Bill Text: MN SF595 | 2011-2012 | 87th Legislature | Introduced
Bill Title: No-fault Automobile Insurance Act repeal; compulsory auto insurance and insurance premium reductions requirements
Sponsorship: Partisan Bill (Republican 3)
Status: (Introduced - Dead) 2011-03-07 - Referred to Commerce and Consumer Protection [SF595 Detail]
Download: Minnesota-2011-SF595-Introduced.html
1.2relating to insurance; repealing the Minnesota No-Fault Automobile Insurance
1.3Act; providing an appropriate premium reduction; requiring liability coverage;
1.4proposing coding for new law in Minnesota Statutes, chapter 65B; repealing
1.5Minnesota Statutes 2010, sections 65B.41; 65B.42; 65B.43; 65B.44; 65B.45;
1.665B.46; 65B.47; 65B.48, subdivisions 1, 2, 3, 3a, 4, 5, 6, 7; 65B.482; 65B.49,
1.7subdivisions 1, 2, 3, 3a, 4a, 5a, 7, 8, 9; 65B.50; 65B.51; 65B.525; 65B.53;
1.865B.54; 65B.55; 65B.56; 65B.57; 65B.58; 65B.59; 65B.60; 65B.61, subdivisions
1.91, 2, 2a, 3; 65B.63; 65B.64; 65B.65; 65B.66; 65B.685; 65B.71.
1.10BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.11 Section 1. [65B.30] COMPULSORY INSURANCE.
1.12 Subdivision 1. General requirement and coverages. Every owner of a motor
1.13vehicle of a type that is required to be registered or licensed, or is principally garaged in
1.14this state, shall maintain during the period in which operation or use is contemplated,
1.15insurance under provisions approved by the commissioner, insuring against loss resulting
1.16from liability imposed by law for injury and property damage sustained by any person
1.17arising out of the ownership, maintenance, operation, or use of the vehicle. The
1.18nonresident owner of a motor vehicle that is not required to be registered or licensed,
1.19or that is not principally garaged in this state, shall maintain the insurance in effect
1.20continuously throughout the period of the operation, maintenance, or use of the motor
1.21vehicle in this state with respect to accidents occurring in this state.
1.22 Subd. 2. Types of insurance. The insurance required by subdivision 1 may be
1.23provided by a policy of insurance that is issued by or on behalf of an insurer authorized to
1.24transact business in this state or, if the vehicle is registered in another state, by a policy of
1.25insurance issued by or on behalf of an insurer authorized to transact business in either this
1.26state or the state in which the vehicle is registered or by qualifying as a self-insurer.
2.1 Subd. 3. Self-insurance. Self-insurance, subject to approval of the commissioner, is
2.2effected by filing with the commissioner in satisfactory form:
2.3(1) a continuing undertaking by the owner or other appropriate person to pay tort
2.4liabilities and to perform all other obligations imposed by law;
2.5(2) evidence that appropriate provision exists for prompt administration of all
2.6claims, benefits, and obligations;
2.7(3) evidence that reliable financial arrangements, deposits, or commitments exist
2.8providing assurance for payment of tort liabilities and all other obligations imposed by
2.9law; and
2.10(4) a nonrefundable initial application fee of $1,500 and an annual renewal fee of
2.11$400 for political subdivisions and $500 for nonpolitical entities.
2.12 Subd. 4. Rulemaking. To carry out the purposes of subdivision 3, the commissioner
2.13may adopt rules pursuant to chapter 14. These rules may:
2.14(1) establish reporting requirements;
2.15(2) establish standards or guidelines to ensure the adequacy of the financing and
2.16administration of self-insurance plans;
2.17(3) establish bonding requirements or other provisions ensuring the financial
2.18integrity of entities that self-insure, other than bonding requirements for self-insuring
2.19political subdivisions; and
2.20(4) establish other reasonable requirements to further the purposes of this section.
