1.1                          A bill for an act 
  1.2             relating to insurance; fire; regulating failure to 
  1.3             provide timely proof of loss; amending Minnesota 
  1.4             Statutes 1998, section 65A.01, by adding a 
  1.5             subdivision; Minnesota Statutes 1999 Supplement, 
  1.6             section 65A.01, subdivision 3. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1999 Supplement, section 
  1.9   65A.01, subdivision 3, is amended to read: 
  1.10     Subd. 3.  [POLICY PROVISIONS.] On said policy following 
  1.11  such matter as provided in subdivisions 1 and 2, printed in the 
  1.12  English language in type of such size or sizes and arranged in 
  1.13  such manner, as is approved by the commissioner of commerce, the 
  1.14  following provisions and subject matter shall be stated in the 
  1.15  following words and in the following sequence, but with the 
  1.16  convenient placing, if desired, of such matter as will act as a 
  1.17  cover or back for such policy when folded, with the blanks below 
  1.18  indicated being left to be filled in at the time of the issuing 
  1.19  of the policy, to wit: 
  1.20     (Space for listing the amounts of insurance, rates and 
  1.21  premiums for the basic coverages provided under the standard 
  1.22  form of policy and for additional coverages or perils provided 
  1.23  under endorsements attached.  The description and location of 
  1.24  the property covered and the insurable value(s) of any 
  1.25  building(s) or structure(s) covered by the policy or its 
  1.26  attached endorsements; also in the above space may be stated 
  2.1   whether other insurance is limited and if limited the total 
  2.2   amount permitted.) 
  2.3      In consideration of the provisions and stipulations herein 
  2.4   or added hereto and of the premium above specified this company, 
  2.5   for a term of ..... from ..... (At 12:01 a.m. Standard Time) to 
  2.6   ..... (At 12:01 a.m. Standard Time) at location of property 
  2.7   involved, to an amount not exceeding the amount(s) above 
  2.8   specified does insure .....  and legal representatives 
  2.9   ........................................... 
  2.10     (In above space may be stated whether other insurance is 
  2.11  limited.) (And if limited the total amount permitted.) 
  2.12     Subject to form No.(s) ..... attached hereto. 
  2.13     This policy is made and accepted subject to the foregoing 
  2.14  provisions and stipulations and those hereinafter stated, which 
  2.15  are hereby made a part of this policy, together with such 
  2.16  provisions, stipulations and agreements as may be added hereto 
  2.17  as provided in this policy. 
  2.18     The insurance effected above is granted against all loss or 
  2.19  damage by fire originating from any cause, except as hereinafter 
  2.20  provided, also any damage by lightning and by removal from 
  2.21  premises endangered by the perils insured against in this 
  2.22  policy, to the property described hereinafter while located or 
  2.23  contained as described in this policy, or pro rata for five days 
  2.24  at each proper place to which any of the property shall 
  2.25  necessarily be removed for preservation from the perils insured 
  2.26  against in this policy, but not elsewhere.  The amount of said 
  2.27  loss or damage, except in case of total loss on buildings, to be 
  2.28  estimated according to the actual value of the insured property 
  2.29  at the time when such loss or damage happens. 
  2.30     If the insured property shall be exposed to loss or damage 
  2.31  from the perils insured against, the insured shall make all 
  2.32  reasonable exertions to save and protect same. 
  2.33     This entire policy shall be void if, whether before a loss, 
  2.34  the insured has willfully, or after a loss, the insured has 
  2.35  willfully and with intent to defraud, concealed or 
  2.36  misrepresented any material fact or circumstance concerning this 
  3.1   insurance or the subject thereof, or the interests of the 
  3.2   insured therein. 
  3.3      This policy shall not cover accounts, bills, currency, 
  3.4   deeds, evidences of debt, money or securities; nor, unless 
  3.5   specifically named hereon in writing, bullion, or manuscripts. 
  3.6      This company shall not be liable for loss by fire or other 
  3.7   perils insured against in this policy caused, directly or 
  3.8   indirectly by:  (a) enemy attack by armed forces, including 
  3.9   action taken by military, naval or air forces in resisting an 
  3.10  actual or immediately impending enemy attack; (b) invasion; (c) 
  3.11  insurrection; (d) rebellion; (e) revolution; (f) civil war; (g) 
  3.12  usurped power; (h) order of any civil authority except acts of 
  3.13  destruction at the time of and for the purpose of preventing the 
  3.14  spread of fire, providing that such fire did not originate from 
  3.15  any of the perils excluded by this policy. 
  3.16     Other insurance may be prohibited or the amount of 
  3.17  insurance may be limited by so providing in the policy or an 
  3.18  endorsement, rider or form attached thereto. 
