as introduced - 91st Legislature (2019 - 2020) Posted on 02/13/2020 03:27pm
A bill for an act
relating to commerce; regulating return of certain unearned insurance premium;
amending Minnesota Statutes 2018, section 72A.20, subdivision 17.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Minnesota Statutes 2018, section 72A.20, subdivision 17, is amended to read:
(a) Refusing, upon surrender of an individual policy
of life insurance in the case of the insured's death, or in the case of a surrender prior to death,
of an individual insurance policy not covered by the standard nonforfeiture laws under
section 61A.24, to refund to the owner all unearned premiums paid on the policy covering
the insured as of the time of the insured's death or surrender if the unearned premium is for
a period of more than one monthnew text beginnew text end. The return of unearned premium must
be delivered to the insured within 30 days following receipt by the insurer of the insured's
request for cancellation.
(b) Refusing, upon termination or cancellation of a policy of automobile insurance under
section 65B.14, subdivision 2, or a policy of homeowner's insurance under section 65A.27,
subdivision 4, or a policy of accident and sickness insurance under section 62A.01, or a
policy of comprehensive health insurance under chapter 62E, to refund to the insured all
unearned premiums paid on the policy covering the insured as of the time of the termination
or cancellation deleted text beginif the unearned premium is for a period of more than one monthdeleted text endnew text beginnew text end. The return of unearned premium must be delivered to the insured within deleted text begin30deleted text endnew text beginnew text end
days deleted text beginfollowing receipt by the insurer of the insured's request for cancellationdeleted text end.
(c) This subdivision does not apply to policies of insurance providing coverage only for
motorcycles or other seasonally rated or limited use vehicles where the rate is reduced to
reflect seasonal or limited use.
(d) For purposes of this section, a premium is unearned during the period of time the
insurer has not been exposed to any risk of loss. Except for premiums for motorcycle
coverage or other seasonally rated or limited use vehicles where the rate is reduced to reflect
seasonal or limited use, the unearned premium is determined by multiplying the premium
by the fraction that results from dividing the period of time from the date of termination to
the date the next scheduled premium is due by the period of time for which the premium
(e) The owner may cancel a policy referred to in this section at any time during the
policy period. This provision supersedes any inconsistent provision of law or any inconsistent