Minnesota Session Laws - 1994, Regular Session

                            CHAPTER 476-S.F.No. 2255 
                  An act relating to insurance; requiring the 
                  commissioner of commerce to conduct a study of 
                  pollution coverage in Minnesota farm liability 
                  policies and report to the legislature.  
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  [POLLUTION COVERAGE AND FARM LIABILITY POLICIES 
        STUDY.] 
           The commissioner of commerce shall conduct a study of 
        pollution coverage offered with or contained in Minnesota basic 
        farm liability policies.  The study must: 
           (1) identify the existing basic farm liability policies 
        offered in the state, the extent to which these policies contain 
        pollution exclusions or pollution liability coverage, and, if 
        pollution liability coverage is provided, the limits of the 
        pollution coverage and availability across the state; 
           (2) identify the range of farm pollution liability 
        insurance beyond the basic farm liability policy available in 
        the state, the limits and costs of the coverage, and assess 
        whether the range of the policies available provides adequate 
        protection for the farming community; 
           (3) analyze current industry practices, including the 
        pollution liability claims experience for the insurance 
        industry, the insurance industry's method of assessing pollution 
        liability risk, and whether the risk assessment reflects best 
        farming and insurance practices; 
           (4) assess the desirability of mandating pollution coverage 
        in basic farm liability insurance, including whether defense 
        costs should be included within the mandate, and taking into 
        consideration the impacts and benefits to both the farming 
        community and the insurance industry; 
           (5) assess the desirability of publishing a market guide 
        for farmers that would provide market assistance to purchasers 
        of farm liability coverage; and 
           (6) recommend other legislation or rule changes regarding 
        pollution liability insurance that would strengthen both the 
        farming community and the insurance industry. 
           The commissioner shall organize an advisory committee 
        composed of representatives from the farming and insurance 
        industries.  Representatives from the farming community shall 
        include, but not be limited to, the department of agriculture 
        and statewide farm organizations.  Representatives from the 
        insurance industry shall include, but not be limited to, 
        insurance companies that write farm liability policies and 
        statewide insurance oriented organizations.  The commissioner 
        may incorporate recommendations made by members of the advisory 
        committee in a report to the legislature and must deliver the 
        report to the legislature by January 1, 1995. 
           Sec. 2.  [EFFECTIVE DATE.] 
           This act is effective the day following final enactment. 
           Presented to the governor April 18, 1994 
           Signed by the governor April 20, 1994, 1:54 p.m.