HF 1587

1st Unofficial Engrossment - 88th Legislature (2013 - 2014)

Posted on 05/18/2013 07:34 p.m.

1.1A bill for an act 1.2relating to insurance; regulating foreign language policies and advertising; 1.3authorizing electronic notices and documents;amending Minnesota Statutes 1.42012, sections 60A.08, by adding a subdivision; 65A.01, subdivision 3; 1.5proposing coding for new law in Minnesota Statutes, chapter 60A; repealing 1.6Minnesota Rules, part 2700.0200. 1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.8    Section 1. Minnesota Statutes 2012, section 60A.08, is amended by adding a 1.9subdivision to read: 1.10     new text begin Subd. 16. new text end new text begin Foreign language policies and advertising. new text end new text begin (a) Insurance policies, new text end 1.11 new text begin endorsements, riders, and any explanatory or advertising material may be issued in a new text end 1.12 new text begin language other than English. In the event of a dispute or complaint regarding the insurance new text end 1.13 new text begin or advertising material, the English language version of the insurance coverage shall new text end 1.14 new text begin control the resolution of the dispute or complaint. Any insurance policy, endorsement, new text end 1.15 new text begin rider, or advertising material required by law to be filed with the commissioner that is new text end 1.16 new text begin prepared in a language other than English must be accompanied by an English language new text end 1.17 new text begin translation certifying that the English version is substantively identical to the filed version. new text end 1.18 new text begin (b) This subdivision does not limit the application of chapter 72A. new text end 1.19    Sec. 2. new text begin [60A.139] ELECTRONIC NOTICES AND DOCUMENTS. new text end 1.20     new text begin Subdivision 1. new text end new text begin Terms defined. new text end new text begin In this section, the following words have the new text end 1.21 new text begin meanings given them: new text end 1.22 new text begin (1) "delivered by electronic means" includes: new text end 1.23 new text begin (i) delivery to an e-mail address at which a party has consented to receive notices or new text end 1.24 new text begin documents; or new text end 2.1 new text begin (ii) posting on an electronic network or Web site accessible via the Internet, mobile new text end 2.2 new text begin application, computer, mobile device, tablet, or other electronic device, together with new text end 2.3 new text begin separate notice of posting, which must be provided by electronic mail to the address at new text end 2.4 new text begin which the party has consented to receive notice or by any other delivery method that new text end 2.5 new text begin has been consented to by the party; and new text end 2.6 new text begin (2) "party" means a recipient of a notice or document required as part of an insurance new text end 2.7 new text begin transaction including, but not limited to, an applicant, an insured, a policyholder, or an new text end 2.8 new text begin annuity contract holder. new text end 2.9     new text begin Subd. 2. new text end new text begin Requirements. new text end new text begin Subject to subdivision 4, a notice to a party or other new text end 2.10 new text begin document required under applicable law in an insurance transaction or that is to serve as new text end 2.11 new text begin evidence of insurance coverage may be delivered, stored, and presented by electronic new text end 2.12 new text begin means so long as it meets the requirements of the Uniform Electronic Transactions Act, new text end 2.13 new text begin chapter 325L. new text end 2.14     new text begin Subd. 3. new text end new text begin Equivalent to other required methods. new text end new text begin Delivery of a notice or document new text end 2.15 new text begin in accordance with this section is considered equivalent to a delivery method required new text end 2.16 new text begin under applicable law, including delivery by first class mail; first class mail, postage new text end 2.17 new text begin prepaid; certified mail; certificate of mail; or certificate of mailing. new text end 2.18     new text begin Subd. 4. new text end new text begin Conditions for electronic delivery. new text end new text begin A notice or document may be new text end 2.19 new text begin delivered by electronic means by an insurer to a party under this section if: new text end 2.20 new text begin (1) the party has affirmatively consented to that method of delivery and has not new text end 2.21 new text begin withdrawn the consent; new text end 2.22 new text begin (2) the party, before giving consent, is provided with a clear and conspicuous new text end 2.23 new text begin statement informing the party of: new text end 2.24 new text begin (i) a right or option of the party to have the notice or document provided or made new text end 2.25 new text begin available in paper or