1.1 	A bill for an act
1.2 	relating to insurance; the Minnesota FAIR plan;
1.3 	regulating property and liability coverage; amending
1.4 	Minnesota Statutes 2004, section 65A.08, subdivision 2.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2004, section 65A.08,
1.7 	subdivision 2, is amended to read:
1.8 		Subd. 2.Amount collectible. (a) In the absence of any
1.9 	change increasing the risk, without the consent of the insurer,
1.10 	of which the burden of proof shall be upon it, and in the
1.11 	absence of intentional fraud on the part of the insured, the
1.12 	insurer shall pay the whole amount mentioned in the policy or
1.13 	renewal upon which it receives a premium, in case of total loss,
1.14 	and in case of partial loss, the full amount thereof.
1.15 	(b) Notwithstanding paragraph (a), on a policy issued by
1.16 	the Minnesota FAIR plan under section 65A.36, the Minnesota FAIR
1.17 	plan may contest the whole amount set forth in the policy in the
1.18 	case of a total loss.  If the Minnesota FAIR plan takes the
1.19 	position that the value of the property was less than the whole
1.20 	amount set forth in the policy, the Minnesota FAIR plan has the
1.21 	burden of proving by clear and convincing evidence that the
1.22 	value was less than that set forth in the policy.

1.23 	Sec. 2. EFFECTIVE DATE; APPLICATION.
 1.24 	Section 1 is effective the day following final enactment
1.25 	and applies to policies issued or renewed on or after that date.