1.1                          A bill for an act 
  1.2             relating to insurance; auto; regulating nonrenewals of 
  1.3             the physical damage portion of policies; amending 
  1.4             Minnesota Statutes 1998, section 65B.17, subdivision 2.
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 1998, section 65B.17, 
  1.7   subdivision 2, is amended to read: 
  1.8      Subd. 2.  [RULEMAKING.] The commissioner may adopt rules 
  1.9   pursuant to chapter 14 to specify the grounds for nonrenewal of 
  1.10  an automobile policy.  The rules must limit the basis for 
  1.11  nonrenewal to the following factors:  
  1.12     (a) the reasons stated for cancellation in section 65B.15; 
  1.13     (b) payments made for collision, bodily injury liability, 
  1.14  or property damage liability coverage; 
  1.15     (c) moving violations of a driver; and 
  1.16     (d) other factors deemed reasonable by the commissioner.  
  1.17     The rules must specify the manner in which these factors 
  1.18  will be considered and may reflect the severity or recurrence of 
  1.19  any moving violation, the amount of any payment made, and the 
  1.20  number of vehicles insured.  
  1.21     The physical damage portion of a policy may be nonrenewed 
  1.22  if total payments made in an experience period exceed three 
  1.23  times the number of vehicles insured for any combination of the 
  1.24  following: 
  1.25     (1) comprehensive payments, except towing and those caused 
  2.1   by natural causes; 
  2.2      (2) chargeable accident collision payments; or 
  2.3      (3) collision payments due to hit and run vehicles. 
  2.4      Sec. 2.  [EFFECTIVE DATE; APPLICATION.] 
  2.5      Section 1 is effective August 1, 1999, and applies to 
  2.6   losses occurring on or after that date.