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HF3026 (Legislative Session 94 (2025-2026))

Notice provisions governing surplus lines brokers modified.

Related bill: SF3291

AI Generated Summary

Purpose of the Bill

The bill aims to amend existing laws related to insurance, specifically addressing the regulations surrounding surplus lines brokers and their insurance notice obligations in Minnesota.

Main Provisions

  1. Amendment to Availability of Coverage:

    • The bill modifies how certain types of insurance coverage are presumed available from licensed insurers, introducing a rebuttable presumption of availability for mandatory coverages like automobile insurance, homeowners insurance on low-value dwellings, and others.

  2. Notice on Surplus Lines Policies:

    • Introduces a requirement for surplus lines brokers to include a notice on policies for homeowners or property insurance on owner-occupied dwellings when placed with a nonadmitted insurer.
    • The notice must inform policyholders about potential eligibility for the Minnesota FAIR Plan, which offers property and liability insurance to those unable to secure it through traditional markets.

Significant Changes to Existing Law

  • Requirement for FAIR Plan Notice:
    • A new legal stipulation mandates that any policy issued through a nonadmitted insurer must prominently display information about the Minnesota FAIR Plan. This aims to ensure that policyholders are aware of alternative coverage options, thereby potentially broadening their access to affordable and comprehensive insurance.

Relevant Terms

  • Surplus lines brokers
  • Rebuttable presumption
  • Nonadmitted insurer
  • Minnesota FAIR Plan
  • Homeowners insurance
  • Property insurance
  • Liability coverage

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 31, 2025HouseFloorActionIntroduction and first reading, referred toCommerce Finance and Policy

Citations

 
[
  {
    "analysis": {
      "added": [
        "A specific notice requirement for FAIR plan coverage."
      ],
      "removed": [
        ""
      ],
      "summary": "This section of the bill modifies notice provisions governing surplus lines brokers under section 60A.201, subdivision 2.",
      "modified": [
        "Clarifies the criteria for rebuttable presumption of available coverage."
      ]
    },
    "citation": "60A.201",
    "subdivision": "subdivision 2"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "The bill references the mandatory notice requirements as outlined in section 60A.207.",
      "modified": [
        ""
      ]
    },
    "citation": "60A.207",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "This section is related to additional notice requirements for surplus lines brokers.",
      "modified": [
        ""
      ]
    },
    "citation": "60A.209",
    "subdivision": ""
  }
]

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