Purpose of the Bill

The bill aims to establish a low-cost motor vehicle insurance program specifically for low-income residents in Minnesota. This initiative seeks to provide more affordable insurance options and increase the accessibility of automobile insurance for these individuals.

Main Provisions

1. Minnesota Lifeline Insurance Program:

   • The bill mandates the creation of a program called the Minnesota Lifeline Insurance Program. It will offer low-cost insurance policies designed for low-income residents who meet specific eligibility requirements.

2. Eligibility Criteria:

   • To qualify for the program, applicants must reside in Minnesota, have a household income no greater than 300% of the federal poverty level, and possess a continuous driver's license for at least three years, among other conditions.

3. Commissioner and Facility Roles:

   • The Commissioner of Commerce, in collaboration with an appointed facility, will be responsible for developing and operating the program. They will also ensure proper marketing and outreach and submit annual reports to the relevant legislative bodies.

4. Policy Details:

   • Policies offered will include basic economic loss benefits, liability coverage, and uninsured/underinsured motorist coverage. These will comply with certain limits and requirements specified in the bill.

5. Insurance Rates:

   • The facility will determine policy rates, considering program loss data and private passenger automobile insurance loss data, and these rates must cater to program expenses without exceeding regional cost variations.

6. Surcharge for Marketing and Outreach:

   • A surcharge on vehicle insurance policies will fund marketing and outreach efforts for the program, with specific proceeds directed to a dedicated fund for these activities.

Significant Changes to Existing Law

• Amendments to Minnesota Statutes:

  • The bill proposes new subdivisions in Minnesota Statutes to incorporate the Minnesota Lifeline Insurance Program and adjust existing automobile insurance standards to accommodate the new program.

• Funding Appropriation:

  • Specific appropriations from the general fund are outlined to establish the program and retain an actuary for consulting services.

Relevant Terms

• Minnesota Lifeline Insurance Program
• Low-cost motor vehicle insurance
• Commissioner of Commerce
• Motor vehicle insurance rates
• Surcharge for insurance policies
• Low-income residents of Minnesota
• Economic loss benefits
• Uninsured/underinsured motorist coverage
• Federal poverty level eligibility