HF 3294

as introduced - 89th Legislature (2015 - 2016) Posted on 03/17/2016 02:35pm

A bill for an act
relating to insurance; allowing certain claims practices to be admissible as
standards of conduct; amending Minnesota Statutes 2014, section 604.18,
subdivision 4.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2014, section 604.18, subdivision 4, is amended to read:

Subd. 4.

Claim for taxable costs.

(a) Upon commencement of a civil action by
an insured against an insurer, the complaint must not seek a recovery under this section.
After filing the suit, a party may make a motion to amend the pleadings to claim recovery
of taxable costs under this section. The motion must allege the applicable legal basis
under this section for awarding taxable costs under this section, and must be accompanied
by one or more affidavits showing the factual basis for the motion. The motion may be
opposed by the submission of one or more affidavits showing there is no factual basis
for the motion. At the hearing, if the court finds prima facie evidence in support of the
motion, the court may grant the moving party permission to amend the pleadings to claim
taxable costs under this section.

(b) An award of taxable costs under this section shall be determined by the court in a
proceeding subsequent to any determination by a fact finder of the amount an insured is
entitled to under the insurance policy, and shall be governed by the procedures set forth in
Minnesota General Rules of Practice, Rule 119.

(c) An award of taxable costs under this section is not available in any claim that is
resolved or confirmed by arbitration or appraisal.

(d) The following are not admissible in any proceeding that seeks taxable costs
under this section:

(1) findings or determinations made in arbitration proceedings conducted under
section 65B.525 or rules adopted under that section;

(2) allegations involving, or results of, investigations, examinations, or
administrative proceedings conducted by the Department of Commerce;

(3) administrative bulletins or other informal guidance published or disseminated by
the Department of Commerce; and

(4) provisions under chapters 59A to 79A and rules adopted under those sections are
not admissible as standards of conduct new text begin , except that the provisions in section 72A.201 and
any rules adopted pursuant to that section are admissible new text end .

(e) A claim for taxable costs under this section may not be assigned. This paragraph
does not affect the assignment of rights not established in this section.