About Minnesota Insurance Laws, Health Insurance and Regulations…
Minnesota is home to a bustling insurance industry that provides a wide range of services to residents. This industry and its various sectors is governed by both state and federal regulations that are upheld by the Minnesota Insurance Division. This agency is responsible for the formation of many of the insurance regulations that emerge in the state as well as the enforcement of those coming from the federal government. These regulations are in place to protect the state’s residents, as well as ensure that insurance companies can operate and grow as businesses.
Minnesota drivers are required to carry insurance coverage for their vehicles. The Minnesota Insurance Division is responsible for ensuring that the state’s auto insurance companies provide fair policies to consumers that are balanced in terms of pricing. The average cost of auto insurance coverage in the state is currently $1,667 per year, making the state one of the costliest in terms of auto insurance coverage.
According to the Minnesota Insurance Division, drivers are permitted to carry a minimum level of insurance coverage for their vehicles. This coverage much account for $30,000 per person for bodily injury; $60,000 for injuries to two or more people per accident; and $10,000 for property damage – as well as uninsured motorist coverage for $25,000/$50,000. The state requires drivers to maintain personal injury protection (PIP) coverage of $40,000.
Minnesota is home to no fault auto insurance rules that require insurance companies to honor claims no matter who is found to be at fault in an auto accident.
Homeowners in Minnesota are not required to carry property insurance coverage. The state does have regulations concerning the property insurance industry, but these regulations are largely meant to protect consumers and insurance companies from malicious activity within the market. The Minnesota Insurance Division does suggest that homeowners purchase some form of property insurance coverage so as to protect their homes and possessions from damage due to natural or other disasters.
The federal Affordable Care Act compels Minnesota to build its own health insurance exchange program.This program is meant to provide the state’s 497.500 residents without health insurance coverage with access to affordable policies. The state does have the chance to opt out of building its own exchange program, which would then become the responsibility of the federal government. The Minnesota Insurance Division has suggested that it would be in the state’s best interests to operate an exchange itself rather than have the federal government take control of such a program.
Insurance News Update: State officials have yet to determine whether an exchange program will be built in the state for certain. The Minnesota Insurance Division has tagged IBM as the company that will help build the exchange if the program receives final approval from the state’s Legislature.
Minnesota Insurance Resources:
Minnesota Insurance Commissioner: Jessica Looman
Minnesota Department of Insurance Website: http://mn.gov/commerce/insurance/
Minnesota Insurance Licensing Info:http://mn.gov/commerce/insurance/producers-adjusters/licensing-education.jsp
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