2002 Minnesota Statutes

     65A.01 Minnesota standard fire insurance policy. 

    Subdivision 1.    Designation and scope.  The printed 
 form of a policy of fire insurance, as set forth in subdivisions 
 3 and 3a, shall be known and designated as the "Minnesota 
 standard fire insurance policy" to be used in the state of 
 Minnesota.  No policy or contract of fire insurance shall be 
 made, issued or delivered by any insurer including reciprocals 
 or interinsurance exchanges or any agent or representative 
 thereof, on any property in this state, unless it shall provide 
 the specified coverage and conform as to all provisions, 
 stipulations, and conditions, with such form of policy, except 
 as provided in sections 60A.08, subdivision 9; 60A.352; 65A.06; 
 65A.29; 72A.20, subdivision 17; and other statutes containing 
 specific requirements that are inconsistent with the form of 
 this policy.  Any policy or contract otherwise subject to the 
 provisions of this subdivision, subdivisions 3 and 3a which 
 includes either on an unspecified basis as to coverage or for a 
 single premium, coverage against the peril of fire and coverage 
 against other perils may be issued without incorporating the 
 exact language of the Minnesota standard fire insurance policy, 
 provided:  Such policy or contract shall, with respect to the 
 peril of fire, afford the insured all the rights and benefits of 
 the Minnesota standard fire insurance policy and such additional 
 benefits as the policy provides; the provisions in relation to 
 mortgagee interests and obligations in said Minnesota standard 
 fire insurance policy shall be incorporated therein without 
 change; such policy or contract is complete as to its terms of 
 coverage; and, the commissioner is satisfied that such policy or 
 contract complies with the provisions hereof. 

    Subd. 2.    Company information.  There shall be 
 printed on the first or front page at the head of said 
 "Minnesota standard fire insurance policy" the name of the 
 insurer or insurers issuing the policy, the location of the home 
 office or United States office of the insurer or insurers, a 
 statement whether said insurer or insurers are stock 
 corporations, mutual corporations, reciprocal insurers or Lloyds 
 Underwriters; there may be added thereto such device or devices 
 as the insurer or insurers issuing said policy may desire.  Any 
 company organized under special charter provisions may so 
 indicate upon its policy, and may add a statement of the plan 
 under which it operates in this state. 

    Subd. 2a.    Facsimile signatures authorized.  On any 
 policy of insurance regulated under this chapter, the signature 
 of an officer or agent of the insurer may be a facsimile 
 signature.  

    Subd. 3.    Policy provisions.  On said policy following 
 such matter as provided in subdivisions 1 and 2, printed in the 
 English language in type of such size or sizes and arranged in 
 such manner, as is approved by the commissioner of commerce, the 
 following provisions and subject matter shall be stated in the 
 following words and in the following sequence, but with the 
 convenient placing, if desired, of such matter as will act as a 
 cover or back for such policy when folded, with the blanks below 
 indicated being left to be filled in at the time of the issuing 
 of the policy, to wit: 

    (Space for listing the amounts of insurance, rates and 
 premiums for the basic coverages provided under the standard 
 form of policy and for additional coverages or perils provided 
 under endorsements attached.  The description and location of 
 the property covered and the insurable value(s) of any 
 building(s) or structure(s) covered by the policy or its 
 attached endorsements; also in the above space may be stated 
 whether other insurance is limited and if limited the total 
 amount permitted.) 

    In consideration of the provisions and stipulations herein 
 or added hereto and of the premium above specified this company, 
 for a term of ..... from ..... (At 12:01 a.m. Standard Time) to 
 ..... (At 12:01 a.m. Standard Time) at location of property 
 involved, to an amount not exceeding the amount(s) above 
 specified does insure .....  and legal representatives 
 ........................................... 

    (In above space may be stated whether other insurance is 
 limited.) (And if limited the total amount permitted.) 

    Subject to form No.(s) ..... attached hereto. 

    This policy is made and accepted subject to the foregoing 
 provisions and stipulations and those hereinafter stated, which 
 are hereby made a part of this policy, together with such 
 provisions, stipulations and agreements as may be added hereto 
 as provided in this policy. 

