Minnesota Session Laws - 1990, Regular Session

  

                         Laws of Minnesota 1990 

                        CHAPTER 399-H.F.No. 2637 
           An act relating to insurance; clarifying the law 
          prohibiting insurers from maintaining subrogation 
          actions against insureds; amending Minnesota Statutes 
          1989 Supplement, section 60A.41. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1989 Supplement, section 
60A.41, is amended to read: 
    60A.41 [SUBROGATION AGAINST INSUREDS PROHIBITED.] 
    (a) An insurance company providing insurance coverage or a 
company providing reinsurance its reinsurer for that insurance 
company for the underlying insurance coverage may not proceed 
against its insured in a subrogation action where the loss was 
caused by the nonintentional acts of the insured. 
    (b) An insurance company providing insurance coverage or a 
company providing reinsurance its reinsurer for the that 
underlying insurance coverage may not subrogate itself to the 
rights of its insured to proceed against another person if that 
other person is insured for the same loss being subrogated, by 
the same company to recover a.  This provision applies only if 
the loss was caused by the nonintentional acts of that insured 
the person against whom subrogation is sought. 
    (c) This provision does not apply to or affect claims of a 
surety against its principal. 
    (d) Nothing in this section prevents an insurer from 
allocating the loss internally to the at-fault insured for 
purposes of underwriting, agency, and claims information. 
    Presented to the governor April 2, 1990 
    Signed by the governor April 5, 1990, 3:49 p.m.