The proposed bill seeks to enhance insurance regulation in Minnesota by introducing provisions for limited long-term care insurance, authorizing data calls, and modifying existing automobile insurance regulations. A significant amendment includes the addition of a new subdivision to Minnesota Statutes 2024, section 45.027, which empowers the commissioner of commerce to issue data calls for collecting nonpublic information from regulated entities, ensuring confidentiality while facilitating regulatory oversight. The bill establishes definitions and standards for limited long-term care insurance, emphasizing consumer protection by prohibiting practices such as canceling coverage based on age or health deterioration and mandating clear disclosure requirements for applicants.

Additionally, the bill repeals a specific subdivision related to automobile insurance and makes various technical changes to existing statutes. It requires a coverage outline to be provided with applications for limited long-term care insurance, detailing essential benefits and terms. The bill also mandates that insurers provide written explanations for denied claims and establishes a nonforfeiture benefit option for limited long-term care policies. In terms of automobile insurance, the bill clarifies participation ratios and risk distribution among members, allows the facility to issue and underwrite insurance policies, and specifies coverage requirements for private passenger vehicles. Notably, it repeals the requirement for annual reviews of insureds for lower voluntary insurance rates, streamlining the process. The changes are set to take effect on January 1, 2026.

Statutes affected:
Introduction: 65B.10, 45.027, 65B.02, 65B.05, 65B.06
1st Engrossment: 65B.10, 45.027, 65B.02, 65B.05, 65B.06