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HF 2389

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.

2025-2026 Regular Session Introduced by Leigh Finke

Minnesota requires insurers to pass liquidity stress tests, maintain capital reserves, file financial data, and secure deposits while strengthening long-term care insurance oversight and modifying auto insurance rules.

Committee report, to adopt as amended and re-refer to Commerce Finance and Policy
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WeVote Research Nonpartisan
Bill Summary · HF 2389

Legislative bill overview

HF 2389 is a comprehensive insurance regulatory reform bill that establishes new financial oversight requirements for insurers operating in Minnesota. The bill authorizes regulators to conduct data calls on insurers, mandates group capital calculations and NAIC liquidity stress tests, requires insurers to maintain deposits or bonds, and modifies regulations for long-term care insurance and automobile insurance while establishing penalties for non-compliance.

Why is this important

These requirements directly affect insurance market stability and consumer protection by ensuring insurers maintain adequate financial reserves to pay claims during economic stress. The liquidity stress testing and capital requirements help prevent insurer insolvencies, which can leave policyholders without coverage or force state insurance guaranty funds to intervene—ultimately impacting insurance costs and availability for Minnesota consumers.

Potential points of contention

  • Compliance burden and costs: Requiring extensive financial reporting, stress testing, and deposit/bond maintenance may increase administrative expenses for insurers, potentially raising premiums or limiting market entry for smaller carriers
  • Long-term care insurance regulation: Defining and limiting long-term care coverage could restrict policy options available to consumers or create definitional disputes between insurers and regulators
  • Deposit/bond requirements: The financial threshold and scope of required deposits remain unspecified in this summary, raising questions about whether requirements are proportionate or could create barriers to market participation

Compiled from official sources — confirm details with the bill’s official record.

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