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SF2455 (Legislative Session 94 (2025-2026))

Commissioner of commerce requirement to create a low-cost motor vehicle insurance program for low-income residents

Related bill: HF2215

AI Generated Summary

This bill (S.F. No. 2455) proposes the creation of the Minnesota Lifeline Insurance Program, a low-cost motor vehicle insurance program for low-income residents. It mandates the commissioner of commerce to oversee the program's development and operation in collaboration with an insurance facility, which will issue policies and determine rates.

Key Provisions:

  1. Eligibility Requirements:

    • Must be a Minnesota resident.
    • Household income must be no more than 300% of the federal poverty level.
    • All household members must have qualified health coverage (e.g., Medicaid, Medicare, TRICARE).
    • Must have been continuously licensed as a driver for the past three years, except for minor suspensions (e.g., for failure to pay fines).
    • Must not have recent at-fault bodily injury accidents, serious moving violation convictions, or multiple traffic infractions.

  2. Lifeline Policy Coverage:

    • $5,000 in basic economic loss benefits.
    • Bodily injury liability: $30,000 per person / $60,000 per accident.
    • Property damage liability: $10,000.
    • Uninsured/underinsured motorist coverage: $25,000 per person / $50,000 per accident.

  3. Program Administration:

    • The facility must set insurance rates based on program loss data and Minnesota's private passenger automobile insurance loss data.
    • Rates cannot exceed 25% higher for certain applicants in different geographic regions or with less than three years of licensure.
    • A website must be created for information and applications, with online purchasing available within two years.
    • Annual reports must be submitted to the commissioner and legislature on program statistics and recommendations.

  4. Funding & Outreach:

    • A 10-cent surcharge per vehicle per six-month policy will be collected from all auto insurance policies in Minnesota.
    • Revenue from this surcharge will fund marketing and outreach efforts to promote the program.
    • Up to $20,000 per year will be allocated for actuarial consulting services.

  5. Appropriations:

    • Initial funding from the general fund to establish the program in FY 2026.
    • Additional funds are allocated for actuarial consulting services.

Purpose:

The bill aims to provide affordable auto insurance for low-income individuals while ensuring compliance with Minnesota's vehicle insurance requirements. It also seeks to enhance accessibility through targeted marketing and online accessibility efforts.

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Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 13, 2025SenateFloorActionIntroduction and first reading
March 13, 2025SenateFloorActionReferred toCommerce and Consumer Protection

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Defines 'facility' as used in the context of the Minnesota Lifeline Insurance Program.",
      "modified": []
    },
    "citation": "65B.02",
    "subdivision": "subdivision 3"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Defines 'member' in relation to the Minnesota Lifeline Insurance Program.",
      "modified": []
    },
    "citation": "65B.02",
    "subdivision": "subdivision 4"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Refers to the definition of 'motor vehicle' applicable to the Minnesota Lifeline Insurance Program.",
      "modified": []
    },
    "citation": "169.011",
    "subdivision": "subdivision 42"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Mandates compliance with rate filing regulations for the Lifeline Insurance Program.",
      "modified": []
    },
    "citation": "65B.08",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Addresses requirements for maintaining automobile liability insurance for the Lifeline Policies.",
      "modified": []
    },
    "citation": "65B.48",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Defines restrictions on using insurance premium finance agreements for payment under Lifeline Policies.",
      "modified": []
    },
    "citation": "59A.02",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Section violated in connection to certain license suspensions not considered a break in continuous licensure for Lifeline Program eligibility.",
      "modified": []
    },
    "citation": "169.791",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Section violated related to insurance requirements, factored in determining eligibility for Lifeline Program.",
      "modified": []
    },
    "citation": "169.797",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Addresses violations affecting eligibility criteria for the Lifeline Insurance Program.",
      "modified": []
    },
    "citation": "171.24",
    "subdivision": "subdivisions 1 or 2"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Refers to licensing violations that may affect continuous licensure status under the Lifeline Program.",
      "modified": []
    },
    "citation": "171.18",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References court appearance violations relevant to eligibility in the Lifeline Program.",
      "modified": []
    },
    "citation": "171.16",
    "subdivision": "subdivision 3a"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Motor vehicle violations that impact eligibility for the Lifeline Program.",
      "modified": []
    },
    "citation": "84.765",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Relevant to motor vehicle exceptions impacting eligibility for the Lifeline Program.",
      "modified": []
    },
    "citation": "84.795",
    "subdivision": "subdivision 5"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Includes boat-related violations considered under vehicle insurance eligibility.",
      "modified": []
    },
    "citation": "86B.33",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Defines what constitutes an automobile insurance policy for surcharge purposes.",
      "modified": []
    },
    "citation": "65B.14",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Defines types of vehicles covered under surcharge conditions for the Lifeline Program.",
      "modified": []
    },
    "citation": "168.002",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Exception for commuter vans in surcharge applicability for the Lifeline Insurance Program.",
      "modified": []
    },
    "citation": "168.126",
    "subdivision": ""
  }
]

Progress through the legislative process

17%
In Committee

Sponsors