HF2389

Purpose of the Bill

The purpose of this bill is to regulate the insurance industry in Minnesota by authorizing specific data gathering methods (data calls), introducing and managing limited long-term care insurance policies, and updating certain laws regarding automobile insurance. The bill also includes provisions for classifying certain data and allows for the implementation of administrative rules and penalties to ensure compliance.

Main Provisions

• Data Calls Authorization: The bill authorizes the commissioner of commerce to issue data calls, which are requests for data or information from insurance companies. This is intended for regulatory purposes to oversee the insurance market effectively. The information collected is classified as nonpublic and cannot be subpoenaed.

• Limited Long-Term Care Insurance: The bill establishes the definition, scope, and regulation of limited long-term care insurance, which covers services outside hospital acute care for less than 12 consecutive months. The bill sets guidelines on policy creation, marketing, and delivery requirements and specifies what can and cannot be included.

• Insurer Duties: Insurers must provide coverage outlines to prospective customers, and applicants can return policies within 30 days for a full refund if unsatisfied. Clear guidelines regarding claims denial and contestability are outlined to protect consumers.

• Administrative Rulemaking: The bill empowers the commissioner to adopt rules related to premium adequacy, producer practices, and benefit determinations. It also requires that communication meets accessibility standards for people with disabilities and limited English proficiency.

Significant Changes to Existing Law

• Amendments and Repeals: The bill revises sections of the Minnesota Statutes regarding the powers of the commissioner of commerce, specifically focusing on investigations, data collection, and hearings. It repeals a subdivision related to automobile insurance, indicating changes in how these policies are governed.

• New Provisions for Long-Term Care Insurance: Introduces a new chapter in Minnesota Statutes for limited long-term care insurance, with detailed requirements for policy standards, including contestability periods, nonforfeiture benefits, and penalties for violations.

• Data Classification: Information gained from data calls will be classified as nonpublic, restrictively shared, and not subject to legal requests, emphasizing privacy and the regulated use of collected data.

Relevant Terms

• Data Calls
• Limited Long-Term Care Insurance
• Nonpublic Data
• Commissioner of Commerce
• Administrative Rulemaking
• Insurance Regulation
• Premium Adequacy
• Nonforfeiture Benefit
• Contestability Period
• Penalties for Violations