another nonelectronic form; new text end 2.26 new text begin (ii) the right of the party to withdraw consent to have a notice or document delivered new text end 2.27 new text begin by electronic means and any fees, conditions, or consequences imposed in the event new text end 2.28 new text begin consent is withdrawn; new text end 2.29 new text begin (iii) whether the party's consent applies: new text end 2.30 new text begin (A) only to the particular transaction as to which the notice or document must be new text end 2.31 new text begin given; or new text end 2.32 new text begin (B) to identified categories of notices or documents that may be delivered by new text end 2.33 new text begin electronic means during the course of the parties' relationship; new text end 2.34 new text begin (iv)(A) the means, after consent is given, by which a party may obtain a paper copy new text end 2.35 new text begin of a notice or document delivered by electronic means; and new text end 2.36 new text begin (B) the fee, if any, for the paper copy; and new text end 3.1 new text begin (v) the procedure a party must follow to withdraw consent to have a notice or new text end 3.2 new text begin document delivered by electronic means and to update information needed to contact new text end 3.3 new text begin the party electronically; new text end 3.4 new text begin (3) the party: new text end 3.5 new text begin (i) before giving consent, is provided with a statement of the hardware and software new text end 3.6 new text begin requirements for access to and retention of a notice or document delivered by electronic new text end 3.7 new text begin means; and new text end 3.8 new text begin (ii) consents electronically, or confirms consent electronically, in a manner that new text end 3.9 new text begin reasonably demonstrates that the party can access information in the electronic form that new text end 3.10 new text begin will be used for notices or documents delivered by electronic means to which the party has new text end 3.11 new text begin given consent; and new text end 3.12 new text begin (4) after consent of the party is given, the insurer, in the event a change in the new text end 3.13 new text begin hardware or software requirements needed to access or retain a notice or document new text end 3.14 new text begin delivered by electronic means creates a material risk that the party will not be able to new text end 3.15 new text begin access or retain a subsequent notice or document to which the consent applies: new text end 3.16 new text begin (i) provides the party with a statement of: new text end 3.17 new text begin (A) the revised hardware and software requirements for access to and retention of a new text end 3.18 new text begin notice or document delivered by electronic means; new text end 3.19 new text begin (B) the right of the party to withdraw consent without the imposition of a fee, new text end 3.20 new text begin condition, or consequence that was not disclosed under clause (2); and new text end 3.21 new text begin (ii) complies with clause (2). new text end 3.22     new text begin Subd. 5. new text end new text begin Content or timing not affected. new text end new text begin This section does not affect requirements new text end 3.23 new text begin related to content or timing of a notice or document required under applicable law. new text end 3.24     new text begin Subd. 6. new text end new text begin Verification or acknowledgement of receipt. new text end new text begin If a provision of applicable new text end 3.25 new text begin law requiring a notice or document to be provided to a party expressly requires verification new text end 3.26 new text begin or acknowledgement of receipt of the notice or document, the notice or document may new text end 3.27 new text begin be delivered by electronic means only if the method used provides for verification or new text end 3.28 new text begin acknowledgement of receipt. new text end 3.29     new text begin Subd. 7. new text end new text begin Failure to obtain consent. new text end new text begin The legal effectiveness, validity, or new text end 3.30 new text begin enforceability of a contract or policy of insurance executed by a party may not be denied new text end 3.31 new text begin solely because of the failure to obtain electronic consent or confirmation of consent of the new text end 3.32 new text begin party in accordance with subdivision 4, clause (3), item (ii). new text end 3.33     new text begin Subd. 8. new text end new text begin Withdrawal of consent. new text end new text begin (a) A withdrawal of consent by a party does not new text end 3.34 new text begin affect the legal effectiveness, validity, or enforceability of a notice or document delivered new text end 3.35 new text begin by electronic means to the party before the withdrawal of consent is effective. new text end 4.1 new text begin (b) A withdrawal of consent by a party is effective within a reasonable period of new text end 