SF3291

Purpose of the Bill

This bill is designed to modify the notice requirements that apply to surplus lines insurance brokers in Minnesota, specifically those dealing with homeowners or property insurance on owner-occupied dwellings.

Main Provisions

• Amendment to Existing Statute: This bill introduces changes to Minnesota Statutes section 60A.201, affecting how certain insurance coverages are addressed by surplus lines brokers.
• Notice for Homeowners Insurance: If a surplus lines broker arranges homeowners or property insurance with a nonadmitted insurer, they are required to print, type, or stamp a specific notice on the policy. This notice informs policyholders about the availability of coverage through the Minnesota FAIR Plan for those unable to secure insurance through the regular market.

Significant Changes to Existing Law

• New Rebuttable Presumption: There is a presumption that certain insurance coverages, such as mandatory automobile insurance, private passenger automobile physical damage coverage, and standard workers' compensation insurance, are available through licensed insurers.
• Consumer Protection: By introducing this notice requirement, the bill seeks to ensure policyholders are aware of the Minnesota FAIR Plan, potentially providing an alternative to surplus line insurance for those struggling to find insurance coverage through traditional means.

Relevant Terms

• Surplus lines broker
• Homeowners insurance
• Property insurance
• Nonadmitted insurer
• Minnesota FAIR Plan
• Rebuttable presumption
• Consumer Price Index