language to be deleted (2) new language
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 ofreplacement cost of the buildings and any other covered improvements on the property. Any company willfully insuring property for more than its real valuethat 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.