1.1                          A bill for an act 
  1.2             relating to insurance; providing that a retroactive 
  1.3             cancellation of an automobile insurance policy under 
  1.4             certain circumstances does not affect third-party 
  1.5             claimants; proposing coding for new law in Minnesota 
  1.6             Statutes, chapter 65B. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  [65B.136] [RETROACTIVE CANCELLATIONS; EFFECTS 
  1.9   ON THIRD PARTIES.] 
  1.10     (a) Any retroactive cancellation of an automobile insurance 
  1.11  policy by the insurer due to the named insured not being the 
  1.12  owner of the vehicle is without prejudice to the rights of a 
  1.13  third party who makes a claim for no-fault benefits under the 
  1.14  policy or who makes a liability claim against the owner or an 
  1.15  insured.  In the case of a liability claim, the insurer shall 
  1.16  defend against the claim and shall pay the third party on the 
  1.17  same basis as if the policy were still in effect.  This section 
  1.18  applies only to claims arising out of an event occurring prior 
  1.19  to the time that the insurer provides notice of cancellation to 
  1.20  the named insured. 
  1.21     (b) An insurer or its agent may require named insureds or 
  1.22  applicants for coverage to provide proof of ownership of the 
  1.23  vehicle insured or to be insured. 
  1.24     Sec. 2.  [EFFECTIVE DATE.] 
  1.25     Section 1 is effective the day following final enactment.