HF 4178

as introduced - 90th Legislature (2017 - 2018) Posted on 03/22/2018 02:22pm

A bill for an act
relating to insurance; regulating liability coverage; providing the right of direct
action; proposing coding for new law in Minnesota Statutes, chapter 60A.

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

Section 1.

new text begin [60A.0812] DIRECT ACTION AGAINST INSURER.
new text end

new text begin Subdivision 1. new text end

new text begin Liability insurer's absolute liability. new text end

new text begin The insurance company and
reinsurer issuing a bond or policy of insurance insuring any person against loss or damage
through legal liability for the bodily injury, death, or damage to property of a third person
is absolutely liable whenever a loss covered by the policy occurs, and payment of the loss
by the insurance company to the extent of its liability under the policy does not depend
upon payment by the insured of or upon any final judgment against the person arising out
of such occurrence.
new text end

new text begin Subd. 2. new text end

new text begin Direct action. new text end

new text begin On any bond or policy of insurance, a person sustaining damages
or loss, or the person's heirs or representatives, has a right of direct action against the
insurance company and reinsurer, up to the amounts stated in the bond or policy of insurance,
whether or not the bond or policy of insurance sued upon was written or delivered in
Minnesota, and whether or not the policy contains a provision forbidding direct action,
provided that the cause of action arose in Minnesota. The action may be brought against
the insurance company alone, or against both the insured and insurance company.
new text end

new text begin Subd. 3. new text end

new text begin Action on final judgment remains. new text end

new text begin If the injured person in subdivision 2
brings suit against the insured alone, the action does not deprive the injured person of the
right, by subrogation to the rights of the insured under the policy, to maintain action against
and recover from the insurance company after securing final judgment against the insured.
new text end