    The insurance effected above is granted against all loss or 
 damage by fire originating from any cause, except as hereinafter 
 provided, also any damage by lightning and by removal from 
 premises endangered by the perils insured against in this 
 policy, to the property described hereinafter while located or 
 contained as described in this policy, or pro rata for five days 
 at each proper place to which any of the property shall 
 necessarily be removed for preservation from the perils insured 
 against in this policy, but not elsewhere.  The amount of said 
 loss or damage, except in case of total loss on buildings, to be 
 estimated according to the actual value of the insured property 
 at the time when such loss or damage happens. 

    If the insured property shall be exposed to loss or damage 
 from the perils insured against, the insured shall make all 
 reasonable exertions to save and protect same. 

    This entire policy shall be void if, whether before a loss, 
 the insured has willfully, or after a loss, the insured has 
 willfully and with intent to defraud, concealed or 
 misrepresented any material fact or circumstance concerning this 
 insurance or the subject thereof, or the interests of the 
 insured therein. 

    This policy shall not cover accounts, bills, currency, 
 deeds, evidences of debt, money or securities; nor, unless 
 specifically named hereon in writing, bullion, or manuscripts. 

    This company shall not be liable for loss by fire or other 
 perils insured against in this policy caused, directly or 
 indirectly by:  (a) enemy attack by armed forces, including 
 action taken by military, naval or air forces in resisting an 
 actual or immediately impending enemy attack; (b) invasion; (c) 
 insurrection; (d) rebellion; (e) revolution; (f) civil war; (g) 
 usurped power; (h) order of any civil authority except acts of 
 destruction at the time of and for the purpose of preventing the 
 spread of fire, providing that such fire did not originate from 
 any of the perils excluded by this policy. 

    Other insurance may be prohibited or the amount of 
 insurance may be limited by so providing in the policy or an 
 endorsement, rider or form attached thereto. 

    Unless otherwise provided in writing added hereto this 
 company shall not be liable for loss occurring: 

    (a) while the hazard is increased by any means within the 
 control or knowledge of the insured; or 

    (b) while the described premises, whether intended for 
 occupancy by owner or tenant, are vacant or unoccupied beyond a 
 period of 60 consecutive days; or 

    (c) as a result of explosion or riot, unless fire ensue, 
 and in that event for loss by fire only. 

    Any other peril to be insured against or subject of 
 insurance to be covered in this policy shall be by endorsement 
 in writing hereon or added hereto. 

    The extent of the application of insurance under this 
 policy and the contributions to be made by this company in case 
 of loss, and any other provision or agreement not inconsistent 
 with the provisions of this policy, may be provided for in 
 writing added hereto, but no provision may be waived except such 
 as by the terms of this policy is subject to change. 

    No permission affecting this insurance shall exist, or 
 waiver of any provision be valid, unless granted herein or 
 expressed in writing added hereto.  No provision, stipulation or 
 forfeiture shall be held to be waived by any requirements or 
 proceeding on the part of this company relating to appraisal or 
 to any examination provided for herein. 

    This policy shall be canceled at any time at the request of 
 the insured, in which case this company shall, upon demand and 
 surrender of this policy, refund the excess of paid premium 
 above the customary short rates for the expired time.  This 
 policy may be canceled at any time by this company by giving to 
 the insured a written notice of cancellation with or without 
 tender of the excess of paid premium above the pro rata premium 
 for the expired time, which excess, if not tendered, shall be 
 refunded on demand.  Notice of cancellation shall state that 
 said excess premium (if not tendered) will be refunded on demand.

    If loss hereunder is made payable, in whole or in part, to 
 a designated mortgagee or contract for deed vendor not named 
 herein as insured, such interest in this policy may be canceled 
 by giving to such mortgagee or vendor a ten days' written notice 
 of cancellation. 

