HF 2062

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to civil actions; providing for the
admissibility of evidence of use or failure to use
seat belts; regulating actions involving certain
insurance practices; authorizing direct actions and
imposing direct liability on certain insurers in
certain actions; regulating recovery in certain
actions; amending Minnesota Statutes 2004, section
169.685, subdivision 4; proposing coding for new law
in Minnesota Statutes, chapters 72A; 540; 604.

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

ARTICLE 1

SEAT BELT EVIDENCE

Section 1.

Minnesota Statutes 2004, section 169.685,
subdivision 4, is amended to read:

Subd. 4.

Admissibility into evidence.

(a) Except as
provided in paragraph (b), deleted text begin proof deleted text end new text begin evidence new text end of the use or failure
to use deleted text begin seat belts or deleted text end a child passenger restraint system as
described in subdivision 5, or deleted text begin proof deleted text end new text begin evidence new text end of the
installation or failure of installation of deleted text begin seat belts or deleted text end a child
passenger restraint system as described in subdivision 5 shall
not be admissible in evidence in any litigation involving
personal injuries or property damage resulting from the use or
operation of any motor vehicle.

(b) Paragraph (a) does not affect the right of a person to
bring an action for damages arising out of an incident that
involves a defectively designed, manufactured, installed, or
operating deleted text begin seat belt or deleted text end child passenger restraint system.
Paragraph (a) does not prohibit the introduction of evidence
pertaining to the use of a deleted text begin seat belt or deleted text end child passenger
restraint system in an action described in this paragraph.
new text begin Notwithstanding section 604.01, with respect to injuries or
damage determined to have been caused by a failure to use seat
belts, such a failure is an affirmative defense to be proved
with competent expert testimony, and does not reduce the
recovery for those injuries or damages by more than 15 percent.
This paragraph does not affect the determination of fault in the
action.
new text end

Sec. 2. new text begin EFFECTIVE DATE.
new text end

new text begin Section 1 is effective the day following final enactment
and applies to actions commenced on or after that date.
new text end

ARTICLE 2

INSURANCE ACTIONS

Section 1.

new text begin [72A.329] DIRECT LIABILITY OF INSURER.
new text end

new text begin Any bond or policy of insurance covering liability to
others for negligence makes the insurer liable, up to the
amounts stated in the bond or policy, to the persons entitled to
recover against the insured for the death of any person or for
injury to persons or property, irrespective of whether the
liability is presently established or is contingent and to
become fixed or certain by final judgment against the insured.
new text end

Sec. 2.

new text begin [540.19] NEGLIGENCE ACTIONS; INSURERS.
new text end

new text begin Subdivision 1. new text end

new text begin Direct action. new text end

new text begin In any action for damages
caused by negligence, any insurer which:
new text end

new text begin (1) has an interest in the outcome of the controversy
adverse to the plaintiff or any of the parties to the
controversy; or
new text end

new text begin (2) by its policy of insurance assumes or reserves the
right to control the prosecution, defense, or settlement of the
claim or action; or
new text end

new text begin (3) by its policy agrees to prosecute or defend the action
brought by plaintiff or any of the parties to the action, or
agrees to engage counsel to prosecute or defend the action or
agrees to pay the costs of the litigation, is by this section
made a proper party defendant in any action brought by plaintiff
in this state on account of any claim against the insured. If
the policy of insurance was issued or delivered outside this
state, the insurer is by this subdivision made a proper party
defendant only if the accident, injury, or negligence occurred
in this state.
new text end

new text begin Subd. 2. new text end

new text begin Other parties; impleading. new text end

new text begin If an insurer is
made a party defendant pursuant to this section and it appears
at any time before or during the trial that there is or may be a
cross issue between the insurer and the insured or any issue
between any other person and the insurer involving the question
of the insurer's liability if judgment should be rendered
against the insured, the court may, upon motion of any defendant
in the action, cause the person who may be liable upon such
cross issue to be made a party defendant to the action and all
the issues involved in the controversy determined in the trial
of the action or any third party may be impleaded. Nothing in
this subdivision prohibits the trial court from directing and
conducting separate trials on the issue of liability to the
plaintiff or other party seeking affirmative relief and on the
issue of whether the insurance policy in question affords
coverage. Any party may move for separate trials. If the court
orders separate trials, the court shall specify in its order the
sequence in which the trials are to be conducted.
new text end

Sec. 3.

new text begin [604.17] BAD FAITH INSURANCE PRACTICES.
new text end

new text begin Subdivision 1. new text end

new text begin Prohibited conduct. new text end

new text begin (a) An insurer shall
not act in bad faith in connection with any matter involving a
claim under an insurance policy.
new text end

new text begin (b) Insurer bad faith includes insurer delay or denial of
benefits offered or paid without an objectively reasonable basis
for its offer, delay, or denial. An insurer also acts in bad
faith if the insurer engages in any fraud, false pretense, false
promise, misrepresentation, misleading statement, or deceptive
practice that others rely on in connection with any matter
involving a claim under an insurance policy.
new text end

new text begin (c) For purposes of this section:
new text end

new text begin (1) "insurance policy" means an insurance policy or
contract issued, executed, renewed, maintained, or delivered in
this state, other than a workers' compensation insurance policy
or contract; and
new text end

new text begin (2) "insurer" means an individual, corporation,
association, partnership, or other legal entity that issues,
executes, renews, maintains, or delivers an insurance policy in
this state.
new text end

new text begin Subd. 2. new text end

new text begin Penalties and remedies. new text end

new text begin A person violating
subdivision 1 is acting against the public interest and is
liable for costs, damages, and reasonable attorney fees.
new text end

Sec. 4. new text begin EFFECTIVE DATE; APPLICATION.
new text end

new text begin Section 1 is effective August 1, 2005, and applies to bonds
or policies of insurance issued or renewed on or after that date.
Section 2 is effective August 1, 2005, and applies to actions
arising from incidents occurring on or after that date. Section
3 is effective August 1, 2005, and applies to causes of action
commenced on or after that date.
new text end