  3.19     Unless otherwise provided in writing added hereto this 
  3.20  company shall not be liable for loss occurring: 
  3.21     (a) while the hazard is increased by any means within the 
  3.22  control or knowledge of the insured; or 
  3.23     (b) while the described premises, whether intended for 
  3.24  occupancy by owner or tenant, are vacant or unoccupied beyond a 
  3.25  period of 60 consecutive days; or 
  3.26     (c) as a result of explosion or riot, unless fire ensue, 
  3.27  and in that event for loss by fire only. 
  3.28     Any other peril to be insured against or subject of 
  3.29  insurance to be covered in this policy shall be by endorsement 
  3.30  in writing hereon or added hereto. 
  3.31     The extent of the application of insurance under this 
  3.32  policy and the contributions to be made by this company in case 
  3.33  of loss, and any other provision or agreement not inconsistent 
  3.34  with the provisions of this policy, may be provided for in 
  3.35  writing added hereto, but no provision may be waived except such 
  3.36  as by the terms of this policy is subject to change. 
  4.1      No permission affecting this insurance shall exist, or 
  4.2   waiver of any provision be valid, unless granted herein or 
  4.3   expressed in writing added hereto.  No provision, stipulation or 
  4.4   forfeiture shall be held to be waived by any requirements or 
  4.5   proceeding on the part of this company relating to appraisal or 
  4.6   to any examination provided for herein. 
  4.7      This policy shall be canceled at any time at the request of 
  4.8   the insured, in which case this company shall, upon demand and 
  4.9   surrender of this policy, refund the excess of paid premium 
  4.10  above the customary short rates for the expired time.  This 
  4.11  policy may be canceled at any time by this company by giving to 
  4.12  the insured a written notice of cancellation with or without 
  4.13  tender of the excess of paid premium above the pro rata premium 
  4.14  for the expired time, which excess, if not tendered, shall be 
  4.15  refunded on demand.  Notice of cancellation shall state that 
  4.16  said excess premium (if not tendered) will be refunded on demand.
  4.17     If loss hereunder is made payable, in whole or in part, to 
  4.18  a designated mortgagee or contract for deed vendor not named 
  4.19  herein as insured, such interest in this policy may be canceled 
  4.20  by giving to such mortgagee or vendor a ten days' written notice 
  4.21  of cancellation. 
  4.22     Notwithstanding any other provisions of this policy, if 
  4.23  this policy shall be made payable to a mortgagee or contract for 
  4.24  deed vendor of the covered real estate, no act or default of any 
  4.25  person other than such mortgagee or vendor or the mortgagee's or 
  4.26  vendor's agent or those claiming under the mortgagee or vendor, 
  4.27  whether the same occurs before or during the term of this 
  4.28  policy, shall render this policy void as to such mortgagee or 
  4.29  vendor nor affect such mortgagee's or vendor's right to recover 
  4.30  in case of loss on such real estate; provided, that the 
  4.31  mortgagee or vendor shall on demand pay according to the 
  4.32  established scale of rates for any increase of risks not paid 
  4.33  for by the insured; and whenever this company shall be liable to 
  4.34  a mortgagee or vendor for any sum for loss under this policy for 
  4.35  which no liability exists as to the mortgagor, vendee, or owner, 
  4.36  and this company shall elect by itself, or with others, to pay 
  5.1   the mortgagee or vendor the full amount secured by such mortgage 
  5.2   or contract for deed, then the mortgagee or vendor shall assign 
  5.3   and transfer to the company the mortgagee's or vendor's 
  5.4   interest, upon such payment, in the said mortgage or contract 
  5.5   for deed together with the note and debts thereby secured. 
  5.6      This company shall not be liable for a greater proportion 
  5.7   of any loss than the amount hereby insured shall bear to the 
  5.8   whole insurance covering the property against the peril involved.
  5.9      In case of any loss under this policy the insured shall 
  5.10  give immediate written notice to this company of any loss, 
  5.11  protect the property from further damage, and a statement in 
  5.12  writing, signed and sworn to by the insured, shall within 60 
  5.13  days be rendered to the company, setting forth the value of the 
  5.14  property insured, except in case of total loss on buildings the 
  5.15  value of said buildings need not be stated, the interest of the 
  5.16  insured therein, all other insurance thereon, in detail, the 
  5.17  purposes for which and the persons by whom the building insured, 
  5.18  or containing the property insured, was used, and the time at 
  5.19  which and manner in which the fire originated, so far as known 
  5.20  to the insured. 
