as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am
A bill for an act
relating to insurance; prohibiting nonrenewal of homeowner's insurance based
upon a claim that the insurer denied or did not make a payment on; prohibiting
premium increases based on certain factors; amending Minnesota Statutes 2006,
section 65A.29, subdivision 11, by adding a subdivision.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Minnesota Statutes 2006, section 65A.29, subdivision 11, is amended to read:
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.
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This section is effective August 1, 2007.
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Minnesota Statutes 2006, section 65A.29, is amended by adding a subdivision
to read:
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An
insurer shall not use as a basis for increasing the premium upon renewal of a homeowner's
insurance policy:
new text end
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(1) the insured's inquiry about a hypothetical claim;
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(2) the insured's inquiry to the insured's agent about a potential claim; or
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(3) a claim submitted by the insured that the insurer denied or upon which the
insurer did not make a payment.
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This section is effective August 1, 2007.
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