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SF 2953

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.
Version List Authors and Status
Rtf 
  1.1                          A bill for an act 
  1.2             relating to insurance; prohibiting issuing or 
  1.3             requiring excess insurance on property; regulating 
  1.4             real estate appraisals; amending Minnesota Statutes 
  1.5             2000, section 65A.09. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2000, section 65A.09, is 
  1.8   amended to read: 
  1.9      65A.09 [INSURANCE IN EXCESS OF VALUE.] 
  1.10     Subdivision 1.  [INSURANCE LIMITED.] No company shall 
  1.11  knowingly issue any policy upon property in this state for an 
  1.12  amount which, together with any existing insurance thereon, 
  1.13  exceeds the fair value of replacement cost of the buildings on 
  1.14  the property.  Any company willfully insuring property for more 
  1.15  than its real value that amount shall forfeit to the state, for 
  1.16  the benefit of the school fund, double the premium collected on 
  1.17  the policy.  
  1.18     Subd. 2.  [LENDERS; EXCESS INSURANCE.] No mortgage company, 
  1.19  bank, savings association, finance company, or other mortgage 
  1.20  lender of any kind may require insurance coverage in violation 
  1.21  of section 72A.31, subdivision 1, clause (4).  Any lender that 
  1.22  willfully violates this subdivision is subject to a penalty of 
  1.23  one percent of the proposed mortgage amount, to the benefit of 
  1.24  the school fund. 
  1.25     Subd. 3.  [PROPERTY APPRAISALS.] All property appraisals 
  2.1   for mortgage purposes in this state must state separately the 
  2.2   value of land and the improvements.  Any person willfully 
  2.3   issuing an appraisal that does not comply with this subdivision 
  2.4   forfeits to the state for the benefit of the school fund double 
  2.5   the amount of the appraisal fee. 
  2.6      Sec. 2.  [EFFECTIVE DATE.] 
  2.7      Section 1 is effective the day following final enactment.