Minnesota Session Laws - 1983, Regular Session

  

                         Laws of Minnesota 1983 

                        CHAPTER 208--H.F.No. 419
           An act relating to insurance; fire; hail; requiring 
          the insured, in case of loss, to show the damaged 
          property and related records to the company and 
          consent to be examined under oath; providing for the 
          exchange of information on losses or potential losses 
          between companies and authorized persons; providing 
          for the appraisal of losses; specifying the procedure 
          to be used in selecting appraisers; amending Minnesota 
          Statutes 1982, sections 65A.01, subdivision 3; 65A.26; 
          65A.29; and 299F.054, subdivisions 1, 2, 4, and by 
          adding a subdivision. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1982, section 65A.01, 
subdivision 3, is amended to read: 
    Subd. 3.  [POLICY PROVISIONS.] On said policy following 
such matter as provided in subdivisions 1 and 2, printed in the 
English language in type of such size or sizes and arranged in 
such manner, as is approved by the commissioner of insurance, 
the following provisions and subject matter shall be stated in 
the following words and in the following sequence, but with the 
convenient placing, if desired, of such matter as will act as a 
cover or back for such policy when folded, with the blanks below 
indicated being left to be filled in at the time of the issuing 
of the policy, to wit: 
    (Space for listing the amounts of insurance, rates and 
premiums for the basic coverages provided under the standard 
form of policy and for additional coverages or perils provided 
under endorsements attached.  The description and location of 
the property covered and the insurable value(s) of any 
building(s) or structure(s) covered by the policy or its 
attached endorsements; also in the above space may be stated 
whether other insurance is limited and if limited the total 
amount permitted.) 
    In consideration of the provisions and stipulations herein 
or added hereto and of the premium above specified this company, 
for a term of ..... from ..... (At Noon 12:01 a.m. Standard 
Time) to ..... (At Noon 12:01 a.m. Standard Time) at location of 
property involved, to an amount not exceeding the amount(s) 
above specified does insure .....  and legal representatives 
........................................... 
    (In above space may be stated whether other insurance is 
limited.) (And if limited the total amount permitted.) 
    Subject to form No.(s) ..... attached hereto. 
    This policy is made and accepted subject to the foregoing 
provisions and stipulations and those hereinafter stated, which 
are hereby made a part of this policy, together with such 
provisions, stipulations and agreements as may be added hereto 
as provided in this policy. 
    This policy shall not be valid unless countersigned by the 
duly authorized agent of this company. 
    Countersigned at ..... this ..... day of ..... 19....., 
....., Agent. 
    The insurance effected above is granted against all loss or 
damage by fire originating from any cause, except as hereinafter 
provided, also any damage by lightning and by removal from 
premises endangered by the perils insured against in this 
policy, to the property described hereinafter while located or 
contained as described in this policy, or pro rata for five days 
at each proper place to which any of the property shall 
necessarily be removed for preservation from the perils insured 
against in this policy, but not elsewhere.  The amount of said 
loss or damage, except in case of total loss on buildings, to be 
estimated according to the actual value of the insured property 
at the time when such loss or damage happens. 
    If the insured property shall be exposed to loss or damage 
from the perils insured against, the insured shall make all 
reasonable exertions to save and protect same. 
    This entire policy shall be void if, whether before a loss, 
the insured has willfully, or after a loss, the insured has 
willfully and with intent to defraud, concealed or 
misrepresented any material fact or circumstance concerning this 
insurance or the subject thereof, or the interests of the 
insured therein. 
    This policy shall not cover accounts, bills, currency, 
deeds, evidences of debt, money or securities; nor, unless 
specifically named hereon in writing, bullion, or manuscripts. 
    This company shall not be liable for loss by fire or other 
perils insured against in this policy caused, directly or 
indirectly by:  (a) enemy attack by armed forces, including 
action taken by military, naval or air forces in resisting an 
actual or immediately impending enemy attack; (b) invasion; (c) 
insurrection; (d) rebellion; (e) revolution; (f) civil war; (g) 
usurped power; (h) order of any civil authority except acts of 
destruction at the time of and for the purpose of preventing the 
spread of fire, providing that such fire did not originate from 
any of the perils excluded by this policy. 
