determining whether security is required 
 under section 65B.48, an owner of any vehicle is deemed to have 
 contemplated the operation or use of the vehicle at all times 
 unless the owner demonstrates to the contrary by clear and 
 convincing objective evidence. 

    Persons, whether or not related by blood or marriage, who 
 dwell and function together with the owner as a family, other 
 than adults who have been adjudicated as incompetent and minor 
 children, shall also be disqualified from benefits through the 
 assigned claims plan. 

    HIST: 1974 c 408 s 24; 1978 c 674 s 57; 1979 c 190 s 4; 1980 c 
 539 s 6; 1986 c 444; 1989 c 58 s 2,3; 1990 c 456 s 1,2; 1996 c 
 446 art 1 s 59 

     65B.65 Time for presenting claims under assigned claims 
  plan.  

    Subdivision 1.  Except as provided in subdivision 2, a 
 person authorized to obtain basic reparation benefits through 
 the assigned claims plan shall notify the bureau of the claim 
 within the time that would have been allowed for commencing an 
 action for those benefits if there had been identifiable 
 coverage in effect and applicable to the claim.  

    Subd. 2.  If timely action for basic reparation benefits is 
 commenced against a reparation obligor who is unable to fulfill 
 obligations because of financial inability, a person authorized 
 to obtain basic reparation benefits through the assigned claims 
 plan shall notify the bureau of the claim within six months 
 after discovery of the financial inability.  

    HIST: 1974 c 408 s 25; 1975 c 18 s 10; 1986 c 444 

     65B.66 Claims against wrong insurer.  

    If timely action for economic loss benefits is commenced 
 against a reparation obligor and benefits are denied because of 
 a determination that the obligor's coverage is not applicable to 
 the claimant under the provisions of section 65B.47 on the 
 priority of applicability of security a claim against a proper 
 obligor or assigned claims plan may be made not later than 90 
 days after such determination becomes final or the last date on 
 which the action could otherwise have been commenced, whichever 
 is later.  

    HIST: 1974 c 408 s 26 

  65B.67 Repealed, 1992 c 571 art 14 s 14 

  65B.68 Repealed, 1992 c 571 art 14 s 14 

     65B.685 Standardizing coverage. 

    As far as consistent with the requirements of sections 
 65B.41 to 65B.71, the commissioner may limit by rule the variety 
 of coverages available in order to give insurance purchasers 
 reasonable opportunity to compare the cost of insuring with 
 various insurers.  

    HIST: 1979 c 190 s 7 

  65B.69 Repealed, 1992 c 571 art 14 s 14 

  65B.70 Repealed, 1992 c 564 art 1 s 55 

     65B.71 Compliance. 

    Subdivision 1.  The definition of "qualified applicant" 
 under section 65B.02, subdivision 2, clause (2) shall, upon the 
 repeal of chapter 170 and the enactment of sections 65B.41 to 
 65B.71, include a person required to prove automobile insurance 
 coverage as required by sections 65B.41 to 65B.71. 

    Subd. 2.  The actions permitted a metropolitan airports 
 commission corporation under section 473.606, subdivision 6 
 shall, upon the repeal of chapter 170 and the enactment of 
 sections 65B.41 to 65B.71, include acts necessary to bring the 
 corporation, its commissioners and agents within the provisions 
 of sections 65B.41 to 65B.71. 

    Subd. 3.  The actions permitted a county board under 
 section 375.32, subdivision 2 shall, upon the repeal of chapter 
 170 and the enactment of sections 65B.41 to 65B.71, include acts 
 necessary to bring the county, its officers and employees within 
 the provisions of sections 65B.41 to 65B.71. 

    Subd. 4.  The provisions of Minnesota Statutes 1971, 
 chapter 170, as amended by Laws 1973, chapter 35, sections 37 
 and 38, shall apply to a person who is involved in a motor 
 vehicle accident occurring before January 1, 1975.  Money 
 deposited with the commissioner in accordance with Minnesota 
 Statutes 1971, chapter 170, as amended by Laws 1973, chapter 35, 
 sections 37 and 38, shall be retained by the commissioner and 
 disbursed only in accordance with Minnesota Statutes 1971, 
 chapter 170, as amended by Laws 1973, chapter 35, sections 37 
 and 38.  An operator's license suspended in accordance with 
 Minnesota Statutes 1971, chapter 170, as amended by Laws 1973, 
 chapter 35, sections 37 and 38, shall be reinstated only in 
 accordance with Minnesota Statutes 1971, chapter 170, as amended 
 by Laws 1973, chapter 35, sections 37 and 38. 

