SF 613

1st Engrossment - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:14am

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.

[60A.39] CERTIFICATES OF INSURANCE.

Subdivision 1.

Issuance.

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.

Subd. 2.

Approval.

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 an approved policy, form, or endorsement
without the written approval of the commissioner.

Subd. 3.

Required statement.

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."

Subd. 4.

Cancellation notice.

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.

Subd. 5.

Filing.

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.

Subd. 6.

Opinion letters.

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.

Sec. 2.

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

Subd. 8.

Certificates of insurance.

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.