Bill > SF3291

This bill modifies the notice provisions for surplus lines brokers in Minnesota, specifically addressing how they must inform customers about alternative insurance options when placing coverage through non-admitted insurers. The bill amends existing law by removing some specifics about property value thresholds and adding a new requirement that when a surplus lines broker places homeowners or property insurance on an owner-occupied dwelling with a nonadmitted insurer, they must include a prominent notice informing the policyholder that they may be eligible for coverage through the Minnesota FAIR (Fair Access to Insurance Requirements) Plan. This notice must be printed in at least ten-point type directly on the face of the policy and cannot be covered or concealed. The FAIR Plan is a state-mandated insurance program designed to provide property and liability coverage to homeowners who cannot obtain insurance through standard market insurers. The bill also maintains the existing rebuttable presumption about insurance coverage availability, including clarifying conditions for when surplus lines insurance might be appropriate, such as when licensed insurers cannot provide competitive premiums or terms. This change aims to increase transparency and ensure homeowners are aware of all potential insurance options.

Business and Industry

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF3291&ssn=0&y=2025