    Notwithstanding any other provisions of this policy, if 
 this policy shall be made payable to a mortgagee or contract for 
 deed vendor of the covered real estate, no act or default of any 
 person other than such mortgagee or vendor or the mortgagee's or 
 vendor's agent or those claiming under the mortgagee or vendor, 
 whether the same occurs before or during the term of this 
 policy, shall render this policy void as to such mortgagee or 
 vendor nor affect such mortgagee's or vendor's right to recover 
 in case of loss on such real estate; provided, that the 
 mortgagee or vendor shall on demand pay according to the 
 established scale of rates for any increase of risks not paid 
 for by the insured; and whenever this company shall be liable to 
 a mortgagee or vendor for any sum for loss under this policy for 
 which no liability exists as to the mortgagor, vendee, or owner, 
 and this company shall elect by itself, or with others, to pay 
 the mortgagee or vendor the full amount secured by such mortgage 
 or contract for deed, then the mortgagee or vendor shall assign 
 and transfer to the company the mortgagee's or vendor's 
 interest, upon such payment, in the said mortgage or contract 
 for deed together with the note and debts thereby secured. 

    This company shall not be liable for a greater proportion 
 of any loss than the amount hereby insured shall bear to the 
 whole insurance covering the property against the peril involved.

    In case of any loss under this policy the insured shall 
 give immediate written notice to this company of any loss, 
 protect the property from further damage, and a statement in 
 writing, signed and sworn to by the insured, shall within 60 
 days be rendered to the company, setting forth the value of the 
 property insured, except in case of total loss on buildings the 
 value of said buildings need not be stated, the interest of the 
 insured therein, all other insurance thereon, in detail, the 
 purposes for which and the persons by whom the building insured, 
 or containing the property insured, was used, and the time at 
 which and manner in which the fire originated, so far as known 
 to the insured. 

    The insured, as often as may be reasonably required, shall 
 exhibit to any person designated by this company all that 
 remains of any property herein described, and, after being 
 informed of the right to counsel and that any answers may be 
 used against the insured in later civil or criminal proceedings, 
 the insured shall, within a reasonable period after demand by 
 this company, submit to examinations under oath by any person 
 named by this company, and subscribe the oath.  The insured, as 
 often as may be reasonably required, shall produce for 
 examination all records and documents reasonably related to the 
 loss, or certified copies thereof if originals are lost, at a 
 reasonable time and place designated by this company or its 
 representatives, and shall permit extracts and copies thereof to 
 be made.  

    In case the insured and this company, except in case of 
 total loss on buildings, shall fail to agree as to the actual 
 cash value or the amount of loss, then, on the written demand of 
 either, each shall select a competent and disinterested 
 appraiser and notify the other of the appraiser selected within 
 20 days of such demand.  In case either fails to select an 
 appraiser within the time provided, then a presiding judge of 
 the district court of the county wherein the loss occurs may 
 appoint such appraiser for such party upon application of the 
 other party in writing by giving five days' notice thereof in 
 writing to the party failing to appoint.  The appraisers shall 
 first select a competent and disinterested umpire; and failing 
 for 15 days to agree upon such umpire, then a presiding judge of 
 the above mentioned court may appoint such an umpire upon 
 application of party in writing by giving five days' notice 
 thereof in writing to the other party.  The appraisers shall 
 then appraise the loss, stating separately actual value and loss 
 to each item; and, failing to agree, shall submit their 
 differences, only, to the umpire.  An award in writing, so 
 itemized, of any two when filed with this company shall 
 determine the amount of actual value and loss.  Each appraiser 
 shall be paid by the selecting party, or the party for whom 
 selected, and the expense of the appraisal and umpire shall be 
 paid by the parties equally. 

    It shall be optional with this company to take all of the 
 property at the agreed or appraised value, and also to repair, 
 rebuild or replace the property destroyed or damaged with other 
 of like kind and quality within a reasonable time, on giving 
 notice of its intention so to do within 30 days after the 
 receipt of the proof of loss herein required. 

    There can be no abandonment to this company of any property.

    The amount of loss for which this company may be liable 
 shall be payable 60 days after proof of loss, as herein 
 provided, is received by this company and ascertainment of the 
 loss is made either by agreement between the insured and this 
 company expressed in writing or by the filing with this company 
 of an award as herein provided.  It is moreover understood that 
 there can be no abandonment of the property insured to the 
 company, and that the company will not in any case be liable for 
 more than the sum insured, with interest thereon from the time 
 when the loss shall become payable, as above provided. 

