Minnesota HF 2249: Insurance; coverage exclusions regulated.

Bill Text

1.1A bill for an act​
1.2relating to insurance; regulating certain coverage exclusions; proposing coding​
1.3for new law in Minnesota Statutes, chapter 60A.​
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:​
1.5Section 1. [60A.0812] PROPERTY AND CASUALTY POLICY EXCLUSIONS.​
1.6Subdivision 1.Definitions.(a) For purposes of this section, the following terms have​
1.7the meanings given them.​
1.8(b) "Insured" means an insured under a policy specified in subdivisions 2 and 3, including​
1.9the named insured and the following persons not identified by name as an insured while​
1.10residing in the same household with the named insured:​
1.11(1) a spouse;​
1.12(2) a relative of a named insured; or​
1.13(3) a minor in the custody of a named insured or of a relative residing in the same​
1.14household with a named insured.​
1.15For purposes of this paragraph, a person resides in the same household with the named​
1.16insured if the person's home is usually in the same family unit, even if the person is​
1.17temporarily living elsewhere.​
1.18(c) "Permitted exclusion" means an exclusion of or limitation on liability for damages​
1.19for bodily injury resulting from fraud, intentional or criminal conduct, and other exclusions​
1.20permitted by law.​
1​Section 1.​
REVISORRSI/AD23-03421​02/16/23  ​
State of Minnesota​
This Document can be made available​
in alternative formats upon request​
HOUSE OF REPRESENTATIVES​
H. F. No.   2249​
NINETY-THIRD SESSION​
Authored by Stephenson​02/27/2023​
The bill was read for the first time and referred to the Committee on Commerce Finance and Policy​

2.1(d) "Prohibited exclusion" means an exclusion of or limitation on liability for damages​
2.2for bodily injury solely because the injured person is (1) a resident or member of the insured's​
2.3household, or (2) related to the insured by blood or marriage.​
2.4Subd. 2.Prohibited exclusions.A boat insurance policy or personal umbrella policy​
2.5must not contain a prohibited exclusion. A policy subject to this section containing a​
2.6definition of an insured that excludes (1) a resident or member of the insured's household,​
2.7or (2) a person that is related to the insured by blood or marriage is against public policy​
2.8and is void.​
2.9Subd. 3.Permitted exclusions.A boat insurance policy or personal umbrella policy​
2.10may contain a permitted exclusion.​
2.11Subd. 4.Effect on premium costs.An insurance company issuing or reissuing a policy​
2.12in Minnesota that increases the premium charged to an insured as a result of this section​
2.13must obtain approval from the commissioner of commerce before increasing the premium.​
2.14The commissioner must not deny a premium increase request that is supported by actuarial​
2.15and claim data. A hearing on a rate increase must be conducted pursuant to chapters 14, 45,​
2.16and 70A.​
2.17Subd. 5.No endorsement required.An endorsement, rider, or contract amendment is​
2.18not required for the definitions in this section to be effective.​
2.19EFFECTIVE DATE.This section is effective the day following final enactment and​
2.20applies to policies in effect on or after that date.​
2.21Sec. 2. FAMILY PROTECTION ACT.​
2.22Section 1 may be cited as the "Family Protection Act."​
2​Sec. 2.​
REVISORRSI/AD23-03421​02/16/23  ​