HF 2553

1st Engrossment - 87th Legislature (2011 - 2012) Posted on 03/08/2012 03:19pm

A bill for an act
relating to insurance; regulating certain claims practices; amending Minnesota
Statutes 2010, sections 65A.29, subdivision 11; 326B.081, subdivision 3;
Minnesota Statutes 2011 Supplement, section 325E.66, subdivisions 1, 2, by
adding a subdivision.

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

Section 1.

Minnesota Statutes 2010, section 65A.29, subdivision 11, is amended to read:

Subd. 11.

Nonrenewal.

Every insurer shall establish a plan that sets out the
minimum number and amount of claims during an experience period that may result
in a nonrenewal. For purposes of the plan, the insurer may not consider as a claim the
insured's inquiry about a hypothetical claim, or the insured's inquiry to the insured's agent
regarding a potential claim.

No homeowner's insurance policy may be nonrenewed based on the insured's loss
experience unless the insurer has deleted text begin sent a written notice that any future losses may result
in deleted text end deleted text begin nonrenewal due to loss experience. deleted text end new text begin provided the insured with a copy of the insured's
nonrenewal plan at the time of policy issuance and each renewal.
new text end

Any nonrenewal of a homeowner's insurance policy must, at a minimum, comply
with the requirements of subdivision 8 and the rules adopted by the commissioner.

Sec. 2.

Minnesota Statutes 2011 Supplement, section 325E.66, subdivision 1, is
amended to read:

Subdivision 1.

Payment or rebate of insurance deductible.

A residential
contractor providing deleted text begin the repair or replacement of residential roofing or siding deleted text end new text begin home repair
or improvement services new text end to be paid by an insured from the proceeds of a property or
casualty insurance policy shall not, as an inducement to the sale or provision of goods
or services to an insured, advertise or promise to pay, directly or indirectly, all or part of
any applicable insurance deductible or offer to compensate an insured for providing any
service to the insured. If a residential contractor violates this section, the insurer to whom
the insured tendered the claim shall not be obligated to consider the estimate prepared by
the residential contractor.

For purposes of this section, "residential contractor" means a residential roofer, as
defined in section 326B.802, subdivision 14; a residential new text begin building new text end contractor, as defined
in section 326B.802, subdivision 11; new text begin and new text end a residential remodeler, as defined in section
326B.802, subdivision 12 deleted text begin ; and a siding contractor registered under section 326B.802,
subdivision 15 deleted text end .

Sec. 3.

Minnesota Statutes 2011 Supplement, section 325E.66, is amended by adding a
subdivision to read:

new text begin Subd. 1a. new text end

new text begin Negotiation with insurance provider. new text end

new text begin A residential contractor shall not
represent or negotiate, or offer or advertise to represent or negotiate, on behalf of an
owner or possessor of residential real estate on an insurance claim in connection with the
repair or replacement of roof systems, or the performance of any other exterior repair,
replacement, construction, or reconstruction work. Nothing in this section prohibits a
residential contractor from discussing with an insurer the specific terms of a written
contract executed between the residential contractor and a policyholder of the insurer once
the claim has been accepted by the insurer.
new text end

Sec. 4.

Minnesota Statutes 2011 Supplement, section 325E.66, subdivision 2, is
amended to read:

Subd. 2.

Private remedy.

If a residential contractor violates deleted text begin subdivision 1 deleted text end new text begin this
section new text end , the insured or the applicable insurer may bring an action against the residential
contractor in a court of competent jurisdiction for damages sustained by the insured or
insurer as a consequence of the residential contractor's violation.

Sec. 5.

Minnesota Statutes 2010, section 326B.081, subdivision 3, is amended to read:

Subd. 3.

Applicable law.

"Applicable law" means the provisions of sections new text begin
325E.66, new text end 327.31 to 327.36 and this chapter, and all rules, orders, stipulation agreements,
settlements, compliance agreements, licenses, registrations, certificates, and permits
adopted, issued, or enforced by the department under sections new text begin 325E.66, new text end 327.31 to 327.36
or this chapter.