4.2 new text begin time after receipt of the withdrawal by the insurer. new text end 4.3 new text begin (c) Failure by an insurer to comply with subdivision 4, clause (4), may be treated, at new text end 4.4 new text begin the election of the party, as a withdrawal of consent for purposes of this section. new text end 4.5     new text begin Subd. 9. new text end new text begin Prior consent. new text end new text begin If the consent of a party to receive certain notices or new text end 4.6 new text begin documents in an electronic form is on file with an insurer before the effective date of new text end 4.7 new text begin this act and, pursuant to this section, an insurer intends to deliver additional notices or new text end 4.8 new text begin documents to the party in an electronic form then, before delivering the additional notices new text end 4.9 new text begin or documents electronically, the insurer shall notify the party of: new text end 4.10 new text begin (1) the notices or documents that may be delivered by electronic means under this new text end 4.11 new text begin section that were not previously delivered electronically; and new text end 4.12 new text begin (2) the party's right to withdraw consent to have notices or documents delivered new text end 4.13 new text begin by electronic means. new text end 4.14     new text begin Subd. 10. new text end new text begin Property and casualty policies and endorsements. new text end new text begin Notwithstanding any new text end 4.15 new text begin other provisions of this section and of section 60A.08, subdivision 3, standard property and new text end 4.16 new text begin casualty insurance policies and endorsements that do not contain personally identifiable new text end 4.17 new text begin information may be mailed, delivered, or posted on the insurer's Web site. If the insurer new text end 4.18 new text begin elects to post insurance policies and endorsements on its Web site in lieu of mailing or new text end 4.19 new text begin delivering them to the insured, it must comply with all of the following conditions: new text end 4.20 new text begin (1) the policy and endorsements must be accessible and remain that way for as long new text end 4.21 new text begin as the policy is in force; new text end 4.22 new text begin (2) after the expiration of the policy, the insurer must archive its expired policies and new text end 4.23 new text begin endorsements for a period of five years and make them available upon request; new text end 4.24 new text begin (3) the policies and endorsements must be posted in a manner that enables the new text end 4.25 new text begin insured to print and save the policy and endorsements using programs or applications that new text end 4.26 new text begin are widely available on the Internet and free to use; new text end 4.27 new text begin (4) the insurer provides the following information in or simultaneously with each new text end 4.28 new text begin declarations page provided at the time of issuance of the initial policy and any renewals new text end 4.29 new text begin of that policy: new text end 4.30 new text begin (i) a description of the exact policy and endorsement forms purchased by the insured; new text end 4.31 new text begin (ii) a method by which the insured may obtain, upon request and without charge, new text end 4.32 new text begin a paper copy of the policy; and new text end 4.33 new text begin (iii) the Internet address where the policy and endorsements are posted; and new text end 4.34 new text begin (5) the insurer provides notice, in the manner it customarily communicates with an new text end 4.35 new text begin insured, of any changes to the forms or endorsements, the insured's right to obtain, upon new text end 5.1 new text begin request and without charge, a paper copy of such forms or endorsements, and the Internet new text end 5.2 new text begin address where such forms or endorsements are posted. new text end 5.3     new text begin Subd. 11. new text end new text begin Oral communications. new text end new text begin Except as otherwise provided by law, if an oral new text end 5.4 new text begin communication or a recording of an oral communication from a party can be reliably new text end 5.5 new text begin stored and reproduced by an insurer, the oral communication or recording may qualify new text end 5.6 new text begin as a notice or document delivered by electronic means for purposes of this section. If a new text end 5.7 new text begin provision of this title or applicable law requires a signature or notice or document to be new text end 5.8 new text begin notarized, acknowledged, verified, or made under oath, the requirement is satisfied if the new text end 5.9 new text begin electronic signature of the person authorized to perform those acts, together with all other new text end 5.10 new text begin information required to be included by the provision, is attached to or logically associated new text end 5.11 new text begin with