HF 2482

as introduced - 87th Legislature (2011 - 2012) Posted on 02/23/2012 01:52pm

A bill for an act
relating to labor and industry; making changes to construction loans; commercial
general liability loans; amending Minnesota Statutes 2010, sections 47.20, by
adding a subdivision; 326B.86, subdivision 2.

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

Section 1.

Minnesota Statutes 2010, section 47.20, is amended by adding a subdivision
to read:

new text begin Subd. 8a. new text end

new text begin Permitted inquiry in loan applications. new text end

new text begin If the purpose of a conventional
loan or loan made under the authority granted in subdivision 1, clause (3) or (4), is to
enable a borrower to purchase a one to four family dwelling for the borrower's primary
residence, or to finance a home improvement as defined in section 327A.01, subdivision 9,
a lender may require the loan applicant to disclose whether:
new text end

new text begin (1) the dwelling will be or was newly constructed by a person or entity licensed
under sections 326B.801 to 326B.885; or
new text end

new text begin (2) new text end new text begin the home improvement will be performed by a person or entity licensed under
sections 326B.801 to 326B.885.
new text end

new text begin If the construction or home improvement was not performed or planned to be performed by
a licensed person or entity, the lender may refuse to make the requested loan. The license
number may be obtained from the Department of Labor and Industry contractor Web site.
new text end

Sec. 2.

Minnesota Statutes 2010, section 326B.86, subdivision 2, is amended to read:

Subd. 2.

Insurance.

Each licensee shall have and maintain in effect commercial
general liability insurance, which includes premises and operations insurance and products
and completed operations insurance, with limits of at least $100,000 per occurrence,
$300,000 aggregate limit for bodily injury, and property damage insurance with limits of
at least $25,000 or a policy with a single limit for bodily injury and property damage of
$300,000 per occurrence and $300,000 aggregate limits. The insurance must be written
by an insurer licensed to do business in this state. new text begin To complete the sale of a policy for
insurance for each licensee, the insurer must obtain a valid license available from the
Department of Labor and Industry contractor Web site. new text end Each licensee shall maintain
on file with the commissioner a certificate evidencing the insurance. In the event of a
policy cancellation, the insurer shall send written notice to the commissioner at the same
time that a cancellation request is received from or a notice is sent to the insured. The
commissioner may increase the minimum amount of insurance required for any licensee
or class of licensees if the commissioner considers it to be in the public interest and
necessary to protect the interests of Minnesota consumers.