HF 1031

as introduced - 88th Legislature (2013 - 2014) Posted on 03/13/2013 07:13pm

A bill for an act
relating to insurance; requiring refund of premiums paid on life insurance
policies in certain circumstances; authorizing the judicial declaration of the
validity of a policy in certain circumstances; proposing coding for new law in
Minnesota Statutes, chapter 61A.

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

Section 1.

new text begin [61A.123] PREMIUM REFUND.
new text end

new text begin If a life insurance policy is deemed to be void, void ab initio, or otherwise terminated
or extinguished in accordance with the law on grounds other than nonpayment of
premium, the owner of the policy or its designated representatives has the right to recover
from the insurer all premiums paid on the policy plus any interest on those payments at the
rate set in section 549.09, subdivision 1, paragraph (c), clause (2).
new text end

new text begin This section does not apply to the owner of a life insurance policy who engaged in
fraud in connection with the issuance of the policy.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to life insurance policies in effect on or issued on or after that date.
new text end

Sec. 2.

new text begin [61A.124] JUDICIAL DECLARATION OF POLICY VALIDITY.
new text end

new text begin If a life insurer refuses to state that it will not contest the policy for lack of insurable
interest, as defined in section 60A.0783, subdivision 2, within 120 days of receipt of a
verification of coverage request from the policyholder or its designated representative that
was submitted to the insurer more than two years from the date of issuance of the policy,
the owner of the policy has the right to a judicial declaration as to the validity of the policy
by bringing an action in district court. If the court determines that the life insurance policy
is valid, the insurer shall pay the cost of the action, including attorney fees.
new text end

new text begin This section does not apply to the owner of a life insurance policy who engaged in
fraud in connection with the issuance of the policy.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to life insurance policies in effect on or issued on or after that date.
new text end