Minnesota Session Laws - 1984, Regular Session

  

                         Laws of Minnesota 1984 

                        CHAPTER 602-S.F.No. 1810 
           An act relating to insurance; homeowner's; providing 
          certain notice requirements upon policy nonrenewal, 
          reduction in the limits of coverage, or elimination of 
          coverage; authorizing the commissioner to adopt rules; 
          increasing replacement service loss benefits in 
          no-fault auto insurance; amending Minnesota Statutes 
          1982, sections 61A.39; 65A.29, by adding subdivisions; 
          and 65B.44, subdivision 5; repealing Minnesota 
          Statutes 1982, section 65A.29, subdivision 2. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:  
    Section 1.  Minnesota Statutes 1982, section 61A.39, is 
amended to read: 
    61A.39 [COOPERATIVE LIFE AND CASUALTY COMPANIES.] 
    Subdivision 1.  [COOPERATIVE PLAN.] Every corporation, 
society, or association which issues a certificate or policy or 
makes an agreement with its members by which, upon the decease 
of a member, any money is to be paid to, or benefit conferred 
upon, the legal representatives or designated beneficiaries of 
such member, or reaching a certain age, to pay any money or 
benefit to him, such money or benefit to be derived from 
voluntary donations, admission fees, dues, or assessments to be 
collected from its members or any class thereof, and which 
reserves the right to make any additional assessments, or 
without the consent of the certificate or policyholder to 
increase the premium named therein, shall be deemed to be 
engaged in the business of life insurance upon the cooperative 
or assessment plan.  Every corporation which likewise agrees, in 
case of accident, sickness, or other physical disability, or 
reaching a certain age, to pay money or confer benefits likewise 
derived and issuing certificates or policies with similar 
conditions with reference to the payment of dues or assessments, 
shall be deemed to be engaged in the business of casualty 
insurance upon the cooperative or assessment plan, and shall, 
except as herein otherwise specified, be subject to the 
provisions of sections 61A.39 to 61A.42 and 61A.44 to 61A.50.  
     Subd. 2.  [CONTINUED CORPORATE EXISTENCE.] Notwithstanding 
the repeal of Minnesota Statutes, sections 63.01, 63.011, and 
63.02 to 63.35 pursuant to Laws 1983, chapter 104, section 1, 
any corporation, society or association formed or having existed 
under Laws 1933, chapter 241, whether or not it amended its 
articles of incorporation in accordance with Laws 1945, chapter 
178, as amended by Laws 1951, chapter 257, and which has 
transformed itself into a cooperative life insurance company to 
engage in business under the cooperative plan, shall be and 
continue to exist as a corporation by virtue of the provisions 
hereof and may exercise and shall continue to have and to hold 
all the rights, privileges and powers which it had, prior to the 
repeal of such sections, including those derived under Laws 
1945, chapter 178, section 1, as amended by Laws 1951, chapter 
257, section 2.  
    Sec. 2.  Minnesota Statutes 1982, section 65A.29, is 
amended by adding a subdivision to read:  
    Subd. 7.  [RENEWAL; NOTICE REQUIREMENT.] No insurer shall 
refuse to renew, or reduce limits of coverage, or eliminate any 
coverage in a homeowner's insurance policy unless it mails or 
delivers to the insured, at the address shown in the policy, at 
least 60 days advance notice of its intention.  The notice must 
contain the specific underwriting or other reason or reasons for 
the indicated action.  
    Sec. 3.  Minnesota Statutes 1982, section 65A.29, is 
amended by adding a subdivision to read:  
    Subd. 8.  [RULES.] The commissioner may adopt rules 
pursuant to chapter 14, to specify the grounds for nonrenewal, 
reduction in limits of coverage, or elimination of coverage of a 
homeowner's policy.  The rules must limit the grounds to the 
following factors:  
    (a) reasons stated for cancellation in section 65A.01, 
subdivision 3a;  
    (b) reasons stated in section 72A.20, subdivision 13;  
    (c) insured's loss experience, not to include natural 
causes; and 
    (d) other factors deemed reasonable by the commissioner.  
    The rules may give consideration to the form and content of 
the termination notice to the insured, a statement as to what 
constitutes receipt of the termination notice, and the procedure 
by which the insured may appeal a termination notice.  
    The rules adopted under this subdivision may provide for 
imposition of a monetary penalty not greater than $500 per 
occurrence upon insurers who are found to be in violation of the 
law or the rules.  
    Sec. 4.  Minnesota Statutes 1982, section 65A.29, is 
amended by adding a subdivision to read:  
    Subd. 9.  [NOTICE OF RIGHT TO COMPLAIN.] A named insured 
who believes a nonrenewal, reduction in the limits of coverage, 
elimination of coverage, or cancellation under section 65A.01, 
subdivision 3a, is in violation of the law or the rules may, 
within 30 days after receipt of the notice, file in writing an 
objection to the action with the commissioner.  
    Upon receipt of a written objection, the commissioner shall 
notify the insurer of receipt of the objection and of the right 
of the insurer to file a written response within ten days of 
receipt of the notification.  Within 30 days of receipt of 
written objection by an insured, the commissioner shall approve 
or disapprove the insurer's action and shall notify the insured 
and insurer of his final decision.  A decision which disapproves 
the insurer's action constitutes a charge that the insurer has 
violated the law or the rules.  Either party may institute 
proceedings for judicial review of the commissioner's decision. 
The commissioner's decision is binding pending judicial review.  
    Sec. 5.  Minnesota Statutes 1982, section 65B.44, 
subdivision 5, is amended to read: 
    Subd. 5.  [REPLACEMENT SERVICE AND LOSS.] Replacement 
service loss benefits shall reimburse all expenses reasonably 
incurred by or on behalf of the nonfatally injured person in 
obtaining usual and necessary substitute services in lieu of 
those that, had he not been injured, the injured person would 
have performed not for income but for the direct benefit of 
himself or his household; if the nonfatally injured person 
normally, as a full time responsibility, provides care and 
maintenance of a home with or without children, the benefit to 
be provided under this subdivision shall be the reasonable value 
of such care and maintenance or the reasonable expenses incurred 
in obtaining usual and necessary substitute care and maintenance 
of the home, whichever is greater.  These benefits shall be 
subject to a maximum of $15 $200 per day week.  All replacement 
services loss sustained on the date of injury and the first 
seven days thereafter is excluded in calculating replacement 
services loss. 
    Sec. 6.  [REPEALER.] 
    Minnesota Statutes 1982, section 65A.29, subdivision 2, is 
repealed. 
    Approved April 26, 1984