2.21 Subd. 5. State or political subdivisions to provide insurance. The state of
2.22Minnesota or any agency or political subdivision of the state shall provide insurance, either
2.23as a self-insurer pursuant to subdivision 3, or through purchase of a policy of insurance.
2.24 Subd. 6. Motorcycle coverage. Every owner of a motorcycle registered or required
2.25to be registered in this state or operated in this state by the owner or with the owner's
2.26permission shall provide and maintain insurance for the payment of tort liabilities arising
2.27out of the maintenance or use of the motorcycle in this state. Insurance may be provided
2.28by a policy of insurance or by qualifying as a self-insurer in the manner provided in
2.29subdivision 3.
2.30 Sec. 2. PREMIUM REDUCTION.
2.31An insurer must provide an appropriate premium reduction of at least 20 percent
2.32on each policy, plan, or contract issued or renewed on or after January 1, 2012, insuring
2.33against loss resulting from liability imposed by law for injury or property damage sustained
2.34by any person arising out of the operation, maintenance, or use of a motor vehicle of a
2.35type that is required to be registered or licensed or is principally garaged in this state.
3.1 Sec. 3. CONFORMING LEGISLATION.
3.2The revisor of statutes shall place a bill before the legislature no later than January 1,
3.32012, making all changes in Minnesota Statutes necessary to conform other provisions
3.4of Minnesota Statutes to this act.
3.5 Sec. 4. REPEALER.
3.6Minnesota Statutes 2010, sections 65B.41; 65B.42; 65B.43; 65B.44; 65B.45;
3.765B.46; 65B.47; 65B.48, subdivisions 1, 2, 3, 3a, 4, 5, 6, and 7; 65B.482; 65B.49,
3.8subdivisions 1, 2, 3, 3a, 4a, 5a, 7, 8, and 9; 65B.50; 65B.51; 65B.525; 65B.53; 65B.54;
3.965B.55; 65B.56; 65B.57; 65B.58; 65B.59; 65B.60; 65B.61, subdivisions 1, 2, 2a, and 3;
3.1065B.63; 65B.64; 65B.65; 65B.66; 65B.685; and 65B.71, are repealed effective January
3.111, 2012.
3.12 Sec. 5. EFFECTIVE DATE; APPLICABILITY.
3.13This act is effective January 1, 2012, and applies to accidents occurring on or after
3.14that date.
1.3Act; providing an appropriate premium reduction; requiring liability coverage;
1.4proposing coding for new law in Minnesota Statutes, chapter 65B; repealing
1.5Minnesota Statutes 2010, sections 65B.41; 65B.42; 65B.43; 65B.44; 65B.45;
1.665B.46; 65B.47; 65B.48, subdivisions 1, 2, 3, 3a, 4, 5, 6, 7; 65B.482; 65B.49,
1.7subdivisions 1, 2, 3, 3a, 4a, 5a, 7, 8, 9; 65B.50; 65B.51; 65B.525; 65B.53;
1.865B.54; 65B.55; 65B.56; 65B.57; 65B.58; 65B.59; 65B.60; 65B.61, subdivisions
1.91, 2, 2a, 3; 65B.63; 65B.64; 65B.65; 65B.66; 65B.685; 65B.71.
1.10BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.11 Section 1. [65B.30] COMPULSORY INSURANCE.
1.12 Subdivision 1. General requirement and coverages. Every owner of a motor
1.13vehicle of a type that is required to be registered or licensed, or is principally garaged in
1.14this state, shall maintain during the period in which operation or use is contemplated,
1.15insurance under provisions approved by the commissioner, insuring against loss resulting
1.16from liability imposed by law for injury and property damage sustained by any person
1.17arising out of the ownership, maintenance, operation, or use of the vehicle. The
1.18nonresident owner of a motor vehicle that is not required to be registered or licensed,
1.19or that is not principally garaged in this state, shall maintain the insurance in effect
1.20continuously throughout the period of the operation, maintenance, or use of the motor
1.21vehicle in this state with respect to accidents occurring in this state.
