HF 1587

1st Engrossment - 88th Legislature (2013 - 2014) Posted on 05/20/2013 06:13pm

A bill for an act
relating to insurance; regulating foreign language policies and advertising;
authorizing electronic notices and documents; amending Minnesota Statutes
2012, sections 60A.08, by adding a subdivision; 65A.01, subdivision 3;
proposing coding for new law in Minnesota Statutes, chapter 60A; repealing
Minnesota Rules, part 2700.0200.

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

Section 1.

Minnesota Statutes 2012, section 60A.08, is amended by adding a
subdivision to read:

new text begin Subd. 16. new text end

new text begin Foreign language policies and advertising. new text end

new text begin (a) Insurance policies,
endorsements, riders, and any explanatory or advertising material may be issued in a
language other than English. In the event of a dispute or complaint regarding the insurance
or advertising material, the English language version of the insurance coverage shall
control the resolution of the dispute or complaint. Any insurance policy, endorsement,
rider, or advertising material required by law to be filed with the commissioner that is
prepared in a language other than English must be accompanied by an English language
translation certifying that the English version is substantively identical to the filed version.
new text end

new text begin (b) This subdivision does not limit the application of chapter 72A.
new text end

Sec. 2.

new text begin [60A.139] ELECTRONIC NOTICES AND DOCUMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Terms defined. new text end

new text begin In this section, the following words have the
meanings given them:
new text end

new text begin (1) "delivered by electronic means" includes:
new text end

new text begin (i) delivery to an e-mail address at which a party has consented to receive notices or
documents; or
new text end

new text begin (ii) posting on an electronic network or Web site accessible via the Internet, mobile
application, computer, mobile device, tablet, or other electronic device, together with
separate notice of posting, which must be provided by electronic mail to the address at
which the party has consented to receive notice or by any other delivery method that
has been consented to by the party; and
new text end

new text begin (2) "party" means a recipient of a notice or document required as part of an insurance
transaction including, but not limited to, an applicant, an insured, a policyholder, or an
annuity contract holder.
new text end

new text begin Subd. 2. new text end

new text begin Requirements. new text end

new text begin Subject to subdivision 4, a notice to a party or other
document required under applicable law in an insurance transaction or that is to serve as
evidence of insurance coverage may be delivered, stored, and presented by electronic
means so long as it meets the requirements of the Uniform Electronic Transactions Act,
chapter 325L.
new text end

new text begin Subd. 3. new text end

new text begin Equivalent to other required methods. new text end

new text begin Delivery of a notice or document
in accordance with this section is considered equivalent to a delivery method required
under applicable law, including delivery by first class mail; first class mail, postage
prepaid; certified mail; certificate of mail; or certificate of mailing.
new text end

new text begin Subd. 4. new text end

new text begin Conditions for electronic delivery. new text end

new text begin A notice or document may be
delivered by electronic means by an insurer to a party under this section if:
new text end

new text begin (1) the party has affirmatively consented to that method of delivery and has not
withdrawn the consent;
new text end

new text begin (2) the party, before giving consent, is provided with a clear and conspicuous
statement informing the party of:
new text end

new text begin (i) a right or option of the party to have the notice or document provided or made
available in paper or another nonelectronic form;
new text end

new text begin (ii) the right of the party to withdraw consent to have a notice or document delivered
by electronic means and any fees, conditions, or consequences imposed in the event
consent is withdrawn;
new text end

new text begin (iii) whether the party's consent applies:
new text end

new text begin (A) only to the particular transaction as to which the notice or document must be
given; or
new text end

new text begin (B) to identified categories of notices or documents that may be delivered by
electronic means during the course of the parties' relationship;
new text end

new text begin (iv)(A) the means, after consent is given, by which a party may obtain a paper copy
of a notice or document delivered by electronic means; and
new text end

new text begin (B) the fee, if any, for the paper copy; and
new text end

new text begin (v) the procedure a party must follow to withdraw consent to have a notice or
document delivered by electronic means and to update information needed to contact
the party electronically;
new text end

