HF 1720

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act
  1.2             relating to insurance; permitting liability insurance 
  1.3             coverage to include coverage for punitive damages; 
  1.4             amending Minnesota Statutes 1994, section 60A.06, 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 1994, section 60A.06, is 
  1.8   amended by adding a subdivision to read: 
  1.9      Subd. 4.  [COVERAGE FOR PUNITIVE DAMAGES.] (a) The 
  1.10  legislature finds that sound public policy is promoted by 
  1.11  permitting the sale of insurance against punitive damages and 
  1.12  permitting that coverage to reimburse insureds or other covered 
  1.13  persons for punitive damages imposed by the courts of this state 
  1.14  and of other jurisdictions; the availability of this insurance 
  1.15  enables Minnesota businesses and individuals to protect 
  1.16  themselves against unpredictable damages, thereby: 
  1.17     (1) promoting stability of employment; 
  1.18     (2) permitting efficient and prudent risk management as an 
  1.19  element of business and individual financial planning; and 
  1.20     (3) avoiding placing Minnesota businesses and individuals 
  1.21  at a disadvantage as compared to businesses and individuals 
  1.22  located in states that permit this type of insurance coverage. 
  1.23     (b) Any liability insurance permitted to be sold under 
  1.24  subdivision 1 or 2 may include coverage for punitive damages. 
  1.25     Sec. 2.  [EFFECTIVE DATE.] 
  2.1      Section 1 is effective the day following final enactment.