the signature, notice, or document. new text end 5.12     new text begin Subd. 12. new text end new text begin Effect or other law. new text end new text begin This section may not be construed to modify, limit, new text end 5.13 new text begin or supersede the provisions of the federal Electronic Signatures in Global and National new text end 5.14 new text begin Commerce Act, Public Law 106-229, as amended. new text end 5.15     new text begin Subd. 13. new text end new text begin Application. new text end new text begin This section does not apply to: new text end 5.16 new text begin (1) a nonprofit health service plan corporation licensed under chapter 62C; new text end 5.17 new text begin (2) a health maintenance organization licensed under chapter 62D; or new text end 5.18 new text begin (3) a health carrier, as defined under section 62A.011, subdivision 2, that is affiliated new text end 5.19 new text begin with a nonprofit health service plan corporation licensed under chapter 62C or a health new text end 5.20 new text begin maintenance organization licensed under chapter 62D. new text end 5.21 new text begin EFFECTIVE DATE; NONAPPLICATION. new text end new text begin This section is effective August 1, new text end 5.22 new text begin 2013, and does not apply to a notice or document delivered by an insurer in an electronic new text end 5.23 new text begin form before that date to a party who, before that date, has consented to receive a notice or new text end 5.24 new text begin document in an electronic form otherwise allowed by law. new text end 5.25    Sec. 3. Minnesota Statutes 2012, section 65A.01, subdivision 3, is amended to read: 5.26    Subd. 3. Policy provisions. On said policy following such matter as provided in 5.27subdivisions 1 and 2, printed in the English language in type of such size or sizes and 5.28arranged in such manner, as is approved by the commissioner of commerce, the following 5.29provisions and subject matter shall be stated in the following words and in the following 5.30sequence, but with the convenient placing, if desired, of such matter as will act as a cover 5.31or back for such policy when folded, with the blanks below indicated being left to be filled 5.32in at the time of the issuing of the policy, to wit: 5.33(Space for listing the amounts of insurance, rates and premiums for the basic 5.34coverages provided under the standard form of policy and for additional coverages or 5.35perils provided under endorsements attached. The description and location of the property 6.1covered and the insurable value(s) of any building(s) or structure(s) covered by the 6.2policy or its attached endorsements; also in the above space may be stated whether other 6.3insurance is limited and if limited the total amount permitted.) 6.4In consideration of the provisions and stipulations herein or added hereto and of 6.5the premium above specified this company, for a term of ..... from ..... (At 12:01 a.m. 6.6Standard Time) to ..... (At 12:01 a.m. Standard Time) at location of property involved, 6.7to an amount not exceeding the amount(s) above specified does insure ..... and legal 6.8representatives ........................................... 6.9(In above space may be stated whether other insurance is limited.) (And if limited 6.10the total amount permitted.) 6.11Subject to form No.(s) ..... attached hereto. 6.12This policy is made and accepted subject to the foregoing provisions and stipulations 6.13and those hereinafter stated, which are hereby made a part of this policy, together with such 6.14provisions, stipulations and agreements as may be added hereto as provided in this policy. 6.15The insurance effected above is granted against all loss or damage by fire originating 6.16from any cause, except as hereinafter provided, also any damage by lightning and by 6.17removal from premises endangered by the perils insured against in this policy, to the 6.18property described hereinafter while located or contained as described in this policy, or 6.19pro rata for five days at each proper place to which any of the property shall necessarily be 6.20removed for preservation from the perils insured against in this policy, but not elsewhere. 6.21The amount of said loss or damage, except in case of total loss on buildings, to be 6.22estimated according to the actual value of the insured property at the time when such 6.23loss or damage happens. 6.24If the insured property shall be exposed to loss or damage from the perils insured 6.25against, the insured shall make all reasonable exertions to save and protect same. 6.26This entire policy shall be void if, whether before a loss, the insured has willfully, 6.27or after a loss, the insured has willfully and with intent to defraud, concealed or 6.28misrepresented any material fact or circumstance concerning this insurance or the subject 6.29thereof, or the interests of the insured therein. 6.30This policy shall not cover accounts, bills, currency, deeds, evidences of debt, money 6.31or securities; nor, unless specifically named hereon in writing, bullion, or manuscripts. 