    Other insurance may be prohibited or the amount of 
insurance may be limited by so providing in the policy or an 
endorsement, rider or form attached thereto. 
    Unless otherwise provided in writing added hereto this 
company shall not be liable for loss occurring: 
    (a) while the hazard is increased by any means within the 
control or knowledge of the insured; or 
    (b) while the described premises, whether intended for 
occupancy by owner or tenant, are vacant or unoccupied beyond a 
period of 60 consecutive days; or 
    (c) as a result of explosion or riot, unless fire ensue, 
and in that event for loss by fire only. 
    Any other peril to be insured against or subject of 
insurance to be covered in this policy shall be by endorsement 
in writing hereon or added hereto. 
    The extent of the application of insurance under this 
policy and the contributions to be made by this company in case 
of loss, and any other provision or agreement not inconsistent 
with the provisions of this policy, may be provided for in 
writing added hereto, but no provision may be waived except such 
as by the terms of this policy is subject to change. 
    No permission affecting this insurance shall exist, or 
waiver of any provision be valid, unless granted herein or 
expressed in writing added hereto.  No provision, stipulation or 
forfeiture shall be held to be waived by any requirements or 
proceeding on the part of this company relating to appraisal or 
to any examination provided for herein. 
    This policy shall be canceled at any time at the request of 
the insured, in which case this company shall, upon demand and 
surrender of this policy, refund the excess of paid premium 
above the customary short rates for the expired time.  This 
policy may be canceled at any time by this company by giving to 
the insured a ten days' written notice of cancellation with or 
without tender of the excess of paid premium above the pro rata 
premium for the expired time, which excess, if not tendered, 
shall be refunded on demand.  Notice of cancellation shall state 
that said excess premium (if not tendered) will be refunded on 
demand. 
    If loss hereunder is made payable, in whole or in part, to 
a designated mortgagee not named herein as insured, such 
interest in this policy may be canceled by giving to such 
mortgagee a ten days' written notice of cancellation. 
    Notwithstanding any other provisions of this policy, if 
this policy shall be made payable to a mortgagee of the covered 
real estate, no act or default of any person other than such 
mortgagee or his agent or those claiming under him, whether the 
same occurs before or during the term of this policy, shall 
render this policy void as to such mortgagee nor affect such 
mortgagee's right to recover in case of loss on such real 
estate; provided, that the mortgagee shall on demand pay 
according to the established scale of rates for any increase of 
risks not paid for by the insured; and whenever this company 
shall be liable to a mortgagee for any sum for loss under this 
policy for which no liability exists as to the mortgagor, or 
owner, and this company shall elect by itself, or with others, 
to pay the mortgagee the full amount secured by such mortgage, 
then the mortgagee shall assign and transfer to the company his 
interest, upon such payment, in the said mortgage together with 
the note and debts thereby secured. 
    This company shall not be liable for a greater proportion 
of any loss than the amount hereby insured shall bear to the 
whole insurance covering the property against the peril involved.
    In case of any loss under this policy the insured shall 
give immediate written notice to this company of any loss, 
protect the property from further damage, and a statement in 
writing, signed and sworn to by the insured, shall within 60 
days be rendered to the company, setting forth the value of the 
property insured, except in case of total loss on buildings the 
value of said buildings need not be stated, the interest of the 
insured therein, all other insurance thereon, in detail, the 
purposes for which and the persons by whom the building insured, 
or containing the property insured, was used, and the time at 
which and manner in which the fire originated, so far as known 
to the insured. 
    The company may also examine the books of account and 
vouchers of the insured, and make extracts from the same The 
insured, as often as may be reasonably required, shall exhibit 
to any person designated by this company all that remains of any 
property herein described, and, after being informed that he has 
a right to counsel and that his answers may be used against him 
in later civil or criminal proceedings, the insured shall, 
within a reasonable period after demand by this company, submit 
to examinations under oath by any person named by this company, 
and subscribe the oath.  The insured, as often as may be 
reasonably required, shall produce for examination all records 
and documents reasonably related to the loss, or certified 
copies thereof if originals are lost, at a reasonable time and 
place designated by this company or its representatives, and 
shall permit extracts and copies thereof to be made.  
