1.1                          A bill for an act
  1.2             relating to insurance; requiring insurers to notify 
  1.3             insureds of cancellation or nonrenewal by certified 
  1.4             mail; amending Minnesota Statutes 1994, sections 
  1.5             62A.04, subdivision 3; 62A.48, subdivision 8; 62D.12, 
  1.6             subdivision 2a; 62D.121, subdivision 5; 62I.13, 
  1.7             subdivision 5; 65A.01, subdivision 3; 65A.07; 65A.29, 
  1.8             subdivision 7; 65B.16; 65B.17, subdivision 1; 65B.18; 
  1.9             and 72A.20, subdivision 24; Minnesota Statutes 1995 
  1.10            Supplement, sections 60A.085; and 62A.04, subdivision 
  1.11            2. 
  1.12  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.13     Section 1.  Minnesota Statutes 1995 Supplement, section 
  1.14  60A.085, is amended to read: 
  1.15     60A.085 [CANCELLATION OF GROUP COVERAGE; NOTIFICATION TO 
  1.16  COVERED PERSONS.] 
  1.17     (a) No cancellation of any group life, group accidental 
  1.18  death and dismemberment, group disability income, or group 
  1.19  medical expense policy, plan, or contract regulated under 
  1.20  chapter 62A or 62C is effective unless the insurer has made a 
  1.21  good faith effort to notify all covered persons of the 
  1.22  cancellation by certified mail with return receipt requested at 
  1.23  least 30 days before the effective cancellation date.  For 
  1.24  purposes of this section, an insurer has made a good faith 
  1.25  effort to notify all covered persons if the insurer has notified 
  1.26  all the persons included on the list required by paragraph (b) 
  1.27  at the home address given and only if the list has been updated 
  1.28  within the last 12 months. 
  2.1      (b) At the time of the application for coverage subject to 
  2.2   paragraph (a), the insurer shall obtain an accurate list of the 
  2.3   names and home addresses of all persons to be covered.  
  2.4      (c) Paragraph (a) does not apply if the group policy, plan, 
  2.5   or contract is replaced, or if the insurer has reasonable 
  2.6   evidence to indicate that it will be replaced, by a 
  2.7   substantially similar policy, plan, or contract. 
  2.8      (d) In no event shall this section extend coverage under a 
  2.9   group policy, plan, or contract more than 120 days beyond the 
  2.10  date coverage would otherwise cancel based on the terms of the 
  2.11  group policy, plan, or contract.  
  2.12     (e) If coverage under the group policy, plan, or contract 
  2.13  is extended by this section, then the time period during which 
  2.14  affected members may exercise any conversion privilege provided 
  2.15  for in the group policy, plan, or contract is extended for the 
  2.16  same length of time, plus 30 days. 
  2.17     Sec. 2.  Minnesota Statutes 1995 Supplement, section 
  2.18  62A.04, subdivision 2, is amended to read: 
  2.19     Subd. 2.  [REQUIRED PROVISIONS.] Except as provided in 
  2.20  subdivision 4 each such policy delivered or issued for delivery 
  2.21  to any person in this state shall contain the provisions 
  2.22  specified in this subdivision in the words in which the same 
  2.23  appear in this section.  The insurer may, at its option, 
  2.24  substitute for one or more of such provisions corresponding 
  2.25  provisions of different wording approved by the commissioner 
  2.26  which are in each instance not less favorable in any respect to 
  2.27  the insured or the beneficiary.  Such provisions shall be 
  2.28  preceded individually by the caption appearing in this 
  2.29  subdivision or, at the option of the insurer, by such 
  2.30  appropriate individual or group captions or subcaptions as the 
  2.31  commissioner may approve. 
  2.32     (1) A provision as follows: 
  2.33     ENTIRE CONTRACT; CHANGES:  This policy, including the 
  2.34  endorsements and the attached papers, if any, constitutes the 
  2.35  entire contract of insurance.  No change in this policy shall be 
  2.36  valid until approved by an executive officer of the insurer and 
  3.1   unless such approval be endorsed hereon or attached hereto.  No 
  3.2   agent has authority to change this policy or to waive any of its 
  3.3   provisions. 
  3.4      (2) A provision as follows: 
  3.5      TIME LIMIT ON CERTAIN DEFENSES:  (a) After two years from 
  3.6   the date of issue of this policy no misstatements, except 
  3.7   fraudulent misstatements, made by the applicant in the 
  3.8   application for such policy shall be used to void the policy or 
  3.9   to deny a claim for loss incurred or disability (as defined in 
  3.10  the policy) commencing after the expiration of such two year 
  3.11  period. 
  3.12     The foregoing policy provision shall not be so construed as 
  3.13  to affect any legal requirement for avoidance of a policy or 
  3.14  denial of a claim during such initial two year period, nor to 
  3.15  limit the application of clauses (1), (2), (3), (4) and (5), in 
  3.16  the event of misstatement with respect to age or occupation or 
  3.17  other insurance.  A policy which the insured has the right to 
  3.18  continue in force subject to its terms by the timely payment of 
  3.19  premium (1) until at least age 50 or, (2) in the case of a 
  3.20  policy issued after age 44, for at least five years from its 
  3.21  date of issue, may contain in lieu of the foregoing the 
  3.22  following provisions (from which the clause in parentheses may 
  3.23  be omitted at the insurer's option) under the caption 
  3.24  "INCONTESTABLE": 
  3.25     After this policy has been in force for a period of two 
  3.26  years during the lifetime of the insured (excluding any period 
  3.27  during which the insured is disabled), it shall become 
  3.28  incontestable as to the statements contained in the application. 
  3.29     (b) No claim for loss incurred or disability (as defined in 
  3.30  the policy) commencing after two years from the date of issue of 
  3.31  this policy shall be reduced or denied on the ground that a 
  3.32  disease or physical condition not excluded from coverage by name 
  3.33  or specific description effective on the date of loss had 
  3.34  existed prior to the effective date of coverage of this policy. 
  3.35     (3) A provision as follows: 
  3.36     GRACE PERIOD:  A grace period of ..... (insert a number not 
  4.1   less than "7" for weekly premium policies, "10" for monthly 
  4.2   premium policies and "31" for all other policies) days will be 
  4.3   granted for the payment of each premium falling due after the 
  4.4   first premium, during which grace period the policy shall 
  4.5   continue in force. 
  4.6      A policy which contains a cancellation provision may add, 
  4.7   at the end of the above provision, 
  4.8      subject to the right of the insurer to cancel in accordance 
  4.9   with the cancellation provision hereof. 
