SF 2980

1st Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to insurance; homeowners; regulating flood insurance coverage;
requiring disclosures of noncoverage; proposing coding for new law in
Minnesota Statutes, chapter 65A.

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

Section 1.

new text begin [65A.302] FLOOD INSURANCE COVERAGE; DISCLOSURE OF
NONCOVERAGE.
new text end

new text begin Every insurer shall annually provide a written notice to the policyholder entitled
"Important Information About Damage Caused by Flooding." This title must be in at least
18-point type. The notice must disclose that the policy does not cover damage caused
by flooding and disclose sufficient information to allow the policyholder to contact the
National Flood Insurance Program to inquire about purchasing flood insurance. The
following language satisfies the notice requirements of this section:
new text end

new text begin "The policy does not cover damage to your property caused by flooding. Flood
insurance is available to communities and property that participate in the National
Flood Insurance Program ("NFIP"). Not all communities participate in the NFIP.
Flood insurance may be available even if you do not live in a flood hazard area
as defined by the NFIP. If your community does not participate in the NFIP, you
may contact your insurance agent or broker to see if there is other flood insurance
coverage available to you."
new text end

new text begin The disclosure may also inform the policyholders that the insurer offers flood
insurance as a participant in the NFIP's "Write Your Own" program.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2008, for policies issued
or renewed on or after that date.
new text end