    HIST: 1974 c 408 s 32 subds 1-3; 1975 c 18 s 15; 1978 c 674 s 
 57; 1Sp1981 c 4 art 1 s 58 

     65B.80 Definitions. 

    Subdivision 1.    Terms.  The following terms have the 
 meanings given for purposes of sections 65B.80 to 65B.83. 

    Subd. 2.    Authorized person.  "Authorized person" 
 means the prosecuting attorney responsible for prosecutions in 
 the county where the motor vehicle theft occurred, the 
 superintendent of the bureau of criminal apprehension, and the 
 sheriff or chief of police responsible for investigation in the 
 county where the motor vehicle theft occurred. 

    Subd. 3.    Relevant information.  "Relevant 
 information" or evidence means information having a tendency to 
 make the existence of any fact that is of consequence to the 
 investigation or determination of the issue more or less 
 probable than it would be without the evidence. 

    HIST: 1987 c 254 s 1 

     65B.81 Disclosure of information. 

    Subdivision 1.    Request.  After receiving a written 
 request, an insurance company must release to an authorized 
 person any relevant information in the company's possession that 
 relates to the motor vehicle theft.  Relevant information is 
 limited to: 

    (1) pertinent insurance policy information, including the 
 application for a policy, that is relevant to a motor vehicle 
 theft under investigation by the authorized person; 

    (2) policy premium payment records that are available; 

    (3) a history of previous claims made by the insured 
 including, where the insured is a corporation or partnership, a 
 history of previous claims by a subsidiary or any affiliates, 
 and a history of claims of any other business association in 
 which individual officers or partners or their spouses were 
 known to be involved; and 

    (4) material relating to the investigation of the theft, 
 including statements of any person, proof of loss, and any other 
 evidence relevant to the investigation. 

    Subd. 2.    Notification by insurer required.  If an 
 insurance company has reason to believe that a motor vehicle 
 theft in which it has an interest may be fraudulently claimed, 
 the company shall, in writing, notify an authorized person and 
 provide the person with all relevant information specified in 
 subdivision 1 relating to the motor vehicle theft.  It is 
 sufficient for the purpose of this subdivision if an insurance 
 company notifies and provides relevant information to one 
 authorized person. 

    Subd. 3.    Release of information.  An authorized 
 person provided with information under subdivision 1 or 2 may, 
 to further official purposes, release or provide the information 
 to any other authorized person. 

    Subd. 4.    Information from authorized person.  An 
 insurance company that provides information to an authorized 
 person may request relevant information in writing from the 
 authorized person and the authorized person must provide the 
 requested information within 30 days.  The relevant information 
 provided under this subdivision may not include nonconviction 
 criminal history record information or any other information 
 that is detrimental to an ongoing criminal investigation or 
 would reveal the identity of a confidential source of 
 information.  An authorized person who does not furnish the 
 requested information shall notify the insurance company of the 
 reasons why the information cannot be furnished within 30 days 
 of the request. 

    Subd. 5.    Immunity from liability.  An insurance 
 company or its agent acting in its behalf, or an authorized 
 person who releases information, whether oral or written, acting 
 in good faith, under subdivisions 1 to 3, is immune from any 
 liability, civil or criminal, that might otherwise be incurred 
 or imposed. 

    HIST: 1987 c 254 s 2 

     65B.82 Evidence. 

    Data received under sections 65B.80 to 65B.83 by an 
 authorized person or insurance company is confidential data 
 under section 13.02, subdivision 3, until its release is 
 required in connection with a criminal or civil proceeding. 

    HIST: 1987 c 254 s 3 

     65B.83 Enforcement. 

    Subdivision 1.    Intentional refusal to release.  An 
 insurance company or officer may not intentionally refuse to 
 release any information requested under section 65B.81, 
 subdivision 1. 

    Subd. 2.    Intentional refusal to notify.  An insurance 
 company, or its employee or officer, may not intentionally 
 refuse to provide notice or relevant information to authorized 
 persons under section 65B.81, subdivision 2. 

    Subd. 3.    Penalty.  Whoever violates the provisions of 
 subdivision 1 or 2 is guilty of a misdemeanor. 

    HIST: 1987 c 254 s 4