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Key: (1) language to be deleted (2) new language

                            CHAPTER 435-S.F.No. 2582 
                  An act relating to insurance; extending to contract 
                  for deed vendors the protections contained in the 
                  mortgage clause of the standard fire insurance policy; 
                  amending Minnesota Statutes 1992, section 65A.01, 
                  subdivision 3. 
           Section 1.  Minnesota Statutes 1992, 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 commerce, 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 12:01 a.m. Standard Time) to 
        ..... (At 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. 
           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 
           If loss hereunder is made payable, in whole or in part, to 
        a designated mortgagee or contract for deed vendor not named 
        herein as insured, such interest in this policy may be canceled 
        by giving to such mortgagee or vendor a ten days' written notice 
        of cancellation. 
           Notwithstanding any other provisions of this policy, if 
        this policy shall be made payable to a mortgagee or contract for 
        deed vendor of the covered real estate, no act or default of any 
        person other than such mortgagee or vendor or the mortgagee's or 
        vendor's agent or those claiming under the mortgagee or vendor, 
        whether the same occurs before or during the term of this 
        policy, shall render this policy void as to such mortgagee or 
        vendor nor affect such mortgagee's or vendor's right to recover 
        in case of loss on such real estate; provided, that the 
        mortgagee or vendor 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 or vendor for any sum for loss under this policy for 
        which no liability exists as to the mortgagor, vendee, or owner, 
        and this company shall elect by itself, or with others, to pay 
        the mortgagee or vendor the full amount secured by such mortgage 
        or contract for deed, then the mortgagee or vendor shall assign 
        and transfer to the company the mortgagee's or vendor's 
        interest, upon such payment, in the said mortgage or contract 
        for deed 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 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 of the right to counsel and that any answers may be 
        used against the insured 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 selecting party, or the party for whom 
        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.  [EFFECTIVE DATE.] 
           Section 1 is effective January 1, 1995, and applies to a 
        policy or contract issued or renewed on or after that date. 
           Presented to the governor April 11, 1994 
           Signed by the governor April 13, 1994, 1:33 p.m.

Official Publication of the State of Minnesota
Revisor of Statutes