Minnesota Session Laws - 2002, Regular Session

                            CHAPTER 295-S.F.No. 2953 
                  An act relating to insurance; prohibiting issuing or 
                  requiring excess insurance on property; amending 
                  Minnesota Statutes 2000, section 65A.09. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 2000, section 65A.09, is 
        amended to read: 
           65A.09 [INSURANCE IN EXCESS OF VALUE.] 
           Subdivision 1.  [INSURANCE LIMITED.] No company shall 
        knowingly issue any policy upon property in this state for an 
        amount which, together with any existing insurance thereon, 
        exceeds the fair value of replacement cost of the buildings and 
        any other covered improvements on the property.  Any company 
        willfully insuring property for more than its real value that 
        amount shall forfeit to the state, for the benefit of the school 
        fund, double the premium collected on the policy.  
           Subd. 2.  [LENDERS; EXCESS INSURANCE.] No mortgage company, 
        bank, savings association, finance company, or other mortgage 
        lender of any kind may require insurance coverage in violation 
        of section 72A.31, subdivision 1, clause (4).  Any lender that 
        willfully violates this subdivision is subject to penalties 
        available under chapter 45.  
           Sec. 2.  [EFFECTIVE DATE.] 
           Section 1 is effective the day following final enactment. 
           Presented to the governor March 25, 2002 
           Signed by the governor March 26, 2002, 2:27 p.m.