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<\/div>\nMinnesota lawmakers have introduced a bill that would establish a low-cost auto insurance program for low-income residents.<\/p>\n
HF 2215 would establish the Minnesota Lifeline Insurance Program, a state-sponsored, alternative auto insurance option for motorists who have a household adjusted gross income of no more than 300 percent of the federal poverty level ($15,650).<\/p>\n
The bill<\/a>, which is authored by 13 Democratic representatives, received a first reading last month by the Commerce Finance and Policy committee.<\/p>\n Lifeline policies include:<\/p>\n The program may establish up to three geographic regions of the state and set different premiums by region to reflect different loss costs associated with each region, the bill states. The premium charged in a region must not be more than 25 percent higher than an otherwise similar policy in another region of the state.<\/p>\n Eligible applicants must demonstrate that all household members are enrolled in qualified health coverage.<\/p>\n Each insurer engaged in writing policies of automobile insurance must collect a surcharge, at the rate of 10 cents per vehicle for every six months of coverage, on each policy of automobile insurance providing comprehensive insurance coverage issued or renewed in Minnesota, the bill states.<\/p>\n A licensed producer is entitled to receive a commission on each policy sold that is equal to 12 percent of the policy premiums, provided that the commission is not less than $50.<\/p>\n California, Hawaii and New Jersey are among states with a low-income auto insurance program.<\/p>\n Topics<\/span> Profit Loss<\/a> Legislation<\/a> Auto<\/a> Minnesota<\/a> <\/p>\n<\/p><\/div>\n Was this article valuable?<\/p>\n<\/p><\/div>\n\n