Bill Text: MN HF2553 | 2011-2012 | 87th Legislature | Engrossed
Bill Title: Claims practices regulated.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2012-03-29 - HF indefinitely postponed [HF2553 Detail]
Download: Minnesota-2011-HF2553-Engrossed.html
1.2relating to insurance; regulating certain claims practices;amending Minnesota
1.3Statutes 2010, sections 65A.29, subdivision 11; 326B.081, subdivision 3;
1.4Minnesota Statutes 2011 Supplement, section 325E.66, subdivisions 1, 2, by
1.5adding a subdivision.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2010, section 65A.29, subdivision 11, is amended to read:
1.8 Subd. 11. Nonrenewal. Every insurer shall establish a plan that sets out the
1.9minimum number and amount of claims during an experience period that may result
1.10in a nonrenewal. For purposes of the plan, the insurer may not consider as a claim the
1.11insured's inquiry about a hypothetical claim, or the insured's inquiry to the insured's agent
1.12regarding a potential claim.
1.13No homeowner's insurance policy may be nonrenewed based on the insured's loss
1.14experience unless the insurer hassent a written notice that any future losses may result
1.15in nonrenewal due to loss experience. provided the insured with a copy of the insured's
1.16nonrenewal plan at the time of policy issuance and each renewal.
1.17Any nonrenewal of a homeowner's insurance policy must, at a minimum, comply
1.18with the requirements of subdivision 8 and the rules adopted by the commissioner.
1.19 Sec. 2. Minnesota Statutes 2011 Supplement, section 325E.66, subdivision 1, is
1.20amended to read:
1.21 Subdivision 1. Payment or rebate of insurance deductible. A residential
1.22contractor providingthe repair or replacement of residential roofing or siding home repair
1.23or improvement services to be paid by an insured from the proceeds of a property or
1.24casualty insurance policy shall not, as an inducement to the sale or provision of goods
2.1or services to an insured, advertise or promise to pay, directly or indirectly, all or part of
2.2any applicable insurance deductible or offer to compensate an insured for providing any
2.3service to the insured. If a residential contractor violates this section, the insurer to whom
2.4the insured tendered the claim shall not be obligated to consider the estimate prepared by
2.5the residential contractor.
2.6For purposes of this section, "residential contractor" means a residential roofer, as
2.7defined in section326B.802, subdivision 14 ; a residential building contractor, as defined
2.8in section326B.802, subdivision 11 ; and a residential remodeler, as defined in section
2.9326B.802
, subdivision 12; and a siding contractor registered under section
326B.802,
2.10subdivision 15
2.11 Sec. 3. Minnesota Statutes 2011 Supplement, section 325E.66, is amended by adding a
2.12subdivision to read:
2.13 Subd. 1a. Negotiation with insurance provider. A residential contractor shall not
2.14represent or negotiate, or offer or advertise to represent or negotiate, on behalf of an
2.15owner or possessor of residential real estate on an insurance claim in connection with the
2.16repair or replacement of roof systems, or the performance of any other exterior repair,
2.17replacement, construction, or reconstruction work. Nothing in this section prohibits a
2.18residential contractor from discussing with an insurer the specific terms of a written
2.19contract executed between the residential contractor and a policyholder of the insurer once
2.20the claim has been accepted by the insurer.
2.21 Sec. 4. Minnesota Statutes 2011 Supplement, section 325E.66, subdivision 2, is
2.22amended to read:
2.23 Subd. 2. Private remedy. If a residential contractor violatessubdivision 1 this
2.24section, the insured or the applicable insurer may bring an action against the residential
2.25contractor in a court of competent jurisdiction for damages sustained by the insured or
2.26insurer as a consequence of the residential contractor's violation.
2.27 Sec. 5. Minnesota Statutes 2010, section 326B.081, subdivision 3, is amended to read:
2.28 Subd. 3. Applicable law. "Applicable law" means the provisions of sections
2.29325E.66,327.31 to
327.36 and this chapter, and all rules, orders, stipulation agreements,
2.30settlements, compliance agreements, licenses, registrations, certificates, and permits
2.31adopted, issued, or enforced by the department under sections 325E.66,327.31 to
327.36
2.32or this chapter.
1.3Statutes 2010, sections 65A.29, subdivision 11; 326B.081, subdivision 3;
1.4Minnesota Statutes 2011 Supplement, section 325E.66, subdivisions 1, 2, by
1.5adding a subdivision.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2010, section 65A.29, subdivision 11, is amended to read:
1.8 Subd. 11. Nonrenewal. Every insurer shall establish a plan that sets out the
1.9minimum number and amount of claims during an experience period that may result
1.10in a nonrenewal. For purposes of the plan, the insurer may not consider as a claim the
1.11insured's inquiry about a hypothetical claim, or the insured's inquiry to the insured's agent
1.12regarding a potential claim.
1.13No homeowner's insurance policy may be nonrenewed based on the insured's loss
1.14experience unless the insurer has
1.15
1.16nonrenewal plan at the time of policy issuance and each renewal.
1.17Any nonrenewal of a homeowner's insurance policy must, at a minimum, comply
1.18with the requirements of subdivision 8 and the rules adopted by the commissioner.
1.19 Sec. 2. Minnesota Statutes 2011 Supplement, section 325E.66, subdivision 1, is
1.20amended to read:
1.21 Subdivision 1. Payment or rebate of insurance deductible. A residential
1.22contractor providing
1.23or improvement services to be paid by an insured from the proceeds of a property or
1.24casualty insurance policy shall not, as an inducement to the sale or provision of goods
2.1or services to an insured, advertise or promise to pay, directly or indirectly, all or part of
2.2any applicable insurance deductible or offer to compensate an insured for providing any
2.3service to the insured. If a residential contractor violates this section, the insurer to whom
2.4the insured tendered the claim shall not be obligated to consider the estimate prepared by
2.5the residential contractor.
2.6For purposes of this section, "residential contractor" means a residential roofer, as
2.7defined in section
2.8in section
2.10
2.11 Sec. 3. Minnesota Statutes 2011 Supplement, section 325E.66, is amended by adding a
2.12subdivision to read:
2.13 Subd. 1a. Negotiation with insurance provider. A residential contractor shall not
2.14represent or negotiate, or offer or advertise to represent or negotiate, on behalf of an
2.15owner or possessor of residential real estate on an insurance claim in connection with the
2.16repair or replacement of roof systems, or the performance of any other exterior repair,
2.17replacement, construction, or reconstruction work. Nothing in this section prohibits a
2.18residential contractor from discussing with an insurer the specific terms of a written
2.19contract executed between the residential contractor and a policyholder of the insurer once
2.20the claim has been accepted by the insurer.
2.21 Sec. 4. Minnesota Statutes 2011 Supplement, section 325E.66, subdivision 2, is
2.22amended to read:
2.23 Subd. 2. Private remedy. If a residential contractor violates
2.24section, the insured or the applicable insurer may bring an action against the residential
2.25contractor in a court of competent jurisdiction for damages sustained by the insured or
2.26insurer as a consequence of the residential contractor's violation.
2.27 Sec. 5. Minnesota Statutes 2010, section 326B.081, subdivision 3, is amended to read:
2.28 Subd. 3. Applicable law. "Applicable law" means the provisions of sections
2.29325E.66,
2.30settlements, compliance agreements, licenses, registrations, certificates, and permits
2.31adopted, issued, or enforced by the department under sections 325E.66,
2.32or this chapter.
