HF 534

2nd Engrossment - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:38am

A bill for an act
relating to insurance; authorizing and regulating the issuance of certificates of
insurance; amending Minnesota Statutes 2008, section 60K.46, by adding a
subdivision; proposing coding for new law in Minnesota Statutes, chapter 60A.

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

Section 1.

new text begin [60A.39] CERTIFICATES OF INSURANCE.
new text end

new text begin Subdivision 1. new text end

new text begin Issuance. new text end

new text begin A licensed insurer or insurance producer may provide to a
third party a certificate of insurance which documents insurance coverage. The purpose
of a certificate of insurance is to provide evidence of insurance coverage and the amount
of insurance issued.
new text end

new text begin Subd. 2. new text end

new text begin Prohibition. new text end

new text begin An insurer or licensed producer shall not issue a certificate of
insurance or other document or instrument that either affirmatively or negatively amends,
extends, or alters the coverage provided by a filed policy, form, or endorsement.
new text end

new text begin Subd. 3. new text end

new text begin Required statement. new text end

new text begin A certificate or memorandum of property or casualty
insurance when issued to any person other than the policyholder must contain the following
or similar statement: "This certificate or memorandum of insurance does not affirmatively
or negatively amend, extend, or alter the coverage afforded by the insurance policy."
new text end

new text begin Subd. 4. new text end

new text begin Cancellation notice. new text end

new text begin A certificate provided to a third party must not
provide for notice of cancellation that exceeds the statutory notice of cancellation provided
to the policyholder.
new text end

new text begin Subd. 5. new text end

new text begin Filing. new text end

new text begin An insurer not using the standard ACORD or ISO form "Certificate
of Insurance" shall file with the commissioner, prior to its use, the form of certificate or
memorandum of insurance coverage that will be used by the insurer. Filed forms may not
be amended at the request of a third party.
new text end

new text begin Subd. 6. new text end

new text begin Opinion letters. new text end

new text begin A licensed insurance producer may not issue, in lieu of a
certificate, an agent's opinion letter or other correspondence that is inconsistent with
this section.
new text end

new text begin Subd. 7. new text end

new text begin Application. new text end

new text begin Nothing in this section shall limit or restrict:
new text end

new text begin (1) the rights of a policyholder or third party in an action against an insurance
producer or insurance company for an error or omission regarding evidence of coverage; or
new text end

new text begin (2) the rights of a third party against an insurance producer or insurance company
resulting from the reliance on a certificate of insurance given to the third party by an
insurance producer or insurance company.
new text end

Sec. 2.

Minnesota Statutes 2008, section 60K.46, is amended by adding a subdivision
to read:

new text begin Subd. 8. new text end

new text begin Certificates of insurance. new text end

new text begin An insurance producer shall not issue a
certificate of insurance, or other evidence of insurance coverage that either affirmatively or
negatively amends, extends, or alters the coverage as provided by the policy, or provides
notice of cancellation to a third party that exceeds the statutory notice requirement to a
policyholder.
new text end