  4.10     A policy in which the insurer reserves the right to refuse 
  4.11  any renewal shall have, at the beginning of the above provision, 
  4.12     Unless not less than five days prior to the premium due 
  4.13  date the insurer has delivered to the insured or has mailed by 
  4.14  certified mail with return receipt requested to the insured's 
  4.15  last address as shown by the records of the insurer written 
  4.16  notice of its intention not to renew this policy beyond the 
  4.17  period for which the premium has been accepted. 
  4.18     (4) A provision as follows: 
  4.19     REINSTATEMENT:  If any renewal premium be not paid within 
  4.20  the time granted the insured for payment, a subsequent 
  4.21  acceptance of premium by the insurer or by any agent duly 
  4.22  authorized by the insurer to accept such premium, without 
  4.23  requiring in connection therewith an application for 
  4.24  reinstatement, shall reinstate the policy.  If the insurer or 
  4.25  such agent requires an application for reinstatement and issues 
  4.26  a conditional receipt for the premium tendered, the policy will 
  4.27  be reinstated upon approval of such application by the insurer 
  4.28  or, lacking such approval, upon the forty-fifth day following 
  4.29  the date of such conditional receipt unless the insurer has 
  4.30  previously notified the insured in writing of its disapproval of 
  4.31  such application.  For health plans described in section 
  4.32  62A.011, subdivision 3, clause (10), an insurer must accept 
  4.33  payment of a renewal premium and reinstate the policy, if the 
  4.34  insured applies for reinstatement no later than 60 days after 
  4.35  the due date for the premium payment, unless: 
  4.36     (1) the insured has in the interim left the state or the 
  5.1   insurer's service area; or 
  5.2      (2) the insured has applied for reinstatement on two or 
  5.3   more prior occasions. 
  5.4      The reinstated policy shall cover only loss resulting from 
  5.5   such accidental injury as may be sustained after the date of 
  5.6   reinstatement and loss due to such sickness as may begin more 
  5.7   than ten days after such date.  In all other respects the 
  5.8   insured and insurer shall have the same rights thereunder as 
  5.9   they had under the policy immediately before the due date of the 
  5.10  defaulted premium, subject to any provisions endorsed hereon or 
  5.11  attached hereto in connection with the reinstatement.  Any 
  5.12  premium accepted in connection with a reinstatement shall be 
  5.13  applied to a period for which premium has not been previously 
  5.14  paid, but not to any period more than 60 days prior to the date 
  5.15  of reinstatement.  The last sentence of the above provision may 
  5.16  be omitted from any policy which the insured has the right to 
  5.17  continue in force subject to its terms by the timely payment of 
  5.18  premiums (1) until at least age 50, or, (2) in the case of a 
  5.19  policy issued after age 44, for at least five years from its 
  5.20  date of issue. 
  5.21     (5) A provision as follows: 
  5.22     NOTICE OF CLAIM:  Written notice of claim must be given to 
  5.23  the insurer within 20 days after the occurrence or commencement 
  5.24  of any loss covered by the policy, or as soon thereafter as is 
  5.25  reasonably possible.  Notice given by or on behalf of the 
  5.26  insured or the beneficiary to the insurer at ..... (insert the 
  5.27  location of such office as the insurer may designate for the 
  5.28  purpose), or to any authorized agent of the insurer, with 
  5.29  information sufficient to identify the insured, shall be deemed 
  5.30  notice to the insurer. 
  5.31     In a policy providing a loss-of-time benefit which may be 
  5.32  payable for at least two years, an insurer may at its option 
  5.33  insert the following between the first and second sentences of 
  5.34  the above provision: 
  5.35     Subject to the qualifications set forth below, if the 
  5.36  insured suffers loss of time on account of disability for which 
  6.1   indemnity may be payable for at least two years, the insured 
  6.2   shall, at least once in every six months after having given 
  6.3   notice of claim, give to the insurer notice of continuance of 
  6.4   said disability, except in the event of legal incapacity.  The 
  6.5   period of six months following any filing of proof by the 
  6.6   insured or any payment by the insurer on account of such claim 
  6.7   or any denial or liability in whole or in part by the insurer 
  6.8   shall be excluded in applying this provision.  Delay in the 
  6.9   giving of such notice shall not impair the insured's right to 
  6.10  any indemnity which would otherwise have accrued during the 
  6.11  period of six months preceding the date on which such notice is 
  6.12  actually given. 
  6.13     (6) A provision as follows: 
  6.14     CLAIM FORMS:  The insurer, upon receipt of a notice of 
  6.15  claim, will furnish to the claimant such forms as are usually 
  6.16  furnished by it for filing proofs of loss.  If such forms are 
  6.17  not furnished within 15 days after the giving of such notice the 
  6.18  claimant shall be deemed to have complied with the requirements 
  6.19  of this policy as to proof of loss upon submitting, within the 
  6.20  time fixed in the policy for filing proofs of loss, written 
  6.21  proof covering the occurrence, the character and the extent of 
  6.22  the loss for which claim is made. 
  6.23     (7) A provision as follows: 
  6.24     PROOFS OF LOSS:  Written proof of loss must be furnished to 
  6.25  the insurer at its said office in case of claim for loss for 
  6.26  which this policy provides any periodic payment contingent upon 
  6.27  continuing loss within 90 days after the termination of the 
  6.28  period for which the insurer is liable and in case of claim for 
  6.29  any other loss within 90 days after the date of such loss.  
  6.30  Failure to furnish such proof within the time required shall not 
  6.31  invalidate nor reduce any claim if it was not reasonably 
  6.32  possible to give proof within such time, provided such proof is 
  6.33  furnished as soon as reasonably possible and in no event, except 
  6.34  in the absence of legal capacity, later than one year from the 
  6.35  time proof is otherwise required. 
  6.36     (8) A provision as follows: 
  7.1      TIME OF PAYMENT OF CLAIMS:  Indemnities payable under this 
  7.2   policy for any loss other than loss for which this policy 
  7.3   provides periodic payment will be paid immediately upon receipt 
  7.4   of due written proof of such loss.  Subject to due written proof 
  7.5   of loss, all accrued indemnities for loss for which this policy 
  7.6   provides periodic payment will be paid ..... (insert period for 
  7.7   payment which must not be less frequently than monthly) and any 
  7.8   balance remaining unpaid upon the termination of liability will 
  7.9   be paid immediately upon receipt of due written proof. 
