SF2457

Purpose of the Bill

The bill aims to update Minnesota's laws related to insurance. It focuses on changes to data collection practices, regulatory oversight of limited long-term care insurance, and adjustments within the realm of automobile insurance. It also seeks to create new rules and penalties for non-compliance.

Main Provisions

• Authorization of Data Calls: The commissioner of commerce is empowered to issue data calls to multiple companies for targeted regulatory purposes. These data calls are not subject to market analysis rules and the information collected is deemed nonpublic.

• Regulation of Limited Long-Term Care Insurance:

  • Establishment of the "Limited Long-Term Care Insurance Act" which sets provisions for policies covering less than 12 consecutive months.
  • Requirements for coverage details, standards, and marketing practices are outlined.
  • Provisions for nonforfeiture benefits and limitations on preexisting condition exclusions.
  • Requirement for insurers to provide coverage outlines and detailed descriptions of benefits to applicants.
  • Standards for contestability periods, nonforfeiture benefits, and administrative rules are established.

• Automobile Insurance Adjustments: Modification of existing provisions related to automobile insurance, though specific details in this area are minimal in the provided text.

• Rulemaking and Administrative Powers: The commissioner of commerce is granted broader powers to conduct investigations, require documentation, and enforce compliance with insurance regulations. Administrative rules to ensure premium adequacy and protect policyholders are to be developed.

• Penalties for Non-compliance: Insurers or producers that violate the regulations can face fines of up to three times the commission or $10,000, whichever is greater.

Significant Changes to Existing Law

• The introduction of data call procedures allows the commissioner of commerce to collect data more efficiently from insurers, classifying this data as nonpublic.
• The Limited Long-Term Care Insurance Act establishes new definitions, coverage requirements, and protections for policyholders, including nonforfeiture benefits and criteria for contestability.
• Updated penalties and administrative rulemaking aim to increase accountability and proper marketing practices for limited long-term care insurance.

Relevant Terms

• Data calls
• Nonpublic data
• Limited long-term care insurance
• Nonforfeiture benefits
• Contestability period
• Premium adequacy
• Administrative rulemaking
• Automobile insurance adjustments
• Penalties for non-compliance