1.1                          A bill for an act 
  1.2             relating to fire insurance; prescribing certain notice 
  1.3             requirements; amending provisions regulating township 
  1.4             mutual combination policies; amending Minnesota 
  1.5             Statutes 2002, sections 65A.01, subdivision 3c; 
  1.6             67A.191. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 2002, section 65A.01, 
  1.9   subdivision 3c, is amended to read: 
  1.10     Subd. 3c.  [TIME REQUIREMENTS.] (a) In the event of a 
  1.11  policy less than 60 days old that is not being renewed declined, 
  1.12  or a policy that it is being canceled for nonpayment of premium, 
  1.13  the notice must be mailed to the insured so that it is received 
  1.14  at least 20 days before the effective cancellation date.  If a 
  1.15  policy is being declined or canceled for underwriting 
  1.16  considerations, the insured must be informed of the source from 
  1.17  which the information was received. 
  1.18     (b) In the event of a midterm cancellation, for reasons 
  1.19  listed in subdivision 3a, or according to policy provisions, the 
  1.20  insured must receive a 30-day notice must be mailed to the 
  1.21  insured at least 30 days before the effective cancellation date. 
  1.22     (c) In the event of a nonrenewal, a 60-day notice must be 
  1.23  sent mailed to the insured at least 60 days before the effective 
  1.24  date of nonrenewal, containing the specific underwriting or 
  1.25  other reason for the indicated actions. 
  1.26     (d) This subdivision does not apply to commercial policies 
  2.1   regulated under sections 60A.36 and 60A.37. 
  2.2      Sec. 2.  Minnesota Statutes 2002, section 67A.191, is 
  2.3   amended to read: 
  2.4      67A.191 [COMBINATION POLICIES.] 
  2.5      Subdivision 1.  [FARM QUALIFIED RISKS.] A township mutual 
  2.6   fire insurance company may issue an insurance policy for 
  2.7   qualified and secondary property as defined in section 67A.14, 
  2.8   subdivision 1, in combination with a policy issued by an insurer 
  2.9   authorized to sell property and casualty insurance in this 
  2.10  state.  The portions of the combination policy issued by a 
  2.11  township mutual insurance company are excluded from all 
  2.12  provisions of the insurance laws of this state as provided in 
  2.13  section 67A.25, subdivision 2. 
  2.14     Subd. 2.  [HOMEOWNER'S RISKS.] A township mutual fire 
  2.15  insurance company may issue policies for known as "homeowner's 
  2.16  insurance" as defined in section 65A.27, subdivision 4, only in 
  2.17  combination with a policy issued by an insurer authorized to 
  2.18  sell property and casualty insurance in this state.  All 
  2.19  portions of the combination policy providing homeowner's 
  2.20  insurance, including those issued by a township mutual insurance 
  2.21  company, shall be subject to the provisions of chapter 65A.