1.22 Subd. 2. Types of insurance. The insurance required by subdivision 1 may be
1.23provided by a policy of insurance that is issued by or on behalf of an insurer authorized to
1.24transact business in this state or, if the vehicle is registered in another state, by a policy of
1.25insurance issued by or on behalf of an insurer authorized to transact business in either this
1.26state or the state in which the vehicle is registered or by qualifying as a self-insurer.
2.1 Subd. 3. Self-insurance. Self-insurance, subject to approval of the commissioner, is
2.2effected by filing with the commissioner in satisfactory form:
2.3(1) a continuing undertaking by the owner or other appropriate person to pay tort
2.4liabilities and to perform all other obligations imposed by law;
2.5(2) evidence that appropriate provision exists for prompt administration of all
2.6claims, benefits, and obligations;
2.7(3) evidence that reliable financial arrangements, deposits, or commitments exist
2.8providing assurance for payment of tort liabilities and all other obligations imposed by
2.9law; and
2.10(4) a nonrefundable initial application fee of $1,500 and an annual renewal fee of
2.11$400 for political subdivisions and $500 for nonpolitical entities.
2.12 Subd. 4. Rulemaking. To carry out the purposes of subdivision 3, the commissioner
2.13may adopt rules pursuant to chapter 14. These rules may:
2.14(1) establish reporting requirements;
2.15(2) establish standards or guidelines to ensure the adequacy of the financing and
2.16administration of self-insurance plans;
2.17(3) establish bonding requirements or other provisions ensuring the financial
2.18integrity of entities that self-insure, other than bonding requirements for self-insuring
2.19political subdivisions; and
2.20(4) establish other reasonable requirements to further the purposes of this section.
2.21 Subd. 5. State or political subdivisions to provide insurance. The state of
2.22Minnesota or any agency or political subdivision of the state shall provide insurance, either
2.23as a self-insurer pursuant to subdivision 3, or through purchase of a policy of insurance.
2.24 Subd. 6. Motorcycle coverage. Every owner of a motorcycle registered or required
2.25to be registered in this state or operated in this state by the owner or with the owner's
2.26permission shall provide and maintain insurance for the payment of tort liabilities arising
2.27out of the maintenance or use of the motorcycle in this state. Insurance may be provided
2.28by a policy of insurance or by qualifying as a self-insurer in the manner provided in
2.29subdivision 3.
2.30 Sec. 2. PREMIUM REDUCTION.
2.31An insurer must provide an appropriate premium reduction of at least 20 percent
2.32on each policy, plan, or contract issued or renewed on or after January 1, 2012, insuring
2.33against loss resulting from liability imposed by law for injury or property damage sustained
2.34by any person arising out of the operation, maintenance, or use of a motor vehicle of a
2.35type that is required to be registered or licensed or is principally garaged in this state.
3.1 Sec. 3. CONFORMING LEGISLATION.
3.2The revisor of statutes shall place a bill before the legislature no later than January 1,
3.32012, making all changes in Minnesota Statutes necessary to conform other provisions
3.4of Minnesota Statutes to this act.
3.5 Sec. 4. REPEALER.
3.6Minnesota Statutes 2010, sections 65B.41; 65B.42; 65B.43; 65B.44; 65B.45;
3.765B.46; 65B.47; 65B.48, subdivisions 1, 2, 3, 3a, 4, 5, 6, and 7; 65B.482; 65B.49,
3.8subdivisions 1, 2, 3, 3a, 4a, 5a, 7, 8, and 9; 65B.50; 65B.51; 65B.525; 65B.53; 65B.54;
3.965B.55; 65B.56; 65B.57; 65B.58; 65B.59; 65B.60; 65B.61, subdivisions 1, 2, 2a, and 3;
3.1065B.63; 65B.64; 65B.65; 65B.66; 65B.685; and 65B.71, are repealed effective January
3.111, 2012.
3.12 Sec. 5. EFFECTIVE DATE; APPLICABILITY.
3.13This act is effective January 1, 2012, and applies to accidents occurring on or after
3.14that date.