    In case the insured and this company, except in case of 
total loss on buildings, shall fail to agree as to the actual 
cash value or the amount of loss, then, on the written demand of 
either, each shall select a competent and disinterested 
appraiser and notify the other of the appraiser selected within 
20 days of such demand.  In case either fails to select an 
appraiser within the time provided, then a presiding judge of 
the district court of the county wherein the loss occurs may 
appoint such appraiser for such party upon application of the 
other party in writing by giving five days' notice thereof in 
writing to the party failing to appoint.  The appraisers shall 
first select a competent and disinterested umpire; and failing 
for 15 days to agree upon such umpire, then a presiding judge of 
the above mentioned court may appoint such an umpire upon 
application of party in writing by giving five days' notice 
thereof in writing to the other party.  The appraisers shall 
then appraise the loss, stating separately actual value and loss 
to each item; and, failing to agree, shall submit their 
differences, only, to the umpire.  An award in writing, so 
itemized, of any two when filed with this company shall 
determine the amount of actual value and loss.  Each appraiser 
shall be paid by the party selecting him, or for whom he was 
selected, and the expense of the appraisal and umpire shall be 
paid by the parties equally. 
    It shall be optional with this company to take all of the 
property at the agreed or appraised value, and also to repair, 
rebuild or replace the property destroyed or damaged with other 
of like kind and quality within a reasonable time, on giving 
notice of its intention so to do within 30 days after the 
receipt of the proof of loss herein required. 
    There can be no abandonment to this company of any property.
    The amount of loss for which this company may be liable 
shall be payable 60 days after proof of loss, as herein 
provided, is received by this company and ascertainment of the 
loss is made either by agreement between the insured and this 
company expressed in writing or by the filing with this company 
of an award as herein provided.  It is moreover understood that 
there can be no abandonment of the property insured to the 
company, and that the company will not in any case be liable for 
more than the sum insured, with interest thereon from the time 
when the loss shall become payable, as above provided. 
    No suit or action on this policy for the recovery of any 
claim shall be sustainable in any court of law or equity unless 
all the requirements of this policy have been complied with, and 
unless commenced within two years after inception of the loss. 
    This company is subrogated to, and may require from the 
insured an assignment of all right of recovery against any party 
for loss to the extent that payment therefor is made by this 
company; and the insurer may prosecute therefor in the name of 
the insured retaining such amount as the insurer has paid. 
    Assignment of this policy shall not be valid except with 
the written consent of this company. 
    IN WITNESS WHEREOF, this company has executed and attested 
these presents. 
 
 ........................         ........................
      (Signature)                     (Signature)         
 ........................         ........................
     (Name of office)                (Name of office)     
    Sec. 2.  Minnesota Statutes 1982, section 65A.26, is 
amended to read: 
    65A.26 [HAIL INSURANCE, POLICIES, LOSS ADJUSTMENT.] 
    Every policy of insurance against damage by hail issued by 
any company, however organized, shall must provide as follows:  
"In case of loss under this policy, and failure of the parties 
to agree as to the amount of such the loss, it is mutually 
agreed that such amount shall be referred to three disinterested 
persons, on written demand of either party, the company and the 
insured each choosing one out of three persons named by the 
other, the third being selected by such two shall select a 
competent appraiser and notify the other of the appraiser 
selected within ten days of the demand.  The appraisers shall 
first select a competent and disinterested umpire; and, failing 
for ten days to agree upon the umpire, then, on request of 
either appraiser, the umpire shall be selected by a judge of a 
court of record in the state in which the property covered is 
located.  By mutual agreement the two appraisers may agree to 
have the umpire selected by a judge of a court of record and 
waive the ten-day provision.  
    The appraisers and the umpire shall then appraise the 
loss.  A written award of any two of these persons determines 
the amount of loss.  The written award of a majority of such 
these referees shall be is final and conclusive upon the parties 
as to amount of loss, and such reference this selection, unless 
waived by the parties, shall be is a condition precedent to any 
right of action to recover for such a loss, and.  No suit for 
the recovery of any claim by virtue of this policy shall may be 
sustained unless commenced within one year after the loss 
occurred,." and shall The policy must also provide the form, 
manner, and length of notice to be given to the company by the 
insured of any loss sustained. 
