2004 Minnesota Statutes

     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