2007 Minnesota Statutes

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.
History: 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