The bill amends Minnesota Statutes 2024, section 60A.201, subdivision 2, to modify the notice provisions governing surplus lines brokers. It introduces a rebuttable presumption regarding the availability of certain coverages from licensed insurers, specifically renumbering existing clauses and removing the previous requirement for homeowners and property insurance on owner-occupied dwellings valued under $500,000. The new language clarifies that coverage is presumed available unless a licensed insurer quotes a premium and terms that are not competitive with those offered by an eligible surplus lines insurer or if the coverage is not available from the Workers' Compensation Reinsurance Association.

Additionally, the bill adds a new subdivision (Subd. 7) that mandates surplus lines brokers to provide a specific notice when placing homeowners or property insurance with a nonadmitted insurer. This notice must inform clients about their potential eligibility for coverage through the Minnesota Fair Plan, which offers property and liability coverage to those unable to secure insurance through standard markets. The notice must be prominently displayed on the policy and cannot be obscured, ensuring that clients are aware of their options.

Statutes affected:
Introduction: 60A.201