  7.10     (9) A provision as follows: 
  7.11     PAYMENT OF CLAIMS:  Indemnity for loss of life will be 
  7.12  payable in accordance with the beneficiary designation and the 
  7.13  provisions respecting such payment which may be prescribed 
  7.14  herein and effective at the time of payment.  If no such 
  7.15  designation or provision is then effective, such indemnity shall 
  7.16  be payable to the estate of the insured. Any other accrued 
  7.17  indemnities unpaid at the insured's death may, at the option of 
  7.18  the insurer, be paid either to such beneficiary or to such 
  7.19  estate.  All other indemnities will be payable to the insured. 
  7.20     The following provisions, or either of them, may be 
  7.21  included with the foregoing provision at the option of the 
  7.22  insurer: 
  7.23     If any indemnity of this policy shall be payable to the 
  7.24  estate of the insured, or to an insured or beneficiary who is a 
  7.25  minor or otherwise not competent to give a valid release, the 
  7.26  insurer may pay such indemnity, up to an amount not exceeding 
  7.27  $..... (insert an amount which shall not exceed $1,000), to any 
  7.28  relative by blood or connection by marriage of the insured or 
  7.29  beneficiary who is deemed by the insurer to be equitably 
  7.30  entitled thereto.  Any payment made by the insurer in good faith 
  7.31  pursuant to this provision shall fully discharge the insurer to 
  7.32  the extent of such payment. 
  7.33     Subject to any written direction of the insured in the 
  7.34  application or otherwise all or a portion of any indemnities 
  7.35  provided by this policy on account of hospital, nursing, 
  7.36  medical, or surgical services may, at the insurer's option and 
  8.1   unless the insured requests otherwise in writing not later than 
  8.2   the time of filing proofs of such loss, be paid directly to the 
  8.3   hospital or person rendering such services; but it is not 
  8.4   required that the service be rendered by a particular hospital 
  8.5   or person. 
  8.6      (10) A provision as follows: 
  8.7      PHYSICAL EXAMINATIONS AND AUTOPSY:  The insurer at its own 
  8.8   expense shall have the right and opportunity to examine the 
  8.9   person of the insured when and as often as it may reasonably 
  8.10  require during the pendency of a claim hereunder and to make an 
  8.11  autopsy in case of death where it is not forbidden by law. 
  8.12     (11) A provision as follows: 
  8.13     LEGAL ACTIONS:  No action at law or in equity shall be 
  8.14  brought to recover on this policy prior to the expiration of 60 
  8.15  days after written proof of loss has been furnished in 
  8.16  accordance with the requirements of this policy.  No such action 
  8.17  shall be brought after the expiration of three years after the 
  8.18  time written proof of loss is required to be furnished. 
  8.19     (12) A provision as follows: 
  8.20     CHANGE OF BENEFICIARY:  Unless the insured makes an 
  8.21  irrevocable designation of beneficiary, the right to change of 
  8.22  beneficiary is reserved to the insured and the consent of the 
  8.23  beneficiary or beneficiaries shall not be requisite to surrender 
  8.24  or assignment of this policy or to any change of beneficiary or 
  8.25  beneficiaries, or to any other changes in this policy.  The 
  8.26  first clause of this provision, relating to the irrevocable 
  8.27  designation of beneficiary, may be omitted at the insurer's 
  8.28  option. 
  8.29     Sec. 3.  Minnesota Statutes 1994, section 62A.04, 
  8.30  subdivision 3, is amended to read: 
  8.31     Subd. 3.  [OPTIONAL PROVISIONS.] Except as provided in 
  8.32  subdivision 4, no such policy delivered or issued for delivery 
  8.33  to any person in this state shall contain provisions respecting 
  8.34  the matters set forth below unless such provisions are in the 
  8.35  words in which the same appear in this section.  The insurer 
  8.36  may, at its option, use in lieu of any such provision a 
  9.1   corresponding provision of different wording approved by the 
  9.2   commissioner which is not less favorable in any respect to the 
  9.3   insured or the beneficiary.  Any such provision contained in the 
  9.4   policy shall be preceded individually by the appropriate caption 
  9.5   appearing in this subdivision or, at the option of the insurer, 
  9.6   by such appropriate individual or group captions or subcaptions 
  9.7   as the commissioner may approve. 
  9.8      (1) A provision as follows: 
  9.9      CHANGE OF OCCUPATION:  If the insured be injured or 
  9.10  contract sickness after having changed occupations to one 
  9.11  classified by the insurer as more hazardous than that stated in 
  9.12  this policy or while doing for compensation anything pertaining 
  9.13  to an occupation so classified, the insurer will pay only such 
  9.14  portion of the indemnities provided in this policy as the 
  9.15  premiums paid would have purchased at the rates and within the 
  9.16  limits fixed by the insurer for such more hazardous occupation.  
  9.17  If the insured changes occupations to one classified by the 
  9.18  insurer as less hazardous than that stated in this policy, the 
  9.19  insurer, upon receipt of proof of such change of occupation will 
  9.20  reduce the premium rate accordingly, and will return the excess 
  9.21  pro rata unearned premium from the date of change of occupation 
  9.22  or from the policy anniversary date immediately preceding 
  9.23  receipt of such proof, whichever is the more recent.  In 
  9.24  applying this provision, the classification of occupational risk 
  9.25  and the premium rates shall be such as have been last filed by 
  9.26  the insurer prior to the occurrence of the loss for which the 
  9.27  insurer is liable or prior to date of proof of change in 
  9.28  occupation with the state official having supervision of 
  9.29  insurance in the state where the insured resided at the time 
  9.30  this policy was issued; but if such filing was not required, 
  9.31  then the classification of occupational risk and the premium 
  9.32  rates shall be those last made effective by the insurer in such 
  9.33  state prior to the occurrence of the loss or prior to the date 
  9.34  of proof of change of occupation. 
  9.35     (2) A provision as follows: 
  9.36     MISSTATEMENT OF AGE:  If the age of the insured has been 
 10.1   misstated, all amounts payable under this policy shall be such 
 10.2   as the premium paid would have purchased at the correct age. 
 10.3      (3) A provision as follows: 
 10.4      OTHER INSURANCE IN THIS INSURER:  If an accident or 
 10.5   sickness or accident and sickness policy or policies previously 
 10.6   issued by the insurer to the insured be in force concurrently 
 10.7   herewith, making the aggregate indemnity for ..... (insert type 
 10.8   of coverage or coverages) in excess of $..... (insert maximum 
 10.9   limit of indemnity or indemnities) the excess insurance shall be 
 10.10  void and all premiums paid for such excess shall be returned to 
 10.11  the insured or to the insured's estate, or, in lieu thereof: 
 10.12     Insurance effective at any one time on the insured under a 
 10.13  like policy or policies in this insurer is limited to the one 
 10.14  such policy elected by the insured, or the insured's beneficiary 
 10.15  or estate, as the case may be, and the insurer will return all 
 10.16  premiums paid for all other such policies. 
