Bill Text: MN SF2573 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Life insurance premium refund provisions
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2012-03-28 - Referred to Commerce and Consumer Protection [SF2573 Detail]
Download: Minnesota-2011-SF2573-Introduced.html
1.2relating to insurance; requiring refund of premiums paid on life insurance
1.3policies in certain circumstances;proposing coding for new law in Minnesota
1.4Statutes, chapter 61A.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. [61A.75] LIFE INSURANCE PREMIUM REFUND.
1.7(a) If a life insurance policy is deemed to be void, void ab initio, or otherwise
1.8terminated or extinguished in accordance with the law on grounds other than nonpayment
1.9of premium, the owner of the policy or its designated representatives has the right to
1.10recover from the insurer all premiums paid on the policy plus any interest on those
1.11payments at the rate set in section 549.09, subdivision 1, paragraph (c), clause (2).
1.12(b) If a life insurer refuses to state that it will not contest the policy for lack of
1.13insurable interest, as defined in section 60A.0783, subdivision 2, within 120 days of receipt
1.14of a verification of coverage request from the policyholder or its designated representative
1.15that was submitted to the insurer more than two years from the date of issuance of the
1.16policy, the owner of the policy has the right to a judicial declaration as to the validity of the
1.17policy by bringing an action in district court. If the court determines that the life insurance
1.18policy is valid, the insurer shall pay the cost of the action, including attorney fees.
1.19(c) This section does not apply to the owner of a life insurance policy who engaged
1.20in fraud in connection with the issuance of the policy.
1.21EFFECTIVE DATE.This section is effective the day following final enactment
1.22and applies to life insurance policies in effect on or issued on or after that date.
1.3policies in certain circumstances;proposing coding for new law in Minnesota
1.4Statutes, chapter 61A.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. [61A.75] LIFE INSURANCE PREMIUM REFUND.
1.7(a) If a life insurance policy is deemed to be void, void ab initio, or otherwise
1.8terminated or extinguished in accordance with the law on grounds other than nonpayment
1.9of premium, the owner of the policy or its designated representatives has the right to
1.10recover from the insurer all premiums paid on the policy plus any interest on those
1.11payments at the rate set in section 549.09, subdivision 1, paragraph (c), clause (2).
1.12(b) If a life insurer refuses to state that it will not contest the policy for lack of
1.13insurable interest, as defined in section 60A.0783, subdivision 2, within 120 days of receipt
1.14of a verification of coverage request from the policyholder or its designated representative
1.15that was submitted to the insurer more than two years from the date of issuance of the
1.16policy, the owner of the policy has the right to a judicial declaration as to the validity of the
1.17policy by bringing an action in district court. If the court determines that the life insurance
1.18policy is valid, the insurer shall pay the cost of the action, including attorney fees.
1.19(c) This section does not apply to the owner of a life insurance policy who engaged
1.20in fraud in connection with the issuance of the policy.
1.21EFFECTIVE DATE.This section is effective the day following final enactment
1.22and applies to life insurance policies in effect on or issued on or after that date.
