The bill proposes the Minnesota Lifeline Insurance Program, which aims to provide low-cost motor vehicle insurance for low-income residents of Minnesota. Key provisions of the bill include:

1. Program Creation & Administration:

   • The Commissioner of Commerce is required to develop and oversee the program in coordination with the facility responsible for managing its operations.
   • The facility will assess applicant eligibility, set rates, and issue lifeline policies that meet specific coverage requirements.

2. Eligibility Criteria:

   • Applicants must be Minnesota residents.
   • Annual household income must be at or below 300% of the federal poverty level.
   • All household members must have qualified health insurance coverage.
   • Applicants must have had a valid driver’s license for the past three years, with exceptions for minor violations or administrative suspensions.
   • Applicants cannot have severe driving offenses, more than two moving violations, or be responsible for more than one at-fault accident involving property damage.

3. Insurance Coverage:

   • Coverage includes:
     • $5,000 for economic loss benefits (e.g., income replacement, funeral expenses).
     • $30,000 per person / $60,000 per accident for bodily injury liability.
     • $10,000 for property damage liability.
     • Uninsured/underinsured motorist coverage: $25,000 per person / $50,000 per accident.

4. Premium Rate Determination:

   • Rates must be sufficient to cover claims and administrative costs.
   • A deferred payment plan will be available allowing policyholders to pay in at least six installments.
   • The facility may set regional premiums, with no region having a premium more than 25% higher than another.
   • Public input will be considered before rates are finalized.

5. Marketing & Outreach Fund:

   • Insurance companies will collect a surcharge of $0.10 per vehicle every six months on policies providing comprehensive coverage.
   • Funds will be deposited into the Minnesota Lifeline Insurance Program Account, to be used for marketing and outreach efforts.
   • Grants will be provided to nonprofits and marketing companies to promote program awareness.

6. Program Reporting & Oversight:

   • The facility must submit annual reports on program participation, premium collections, claims, and recommendations for modifications.
   • The Commissioner must present the report to relevant legislative committees.

7. Budget Appropriations:

   • $20,000 per year for FY 2026 and 2027 will be allocated to hire an independent actuary to support program rate setting.

Summary:

The Minnesota Lifeline Insurance Program seeks to provide affordable auto insurance coverage for low-income residents by creating a state-administered option with fixed eligibility criteria, standardized coverage, and regulated premium rates. It is funded through policy surcharges and state appropriations and includes a public outreach component to ensure eligible individuals are aware of and can access the program.