HF 2389 Minnesota House · 2025-2026 Regular Session

Data calls authorized, group capital calculations established for insurers, insurers required to complete a NAIC liquidity stress test, insurers required to file group capital calculations and results from the NAIC liquidity stress test, insurers required to secure a deposit or bond, limited long-term care insurance provided for and regulated, automobile insurance governing provisions modified, data classified, penalties provided, and technical changes made.

This bill requires insurance companies operating in Minnesota to conduct industry-standard financial stress tests and file detailed reports on their group capital calculations. It mandates that insurers secure deposits or bonds for financial security, classifies certain insurer data as nonpublic, and regulates new limited long-term care insurance products. The bill also modifies existing automobile insurance provisions and establishes penalties for noncompliance. These requirements directly affect all licensed insurance companies in Minnesota, focusing on financial transparency and consumer protection through updated regulatory oversight.
Bill status in committee 1 of 4 stages cleared
Introduction
Mar 2025
Committee Review
Floor Vote
Governor
Introduced Mar 17, 2025 Last action Apr 7, 2025
Maddy AI version diff · 2 comparisons

What changed between versions

1st Engrossment 2nd Engrossment · 5 edits · Apr 7, 2025
MODERATE
The bill was updated from the 1st to the 2nd Engrossment, expanding its scope from primarily regulating limited long-term care insurance and automobile insurance to also establishing new requirements for insurer financial stability, including group capital calculations and NAIC liquidity stress tests. The effective date for the new financial requirements remains January 1, 2026, while the long-term care provisions retain their original timeline. This expansion aims to strengthen the overall financial oversight of insurance companies in Minnesota.
Scope change
The bill's scope significantly expanded to include mandatory financial reporting and stress testing for insurers, in addition to the existing regulations on limited long-term care insurance and automobile insurance.
REQUIREMENT

Added new requirements for insurers to file annual group capital calculations and results from NAIC liquidity stress tests to ensure financial stability.

Added new sections governing the filing of preacquisition notifications and waiting periods for insurance company acquisitions to prevent anti-competitive behavior.

DEFINITION

Defined new terms including 'group capital calculation instructions,' 'NAIC liquidity stress test framework,' and 'scope criteria' to guide the new financial reporting requirements.

ENFORCEMENT

Established exemptions for certain insurance holding company systems from filing group capital calculations, while retaining the authority for the commissioner to require filings for prudential oversight.

TECHNICAL

Updated the bill title and posting date to reflect the 2nd Engrossment status and a new timestamp.

Floor votes

How they voted

No floor votes recorded yet.
Full legislative history

Actions timeline

Total actions
3
Key actions
2
Committee
2
Apr 7, 2025
Lower · Passed
Committee report, to adopt as amended and re-refer to Commerce Finance and Policy
lower
Mar 24, 2025
Lower · Passed
Committee report, to adopt as amended and re-refer to Judiciary Finance and Civil Law
lower
Mar 17, 2025
Introduced
Introduction and first reading, referred to Commerce Finance and Policy
lower
1 primary · 0 co-sponsors

Sponsors

Role
Legislator
Party
State
District
P
Photo of Leigh Finke
Leigh Finke
DDemocratic-Farmer-Labor
MN
66A