1.1 	A bill for an act
1.2 	relating to insurance; prohibiting nonrenewal of homeowner's insurance based 
1.3 	on certain nonpaid claims; prohibiting premium increases based on certain 
1.4 	factors;amending Minnesota Statutes 2008, section 65A.29, subdivision 11, by 
1.5 	adding a subdivision.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2008, section 65A.29, subdivision 11, is amended to read:
1.8 		Subd. 11.Nonrenewal. Every insurer shall establish a plan that sets out the 
1.9 	minimum number and amount of claims during an experience period that may result 
1.10 	in a nonrenewal. For purposes of the plan, the insurer may not consider as a claim the 
1.11 	insured's inquiry about a hypothetical claim, or the insured's inquiry to the insured's agent 
1.12 	regarding a potential claim, or a claim submitted to the insurer that the insurer denied or 
1.13 	upon which the insurer did not make a payment.
1.14 	No homeowner's insurance policy may be nonrenewed based on the insured's loss 
1.15 	experience unless the insurer has sent a written notice that any future losses may result in 
1.16 	nonrenewal due to loss experience.
1.17 	Any nonrenewal of a homeowner's insurance policy must, at a minimum, comply 
1.18 	with the requirements of subdivision 8 and the rules adopted by the commissioner.

1.19 	EFFECTIVE DATE. This section is effective August 1, 2009.

1.20 	Sec. 2. Minnesota Statutes 2008, section 65A.29, is amended by adding a subdivision 
1.21 	to read:
2.1 		Subd. 13.Premium not to be increased based on inquiry or denied claim. An 
2.2 	insurer shall not use as a basis for increasing the premium upon renewal of a homeowner's 
2.3 	insurance policy:
2.4 	(1) the insured's inquiry about a hypothetical claim;
2.5 	(2) the insured's inquiry to the insured's agent about a potential claim; or
2.6 	(3) a claim submitted by the insured that the insurer denied or upon which the 
2.7 	insurer did not make a payment.

2.8 	EFFECTIVE DATE. This section is effective August 1, 2009.