new text begin (3) the party:
new text end

new text begin (i) before giving consent, is provided with a statement of the hardware and software
requirements for access to and retention of a notice or document delivered by electronic
means; and
new text end

new text begin (ii) consents electronically, or confirms consent electronically, in a manner that
reasonably demonstrates that the party can access information in the electronic form that
will be used for notices or documents delivered by electronic means to which the party has
given consent; and
new text end

new text begin (4) after consent of the party is given, the insurer, in the event a change in the
hardware or software requirements needed to access or retain a notice or document
delivered by electronic means creates a material risk that the party will not be able to
access or retain a subsequent notice or document to which the consent applies:
new text end

new text begin (i) provides the party with a statement of:
new text end

new text begin (A) the revised hardware and software requirements for access to and retention of a
notice or document delivered by electronic means;
new text end

new text begin (B) the right of the party to withdraw consent without the imposition of a fee,
condition, or consequence that was not disclosed under clause (2); and
new text end

new text begin (ii) complies with clause (2).
new text end

new text begin Subd. 5. new text end

new text begin Content or timing not affected. new text end

new text begin This section does not affect requirements
related to content or timing of a notice or document required under applicable law.
new text end

new text begin Subd. 6. new text end

new text begin Verification or acknowledgement of receipt. new text end

new text begin If a provision of applicable
law requiring a notice or document to be provided to a party expressly requires verification
or acknowledgement of receipt of the notice or document, the notice or document may
be delivered by electronic means only if the method used provides for verification or
acknowledgement of receipt.
new text end

new text begin Subd. 7. new text end

new text begin Failure to obtain consent. new text end

new text begin The legal effectiveness, validity, or
enforceability of a contract or policy of insurance executed by a party may not be denied
solely because of the failure to obtain electronic consent or confirmation of consent of the
party in accordance with subdivision 4, clause (3), item (ii).
new text end

new text begin Subd. 8. new text end

new text begin Withdrawal of consent. new text end

new text begin (a) A withdrawal of consent by a party does not
affect the legal effectiveness, validity, or enforceability of a notice or document delivered
by electronic means to the party before the withdrawal of consent is effective.
new text end

new text begin (b) A withdrawal of consent by a party is effective within a reasonable period of
time after receipt of the withdrawal by the insurer.
new text end

new text begin (c) Failure by an insurer to comply with subdivision 4, clause (4), may be treated, at
the election of the party, as a withdrawal of consent for purposes of this section.
new text end

new text begin Subd. 9. new text end

new text begin Prior consent. new text end

new text begin If the consent of a party to receive certain notices or
documents in an electronic form is on file with an insurer before the effective date of
this act and, pursuant to this section, an insurer intends to deliver additional notices or
documents to the party in an electronic form then, before delivering the additional notices
or documents electronically, the insurer shall notify the party of:
new text end

new text begin (1) the notices or documents that may be delivered by electronic means under this
section that were not previously delivered electronically; and
new text end

new text begin (2) the party's right to withdraw consent to have notices or documents delivered
by electronic means.
new text end

new text begin Subd. 10. new text end

new text begin Property and casualty policies and endorsements. new text end

new text begin Notwithstanding any
other provisions of this section and of section 60A.08, subdivision 3, standard property and
casualty insurance policies and endorsements that do not contain personally identifiable
information may be mailed, delivered, or posted on the insurer's Web site. If the insurer
elects to post insurance policies and endorsements on its Web site in lieu of mailing or
delivering them to the insured, it must comply with all of the following conditions:
new text end

new text begin (1) the policy and endorsements must be accessible and remain that way for as long
as the policy is in force;
new text end

new text begin (2) after the expiration of the policy, the insurer must archive its expired policies and
endorsements for a period of five years and make them available upon request;
new text end

new text begin (3) the policies and endorsements must be posted in a manner that enables the
insured to print and save the policy and endorsements using programs or applications that
are widely available on the Internet and free to use;
new text end

new text begin (4) the insurer provides the following information in or simultaneously with each
declarations page provided at the time of issuance of the initial policy and any renewals
of that policy:
new text end

