1997 Minnesota Statutes

     65B.54 Reparation obligor's duty to respond to claims. 

    Subdivision 1.  Basic economic loss benefits are payable 
 monthly as loss accrues.  Loss accrues not when injury occurs, 
 but as income loss, replacement services loss, survivor's 
 economic loss, survivor's replacement services loss, or medical 
 or funeral expense is incurred.  Benefits are overdue if not 
 paid within 30 days after the reparation obligor receives 
 reasonable proof of the fact and amount of loss realized, unless 
 the reparation obligor elects to accumulate claims for periods 
 not exceeding 31 days and pays them within 15 days after the 
 period of accumulation.  If reasonable proof is supplied as to 
 only part of a claim, and the part totals $100 or more, the part 
 is overdue if not paid within the time provided by this 
 section.  Medical or funeral expense benefits may be paid by the 
 reparation obligor directly to persons supplying products, 
 services, or accommodations to the claimant. 

    Subd. 2.  Overdue payments shall bear simple interest at 
 the rate of 15 percent per annum.  

    Subd. 3.  A claim for basic economic loss benefits shall be 
 paid without deduction for the benefits which are to be 
 subtracted pursuant to section 65B.61, if these benefits have 
 not been paid to the claimant before the reparation benefits are 
 overdue or the claim is paid.  The obligor is entitled to 
 reimbursement from the person obligated to make the payments or 
 from the claimant who actually receives the payments.  

    Subd. 4.  A reparation obligor may bring an action to 
 recover benefits which are not payable, but are in fact paid, 
 because of an intentional misrepresentation of a material fact, 
 upon which the reparation obligor relies, by the claimant or by 
 a person providing products or services for which basic economic 
 loss benefits are payable. The action may be brought only 
 against the person providing the products or services, unless 
 the claimant has intentionally misrepresented the facts or knew 
 of the misrepresentation.  A reparation obligor may offset 
 amounts the reparation obligor is entitled to recover from the 
 claimant under this subdivision against any basic economic loss 
 benefits otherwise due the claimant.  

    Subd. 5.  A reparation obligor who rejects a claim for 
 benefits shall give to the claimant prompt written notice of the 
 rejection, specifying the reason.  If a claim is rejected for a 
 reason other than that the person is not entitled to the basic 
 economic loss benefits claimed, the written notice shall inform 
 the claimant that the claimant may file the claim with the 
 assigned claims bureau and shall give the name and address of 
 the bureau.  

    HIST: 1974 c 408 s 14; 1979 c 190 s 3; 1986 c 444