HF 2925

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; homeowner's; regulating 
  1.3             payments to mortgagees; amending Minnesota Statutes 
  1.4             1994, section 65A.11. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 1994, section 65A.11, is 
  1.7   amended to read: 
  1.8      65A.11 [PAYMENT TO MORTGAGEE.] 
  1.9      When the whole, or any part, of the loss is payable, in 
  1.10  terms or otherwise, to or for one or more mortgagees, upon proof 
  1.11  before payment of the rights of the parties, the company shall 
  1.12  pay the same in the order of priority to the extent of its 
  1.13  liability and every such payment to such extent shall be payment 
  1.14  and satisfaction of its liability under the policy.  
  1.15     The company shall not pay a mortgagee pursuant to this 
  1.16  section while denying payment to the insured under a policy of 
  1.17  homeowner's insurance unless the denial has been adjudicated by 
  1.18  a court or unless the insured agrees in writing to such payment. 
  1.19     For purposes of this section, "homeowner's insurance" has 
  1.20  the meaning given the term in section 65A.27. 
  1.21     Sec. 2.  [EFFECTIVE DATE; APPLICATION.] 
  1.22     Section 1 is effective the day following final enactment 
  1.23  and applies to losses incurred on or after that date.