The bill amends Minnesota Statutes to authorize insurers to consider certain weather-related losses when underwriting and rating homeowner's insurance policies. Specifically, it introduces new provisions that require insurers to provide at least 60 days' advance notice to policyholders before renewing, reducing, or eliminating coverage. The bill clarifies that increasing or revising a deductible due to claims from natural causes, such as lightning, rain, wind, and hail, does not constitute a refusal to renew or a reduction in coverage. Additionally, it allows the commissioner to adopt rules specifying grounds for nonrenewal and outlines the appeal process for insured individuals who believe their nonrenewal is unjustified.

Furthermore, the bill modifies the criteria for determining compliance with insurance rates by including the impact of losses caused by natural events in the evaluation process. It removes the previous exclusion of certain loss experiences from consideration, thereby allowing insurers to factor in losses from natural causes when setting rates. The bill aims to provide clearer guidelines for both insurers and policyholders regarding coverage changes and the rationale behind them, while also ensuring that policyholders have the right to appeal nonrenewal decisions.

Statutes affected:
Introduction: 65A.29, 70A.05