Minnesota Legislature
Office of the Revisor of Statutes
Minnesota Session Laws - 1994, Regular Session
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.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
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
demand.
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