Purpose of the Bill

The bill aims to modify existing insurance notice provisions related to surplus lines brokers in Minnesota. This is to ensure better consumer awareness and choice when purchasing certain types of insurance coverage.

Main Provisions

1. Insurance Coverage Confirmation:

   • The bill updates the requirements to confirm that certain types of insurance coverage, like mandatory automobile insurance, private passenger automobile damage coverage, homeowners insurance on owner-occupied dwellings, and workers' compensation insurance, are presumed to be available from licensed insurers.

2. New Notice Requirement:

   • The bill introduces a notice requirement for surplus lines brokers who place homeowners or property insurance with non-admitted insurers. The policy must include a clear notice informing policyholders about the Minnesota FAIR Plan and its options for property and liability coverage. This notice must be prominently displayed in at least ten-point font on the face of the insurance policy.

Significant Changes to Existing Law

• The bill adds a new subdivision to the Minnesota Statutes to enhance consumer protection by requiring surplus lines brokers to notify homeowners about potential alternative insurance options available through the Minnesota FAIR Plan.
• The Consumers are informed about coverage options through the FAIR Plan, aiming to ensure they are aware of all available insurance alternatives when insurance through the typical market channels is difficult to secure.

Relevant Terms

surplus lines brokers, non-admitted insurer, Minnesota FAIR Plan, homeowners insurance, property insurance, notice provisions, consumer protection, mandatory automobile insurance, workers' compensation insurance, insurance coverage.