A new law will clarify that auto accident victims are entitled to receive no-fault medical benefits.
The previous statute did not clearly state that these victims could receive full medical benefits for necessary care without the restrictions of managed care requirements.
The new law will also prohibit health insurance companies from contracting to provide managed care services to no-fault claimants.
Victims of accidents are generally unaware they are being steered toward managed care provisions, said Rep. John Tuma (R-Northfield), the law's House sponsor. He said the legislation is supported by several medical organizations.
Sen. Dallas Sams (DFL-Staples) was the Senate sponsor.
HF1413/ SF1226*/ CH274

Credit scoring

A new law will regulate the use of the insurance practice known as "credit scoring" in determining automobile and homeowner policies in the state.
Sponsored by Rep. Greg Davids (R-Preston) and Sen. Dave Johnson (DFL-Bloomington), the new law will prohibit insurers from rejecting, canceling, or not renewing automobile or homeowners insurance in whole or in part solely on the basis of credit information.
The new law will require insurers who use credit scoring in their underwriting to file the scoring methodology and information that supports the insurer's use of a credit score with the Department of Commerce.
It will also prohibit credit scoring if the scoring incorporates gender, race, nationality, or religion of an insured person or applicant.
HF2492/ SF2363*/ CH357

No more free steaks

The Legislature voted to override Gov. Jesse Ventura's veto of a bill that will change the legal standard use to pay auto glass claims, making the bill law.
Sponsored by Rep. Ken Wolf (R-Burnsville) and Sen. James Metzen (DFL-South St. Paul), the new law changes the previous standard by which insurance companies had to pay glass claims from a "competitive price" to "fair and reasonable."
The new law will also prohibit glass replacement companies from offering inducements, such as a box of steaks, to consumers. Prior law restricted such incentives to items with a value of $35 or less.
In his veto message, Ventura wrote that the bill does not support consumers and consumer choice. He said just taking into account the cost of the repair would ignore important factors such as advertising and service costs and would be detrimental to small shops.
HF2570*/ SF2553/ CH283

HMO limits go up

Health maintenance organization (HMO) enrollees might be paying more in deductibles and co-payments, under a new law.
The maximum annual deductible will be raised from $1,000 to $3,000 per person, or $6,000 per family, under the new law.
In addition, the maximum annual out-of-pocket expense is presently $3,000 per person and $5,000 per family. Those amounts will be raised to $4,500 and $7,500.
Rep. Bill Haas (R-Champlin) and Sen. Linda Scheid (DFL-Brooklyn Park) sponsored the law.
HF2989/ SF3024*/ CH387

New insurance fraud division

A new law creates an insurance fraud division in the state that will be charged with investigating and prosecuting a crime for which consumers ultimately pay.
The new law authorizes the transfer of a small division in the Department of Labor and Industry that currently handles workers' compensation insurance fraud to the Department of Commerce. The new law provides the framework for a larger division that will handle all types of insurance fraud.
Under the new law, the division is responsible for initiating an investigation when "there is reason to believe insurance fraud has been or is being committed," and to report incidents of alleged insurance fraud to law enforcement authorities, such as the attorney general or county attorneys.
The new law was sponsored by Rep. Greg Davids (R-Preston) and Sen. Linda Scheid (DFL-Brooklyn Park).
HF3497/ SF3015*/ CH331

Accident liability clarification

A new law literally changes one word in the state's insurance laws, specifically a statute dealing with automobile liability coverage.
Rep. Greg Davids (R-Preston), who sponsored the measure in the House, said the new law resulted from a situation where a 16-year-old driver borrowed a neighbor's car with permission and was involved in an accident. The owner of the car did not have insurance, but Davids said that usually the young driver would have been covered by the liability coverage on her parents' auto insurance, but that company denied coverage.
Prior law stated that in such an incident the insurance company would be required to pay damages arising out of the ownership, maintenance, or use of "a" motor vehicle.
Two lower courts agreed that the insurance company was obligated to pay the damages under the previous law. But the Minnesota Supreme Court overturned the lower courts' rulings and said the statute was vague.
The law changes the statute to read "any," and also further clarifies intent by adding a clause that states "including a motor vehicle permissively operated by an insured (party)."
Sen. Linda Scheid (DFL-Brooklyn Park) was the Senate sponsor.
HF2783*/ SF2671/ CH234

Greater Minnesota health coverage

A new law allows the state's health commissioner to create five rural health maintenance organization projects for the purposes of expanding health coverage to people in Greater Minnesota.
Sponsored by Rep. Maxine Penas (R-Badger) and Sen. Dallas Sams (DFL-Staples), the new law allows the state to waive some HMO-related regulations so policyholders can create more flexible purchasing coalitions.
HF2935/ SF2909*/ CH346

Property insurance limits

Insuring property for more than its value must now amount to insuring it for more than its replacement cost, under a new law.
Previous law stated in excess of "fair value of the property."
Rep. Connie Ruth (R-Owatonna), House sponsor of the law, said the legislation will help the Department of Commerce enforce the current law by clarifying it.
The new law also prohibits lenders from requiring excessive insurance, and provides that the department may penalize violators.
HF3222/ SF2953*/ CH295

Refusal allowed

The Joint Underwriting Association, which provides medical malpractice insurance, now has the ability to refuse coverage to someone perceived to be too high a risk.
The new law changes several laws governing the association, and makes minor revisions to other insurance statutes.
Sponsored by Rep. Greg Davids (R-Preston) and Sen. Linda Scheid (DFL-Brooklyn Park), the law helps the association avoid too much risk.
Also, credit insurance, including credit life and credit disability, can now be sold on non-first mortgage loans on the same basis as other consumer loans. The new law also changes state statutes to conform to federal laws regarding claim forms used between hospitals and clinics and insurance companies.
HF3492/ SF3315*/ CH307

Other Insurance stories

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