Minnesota Session Laws - 2002, Regular Session

                            CHAPTER 234-H.F.No. 2783 
                  An act relating to insurance; no-fault auto; 
                  regulating residual liability coverage; amending 
                  Minnesota Statutes 2000, section 65B.49, subdivision 3.
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 2000, section 65B.49, 
        subdivision 3, is amended to read: 
           Subd. 3.  [RESIDUAL LIABILITY INSURANCE.] (1) Each plan of 
        reparation security shall also contain stated limits of 
        liability, exclusive of interest and costs, with respect to each 
        vehicle for which coverage is thereby granted, of not less than 
        $30,000 because of bodily injury to one person in any one 
        accident and, subject to said limit for one person, of not less 
        than $60,000 because of injury to two or more persons in any one 
        accident, and, if the accident has resulted in injury to or 
        destruction of property, of not less than $10,000 because of 
        such injury to or destruction of property of others in any one 
        accident. 
           (2) Under residual liability insurance the reparation 
        obligor shall be liable to pay, on behalf of the insured, sums 
        which the insured is legally obligated to pay as damages because 
        of bodily injury and property damage arising out of the 
        ownership, maintenance or use of a any motor vehicle, including 
        a motor vehicle permissively operated by an insured as that term 
        is defined in section 65B.43, subdivision 5, if the injury or 
        damage occurs within this state, the United States of America, 
        its territories or possessions, or Canada.  A reparation obligor 
        shall also be liable to pay sums which another reparation 
        obligor is entitled to recover under the indemnity provisions of 
        section 65B.53, subdivision 1. 
           (3) Every plan of reparation security shall be subject to 
        the following provisions which need not be contained therein: 
           (a) The liability of the reparation obligor with respect to 
        the residual liability coverage required by this clause shall 
        become absolute whenever injury or damage occurs; such liability 
        may not be canceled or annulled by any agreement between the 
        reparation obligor and the insured after the occurrence of the 
        injury or damage; no statement made by the insured or on the 
        insured's behalf and no violation of said policy shall defeat or 
        void said policy. 
           (b) The satisfaction by the insured of a judgment for such 
        injury or damage shall not be a condition precedent to the right 
        or duty of the reparation obligor to make payment on account of 
        such injury or damage. 
           (c) The reparation obligor shall have the right to settle 
        any claim covered by the residual liability insurance policy, 
        and if such settlement is made in good faith, the amount thereof 
        shall be deductible from the limits of liability for the 
        accident out of which such claim arose. 
           (d) Except as provided in subdivision 5a, a residual 
        liability insurance policy shall be excess of a nonowned vehicle 
        policy whether the nonowned vehicle is borrowed or rented, or 
        used for business or pleasure.  A nonowned vehicle is one not 
        used or provided on a regular basis.  
           Sec. 2.  [EFFECTIVE DATE; APPLICATION.] 
           Section 1 is effective the day following final enactment 
        and applies to policies issued or renewed on or after that date. 
           Presented to the governor March 13, 2002 
           Signed by the governor March 14, 2002, 3:03 p.m.