Minnesota Legislature
HF 275
as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:35am
Current Version - as introduced
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A bill for an act
relating to insurance; prohibiting nonrenewal of homeowner's insurance based
on certain nonpaid claims; prohibiting premium increases based on certain
factors; amending Minnesota Statutes 2008, section 65A.29, subdivision 11, by
adding a subdivision.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2008, section 65A.29, subdivision 11, is amended to read:
Subd. 11.
Nonrenewal.
Every insurer shall establish a plan that sets out the
minimum number and amount of claims during an experience period that may result
in a nonrenewal. For purposes of the plan, the insurer may not consider as a claim the
insured's inquiry about a hypothetical claim, deleted text begin ordeleted text end the insured's inquiry to the insured's agent
regarding a potential claimnew text begin , or a claim submitted to the insurer that the insurer denied or
upon which the insurer did not make a paymentnew text end .
No homeowner's insurance policy may be nonrenewed based on the insured's loss
experience unless the insurer has sent a written notice that any future losses may result in
nonrenewal due to loss experience.
Any nonrenewal of a homeowner's insurance policy must, at a minimum, comply
with the requirements of subdivision 8 and the rules adopted by the commissioner.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective August 1, 2009.
new text end
Sec. 2.
Minnesota Statutes 2008, section 65A.29, is amended by adding a subdivision
to read:
new text begin Subd. 13. new text end
new text begin Premium not to be increased based on inquiry or denied claim. new text end
new text begin
An
insurer shall not use as a basis for increasing the premium upon renewal of a homeowner's
insurance policy:
new text end
new text begin
(1) the insured's inquiry about a hypothetical claim;
new text end
new text begin
(2) the insured's inquiry to the insured's agent about a potential claim; or
new text end
new text begin
(3) a claim submitted by the insured that the insurer denied or upon which the
insurer did not make a payment.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective August 1, 2009.
new text end