    No suit or action on this policy for the recovery of any 
 claim shall be sustainable in any court of law or equity unless 
 all the requirements of this policy have been complied with, and 
 unless commenced within two years after inception of the loss. 

    This company is subrogated to, and may require from the 
 insured an assignment of all right of recovery against any party 
 for loss to the extent that payment therefor is made by this 
 company; and the insurer may prosecute therefor in the name of 
 the insured retaining such amount as the insurer has paid. 

    Assignment of this policy shall not be valid except with 
 the written consent of this company. 

    IN WITNESS WHEREOF, this company has executed and attested 
 these presents. 

  
  ........................         ........................
       (Signature)                     (Signature)         
  ........................         ........................
      (Name of office)                (Name of office)     

    Subd. 3a.    Cancellation.  (1) There shall be printed 
 in the policy or an endorsement attached to the policy a printed 
 form in the following words: 

    When this policy has been issued to cover buildings used 
 for residential purposes other than a hotel or motel and has 
 been in effect for at least 60 days, or if it has been renewed, 
 this policy shall not be canceled, except for one or more of the 
 following reasons which shall be stated in the notice of 
 cancellation: 

    (a) Nonpayment of premium; 

    (b) Misrepresentation or fraud made by or with the 
 knowledge of the insured in obtaining the policy or in pursuing 
 a claim thereunder; 

    (c) An act or omission of the insured which materially 
 increases the risk originally accepted; 

    (d) Physical changes in the insured property which are not 
 corrected or restored within a reasonable time after they occur 
 and which result in the property becoming uninsurable; or 

    (e) Nonpayment of dues to an association or organization, 
 other than an insurance association or organization, where 
 payment of dues is a prerequisite to obtaining or continuing the 
 insurance. 

    Provided, however, that this limitation on cancellation 
 shall not apply to additional coverages in a divisible policy, 
 other than a policy of fire and extended coverage insurance.  If 
 this company cancels the additional coverages, it may issue a 
 new, separate fire policy at a premium calculated on a pro rata 
 basis for the remaining period of the original policy. 

    (2) The provisions of clause (1)(e) shall not be included 
 in the language of the policy or endorsement unless the payment 
 of dues to an association or organization, other than an 
 insurance association or organization, is a prerequisite to 
 obtaining or continuing the insurance. 

    Subd. 3b.    Rescission and voidability.  This policy 
 must not be rescinded or voided except where the insured has 
 willfully and with intent to defraud concealed or misrepresented 
 a material fact or circumstance concerning this insurance or the 
 subject of this insurance or the interests of the insured in 
 this insurance.  This provision must not operate to defeat a 
 claim by a third party or a minor child of the named insured for 
 damage or loss for which the policy provides coverage. 

    Subd. 3c.    Time requirements.  (a) In the event of a 
 policy less than 60 days old that is not being renewed, or a 
 policy that it is being canceled for nonpayment of premium, the 
 notice must be mailed to the insured so that it is received at 
 least 20 days before the effective cancellation date.  If a 
 policy is being canceled for underwriting considerations, the 
 insured must be informed of the source from which the 
 information was received. 

    (b) In the event of a midterm cancellation, for reasons 
 listed in subdivision 3a, or according to policy provisions, the 
 insured must receive a 30-day notice. 

    (c) In the event of a nonrenewal, a 60-day notice must be 
 sent to the insured, containing the specific underwriting or 
 other reason for the indicated actions. 

    (d) This subdivision does not apply to commercial policies 
 regulated under sections 60A.36 and 60A.37. 

    Subd. 4.    Additional provisions permitted.  (1) There 
 may be printed in the policy or an endorsement attached to the 
 policy, in case the assured desires liability to attach to 
 several buildings, divisions or locations under one item, a 
 printed form filed with and approved by the commissioner of 
 commerce. 

    (2) There may be printed in the policy or an endorsement 
 attached to the policy, a printed form in the following words, 
 to wit: 

    The insured has relinquished all rights to recover for loss 
 or damage by fire from ..... (here insert name of individual, 
 partnership, association or corporation). 

