SF 2175

as introduced - 89th Legislature (2015 - 2016) Posted on 05/15/2015 08:42am

A bill for an act
relating to insurance; regulating long-term disability policies; prohibiting
standard of review provisions; 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.255] LONG-TERM DISABILITY INSURANCE; PROHIBITED
PROVISION.
new text end

new text begin No long-term disability insurance policy may specify a standard of review upon
which a court may review denial of a claim or of any other decision made by an insurance
company with respect to an enrollee. This section prohibits limiting court review to a
determination of whether the insurance company's decision is arbitrary and capricious,
an abuse of discretion, or any other standard less favorable to the enrollee than a
preponderance of the evidence.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2016, and applies to
policies issued or renewed on or after that date.
new text end