  5.21     The insured, as often as may be reasonably required, shall 
  5.22  exhibit to any person designated by this company all that 
  5.23  remains of any property herein described, and, after being 
  5.24  informed of the right to counsel and that any answers may be 
  5.25  used against the insured in later civil or criminal proceedings, 
  5.26  the insured shall, within a reasonable period after demand by 
  5.27  this company, submit to examinations under oath by any person 
  5.28  named by this company, and subscribe the oath.  The insured, as 
  5.29  often as may be reasonably required, shall produce for 
  5.30  examination all records and documents reasonably related to the 
  5.31  loss, or certified copies thereof if originals are lost, at a 
  5.32  reasonable time and place designated by this company or its 
  5.33  representatives, and shall permit extracts and copies thereof to 
  5.34  be made.  
  5.35     In case the insured and this company, except in case of 
  5.36  total loss on buildings, shall fail to agree as to the actual 
  6.1   cash value or the amount of loss, then, on the written demand of 
  6.2   either, each shall select a competent and disinterested 
  6.3   appraiser and notify the other of the appraiser selected within 
  6.4   20 days of such demand.  In case either fails to select an 
  6.5   appraiser within the time provided, then a presiding judge of 
  6.6   the district court of the county wherein the loss occurs may 
  6.7   appoint such appraiser for such party upon application of the 
  6.8   other party in writing by giving five days' notice thereof in 
  6.9   writing to the party failing to appoint.  The appraisers shall 
  6.10  first select a competent and disinterested umpire; and failing 
  6.11  for 15 days to agree upon such umpire, then a presiding judge of 
  6.12  the above mentioned court may appoint such an umpire upon 
  6.13  application of party in writing by giving five days' notice 
  6.14  thereof in writing to the other party.  The appraisers shall 
  6.15  then appraise the loss, stating separately actual value and loss 
  6.16  to each item; and, failing to agree, shall submit their 
  6.17  differences, only, to the umpire.  An award in writing, so 
  6.18  itemized, of any two when filed with this company shall 
  6.19  determine the amount of actual value and loss.  Each appraiser 
  6.20  shall be paid by the selecting party, or the party for whom 
  6.21  selected, and the expense of the appraisal and umpire shall be 
  6.22  paid by the parties equally. 
  6.23     It shall be optional with this company to take all of the 
  6.24  property at the agreed or appraised value, and also to repair, 
  6.25  rebuild or replace the property destroyed or damaged with other 
  6.26  of like kind and quality within a reasonable time, on giving 
  6.27  notice of its intention so to do within 30 days after the 
  6.28  receipt of the proof of loss herein required. 
  6.29     There can be no abandonment to this company of any property.
  6.30     The amount of loss for which this company may be liable 
  6.31  shall be payable 60 days after proof of loss, as herein 
  6.32  provided, is received by this company and ascertainment of the 
  6.33  loss is made either by agreement between the insured and this 
  6.34  company expressed in writing or by the filing with this company 
  6.35  of an award as herein provided.  It is moreover understood that 
  6.36  there can be no abandonment of the property insured to the 
  7.1   company, and that the company will not in any case be liable for 
  7.2   more than the sum insured, with interest thereon from the time 
  7.3   when the loss shall become payable, as above provided. 
  7.4      Except as otherwise provided in subdivision 7, no suit or 
  7.5   action on this policy for the recovery of any claim shall be 
  7.6   sustainable in any court of law or equity unless all the 
  7.7   requirements of this policy have been complied with, and unless 
  7.8   commenced within two years after inception of the loss. 
  7.9      This company is subrogated to, and may require from the 
  7.10  insured an assignment of all right of recovery against any party 
  7.11  for loss to the extent that payment therefor is made by this 
  7.12  company; and the insurer may prosecute therefor in the name of 
  7.13  the insured retaining such amount as the insurer has paid. 
  7.14     Assignment of this policy shall not be valid except with 
  7.15  the written consent of this company. 
  7.16     IN WITNESS WHEREOF, this company has executed and attested 
  7.17  these presents. 
  7.18   
  7.19   ........................         ........................
  7.20        (Signature)                     (Signature)         
  7.21   ........................         ........................
  7.22       (Name of office)                (Name of office)     
  7.23     Sec. 2.  Minnesota Statutes 1998, section 65A.01, is 
  7.24  amended by adding a subdivision to read: 
  7.25     Subd. 7.  [FAILURE TO PROVIDE TIMELY PROOF OF LOSS.] In an 
  7.26  action for the recovery of a claim on this policy, failure to 
  7.27  comply with the 60-day proof of loss requirement does not act as 
  7.28  a bar to recovery unless the company's rights were prejudiced by 
  7.29  the failure to receive a completed proof of loss within that 
  7.30  time period or unless the requirements of section 65A.296, if 
  7.31  applicable, are satisfied. 
  7.32     Sec. 3.  [EFFECTIVE DATE; APPLICATION.] 
  7.33     Sections 1 and 2 are effective August 1, 2000, and apply to 
  7.34  claims arising from losses occurring on or after that date.