 10.17     (4) A provision as follows: 
 10.18     INSURANCE WITH OTHER INSURERS:  If there be other valid 
 10.19  coverage, not with this insurer, providing benefits for the same 
 10.20  loss on a provision of service basis or on an expense incurred 
 10.21  basis and of which this insurer has not been given written 
 10.22  notice prior to the occurrence or commencement of loss, the only 
 10.23  liability under any expense incurred coverage of this policy 
 10.24  shall be for such proportion of the loss as the amount which 
 10.25  would otherwise have been payable hereunder plus the total of 
 10.26  the like amounts under all such other valid coverages for the 
 10.27  same loss of which this insurer had notice bears to the total 
 10.28  like amounts under all valid coverages for such loss, and for 
 10.29  the return of such portion of the premiums paid as shall exceed 
 10.30  the pro rata portion for the amount so determined.  For the 
 10.31  purpose of applying this provision when other coverage is on a 
 10.32  provision of service basis, the "like amount" of such other 
 10.33  coverage shall be taken as the amount which the services 
 10.34  rendered would have cost in the absence of such coverage. 
 10.35     If the foregoing policy provision is included in a policy 
 10.36  which also contains the next following policy provision there 
 11.1   shall be added to the caption of the foregoing provision the 
 11.2   phrase "EXPENSE INCURRED BENEFITS."  The insurer may, at its 
 11.3   option, include in this provision a definition of "other valid 
 11.4   coverage," approved as to form by the commissioner, which 
 11.5   definition shall be limited in subject matter to coverage 
 11.6   provided by organizations subject to regulation by insurance law 
 11.7   or by insurance authorities of this or any other state of the 
 11.8   United States or any province of Canada, and by hospital or 
 11.9   medical service organizations, and to any other coverage the 
 11.10  inclusion of which may be approved by the commissioner.  In the 
 11.11  absence of such definition such term shall not include group 
 11.12  insurance, automobile medical payments insurance, or coverage 
 11.13  provided by hospital or medical service organizations or by 
 11.14  union welfare plans or employer or employee benefit 
 11.15  organizations.  For the purpose of applying the foregoing policy 
 11.16  provision with respect to any insured, any amount of benefit 
 11.17  provided for such insured pursuant to any compulsory benefit 
 11.18  statute (including any workers' compensation or employer's 
 11.19  liability statute) whether provided by a governmental agency or 
 11.20  otherwise shall in all cases be deemed to be "other valid 
 11.21  coverage" of which the insurer has had notice.  In applying the 
 11.22  foregoing policy provision no third party liability coverage 
 11.23  shall be included as "other valid coverage." 
 11.24     (5) A provision as follows: 
 11.25     INSURANCE WITH OTHER INSURERS:  If there be other valid 
 11.26  coverage, not with this insurer, providing benefits for the same 
 11.27  loss on other than an expense incurred basis and of which this 
 11.28  insurer has not been given written notice prior to the 
 11.29  occurrence or commencement of loss, the only liability for such 
 11.30  benefits under this policy shall be for such proportion of the 
 11.31  indemnities otherwise provided hereunder for such loss as the 
 11.32  like indemnities of which the insurer had notice (including the 
 11.33  indemnities under this policy) bear to the total amount of all 
 11.34  like indemnities for such loss, and for the return of such 
 11.35  portion of the premium paid as shall exceed the pro rata portion 
 11.36  for the indemnities thus determined. 
 12.1      If the foregoing policy provision is included in a policy 
 12.2   which also contains the next preceding policy provision there 
 12.3   shall be added to the caption of the foregoing provision the 
 12.4   phrase -- "OTHER BENEFITS."  The insurer may, at its option, 
 12.5   include in this provision a definition of "other valid 
 12.6   coverage," approved as to form by the commissioner, which 
 12.7   definition shall be limited in subject matter to coverage 
 12.8   provided by organizations subject to regulation by insurance law 
 12.9   or by insurance authorities of this or any other state of the 
 12.10  United States or any province of Canada, and to any other 
 12.11  coverage the inclusion of which may be approved by the 
 12.12  commissioner.  In the absence of such definition such term shall 
 12.13  not include group insurance, or benefits provided by union 
 12.14  welfare plans or by employer or employee benefit organizations.  
 12.15  For the purpose of applying the foregoing policy provision with 
 12.16  respect to any insured, any amount of benefit provided for such 
 12.17  insured pursuant to any compulsory benefit statute (including 
 12.18  any workers' compensation or employer's liability statute) 
 12.19  whether provided by a governmental agency or otherwise shall in 
 12.20  all cases be deemed to be "other valid coverage" of which the 
 12.21  insurer has had notice.  In applying the foregoing policy 
 12.22  provision no third party liability coverage shall be included as 
 12.23  "other valid coverage." 
 12.24     (6) A provision as follows: 
 12.25     RELATION OF EARNINGS TO INSURANCE:  If the total monthly 
 12.26  amount of loss of time benefits promised for the same loss under 
 12.27  all valid loss of time coverage upon the insured, whether 
 12.28  payable on a weekly or monthly basis, shall exceed the monthly 
 12.29  earnings of the insured at the time disability commenced or the 
 12.30  insured's average monthly earnings for the period of two years 
 12.31  immediately preceding a disability for which claim is made, 
 12.32  whichever is the greater, the insurer will be liable only for 
 12.33  such proportionate amount of such benefits under this policy as 
 12.34  the amount of such monthly earnings or such average monthly 
 12.35  earnings of the insured bears to the total amount of monthly 
 12.36  benefits for the same loss under all such coverage upon the 
 13.1   insured at the time such disability commences and for the return 
 13.2   of such part of the premiums paid during such two years as shall 
 13.3   exceed the pro rata amount of the premiums for the benefits 
 13.4   actually paid hereunder; but this shall not operate to reduce 
 13.5   the total monthly amount of benefits payable under all such 
 13.6   coverage upon the insured below the sum of $200 or the sum of 
 13.7   the monthly benefits specified in such coverages, whichever is 
 13.8   the lesser, not shall it operate to reduce benefits other than 
 13.9   those payable for loss of time. 