    (3) There may be printed upon a policy issued in compliance 
 herewith the words "Minnesota standard fire insurance policy." 

    (4) A company, if incorporated or formed in this state, may 
 print in the policy any provisions which it is authorized or 
 required by law to insert therein, if not incorporated in this 
 state, it may, with the approval of the commissioner of 
 commerce, print in the policy any provision required by its 
 charter or deed of settlement, or by the laws of its own state 
 or country, not contrary to the laws of this state. 

    (5) Appropriate forms of other contracts or endorsements, 
 whereby the property described in such policy shall be insured 
 against one or more of the additional perils which the insurer 
 is empowered to assume, and forms of provisions or endorsements 
 which serve to modify the policy or premium in favor of the 
 insured, may be attached to, used in or in connection with the 
 Minnesota standard fire insurance policy when approved by the 
 commissioner of commerce.  Such forms of other contracts, 
 provisions or endorsements attached to or printed thereon may 
 contain provisions and stipulations inconsistent with the 
 Minnesota standard fire insurance policy if applicable only to 
 such other perils.  There may be placed upon the Minnesota 
 standard fire insurance policy, in such manner and form as is 
 approved by the commissioner of commerce, such data as may be 
 conveniently included for duplication on the daily reports for 
 the office records of the company writing the policy. 

    (6) A company may print or use on its policy, printed forms 
 covering the maintenance or supervision of security guard's 
 service, automatic sprinkler service or the maintenance of a 
 clear space in lumber yards, when approved by the commissioner 
 of commerce, but no such clause shall contain any provision 
 calling for the lapse or the suspension of the insurance 
 coverage. 

    (7) A company may print or use in its policy printed forms 
 for insurance against loss of rents and rental value, leasehold 
 values, use and occupancy, and indirect or consequential loss or 
 damage caused by change of temperature resulting from the 
 destruction of refrigeration or cooling apparatus, or any of its 
 connections.  It may also use a form specifically excluding the 
 last mentioned hazard. 

    All contracts of insurance against loss of rents or rental 
 values, use and occupancy, shall contain the following 
 provisions: 

    The period of indemnity under this contract shall be 
 limited to such length of time (commencing with the date of the 
 fire or lightning and not limited by the date of the expiration 
 of the policy) as would be required through the exercise of due 
 diligence and dispatch to rebuild, repair or replace such part 
 of the property described in said policy as may be destroyed or 
 damaged. 

    (8) There may be printed in the policy in a convenient 
 place approved by the commissioner of commerce, or on an 
 endorsement attached to the policy, a printed form providing 
 that in the case of loss, such loss shall be payable to the 
 mortgagee, or other persons, as their interest may appear, to 
 wit: 

    Subject to the stipulations, provisions and conditions 
 contained in this policy, the loss, if any, is payable to ....., 
 mortgagee, as the mortgagee's interest may appear. 

    Subd. 5.    Provision prohibited, total loss; limiting 
 amount to be paid.  No provision shall be attached to or 
 included in such policy limiting the amount to be paid in case 
 of total loss on buildings by fire, lightning or other hazard to 
 less than the amount of insurance on the same. 

    Subd. 6.    Clear statement of reasons for cancellation. 
  When policies covered by this section are subject to 
 limitations or cancellation as provided in subdivision 3a, the 
 notice of cancellation shall include a statement of the reason 
 for cancellation in a sufficiently clear and specific form so 
 that an insured of reasonable intelligence will be able to 
 identify the basis for the company's cancellation without making 
 further inquiry. 

    HIST: 1967 c 395 art 6 s 1; 1978 c 769 s 1-3; 1979 c 115 s 2; 
 1983 c 208 s 1; 1983 c 289 s 114 subd 1; 1984 c 592 s 50; 1984 c 
 655 art 1 s 92; 1986 c 444; 1987 c 337 s 89; 1994 c 435 s 1; 
 1994 c 485 s 51,65; 1995 c 258 s 46; 1996 c 446 art 1 s 53; 1999 
 c 177 s 61-63