HF 2285

as introduced - 90th Legislature (2017 - 2018) Posted on 03/09/2017 09:13am

A bill for an act
relating to insurance; regulating rates; modifying depreciation calculations;
amending Minnesota Statutes 2016, section 70A.06, by adding a subdivision.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2016, section 70A.06, is amended by adding a subdivision
to read:

new text begin Subd. 4a. new text end

new text begin Expense depreciation applicable when determining value of damaged
property in insurance policies. new text end

new text begin (a) As used in this section:
new text end

new text begin (1) "damaged property" means a dwelling, structure, personal property, or any other
property or service, the damage to which is covered under the terms of an insurance policy;
and
new text end

new text begin (2) "expense depreciation" means depreciation, including but not limited to the cost of
goods, materials, labor, and services necessary to replace, repair, or rebuild damaged property.
new text end

new text begin (b) An insurance policy covering damaged property:
new text end

new text begin (1) may allow for expense depreciation; and
new text end

new text begin (2) shall provide notice within the insurance policy in a form approved by the
commissioner of commerce that expense depreciation may be deducted.
new text end

new text begin (c) If expense depreciation is applied to a loss for damaged property, the insurer shall
provide a written explanation as to how the expense depreciation was calculated.
new text end

new text begin (d) An insurance policy submitted for approval to the commissioner that includes expense
depreciation, is not grounds for disapproving the insurance policy.
new text end