6.32This company shall not be liable for loss by fire or other perils insured against in this 6.33policy caused, directly or indirectly by: (a) enemy attack by armed forces, including action 6.34taken by military, naval or air forces in resisting an actual or immediately impending 6.35enemy attack; (b) invasion; (c) insurrection; (d) rebellion; (e) revolution; (f) civil war; 6.36(g) usurped power; (h) order of any civil authority except acts of destruction at the time 7.1of and for the purpose of preventing the spread of fire, providing that such fire did not 7.2originate from any of the perils excluded by this policy. 7.3This company shall not be liable for loss by fire or other perils insured against in 7.4a commercial policy caused, directly or indirectly, by terrorism, unless an endorsement 7.5specifically assuming coverage for loss or damage caused by terrorism is attached to 7.6the policy. 7.7Other insurance may be prohibited or the amount of insurance may be limited by so 7.8providing in the policy or an endorsement, rider or form attached thereto. 7.9Unless otherwise provided in writing added hereto this company shall not be liable 7.10for loss occurring: 7.11(a) while the hazard is increased by any means within the control or knowledge of 7.12the insured; or 7.13(b) while the described premises, whether intended for occupancy by owner or 7.14tenant, are vacant or unoccupied beyond a period of 60 consecutive days; or 7.15(c) as a result of explosion or riot, unless fire ensue, and in that event for loss by 7.16fire only. 7.17Any other peril to be insured against or subject of insurance to be covered in this 7.18policy shall be by endorsement in writing hereon or added hereto. 7.19The extent of the application of insurance under this policy and the contributions to be 7.20made by this company in case of loss, and any other provision or agreement not inconsistent 7.21with the provisions of this policy, may be provided for in writing added hereto, but no 7.22provision may be waived except such as by the terms of this policy is subject to change. 7.23No permission affecting this insurance shall exist, or waiver of any provision be 7.24valid, unless granted herein or expressed in writing added hereto. No provision, stipulation 7.25or forfeiture shall be held to be waived by any requirements or proceeding on the part of 7.26this company relating to appraisal or to any examination provided for herein. 7.27This policy shall be canceled at any time at the request of the insured, in which case 7.28this company shall, upon demand and surrender of this policy, refund the excess of paid 7.29premium above the customary short rates for the expired time. This policy may be canceled 7.30at any time by this company by giving to the insured a written notice of cancellation with 7.31or without tender of the excess of paid premium above the pro rata premium for the expired 7.32time, which excess, if not tendered, shall be refunded on demand. Notice of cancellation 7.33shall state that said excess premium (if not tendered) will be refunded on demand. 7.34If loss hereunder is made payable, in whole or in part, to a designated mortgagee or 7.35contract for deed vendor not named herein as insured, such interest in this policy may be 7.36canceled by giving to such mortgagee or vendor a ten days' written notice of cancellation. 8.1Notwithstanding any other provisions of this policy, if this policy shall be made 8.2payable to a mortgagee or contract for deed vendor of the covered real estate, no act or 8.3default of any person other than such mortgagee or vendor or the mortgagee's or vendor's 8.4agent or those claiming under the mortgagee or vendor, whether the same occurs before or 8.5during the term of this policy, shall render this policy void as to such mortgagee or vendor 8.6nor affect such mortgagee's or vendor's right to recover in case of loss on such real estate; 8.7provided, that the mortgagee or vendor shall on demand pay according to the established 8.8scale of rates for any increase of risks not paid for by the insured; and whenever this 8.9company shall be liable to a mortgagee or vendor for any sum for loss under this policy 8.10for which no liability exists as to the mortgagor, vendee, or owner, and this company shall 8.11elect by itself, or with others, to pay the mortgagee or vendor the full amount secured 8.12by such mortgage or contract for deed, then the mortgagee or vendor shall assign and 8.13transfer to the company the mortgagee's or vendor's interest, upon such payment, in the 8.14said mortgage or contract for deed together with the note and debts thereby secured. 8.15This company shall not be liable for a greater proportion of any loss than the amount 8.16hereby insured shall bear to the whole insurance covering the property against the peril 8.17involved. 