Bill Text: MN SF1109 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Life insurance policy paid premium refund requirement and judicial declaration of policy validity
Sponsorship: Partisan Bill (Democrat 3)
Status: (Introduced - Dead) 2013-03-07 - Referred to Commerce [SF1109 Detail]
Download: Minnesota-2013-SF1109-Introduced.html
1.2relating to insurance; requiring refund of premiums paid on life insurance
1.3policies in certain circumstances; authorizing the judicial declaration of the
1.4validity of a policy in certain circumstances;proposing coding for new law in
1.5Minnesota Statutes, chapter 61A.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. [61A.123] PREMIUM REFUND.
1.8If a life insurance policy is deemed to be void, void ab initio, or otherwise terminated
1.9or extinguished in accordance with the law on grounds other than nonpayment of
1.10premium, the owner of the policy or its designated representatives has the right to recover
1.11from the insurer all premiums paid on the policy plus any interest on those payments at the
1.12rate set in section 549.09, subdivision 1, paragraph (c), clause (2).
1.13This section does not apply to the owner of a life insurance policy who engaged in
1.14fraud in connection with the issuance of the policy.
1.15EFFECTIVE DATE.This section is effective the day following final enactment
1.16and applies to life insurance policies in effect on or issued on or after that date.
1.17 Sec. 2. [61A.124] JUDICIAL DECLARATION OF POLICY VALIDITY.
1.18If a life insurer refuses to state that it will not contest the policy for lack of insurable
1.19interest, as defined in section 60A.0783, subdivision 2, within 120 days of receipt of a
1.20verification of coverage request from the policyholder or its designated representative that
1.21was submitted to the insurer more than two years from the date of issuance of the policy,
1.22the owner of the policy has the right to a judicial declaration as to the validity of the policy
2.1by bringing an action in district court. If the court determines that the life insurance policy
2.2is valid, the insurer shall pay the cost of the action, including attorney fees.
2.3This section does not apply to the owner of a life insurance policy who engaged in
2.4fraud in connection with the issuance of the policy.
2.5EFFECTIVE DATE.This section is effective the day following final enactment
2.6and applies to life insurance policies in effect on or issued on or after that date.
1.3policies in certain circumstances; authorizing the judicial declaration of the
1.4validity of a policy in certain circumstances;proposing coding for new law in
1.5Minnesota Statutes, chapter 61A.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. [61A.123] PREMIUM REFUND.
1.8If a life insurance policy is deemed to be void, void ab initio, or otherwise terminated
1.9or extinguished in accordance with the law on grounds other than nonpayment of
1.10premium, the owner of the policy or its designated representatives has the right to recover
1.11from the insurer all premiums paid on the policy plus any interest on those payments at the
1.12rate set in section 549.09, subdivision 1, paragraph (c), clause (2).
1.13This section does not apply to the owner of a life insurance policy who engaged in
1.14fraud in connection with the issuance of the policy.
1.15EFFECTIVE DATE.This section is effective the day following final enactment
1.16and applies to life insurance policies in effect on or issued on or after that date.
1.17 Sec. 2. [61A.124] JUDICIAL DECLARATION OF POLICY VALIDITY.
1.18If a life insurer refuses to state that it will not contest the policy for lack of insurable
1.19interest, as defined in section 60A.0783, subdivision 2, within 120 days of receipt of a
1.20verification of coverage request from the policyholder or its designated representative that
1.21was submitted to the insurer more than two years from the date of issuance of the policy,
1.22the owner of the policy has the right to a judicial declaration as to the validity of the policy
2.1by bringing an action in district court. If the court determines that the life insurance policy
2.2is valid, the insurer shall pay the cost of the action, including attorney fees.
2.3This section does not apply to the owner of a life insurance policy who engaged in
2.4fraud in connection with the issuance of the policy.
2.5EFFECTIVE DATE.This section is effective the day following final enactment
2.6and applies to life insurance policies in effect on or issued on or after that date.