 13.10     The foregoing policy provision may be inserted only in a 
 13.11  policy which the insured has the right to continue in force 
 13.12  subject to its terms by the timely payment of premiums (1) until 
 13.13  at least age 50, or, (2) in the case of a policy issued after 
 13.14  age 44, for at least five years from its date of issue.  The 
 13.15  insurer may, at its option, include in this provision a 
 13.16  definition of "valid loss of time coverage," approved as to form 
 13.17  by the commissioner, which definition shall be limited in 
 13.18  subject matter to coverage provided by governmental agencies or 
 13.19  by organizations subject to regulation by insurance law or by 
 13.20  insurance authorities of this or any other state of the United 
 13.21  States or any province of Canada, or to any other coverage the 
 13.22  inclusion of which may be approved by the commissioner or any 
 13.23  combination of such coverages.  In the absence of such 
 13.24  definition such term shall not include any coverage provided for 
 13.25  such insured pursuant to any compulsory benefit statute 
 13.26  (including any workers' compensation or employer's liability 
 13.27  statute), or benefits provided by union welfare plans or by 
 13.28  employer or employee benefit organizations. 
 13.29     (7) A provision as follows: 
 13.30     UNPAID PREMIUM:  Upon the payment of a claim under this 
 13.31  policy, any premium then due and unpaid or covered by any note 
 13.32  or written order may be deducted therefrom. 
 13.33     (8) A provision as follows: 
 13.34     CANCELLATION:  The insurer may cancel this policy at any 
 13.35  time by written notice delivered to the insured or mailed by 
 13.36  certified mail with return receipt requested to the insured's 
 14.1   last address as shown by the records of the insurer, stating 
 14.2   when, not less than five days thereafter, such cancellation 
 14.3   shall be effective; and after the policy has been continued 
 14.4   beyond its original term the insured may cancel this policy at 
 14.5   any time by written notice delivered or mailed to the insurer, 
 14.6   effective upon receipt or on such later date as may be specified 
 14.7   in such notice.  In the event of cancellation, the insurer will 
 14.8   return promptly the unearned portion of any premium paid.  If 
 14.9   the insured cancels, the earned premium shall be computed by the 
 14.10  use of the short-rate table last filed with the state official 
 14.11  having supervision of insurance in the state where the insured 
 14.12  resided when the policy was issued.  If the insurer cancels, the 
 14.13  earned premium shall be computed pro rata. Cancellation shall be 
 14.14  without prejudice to any claim originating prior to the 
 14.15  effective date of cancellation. 
 14.16     (9) A provision as follows: 
 14.17     CONFORMITY WITH STATE STATUTES:  Any provision of this 
 14.18  policy which, on its effective date, is in conflict with the 
 14.19  statutes of the state in which the insured resides on such date 
 14.20  is hereby amended to conform to the minimum requirements of such 
 14.21  statutes. 
 14.22     (10) A provision as follows: 
 14.23     ILLEGAL OCCUPATION:  The insurer shall not be liable for 
 14.24  any loss to which a contributing cause was the insured's 
 14.25  commission of or attempt to commit a felony or to which a 
 14.26  contributing cause was the insured's being engaged in an illegal 
 14.27  occupation. 
 14.28     (11) A provision as follows: 
 14.29     NARCOTICS:  The insurer shall not be liable for any loss 
 14.30  sustained or contracted in consequence of the insured's being 
 14.31  under the influence of any narcotic unless administered on the 
 14.32  advice of a physician. 
 14.33     Sec. 4.  Minnesota Statutes 1994, section 62A.48, 
 14.34  subdivision 8, is amended to read: 
 14.35     Subd. 8.  [CANCELLATION FOR NONPAYMENT OF PREMIUM.] No 
 14.36  individual long-term care policy shall be canceled for 
 15.1   nonpayment of premium unless the insurer, at least 30 days 
 15.2   before the effective date of the cancellation, has given 
 15.3   notice by certified mail with return receipt requested to the 
 15.4   insured and to those persons designated pursuant to section 
 15.5   62A.48, subdivision 1, at the address provided by the insured 
 15.6   for purposes of receiving notice of cancellation. 
 15.7      Sec. 5.  Minnesota Statutes 1994, section 62D.12, 
 15.8   subdivision 2a, is amended to read: 
 15.9      Subd. 2a.  Enrollees shall be given 30 days notice by 
 15.10  certified mail with return receipt requested of any cancellation 
 15.11  or nonrenewal, except that enrollees who are eligible to receive 
 15.12  replacement coverage under section 62D.121, subdivision 1, shall 
 15.13  receive 90 days notice as provided under section 62D.121, 
 15.14  subdivision 5. 
 15.15     Sec. 6.  Minnesota Statutes 1994, section 62D.121, 
 15.16  subdivision 5, is amended to read: 
 15.17     Subd. 5.  The health maintenance organization must provide 
 15.18  the terminated enrollees with a notice of cancellation by 
 15.19  certified mail with return receipt requested 90 days before the 
 15.20  date the cancellation takes effect.  If the replacement coverage 
 15.21  is approved by the commissioner under subdivision 4, the notice 
 15.22  shall clearly and completely describe the replacement coverage 
 15.23  that the enrollees are eligible to receive and explain the 
 15.24  procedure for enrolling.  If the replacement coverage is not 
 15.25  approved by the commissioner, the health maintenance 
 15.26  organization shall provide a cancellation notice with 
 15.27  information that the enrollee is entitled to enroll in the state 
 15.28  comprehensive health insurance plan with a waiver of the waiting 
 15.29  period for preexisting conditions under section 62E.14, 
 15.30  subdivisions 1, paragraph (d), and 6. 
 15.31     Sec. 7.  Minnesota Statutes 1994, section 62I.13, 
 15.32  subdivision 5, is amended to read: 
 15.33     Subd. 5.  [NOTICE.] An application for coverage under the 
 15.34  association must be granted or denied within ten days after 
 15.35  receipt by the administrator of a properly completed application 
 15.36  and any supplemental information requested by the 
 16.1   administrator.  Anyone covered by the association must be given 
 16.2   at least 30 days notice by certified mail with return receipt 
 16.3   requested of nonrenewal or cancellation of coverage. 
 16.4      Sec. 8.  Minnesota Statutes 1994, section 65A.01, 
 16.5   subdivision 3, is amended to read: 
 16.6      Subd. 3.  [POLICY PROVISIONS.] On said policy following 
 16.7   such matter as provided in subdivisions 1 and 2, printed in the 
 16.8   English language in type of such size or sizes and arranged in 
 16.9   such manner, as is approved by the commissioner of commerce, the 
 16.10  following provisions and subject matter shall be stated in the 
 16.11  following words and in the following sequence, but with the 
 16.12  convenient placing, if desired, of such matter as will act as a 
 16.13  cover or back for such policy when folded, with the blanks below 
 16.14  indicated being left to be filled in at the time of the issuing 
 16.15  of the policy, to wit: 
 16.16     (Space for listing the amounts of insurance, rates and 
 16.17  premiums for the basic coverages provided under the standard 
 16.18  form of policy and for additional coverages or perils provided 
 16.19  under endorsements attached.  The description and location of 
 16.20  the property covered and the insurable value(s) of any 
 16.21  building(s) or structure(s) covered by the policy or its 
 16.22  attached endorsements; also in the above space may be stated 
 16.23  whether other insurance is limited and if limited the total 
 16.24  amount permitted.) 