8.18In case of any loss under this policy the insured shall give immediate written notice 8.19to this company of any loss, protect the property from further damage, and a statement 8.20in writing, signed and sworn to by the insured, shall within 60 days be rendered to the 8.21company, setting forth the value of the property insured, except in case of total loss on 8.22buildings the value of said buildings need not be stated, the interest of the insured therein, 8.23all other insurance thereon, in detail, the purposes for which and the persons by whom the 8.24building insured, or containing the property insured, was used, and the time at which and 8.25manner in which the fire originated, so far as known to the insured. 8.26The insured, as often as may be reasonably required, shall exhibit to any person 8.27designated by this company all that remains of any property herein described, and, after 8.28being informed of the right to counsel and that any answers may be used against the 8.29insured in later civil or criminal proceedings, the insured shall, within a reasonable period 8.30after demand by this company, submit to examinations under oath by any person named by 8.31this company, and subscribe the oath. The insured, as often as may be reasonably required, 8.32shall produce for examination all records and documents reasonably related to the loss, or 8.33certified copies thereof if originals are lost, at a reasonable time and place designated by 8.34this company or its representatives, and shall permit extracts and copies thereof to be made. 8.35In case the insured and this company, except in case of total loss on buildings, 8.36shall fail to agree as to the actual cash value or the amount of loss, then, on the written 9.1demand of either, each shall select a competent and disinterested appraiser and notify the 9.2other of the appraiser selected within 20 days of such demand. In case either fails to 9.3select an appraiser within the time provided, then a presiding judge of the district court 9.4of the county wherein the loss occurs may appoint such appraiser for such party upon 9.5application of the other party in writing by giving five days' notice thereof in writing to 9.6the party failing to appoint. The appraisers shall first select a competent and disinterested 9.7umpire; and failing for 15 days to agree upon such umpire, then a presiding judge of the 9.8above mentioned court may appoint such an umpire upon application of party in writing 9.9by giving five days' notice thereof in writing to the other party. The appraisers shall then 9.10appraise the loss, stating separately actual value and loss to each item; and, failing to 9.11agree, shall submit their differences, only, to the umpire. An award in writing, so itemized, 9.12of any two when filed with this company shall determine the amount of actual value and 9.13loss. Each appraiser shall be paid by the selecting party, or the party for whom selected, 9.14and the expense of the appraisal and umpire shall be paid by the parties equally. 9.15It shall be optional with this company to take all of the property at the agreed or 9.16appraised value, and also to repair, rebuild or replace the property destroyed or damaged 9.17with other of like kind and quality within a reasonable time, on giving notice of its 9.18intention so to do within 30 days after the receipt of the proof of loss herein required. 9.19There can be no abandonment to this company of any property. 9.20The amount of loss for which this company may be liable shall be payable 60 days 9.21after proof of loss, as herein provided, is received by this company and ascertainment of 9.22the loss is made either by agreement between the insured and this company expressed in 9.23writing or by the filing with this company of an award as herein provided. It is moreover 9.24understood that there can be no abandonment of the property insured to the company, and 9.25that the company will not in any case be liable for more than the sum insured, with interest 9.26thereon from the time when the loss shall become payable, as above provided. 9.27No suit or action on this policy for the recovery of any claim shall be sustainable in 9.28any court of law or equity unless all the requirements of this policy have been complied 9.29with, and unless commenced within two years after inception of the loss. 9.30This company is subrogated to, and may require from the insured an assignment 9.31of all right of recovery against any party for loss to the extent that payment therefor is 9.32made by this company; and the insurer may prosecute therefor in the name of the insured 9.33retaining such amount as the insurer has paid. 9.34Assignment of this policy shall not be valid except with the written consent of 9.35this company. 9.36IN WITNESS WHEREOF, this company has executed and attested these presents. 10.1 ..... ..... 10.2 (Signature) (Signature) 10.3 ..... ..... 10.4 (Name of office) (Name of office) 10.5    Sec. 4. new text begin REPEALER. new text end 10.6 new text begin Minnesota Rules, part 2700.0200, new text end new text begin is repealed. new text end