    Sec. 3.  Minnesota Statutes 1982, section 66A.29, is 
amended to read: 
    66A.29 [ARBITRATION REQUIRED.] 
    Every policy shall must provide as follows:  "In case of 
loss under this policy and failure of the parties to agree as to 
the amount of such the loss, it is mutually agreed that such 
amount shall be referred to three disinterested persons, on 
written demand of either party, the company and the insured each 
choosing one out of three persons named by the other, the third 
being selected by such two shall select a competent appraiser 
and notify the other of the appraiser selected within ten days 
of the demand.  The appraisers shall first select a competent 
and disinterested umpire; and, failing for ten days to agree 
upon the umpire, then, on request of either appraiser, the 
umpire shall be selected by a judge of a court of record in the 
state in which the property covered is located.  By mutual 
agreement the two appraisers may agree to have the umpire 
selected by a judge of a court of record and waive the ten-day 
provision.  
    The appraisers and the umpire shall then appraise the 
loss.  A written award of any two of these persons determines 
the amount of loss.  The written award of a majority of such 
these referees shall be is final and conclusive upon the parties 
as to the amount of loss, and such reference this selection, 
unless waived by the parties, shall be is a condition precedent 
to any right of action to recover for such a loss, and.  No suit 
for the recovery of any claim by virtue of this policy shall may 
be sustained unless commenced within six months after the loss 
occurred;." and shall The policy must also provide the form, 
manner, and length of notice to be given to the company by the 
insured of any loss sustained. 
    Sec. 4.  Minnesota Statutes 1982, section 299F.054, 
subdivision 1, is amended to read: 
    Subdivision 1.  An authorized person may, in writing, 
require an insurance company to release to the requesting person 
any or all relevant information or evidence the authorized 
person, in his discretion, deems important, which the company 
may have in its possession, relating to a fire loss or potential 
fire loss.  Relevant information may include, and is limited to: 
    (a) pertinent insurance policy information relevant to a 
fire loss or potential fire loss under investigation including 
the application for a policy;  
    (b) policy premium payment records which are available; 
    (c) a history of previous claims made by the insured, 
including, where the insured is a corporation or partnership, a 
history of previous claims by a subsidiary or any affiliates, 
and a history of claims of any other business association in 
which individual officers or partners or their spouses were 
known to be involved; and 
    (d) material relating to the investigation of the loss or 
potential loss, including statements of any person, proof of 
loss or potential loss, and any other evidence relevant to the 
investigation.  
    Sec. 5.  Minnesota Statutes 1982, section 299F.054, 
subdivision 2, is amended to read: 
    Subd. 2.  (a) When If an insurance company has reason to 
believe that a fire loss or potential fire loss in which it has 
an interest may be of other than accidental cause, the company 
shall, in writing, notify an authorized person and provide him 
with all relevant material as specified in this section 
developed from the company's inquiry into the fire loss or 
potential fire loss.  
    (b) When If an insurance company provides any one of the 
authorized persons with notice of a fire loss or potential fire 
loss, it shall be is sufficient notice for the purpose of this 
subdivision.  
    Sec. 6.  Minnesota Statutes 1982, section 299F.054, is 
amended by adding a subdivision to read:  
    Subd. 3a.  An insurance company providing information to an 
authorized person may request in writing from the authorized 
person relevant information and receive the information 
requested within a reasonable time not to exceed 30 days.  The 
relevant information may not include nonconviction criminal 
history record information or any other information detrimental 
to another ongoing criminal investigation or that would reveal 
the identity of a confidential source of information.  Any 
authorized person not furnishing the information requested shall 
notify the insurance company of the reasons why the information 
cannot be furnished within 30 days of the request.  
    Sec. 7.  Minnesota Statutes 1982, section 299F.054, 
subdivision 4, is amended to read: 
    Subd. 4.  An insurance company or its agent acting in its 
behalf, or an authorized person who releases information, 
whether oral or written, acting in good faith, pursuant to 
subdivision subdivisions 1 or 2 shall be to 3a is immune from 
any liability, civil or criminal, that might otherwise be 
incurred or imposed. 
    Approved May 20, 1983