HF2460

Purpose of the Bill

The purpose of this bill is to modify existing rules regarding the timing of insurance policy cancellations and nonrenewals in Minnesota. It aims to extend the notice period given to policyholders before a policy is canceled or not renewed.

Main Provisions

• Policy Cancellation Notice:

  • For policies that are less than 60 days old or those canceled due to nonpayment, the notice period is increased. The insurer must provide a notice at least 60 days before the policy's cancellation, up from the previous 20 days.
  • For midterm cancellations that occur for specified reasons or under certain policy terms, the notice period is now 60 days before the cancellation takes effect, instead of 30 days.

• Policy Nonrenewal Notice:

  • Insurers are required to notify the insured at least 60 days before the date of nonrenewal. The notice must include specific reasons related to underwriting or other factors for the nonrenewal.

Significant Changes to Existing Law

• The bill changes the prior 20-day and 30-day notice requirements to 60 days across different scenarios for cancellation and nonrenewal of insurance policies, ensuring policyholders have more time to respond to these changes.
• Note that commercial policies regulated under sections 60A.36 and 60A.37 are not affected by these changes.

Relevant Terms

insurance, policy cancellation, notice period, nonrenewal, underwriting, nonpayment, commercial policies