new text begin (i) a description of the exact policy and endorsement forms purchased by the insured;
new text end

new text begin (ii) a method by which the insured may obtain, upon request and without charge,
a paper copy of the policy; and
new text end

new text begin (iii) the Internet address where the policy and endorsements are posted; and
new text end

new text begin (5) the insurer provides notice, in the manner it customarily communicates with an
insured, of any changes to the forms or endorsements, the insured's right to obtain, upon
request and without charge, a paper copy of such forms or endorsements, and the Internet
address where such forms or endorsements are posted.
new text end

new text begin Subd. 11. new text end

new text begin Oral communications. new text end

new text begin Except as otherwise provided by law, if an oral
communication or a recording of an oral communication from a party can be reliably
stored and reproduced by an insurer, the oral communication or recording may qualify
as a notice or document delivered by electronic means for purposes of this section. If a
provision of this title or applicable law requires a signature or notice or document to be
notarized, acknowledged, verified, or made under oath, the requirement is satisfied if the
electronic signature of the person authorized to perform those acts, together with all other
information required to be included by the provision, is attached to or logically associated
with the signature, notice, or document.
new text end

new text begin Subd. 12. new text end

new text begin Effect or other law. new text end

new text begin This section may not be construed to modify, limit,
or supersede the provisions of the federal Electronic Signatures in Global and National
Commerce Act, Public Law 106-229, as amended.
new text end

new text begin Subd. 13. new text end

new text begin Application. new text end

new text begin This section does not apply to:
new text end

new text begin (1) a nonprofit health service plan corporation licensed under chapter 62C;
new text end

new text begin (2) a health maintenance organization licensed under chapter 62D; or
new text end

new text begin (3) a health carrier, as defined under section 62A.011, subdivision 2, that is affiliated
with a nonprofit health service plan corporation licensed under chapter 62C or a health
maintenance organization licensed under chapter 62D.
new text end

new text begin EFFECTIVE DATE; NONAPPLICATION. new text end

new text begin This section is effective August 1,
2013, and does not apply to a notice or document delivered by an insurer in an electronic
form before that date to a party who, before that date, has consented to receive a notice or
document in an electronic form otherwise allowed by law.
new text end

Sec. 3.

Minnesota Statutes 2012, section 65A.01, subdivision 3, is amended to read:

Subd. 3.

Policy provisions.

On said policy following such matter as provided in
subdivisions 1 and 2, printed deleted text begin in the English language deleted text end in type of such size or sizes and
arranged in such manner, as is approved by the commissioner of commerce, the following
provisions and subject matter shall be stated in the following words and in the following
sequence, but with the convenient placing, if desired, of such matter as will act as a cover
or back for such policy when folded, with the blanks below indicated being left to be filled
in at the time of the issuing of the policy, to wit:

(Space for listing the amounts of insurance, rates and premiums for the basic
coverages provided under the standard form of policy and for additional coverages or
perils provided under endorsements attached. The description and location of the property
covered and the insurable value(s) of any building(s) or structure(s) covered by the
policy or its attached endorsements; also in the above space may be stated whether other
insurance is limited and if limited the total amount permitted.)

In consideration of the provisions and stipulations herein or added hereto and of
the premium above specified this company, for a term of ..... from ..... (At 12:01 a.m.
Standard Time) to ..... (At 12:01 a.m. Standard Time) at location of property involved,
to an amount not exceeding the amount(s) above specified does insure ..... and legal
representatives ...........................................

(In above space may be stated whether other insurance is limited.) (And if limited
the total amount permitted.)

Subject to form No.(s) ..... attached hereto.

This policy is made and accepted subject to the foregoing provisions and stipulations
and those hereinafter stated, which are hereby made a part of this policy, together with such
provisions, stipulations and agreements as may be added hereto as provided in this policy.

