SF 1826

as introduced - 90th Legislature (2017 - 2018) Posted on 03/09/2017 09:17am

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:

Subd. 4a.

Expense depreciation applicable when determining value of damaged
property in insurance policies.

(a) As used in this section:

(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

(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.

(b) An insurance policy covering damaged property:

(1) may allow for expense depreciation; and

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

(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.

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