HF2389

HF2389 (Legislative Session 94 (2025-2026))

Data calls authorized, group capital calculations established for insurers, insurers required to complete a NAIC liquidity stress test, insurers required to file group capital calculations and results from the NAIC liquidity stress test, insurers required to secure a deposit or bond, limited long-term care insurance provided for and regulated, automobile insurance governing provisions modified, data classified, penalties provided, and technical changes made.

Related bill: SF2457

AI Generated Summary

Purpose of the Bill

This legislative proposal seeks to update and regulate various aspects of insurance in Minnesota, particularly focusing on long-term care insurance and automobile insurance, as well as authorizing the creation of data calls to collect relevant information from insurers.

Main Provisions

Data Calls for Insurance: The bill allows the Commissioner of Commerce to issue data calls, which are requests for information from insurance companies, to ensure regulatory compliance. The collected data will be treated as nonpublic and is not subject to subpoena, except under specific circumstances.
Limited Long-Term Care Insurance: This section introduces new regulations, creating the Limited Long-Term Care Insurance Act. It sets guidelines for the issuance and management of both individual and group policies, defining terms like "elimination period" and "waiting period," and outlining the requirements for offering these insurance policies in Minnesota. It specifies that such insurance must not cover less than 12 consecutive months or be designed primarily for Medicare supplement coverage or similar general health coverage.
Extraterritorial Jurisdiction: It prevents offering limited long-term care policies to Minnesota residents from out-of-state policies unless those policies meet statutory requirements similar to Minnesota's.
Consumer Protections:
- Requires clear disclosure and performance standards.
- Provides for a 30-day free look period allowing prospective customers to review and return policies without penalty.
- Limits the exclusion of preexisting conditions and conditions the eligibility for benefits.
Administrative Rulemaking: Empowers the Commissioner to adopt rules aimed at ensuring premium adequacy, protecting policyholders against substantial rate increases, and setting standards for claims practices and penalties for non-compliance.
Incontestability and Nonforfeiture: The bill includes clauses that restrict insurers from contesting policies based on misrepresentation after the policy has been in force for two years, and mandates the offer of nonforfeiture benefits.
Penalties: Establishes fines for violations related to limited long-term care insurance regulations.

Significant Changes to Existing Law

Modification of Automobile Insurance: Updates and revises automobile insurance provisions, though specific adjustments are not detailed in the summary.
Rulemaking and Compliance: Enhancements to regulatory oversight provide the commissioner with extended powers to ensure compliance and address violations effectively.

Relevant Terms

Data Call
Long-term Care Insurance
Commissioner of Commerce
Nonpublic Data
Nonforfeiture Benefits
Incontestability Period
Preexisting Condition
Administrative Rulemaking
Premium Adequacy

Bill text versions

Introduction PDF file
1st Engrossment PDF file
2nd Engrossment PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
March 16, 2025	House	Floor	Action	Introduction and first reading, referred to	Commerce Finance and Policy
March 23, 2025	House	Floor	Action	Committee report, to adopt as amended and re-refer to	Judiciary Finance and Civil Law
April 06, 2025	House	Floor	Action	Committee report, to adopt as amended and re-refer to	Commerce Finance and Policy

Citations

[
  {
    "analysis": {
      "added": [
        "Authorization for the commissioner to issue data calls.",
        "New data handling procedures for handling commissioner-issued data calls."
      ],
      "removed": [],
      "summary": "The bill modifies investigation and data handling procedures under section 45.027, impacting the commissioner of commerce's powers.",
      "modified": [
        "Revised process for compelling production of evidence by the commissioner."
      ]
    },
    "citation": "45.027",
    "subdivision": "subdivisions 1, 2"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Amendments impact definitions aligning with automobile insurance provisions under section 65B.02.",
      "modified": [
        "Adjusted existing terminologies and definitions to align with current automotive insurance practices."
      ]
    },
    "citation": "65B.02",
    "subdivision": "subdivision 7"
  },
  {
    "analysis": {
      "added": [
        "New classifications for certain data related to automobile insurance."
      ],
      "removed": [],
      "summary": "Section 65B.05 is amended to reflect modifications in automobile insurance provisions.",
      "modified": []
    },
    "citation": "65B.05",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        "Specific procedural changes to subdivisions related to processing claims and company requirements."
      ],
      "removed": [],
      "summary": "This section is amended to modify procedural rules and requirements under automobile insurance regulations.",
      "modified": [
        "Updated language to clarify regulatory procedures and company obligations."
      ]
    },
    "citation": "65B.06",
    "subdivision": "subdivisions 1, 2, 3"
  },
  {
    "analysis": {
      "added": [
        "Updated penalty frameworks and criteria for enforcement under subdivision 2."
      ],
      "removed": [],
      "summary": "Amendments to this section pertain to fine and penalty structures for violations in auto insurance.",
      "modified": [
        "Revised legal language to ensure clarity in enforcement actions and penalties imposed."
      ]
    },
    "citation": "65B.10",
    "subdivision": "subdivision 2"
  }
]