Consumer Protection in Minnesota

Minnesota's Consumer Protection Framework

The Minnesota Department of Commerce enforces extensive consumer protection laws to ensure fair treatment in insurance transactions.

Consumer Services Center

The Department's Consumer Services Center provides:

• Complaint intake for insurance disputes
• Investigation of consumer complaints
• Mediation between consumers and insurers
• Education about insurance rights
• Referrals to appropriate agencies

Contact Information:

• Phone: 651-539-1600 or 1-800-657-3602
• Website: mn.gov/commerce
• Address: 85 7th Place East, Suite 280, St. Paul, MN 55101

Producer Disclosure Requirements

Required Disclosures to Consumers

Minnesota producers must disclose:

Policy Delivery Requirements

When delivering a policy, producers must:

• Provide a complete copy of the policy
• Explain key terms and conditions
• Point out exclusions and limitations
• Answer consumer questions
• Provide contact information for service

Minnesota No-Fault Auto Insurance

The No-Fault System

Minnesota is a no-fault auto insurance state under the 1974 Minnesota No-Fault Automobile Insurance Act (Minnesota Statutes Chapter 65B).

How No-Fault Works:

• Your own Personal Injury Protection (PIP) pays your medical expenses
• Coverage applies regardless of who caused the accident
• Reduces litigation by limiting the right to sue
• Provides faster payment of claims

Required Auto Insurance Coverages

Minnesota requires these minimum coverages:

Remember: The minimum limits are often expressed as 30/60/10 for liability plus $40,000 PIP and 25/50 UM/UIM.

PIP Coverage Components

The $40,000 PIP minimum breaks down into:

Non-medical expenses include:

• Lost wages (up to 85% of income)
• Replacement services (household help, child care)
• Funeral expenses (up to $2,000)

Threshold for Lawsuits

No-fault limits the right to sue, but you can sue the at-fault driver if:

• Medical expenses exceed $4,000
• You suffer permanent injury or disfigurement
• Disability lasts more than 60 days
• Your losses exceed PIP coverage

Vehicles NOT Covered by No-Fault

Minnesota no-fault does NOT apply to:

• Motorcycles
• ATVs and off-road vehicles
• Snowmobiles
• Recreational vehicles

These require separate coverage policies.

Consumer Rights in Claims

Fair Claims Handling Rights

Minnesota consumers have these rights during claims:

Prohibited Insurer Conduct in Claims

Insurers may NOT:

• Delay acknowledgment beyond 10 days
• Deny without investigation
• Misrepresent coverage provisions
• Require overbroad releases
• Fail to maintain claim files
• Refuse to pay valid claims

Insurance Fraud Prevention

Minnesota Insurance Fraud Prevention Act

Minnesota Statutes Sections 60A.951-60A.955 address insurance fraud.

Types of Insurance Fraud:

Producer Duty to Report Fraud

Minnesota producers have a legal duty to report suspected fraud to:

• Minnesota Department of Commerce
• Minnesota Commerce Fraud Bureau
• The insurance company

Red Flags for Fraud:

• Inconsistent information on applications
• Unusual claims patterns
• Pressure to backdate coverage
• Reluctance to provide documentation
• Claims immediately after policy purchase
• Inflated damage estimates

Fraud Penalties

Insurance fraud can result in:

• Criminal prosecution (felony or misdemeanor)
• Imprisonment for serious offenses
• Fines up to thousands of dollars
• Restitution to victims
• License revocation for producers
• Civil liability for damages

Privacy and Confidentiality

Federal Privacy Requirements

Gramm-Leach-Bliley Act (GLBA)

Insurance companies and producers must:

• Provide initial privacy notice when relationship begins
• Provide annual privacy notice to customers
• Explain what information is collected
• Disclose how information is shared
• Allow consumers to opt out of certain sharing

Minnesota Privacy Protections

Minnesota provides additional privacy rights:

Cancellation and Nonrenewal

Consumer Protections for Policy Changes

Notice Requirements:

Permissible Reasons for Cancellation:

• Nonpayment of premium
• Material misrepresentation on application
• Fraud in obtaining coverage
• Substantial increase in risk
• Loss of reinsurance

Consumer Rights Upon Cancellation:

• Right to written explanation
• Right to refund of unearned premium
• Right to appeal to Department of Commerce
• Right to continue coverage during appeal

Filing Complaints

How to File a Complaint

Consumers can file complaints with the Minnesota Department of Commerce:

Online:

• Visit mn.gov/commerce
• Complete online complaint form

By Phone:

• Call 651-539-1600 or 1-800-657-3602

By Mail:

• Minnesota Department of Commerce
• Consumer Services Center
• 85 7th Place East, Suite 280
• St. Paul, MN 55101

What Happens After Filing

1. Acknowledgment - Department acknowledges complaint
2. Investigation - Department reviews documents and contacts insurer
3. Response - Insurer must respond within 15 working days
4. Resolution - Department works toward resolution
5. Notification - Consumer informed of outcome

Exam Tip: Remember that Minnesota requires insurers to respond to Department inquiries about complaints within 15 working days. Consumers should receive written notification of outcomes.