Purpose

To require homeowners insurance advertisements in Minnesota to disclose financial information about the insurer’s advertising costs and stock performance, in order to increase transparency for consumers.

Main Provisions

• In all print, television, radio, and electronic advertisements for homeowners insurance, the insurer must include:
  • The total amount spent on advertising and marketing during the previous calendar year.
  • If the insurer is publicly traded, the increase or decrease in the insurer’s stock price for the previous calendar year.
• The requirement applies to insurance companies licensed to do business in Minnesota that offer homeowners insurance as defined by section 65A.27.

Scope and Definitions

• Coverage is limited to homeowners insurance as defined by section 65A.27.
• The disclosures must appear in all relevant ad formats: print, television, radio, and electronic media.
• “Previous calendar year” refers to the year immediately before the advertisement.

Purpose/Impact

• Aims to give consumers more information about how much the insurer spends on advertising and how its stock has performed, potentially influencing perceptions of advertising intensity and financial health.

Compliance and Enforcement Considerations

• Insurers will need to track annual advertising and marketing expenditures and monitor stock performance if they are publicly traded.
• The text does not specify penalties or enforcement details in the excerpt provided.

Relationship to Existing Law

• Creates a new requirement within Minnesota Statutes concerning advertising practices for homeowners insurance, adding Section 72A.329.

Effective Date

• Not stated in the provided text.

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Relevant Terms - homeowners insurance, advertising, advertising spend, marketing expenditures, previous calendar year, publicly traded, stock price, increase, decrease, Minnesota, Minnesota Statutes Chapter 72A, section 65A.27, print, television, radio, electronic advertisements, disclosure.