 16.25     In consideration of the provisions and stipulations herein 
 16.26  or added hereto and of the premium above specified this company, 
 16.27  for a term of ..... from ..... (At 12:01 a.m. Standard Time) to 
 16.28  ..... (At 12:01 a.m. Standard Time) at location of property 
 16.29  involved, to an amount not exceeding the amount(s) above 
 16.30  specified does insure .....  and legal representatives 
 16.31  ........................................... 
 16.32     (In above space may be stated whether other insurance is 
 16.33  limited.) (And if limited the total amount permitted.) 
 16.34     Subject to form No.(s) ..... attached hereto. 
 16.35     This policy is made and accepted subject to the foregoing 
 16.36  provisions and stipulations and those hereinafter stated, which 
 17.1   are hereby made a part of this policy, together with such 
 17.2   provisions, stipulations and agreements as may be added hereto 
 17.3   as provided in this policy. 
 17.4      The insurance effected above is granted against all loss or 
 17.5   damage by fire originating from any cause, except as hereinafter 
 17.6   provided, also any damage by lightning and by removal from 
 17.7   premises endangered by the perils insured against in this 
 17.8   policy, to the property described hereinafter while located or 
 17.9   contained as described in this policy, or pro rata for five days 
 17.10  at each proper place to which any of the property shall 
 17.11  necessarily be removed for preservation from the perils insured 
 17.12  against in this policy, but not elsewhere.  The amount of said 
 17.13  loss or damage, except in case of total loss on buildings, to be 
 17.14  estimated according to the actual value of the insured property 
 17.15  at the time when such loss or damage happens. 
 17.16     If the insured property shall be exposed to loss or damage 
 17.17  from the perils insured against, the insured shall make all 
 17.18  reasonable exertions to save and protect same. 
 17.19     This entire policy shall be void if, whether before a loss, 
 17.20  the insured has willfully, or after a loss, the insured has 
 17.21  willfully and with intent to defraud, concealed or 
 17.22  misrepresented any material fact or circumstance concerning this 
 17.23  insurance or the subject thereof, or the interests of the 
 17.24  insured therein. 
 17.25     This policy shall not cover accounts, bills, currency, 
 17.26  deeds, evidences of debt, money or securities; nor, unless 
 17.27  specifically named hereon in writing, bullion, or manuscripts. 
 17.28     This company shall not be liable for loss by fire or other 
 17.29  perils insured against in this policy caused, directly or 
 17.30  indirectly by:  (a) enemy attack by armed forces, including 
 17.31  action taken by military, naval or air forces in resisting an 
 17.32  actual or immediately impending enemy attack; (b) invasion; (c) 
 17.33  insurrection; (d) rebellion; (e) revolution; (f) civil war; (g) 
 17.34  usurped power; (h) order of any civil authority except acts of 
 17.35  destruction at the time of and for the purpose of preventing the 
 17.36  spread of fire, providing that such fire did not originate from 
 18.1   any of the perils excluded by this policy. 
 18.2      Other insurance may be prohibited or the amount of 
 18.3   insurance may be limited by so providing in the policy or an 
 18.4   endorsement, rider or form attached thereto. 
 18.5      Unless otherwise provided in writing added hereto this 
 18.6   company shall not be liable for loss occurring: 
 18.7      (a) while the hazard is increased by any means within the 
 18.8   control or knowledge of the insured; or 
 18.9      (b) while the described premises, whether intended for 
 18.10  occupancy by owner or tenant, are vacant or unoccupied beyond a 
 18.11  period of 60 consecutive days; or 
 18.12     (c) as a result of explosion or riot, unless fire ensue, 
 18.13  and in that event for loss by fire only. 
 18.14     Any other peril to be insured against or subject of 
 18.15  insurance to be covered in this policy shall be by endorsement 
 18.16  in writing hereon or added hereto. 
 18.17     The extent of the application of insurance under this 
 18.18  policy and the contributions to be made by this company in case 
 18.19  of loss, and any other provision or agreement not inconsistent 
 18.20  with the provisions of this policy, may be provided for in 
 18.21  writing added hereto, but no provision may be waived except such 
 18.22  as by the terms of this policy is subject to change. 
 18.23     No permission affecting this insurance shall exist, or 
 18.24  waiver of any provision be valid, unless granted herein or 
 18.25  expressed in writing added hereto.  No provision, stipulation or 
 18.26  forfeiture shall be held to be waived by any requirements or 
 18.27  proceeding on the part of this company relating to appraisal or 
 18.28  to any examination provided for herein. 
 18.29     This policy shall be canceled at any time at the request of 
 18.30  the insured, in which case this company shall, upon demand and 
 18.31  surrender of this policy, refund the excess of paid premium 
 18.32  above the customary short rates for the expired time.  This 
 18.33  policy may be canceled at any time by this company by giving to 
 18.34  the insured a ten days' written notice of cancellation by 
 18.35  certified mail with return receipt requested with or without 
 18.36  tender of the excess of paid premium above the pro rata premium 
 19.1   for the expired time, which excess, if not tendered, shall be 
 19.2   refunded on demand.  Notice of cancellation shall state that 
 19.3   said excess premium (if not tendered) will be refunded on demand.
 19.4      If loss hereunder is made payable, in whole or in part, to 
 19.5   a designated mortgagee or contract for deed vendor not named 
 19.6   herein as insured, such interest in this policy may be canceled 
 19.7   by giving to such mortgagee or vendor a ten days' written notice 
 19.8   of cancellation. 
