Uninsured and underinsured motorist liability and coverage requirements modifications

A bill for an act

relating to automobile insurance; raising liability and uninsured and underinsured

motorist coverage requirements; amending Minnesota Statutes 2024, section

65B.49, subdivisions 3, 3a.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 65B.49, subdivision 3, is amended to read:

Subd. 3.

Residual liability insurance.

deleted text begin
(1)
deleted text end
new text begin
(a)
new text end
Each plan of reparation security shall also

contain stated limits of liability, exclusive of interest and costs, with respect to each vehicle

for which coverage is thereby granted, of not less than
deleted text begin
$30,000
deleted text end
new text begin
$100,000
new text end
because of bodily

injury to one person in any one accident and, subject to said limit for one person, of not less

than
deleted text begin
$60,000
deleted text end
new text begin
$200,000
new text end
because of injury to two or more persons in any one accident, and,

if the accident has resulted in injury to or destruction of property, of not less than
deleted text begin
$10,000
deleted text end
new text begin

$30,000
new text end
because of such injury to or destruction of property of others in any one accident.

deleted text begin

(2)
deleted text end
new text begin
(b)
new text end
Under residual liability insurance the reparation obligor shall be liable to pay, on

behalf of the insured, sums which the insured is legally obligated to pay as damages because

of bodily injury and property damage arising out of the ownership, maintenance or use of

any motor vehicle, including a motor vehicle permissively operated by an insured as that

term is defined in section
65B.43, subdivision 5
, if the injury or damage occurs within this

state, the United States of America, its territories or possessions, or Canada. A reparation

obligor shall also be liable to pay sums which another reparation obligor is entitled to recover

under the indemnity provisions of section
65B.53, subdivision 1
.

deleted text begin

(3)
deleted text end
new text begin
(c)
new text end
Every plan of reparation security shall be subject to the following provisions

which need not be contained therein:

deleted text begin

(a)
deleted text end
new text begin
(1)
new text end
The liability of the reparation obligor with respect to the residual liability coverage

required by this clause shall become absolute whenever injury or damage occurs; such

liability may not be canceled or annulled by any agreement between the reparation obligor

and the insured after the occurrence of the injury or damage; no statement made by the

insured or on the insured's behalf and no violation of said policy shall defeat or void said

policy.

deleted text begin

(b)
deleted text end
new text begin
(2)
new text end
The satisfaction by the insured of a judgment for such injury or damage shall not

be a condition precedent to the right or duty of the reparation obligor to make payment on

account of such injury or damage.

deleted text begin

(c)
deleted text end
new text begin
(3)
new text end
The reparation obligor shall have the right to settle any claim covered by the

residual liability insurance policy, and if such settlement is made in good faith, the amount

thereof shall be deductible from the limits of liability for the accident out of which such

claim arose.

deleted text begin

(d)
deleted text end
new text begin
(4)
new text end
Except as provided in subdivision 5a, a residual liability insurance policy shall

be excess of a nonowned vehicle policy whether the nonowned vehicle is borrowed or

rented, or used for business or pleasure. A nonowned vehicle is one not used or provided

on a regular basis.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective August 1, 2026, and applies to plans of

reparation security offered, issued, or renewed on or after that date.

new text end

Sec. 2.

Minnesota Statutes 2024, section 65B.49, subdivision 3a, is amended to read:

Subd. 3a.

Uninsured and underinsured motorist coverages.

deleted text begin
(1)
deleted text end
new text begin
(a)
new text end
No plan of

reparation security may be renewed, delivered or issued for delivery, or executed in this

state with respect to any motor vehicle registered or principally garaged in this state unless

separate uninsured and underinsured motorist coverages are provided therein. Each coverage,

at a minimum, must provide limits of
deleted text begin
$25,000
deleted text end
new text begin
$75,000
new text end
because of injury to or the death of

one person in any accident and
deleted text begin
$50,000
deleted text end
new text begin
$150,000
new text end
because of injury to or the death of two

or more persons in any accident. In the case of injury to, or the death of, two or more persons

in any accident, the amount available to any one person must not exceed the coverage limit

provided for injury to, or the death of, one person in any accident.

deleted text begin

(2)
deleted text end
new text begin
(b)
new text end
Every owner of a motor vehicle registered or principally garaged in this state

shall maintain uninsured and underinsured motorist coverages as provided in this subdivision.

deleted text begin

(3)
deleted text end
new text begin
(c)
new text end
No reparation obligor is required to provide limits of uninsured and underinsured

motorist coverages in excess of the bodily injury liability limit provided by the applicable

plan of reparation security.

deleted text begin

(4)
deleted text end
new text begin
(d)
new text end
No recovery shall be permitted under the uninsured and underinsured motorist

coverages of this section for basic economic loss benefits paid or payable, or which would

be payable but for any applicable deductible.

deleted text begin

(5)
deleted text end
new text begin
(e)
new text end
If at the time of the accident the injured person is occupying a motor vehicle, the

limit of liability for uninsured and underinsured motorist coverages available to the injured

person is the limit specified for that motor vehicle. However, if the injured person is

occupying a motor vehicle of which the injured person is not an insured, the injured person

may be entitled to excess insurance protection afforded by a policy in which the injured

party is otherwise insured. The excess insurance protection is limited to the extent of covered

damages sustained, and further is available only to the extent by which the limit of liability

for like coverage applicable to any one motor vehicle listed on the automobile insurance

policy of which the injured person is an insured exceeds the limit of liability of the coverage

available to the injured person from the occupied motor vehicle.

new text begin

(f)
new text end
If at the time of the accident the injured person is not occupying a motor vehicle or

motorcycle, the injured person is entitled to select any one limit of liability for any one

vehicle afforded by a policy under which the injured person is insured.

deleted text begin

(6)
deleted text end
new text begin
(g)
new text end
Regardless of the number of policies involved, vehicles involved, persons covered,

claims made, vehicles or premiums shown on the policy, or premiums paid, in no event

shall the limit of liability for uninsured and underinsured motorist coverages for two or

more motor vehicles be added together to determine the limit of insurance coverage available

to an injured person for any one accident.

deleted text begin

(7)
deleted text end
new text begin
(h)
new text end
The uninsured and underinsured motorist coverages required by this subdivision

do not apply to bodily injury of the insured while occupying a motor vehicle owned by the

insured, unless the occupied vehicle is an insured motor vehicle.

deleted text begin

(8)
deleted text end
new text begin
(i)
new text end
The uninsured and underinsured motorist coverages required by this subdivision

do not apply to bodily injury of the insured while occupying a motorcycle owned by the

insured.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective August 1, 2026, and applies to plans of

reparation security offered, issued, or renewed on or after that date.

new text end