SF2455

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:

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.
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.
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.
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.
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

Introduction PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
March 12, 2025	House	Floor	Action	Introduction and first reading
March 12, 2025	Senate	Floor	Action	Introduction and first reading
March 12, 2025	House	Floor	Action	Referred to	Commerce and Consumer Protection
March 12, 2025	Senate	Floor	Action	Referred to	Commerce 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": ""
  }
]