Founders Insurance Company v. James Yates

Summary

The Minnesota Supreme Court held that Minn. Stat. § 65B.50, subd. 2 requires an out-of-state insurer that is not licensed in Minnesota to provide basic economic loss benefits when the insured vehicle and accident are in Minnesota. The court reversed the Minnesota Court of Appeals and reinstated the arbitration award of no-fault benefits to James Yates.

Holdings

1. A motor vehicle insurance carrier that is not licensed to sell insurance in Minnesota must pay basic economic loss benefits under Minn. Stat. § 65B.50, subd. 2, when the insured vehicle is in Minnesota and an accident occurs in Minnesota.
2. When statutory language is unambiguous and is not reasonably susceptible to more than one interpretation, the court applies the plain meaning of the statute.

Questions Presented

1. Whether Minn. Stat. § 65B.50, subd. 2, requires an out-of-state insurer that is not licensed to write motor vehicle insurance in Minnesota to provide basic economic loss benefits when the insured vehicle is in Minnesota and an accident occurs in Minnesota.
2. Whether applying Minn. Stat. § 65B.50, subd. 2, to nonlicensed insurers would render subdivision 1 or Minnesota insurance-licensing requirements meaningless.

Disposition

reversed