1.1                          A bill for an act
  1.2             relating to insurance; automobile; requiring a premium 
  1.3             discount for seat belt use; proposing coding for new 
  1.4             law in Minnesota Statutes, chapter 65B. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [65B.286] [SEAT BELT USE PREMIUM REDUCTION.] 
  1.7      Subdivision 1.  [PREMIUM REDUCTION.] An insurer shall 
  1.8   provide, in exchange for seat belt use, an actuarially 
  1.9   appropriate premium reduction on the premium for basic economic 
  1.10  loss benefits under section 65B.44 and for uninsured and 
  1.11  underinsured motorist coverages under section 65B.49, 
  1.12  subdivision 3a.  The premium reduction must be based upon the 
  1.13  premium for the coverage limits selected by the insured, rather 
  1.14  than on the premium for the minimum coverage limits required by 
  1.15  law.  This section applies only to policies of private passenger 
  1.16  vehicle insurance, as defined under section 65B.001, subdivision 
  1.17  2. 
  1.18     Subd. 2.  [SEAT BELT USE DEFINED.] For purposes of this 
  1.19  section, the insured is eligible for the premium reduction 
  1.20  provided under subdivision 1 for seat belt use if all insureds, 
  1.21  as defined in section 65B.43, who are age 16 or older, sign a 
  1.22  statement promising to wear a seat belt, and to assure that each 
  1.23  insured under the age of 16 is wearing a seat belt, whenever 
  1.24  occupying a motor vehicle equipped with seat belts. 
  1.25     Subd. 3.  [EFFECT OF FAILURE TO USE SEAT BELTS.] (a) If an 
  2.1   insured is determined to have failed to honor the statement 
  2.2   signed by that insured under subdivision 2, the insurer shall 
  2.3   impose a deductible of $500 on each claim that involves the 
  2.4   coverages listed in subdivision 1 as being eligible for the 
  2.5   premium reduction, for the remainder of the policy period, 
  2.6   including any claim arising out of the incident that led to the 
  2.7   determination that the insured failed to honor the statement. 
  2.8   The insured is not eligible to sign a statement described in 
  2.9   subdivision 2 for a period of ten years after the date of the 
  2.10  failure to honor the statement. 
  2.11     (b) An insured is considered to have failed to honor the 
  2.12  statement signed under subdivision 2 if the insured:  
  2.13     (1) is convicted of a seat belt violation; or 
  2.14     (2) is involved in an accident in which the evidence 
  2.15  indicates that it is more likely than not that the insured was 
  2.16  not honoring the promise made in subdivision 2. 
  2.17     Sec. 2.  [EFFECTIVE DATE.] 
  2.18     Section 1 is effective on January 1, 1999, and applies to 
  2.19  policies issued or renewed on or after that date.