 19.9      Notwithstanding any other provisions of this policy, if 
 19.10  this policy shall be made payable to a mortgagee or contract for 
 19.11  deed vendor of the covered real estate, no act or default of any 
 19.12  person other than such mortgagee or vendor or the mortgagee's or 
 19.13  vendor's agent or those claiming under the mortgagee or vendor, 
 19.14  whether the same occurs before or during the term of this 
 19.15  policy, shall render this policy void as to such mortgagee or 
 19.16  vendor nor affect such mortgagee's or vendor's right to recover 
 19.17  in case of loss on such real estate; provided, that the 
 19.18  mortgagee or vendor shall on demand pay according to the 
 19.19  established scale of rates for any increase of risks not paid 
 19.20  for by the insured; and whenever this company shall be liable to 
 19.21  a mortgagee or vendor for any sum for loss under this policy for 
 19.22  which no liability exists as to the mortgagor, vendee, or owner, 
 19.23  and this company shall elect by itself, or with others, to pay 
 19.24  the mortgagee or vendor the full amount secured by such mortgage 
 19.25  or contract for deed, then the mortgagee or vendor shall assign 
 19.26  and transfer to the company the mortgagee's or vendor's 
 19.27  interest, upon such payment, in the said mortgage or contract 
 19.28  for deed together with the note and debts thereby secured. 
 19.29     This company shall not be liable for a greater proportion 
 19.30  of any loss than the amount hereby insured shall bear to the 
 19.31  whole insurance covering the property against the peril involved.
 19.32     In case of any loss under this policy the insured shall 
 19.33  give immediate written notice to this company of any loss, 
 19.34  protect the property from further damage, and a statement in 
 19.35  writing, signed and sworn to by the insured, shall within 60 
 19.36  days be rendered to the company, setting forth the value of the 
 20.1   property insured, except in case of total loss on buildings the 
 20.2   value of said buildings need not be stated, the interest of the 
 20.3   insured therein, all other insurance thereon, in detail, the 
 20.4   purposes for which and the persons by whom the building insured, 
 20.5   or containing the property insured, was used, and the time at 
 20.6   which and manner in which the fire originated, so far as known 
 20.7   to the insured. 
 20.8      The insured, as often as may be reasonably required, shall 
 20.9   exhibit to any person designated by this company all that 
 20.10  remains of any property herein described, and, after being 
 20.11  informed of the right to counsel and that any answers may be 
 20.12  used against the insured in later civil or criminal proceedings, 
 20.13  the insured shall, within a reasonable period after demand by 
 20.14  this company, submit to examinations under oath by any person 
 20.15  named by this company, and subscribe the oath.  The insured, as 
 20.16  often as may be reasonably required, shall produce for 
 20.17  examination all records and documents reasonably related to the 
 20.18  loss, or certified copies thereof if originals are lost, at a 
 20.19  reasonable time and place designated by this company or its 
 20.20  representatives, and shall permit extracts and copies thereof to 
 20.21  be made.  
 20.22     In case the insured and this company, except in case of 
 20.23  total loss on buildings, shall fail to agree as to the actual 
 20.24  cash value or the amount of loss, then, on the written demand of 
 20.25  either, each shall select a competent and disinterested 
 20.26  appraiser and notify the other of the appraiser selected within 
 20.27  20 days of such demand.  In case either fails to select an 
 20.28  appraiser within the time provided, then a presiding judge of 
 20.29  the district court of the county wherein the loss occurs may 
 20.30  appoint such appraiser for such party upon application of the 
 20.31  other party in writing by giving five days' notice thereof in 
 20.32  writing to the party failing to appoint.  The appraisers shall 
 20.33  first select a competent and disinterested umpire; and failing 
 20.34  for 15 days to agree upon such umpire, then a presiding judge of 
 20.35  the above mentioned court may appoint such an umpire upon 
 20.36  application of party in writing by giving five days' notice 
 21.1   thereof in writing to the other party.  The appraisers shall 
 21.2   then appraise the loss, stating separately actual value and loss 
 21.3   to each item; and, failing to agree, shall submit their 
 21.4   differences, only, to the umpire.  An award in writing, so 
 21.5   itemized, of any two when filed with this company shall 
 21.6   determine the amount of actual value and loss.  Each appraiser 
 21.7   shall be paid by the selecting party, or the party for whom 
 21.8   selected, and the expense of the appraisal and umpire shall be 
 21.9   paid by the parties equally. 
 21.10     It shall be optional with this company to take all of the 
 21.11  property at the agreed or appraised value, and also to repair, 
 21.12  rebuild or replace the property destroyed or damaged with other 
 21.13  of like kind and quality within a reasonable time, on giving 
 21.14  notice of its intention so to do within 30 days after the 
 21.15  receipt of the proof of loss herein required. 
 21.16     There can be no abandonment to this company of any property.
 21.17     The amount of loss for which this company may be liable 
 21.18  shall be payable 60 days after proof of loss, as herein 
 21.19  provided, is received by this company and ascertainment of the 
 21.20  loss is made either by agreement between the insured and this 
 21.21  company expressed in writing or by the filing with this company 
 21.22  of an award as herein provided.  It is moreover understood that 
 21.23  there can be no abandonment of the property insured to the 
 21.24  company, and that the company will not in any case be liable for 
 21.25  more than the sum insured, with interest thereon from the time 
 21.26  when the loss shall become payable, as above provided. 
 21.27     No suit or action on this policy for the recovery of any 
 21.28  claim shall be sustainable in any court of law or equity unless 
 21.29  all the requirements of this policy have been complied with, and 
 21.30  unless commenced within two years after inception of the loss. 
 21.31     This company is subrogated to, and may require from the 
 21.32  insured an assignment of all right of recovery against any party 
 21.33  for loss to the extent that payment therefor is made by this 
 21.34  company; and the insurer may prosecute therefor in the name of 
 21.35  the insured retaining such amount as the insurer has paid. 
 21.36     Assignment of this policy shall not be valid except with 
 22.1   the written consent of this company. 
 22.2      IN WITNESS WHEREOF, this company has executed and attested 
 22.3   these presents. 
 22.4    
 22.5    ........................         ........................
 22.6         (Signature)                     (Signature)         
 22.7    ........................         ........................
 22.8        (Name of office)                (Name of office)     
 22.9      Sec. 9.  Minnesota Statutes 1994, section 65A.07, is 
 22.10  amended to read: 
 22.11     65A.07 [CANCELLATION OF FIRE POLICY.] 
 22.12     Any fire insurance company which has not collected the 
 22.13  premium on its policy at the time of the delivery thereof may 
 22.14  print or endorse, or attach by rider, on its policy the 
 22.15  following clause: 
 22.16     "If the insured hereunder shall not have actually paid the 
 22.17  premium hereon, or any part thereof, within 60 days from the 
 22.18  date of this policy, then this policy may be canceled by the 
 22.19  insurer by giving five days written notice by certified mail 
 22.20  with return receipt requested to the insured and to the 
 22.21  mortgagee, or other person to whom the policy is made payable, 
 22.22  if any, without tendering any part or portion of such premium, 
 22.23  anything to the contrary in the policy contract notwithstanding."