The insurance effected above is granted against all loss or damage by fire originating
from any cause, except as hereinafter provided, also any damage by lightning and by
removal from premises endangered by the perils insured against in this policy, to the
property described hereinafter while located or contained as described in this policy, or
pro rata for five days at each proper place to which any of the property shall necessarily be
removed for preservation from the perils insured against in this policy, but not elsewhere.
The amount of said loss or damage, except in case of total loss on buildings, to be
estimated according to the actual value of the insured property at the time when such
loss or damage happens.

If the insured property shall be exposed to loss or damage from the perils insured
against, the insured shall make all reasonable exertions to save and protect same.

This entire policy shall be void if, whether before a loss, the insured has willfully,
or after a loss, the insured has willfully and with intent to defraud, concealed or
misrepresented any material fact or circumstance concerning this insurance or the subject
thereof, or the interests of the insured therein.

This policy shall not cover accounts, bills, currency, deeds, evidences of debt, money
or securities; nor, unless specifically named hereon in writing, bullion, or manuscripts.

This company shall not be liable for loss by fire or other perils insured against in this
policy caused, directly or indirectly by: (a) enemy attack by armed forces, including action
taken by military, naval or air forces in resisting an actual or immediately impending
enemy attack; (b) invasion; (c) insurrection; (d) rebellion; (e) revolution; (f) civil war;
(g) usurped power; (h) order of any civil authority except acts of destruction at the time
of and for the purpose of preventing the spread of fire, providing that such fire did not
originate from any of the perils excluded by this policy.

This company shall not be liable for loss by fire or other perils insured against in
a commercial policy caused, directly or indirectly, by terrorism, unless an endorsement
specifically assuming coverage for loss or damage caused by terrorism is attached to
the policy.

Other insurance may be prohibited or the amount of insurance may be limited by so
providing in the policy or an endorsement, rider or form attached thereto.

Unless otherwise provided in writing added hereto this company shall not be liable
for loss occurring:

(a) while the hazard is increased by any means within the control or knowledge of
the insured; or

(b) while the described premises, whether intended for occupancy by owner or
tenant, are vacant or unoccupied beyond a period of 60 consecutive days; or

(c) as a result of explosion or riot, unless fire ensue, and in that event for loss by
fire only.

Any other peril to be insured against or subject of insurance to be covered in this
policy shall be by endorsement in writing hereon or added hereto.

The extent of the application of insurance under this policy and the contributions to be
made by this company in case of loss, and any other provision or agreement not inconsistent
with the provisions of this policy, may be provided for in writing added hereto, but no
provision may be waived except such as by the terms of this policy is subject to change.

No permission affecting this insurance shall exist, or waiver of any provision be
valid, unless granted herein or expressed in writing added hereto. No provision, stipulation
or forfeiture shall be held to be waived by any requirements or proceeding on the part of
this company relating to appraisal or to any examination provided for herein.

This policy shall be canceled at any time at the request of the insured, in which case
this company shall, upon demand and surrender of this policy, refund the excess of paid
premium above the customary short rates for the expired time. This policy may be canceled
at any time by this company by giving to the insured a written notice of cancellation with
or without tender of the excess of paid premium above the pro rata premium for the expired
time, which excess, if not tendered, shall be refunded on demand. Notice of cancellation
shall state that said excess premium (if not tendered) will be refunded on demand.

If loss hereunder is made payable, in whole or in part, to a designated mortgagee or
contract for deed vendor not named herein as insured, such interest in this policy may be
canceled by giving to such mortgagee or vendor a ten days' written notice of cancellation.

Notwithstanding any other provisions of this policy, if this policy shall be made
payable to a mortgagee or contract for deed vendor of the covered real estate, no act or
default of any person other than such mortgagee or vendor or the mortgagee's or vendor's
agent or those claiming under the mortgagee or vendor, whether the same occurs before or
during the term of this policy, shall render this policy void as to such mortgagee or vendor
nor affect such mortgagee's or vendor's right to recover in case of loss on such real estate;
provided, that the mortgagee or vendor shall on demand pay according to the established
scale of rates for any increase of risks not paid for by the insured; and whenever this
company shall be liable to a mortgagee or vendor for any sum for loss under this policy
for which no liability exists as to the mortgagor, vendee, or owner, and this company shall
elect by itself, or with others, to pay the mortgagee or vendor the full amount secured
by such mortgage or contract for deed, then the mortgagee or vendor shall assign and
transfer to the company the mortgagee's or vendor's interest, upon such payment, in the
said mortgage or contract for deed together with the note and debts thereby secured.

