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
Purpose of the Bill
The aim of this bill is to create a low-cost motor vehicle insurance program specifically for low-income residents of Minnesota. This initiative seeks to ensure affordable access to required motor vehicle insurance for those who may otherwise struggle to afford it.
Main Provisions
- Creation of Minnesota Lifeline Insurance Program: The bill mandates the creation of an affordable motor vehicle insurance program, referred to as the Minnesota Lifeline Insurance Program, to be developed and managed by the state's commerce commissioner in collaboration with a designated facility.
- Eligibility Requirements: To qualify for the program, applicants must be Minnesota residents with a household income not exceeding 300% of the federal poverty level. They must have been continuously licensed for at least three years, except in certain cases of temporary suspensions.
- Policy Details: The program offers policies with coverage for economic loss benefits, liability, uninsured or underinsured motorist coverage, and property damage. Policies may last for six or twelve months.
- Program Operations and Reporting: The bill outlines duties for both the commissioner and the facility, including setting rates, managing applications, and developing marketing strategies. An annual report on program performance and expenditures is required.
- Surcharge and Funding: It introduces a surcharge on automobile insurance policies to fund marketing and outreach efforts for the program, with the surcharge revenues managed by the commissioner of revenue.
Significant Changes to Existing Law
- Addition to Minnesota Statutes: The bill proposes new coding in Minnesota Statutes to establish the Minnesota Lifeline Insurance Program and its operational guidelines.
- Insurance Industry Impact: Insurance providers will need to incorporate this surcharge into their billing for automobile policies, affecting how premiums are computed and displayed.
Relevant Terms
- Minnesota Lifeline Insurance Program, low-cost insurance, commerce commissioner, eligibility, affordable motor vehicle insurance, surcharge, insurance policy, federal poverty level, marketing and outreach.
Bill text versions
- Introduction PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 12, 2025 | Senate | Floor | Action | Introduction and first reading | |
| March 12, 2025 | Senate | Floor | Action | Referred to | Commerce and Consumer Protection |
Citations
[
{
"analysis": {
"added": [],
"removed": [],
"summary": "Defines 'Facility' for the purposes of the bill, referring to the existing legal definition.",
"modified": []
},
"citation": "65B.02 subdivision 3"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Defines 'Member' by referring to the existing legal definition relevant to the context of the bill.",
"modified": []
},
"citation": "65B.02 subdivision 4"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Cites the definition of 'Motor vehicle' as per existing statutes in Minnesota.",
"modified": []
},
"citation": "169.011 subdivision 42"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This section is referenced in relation to the facility's duty to file rates with the commissioner.",
"modified": []
},
"citation": "65B.08"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Defines what constitutes an automobile insurance policy for the purposes of the surcharge.",
"modified": []
},
"citation": "65B.14"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Referenced for vehicle definitions relevant to policy surcharge applicability.",
"modified": []
},
"citation": "168.002"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Defines 'commuter vans', which are not included in the types of vehicles subject to the surcharge.",
"modified": []
},
"citation": "168.126"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Mentioned in relation to exceptions from license suspension affecting eligibility.",
"modified": []
},
"citation": "171.24 subdivisions 1 or 2"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Refers to violations related to car insurance requirements affecting eligibility.",
"modified": []
},
"citation": "169.791"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Indicates violations affecting licensure and eligibility for the program.",
"modified": []
},
"citation": "169.797"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Addresses citation for motor vehicle related violations not causing a break in licensure.",
"modified": []
},
"citation": "171.18 subdivision 1 paragraph a clause 1"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Failure to appear in court for a petty misdemeanor is discussed in the context of license suspension.",
"modified": []
},
"citation": "171.16 subdivision 3a"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Failure to pay a fine under this section does not count as a break in licensure for eligibility.",
"modified": []
},
"citation": "171.16 subdivision 3"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Relates to a conviction history element considered in program eligibility.",
"modified": []
},
"citation": "84.765"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Reference for convictions considered in eligibility for the insurance program.",
"modified": []
},
"citation": "84.795 subdivision 5"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Statute considered for conviction history in program eligibility evaluation.",
"modified": []
},
"citation": "86B.33"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Referenced in multiple sections as a compliance measure for lifeline policy requirements.",
"modified": []
},
"citation": "65B.48"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Provides definition for 'insurance premium finance agreement', which is prohibited for lifeline policies.",
"modified": []
},
"citation": "59A.02"
}
]