 22.24     Sec. 10.  Minnesota Statutes 1994, section 65A.29, 
 22.25  subdivision 7, is amended to read: 
 22.26     Subd. 7.  [RENEWAL; NOTICE REQUIREMENT.] No insurer shall 
 22.27  refuse to renew, or reduce limits of coverage, or eliminate any 
 22.28  coverage in a homeowner's insurance policy unless it mails by 
 22.29  certified mail with return receipt requested or delivers to the 
 22.30  insured, at the address shown in the policy, at least 60 days 
 22.31  advance notice of its intention.  The notice must contain the 
 22.32  specific underwriting or other reason or reasons for the 
 22.33  indicated action.  
 22.34     Proof of mailing this notice to the insured at the address 
 22.35  shown in the policy by certified mail with return receipt 
 22.36  requested is sufficient proof that the notice required by this 
 23.1   section has been given. 
 23.2      Sec. 11.  Minnesota Statutes 1994, section 65B.16, is 
 23.3   amended to read: 
 23.4      65B.16 [STATEMENT OF REASONS FOR CANCELLATION OR 
 23.5   REDUCTION.] 
 23.6      No notice of cancellation or reduction in the limits of 
 23.7   liability of coverage of an automobile insurance policy under 
 23.8   section 65B.15 shall be effective unless the specific 
 23.9   underwriting or other reason or reasons for such cancellation or 
 23.10  reduction in the limits of liability of coverage are stated in 
 23.11  such notice and the notice is mailed by certified mail with 
 23.12  return receipt requested or delivered by the insurer to the 
 23.13  named insured at least 30 days prior to the effective date of 
 23.14  cancellation; provided, however, that when nonpayment of premium 
 23.15  is the reason for cancellation or when the company is exercising 
 23.16  its right to cancel insurance which has been in effect for less 
 23.17  than 60 days at least ten days notice of cancellation, and the 
 23.18  reasons for the cancellation, shall be given.  Information 
 23.19  regarding moving traffic violations or motor vehicle accidents 
 23.20  must be specifically requested on the application in order for a 
 23.21  company to use those incidents to exercise its right to cancel 
 23.22  within the first 59 days of coverage.  When nonpayment of 
 23.23  premiums is the reason for cancellation, the reason must be 
 23.24  given to the insured with the notice of cancellation; and if the 
 23.25  company is exercising its right to cancel within the first 59 
 23.26  days of coverage and notice is given with less than ten days 
 23.27  remaining in the 59-day period, the coverage must be extended, 
 23.28  to expire ten days after notice was mailed.  
 23.29     Sec. 12.  Minnesota Statutes 1994, section 65B.17, 
 23.30  subdivision 1, is amended to read: 
 23.31     Subdivision 1.  [GENERAL REGULATIONS.] No insurer shall 
 23.32  fail to renew an automobile insurance policy unless it shall 
 23.33  mail by certified mail with return receipt requested or deliver 
 23.34  to the named insured, at the address shown in the policy, at 
 23.35  least 60 days advance notice of its intention not to renew.  The 
 23.36  notice must contain the specific underwriting or other reason or 
 24.1   reasons for the nonrenewal.  When the failure to renew is based 
 24.2   upon a termination of the agency contract, the notice must so 
 24.3   state.  This section does not apply: 
 24.4      (a) If the insurer has manifested its willingness to renew; 
 24.5   or 
 24.6      (b) In case of nonpayment of the renewal premium; 
 24.7      Provided that, notwithstanding the failure of an insurer to 
 24.8   comply with this section, the policy terminates on the effective 
 24.9   date of any other automobile insurance policy procured by the 
 24.10  insured, with respect to any automobile designated in both 
 24.11  policies.  Renewal of a policy does not constitute a waiver or 
 24.12  estoppel with respect to grounds for cancellation which existed 
 24.13  before the effective date of the renewal.  No insurer shall fail 
 24.14  to renew an automobile policy solely because of the age of the 
 24.15  insured.  No insurer shall refuse to renew an automobile 
 24.16  insurance policy for reasons which are arbitrary or capricious.  
 24.17  No insurer shall refuse to renew an automobile insurance policy 
 24.18  in violation of rules adopted pursuant to subdivision 2.  An 
 24.19  insurer may refuse to renew an automobile insurance policy in 
 24.20  case of nonpayment of dues to an association or organization, 
 24.21  other than an insurance association or organization, where 
 24.22  payment of dues is a prerequisite to obtaining or continuing 
 24.23  such insurance; provided, however, that this provision for 
 24.24  nonrenewal for failure to pay dues shall not be applicable to 
 24.25  persons who are retired at age 62 years of age or older or who 
 24.26  are disabled, according to social security standards. 
 24.27     Sec. 13.  Minnesota Statutes 1994, section 65B.18, is 
 24.28  amended to read: 
 24.29     65B.18 [PROOF OF MAILING OF NOTICE.] 
 24.30     Proof of mailing of notice of cancellation, reduction in 
 24.31  the limits of liability of coverage, or nonrenewal of a policy 
 24.32  and, if required herein, the reason or reasons therefor to the 
 24.33  named insured by certified mail with return receipt requested at 
 24.34  the address shown in the policy, shall be sufficient proof that 
 24.35  notice required herein has been given. 
 24.36     Sec. 14.  Minnesota Statutes 1994, section 72A.20, 
 25.1   subdivision 24, is amended to read: 
 25.2      Subd. 24.  [CANCELLATIONS AND NONRENEWALS.] No insurer 
 25.3   shall cancel or fail to renew an individual life or individual 
 25.4   health policy or an individual nonprofit health service plan 
 25.5   subscriber contract for nonpayment of premium unless it mails by 
 25.6   certified mail with return receipt requested or delivers to the 
 25.7   named insured, at the address shown on the policy or subscriber 
 25.8   contract at least 30 days before lapse, final notice of the 
 25.9   cancellation or nonrenewal and the effective date of the 
 25.10  cancellation or nonrenewal. 
 25.11     If the named insured is not the policy or subscriber 
 25.12  contract owner, the notice required by this subdivision must be 
 25.13  sent to the insured's last known address, if any, and to the 
 25.14  owner's last known address. 
 25.15     Proof of mailing by certified mail with return receipt 
 25.16  requested of the notice of lapse for failure to pay the premium 
 25.17  before the expiration of the grace period is sufficient proof 
 25.18  that notice required in this subdivision has been given. 
 25.19     This subdivision does not apply to a life or health 
 25.20  insurance policy or contract upon which premiums are paid at a 
 25.21  monthly interval or less and that contains any grace period 
 25.22  required by statute for the payment of premiums during which 
 25.23  time the insurance continues in force.