This company shall not be liable for a greater proportion of any loss than the amount
hereby insured shall bear to the whole insurance covering the property against the peril
involved.

In case of any loss under this policy the insured shall give immediate written notice
to this company of any loss, protect the property from further damage, and a statement
in writing, signed and sworn to by the insured, shall within 60 days be rendered to the
company, setting forth the value of the property insured, except in case of total loss on
buildings the value of said buildings need not be stated, the interest of the insured therein,
all other insurance thereon, in detail, the purposes for which and the persons by whom the
building insured, or containing the property insured, was used, and the time at which and
manner in which the fire originated, so far as known to the insured.

The insured, as often as may be reasonably required, shall exhibit to any person
designated by this company all that remains of any property herein described, and, after
being informed of the right to counsel and that any answers may be used against the
insured in later civil or criminal proceedings, the insured shall, within a reasonable period
after demand by this company, submit to examinations under oath by any person named by
this company, and subscribe the oath. The insured, as often as may be reasonably required,
shall produce for examination all records and documents reasonably related to the loss, or
certified copies thereof if originals are lost, at a reasonable time and place designated by
this company or its representatives, and shall permit extracts and copies thereof to be made.

In case the insured and this company, except in case of total loss on buildings,
shall fail to agree as to the actual cash value or the amount of loss, then, on the written
demand of either, each shall select a competent and disinterested appraiser and notify the
other of the appraiser selected within 20 days of such demand. In case either fails to
select an appraiser within the time provided, then a presiding judge of the district court
of the county wherein the loss occurs may appoint such appraiser for such party upon
application of the other party in writing by giving five days' notice thereof in writing to
the party failing to appoint. The appraisers shall first select a competent and disinterested
umpire; and failing for 15 days to agree upon such umpire, then a presiding judge of the
above mentioned court may appoint such an umpire upon application of party in writing
by giving five days' notice thereof in writing to the other party. The appraisers shall then
appraise the loss, stating separately actual value and loss to each item; and, failing to
agree, shall submit their differences, only, to the umpire. An award in writing, so itemized,
of any two when filed with this company shall determine the amount of actual value and
loss. Each appraiser shall be paid by the selecting party, or the party for whom selected,
and the expense of the appraisal and umpire shall be paid by the parties equally.

It shall be optional with this company to take all of the property at the agreed or
appraised value, and also to repair, rebuild or replace the property destroyed or damaged
with other of like kind and quality within a reasonable time, on giving notice of its
intention so to do within 30 days after the receipt of the proof of loss herein required.

There can be no abandonment to this company of any property.

The amount of loss for which this company may be liable shall be payable 60 days
after proof of loss, as herein provided, is received by this company and ascertainment of
the loss is made either by agreement between the insured and this company expressed in
writing or by the filing with this company of an award as herein provided. It is moreover
understood that there can be no abandonment of the property insured to the company, and
that the company will not in any case be liable for more than the sum insured, with interest
thereon from the time when the loss shall become payable, as above provided.

No suit or action on this policy for the recovery of any claim shall be sustainable in
any court of law or equity unless all the requirements of this policy have been complied
with, and unless commenced within two years after inception of the loss.

This company is subrogated to, and may require from the insured an assignment
of all right of recovery against any party for loss to the extent that payment therefor is
made by this company; and the insurer may prosecute therefor in the name of the insured
retaining such amount as the insurer has paid.

Assignment of this policy shall not be valid except with the written consent of
this company.

IN WITNESS WHEREOF, this company has executed and attested these presents.

.		.
(Signature)		(Signature)
.		.
(Name of office)		(Name of office)

Sec. 4. new text begin REPEALER.
new text end

new text begin Minnesota Rules, part 2700.0200, new text end new text begin is repealed.
new text end