72C.06 READABILITY.
Subdivision 1.
Requirement. All insurance policies filed with the commissioner pursuant to
section
72C.11 shall be written in language easily readable and understandable by a person of
average intelligence and education.
Subd. 2.
Compliance factors. In determining whether a policy or contract is readable within
the meaning of this section the commissioner shall consider, at least, the following factors:
(a) the simplicity of the sentence structure and the shortness of the sentences used;
(b) the extent to which commonly used and understood words are employed;
(c) the extent to which legal terms are avoided;
(d) the extent to which references to other sections or provisions of the contract are
minimized;
(e) the extent to which definitional provisions are incorporated in the text of the policy
or contract; and
(f) any additional factors relevant to the readability or understandability of an insurance
policy or contract which the commissioner may prescribe by rule.
History: 1977 c 345 s 6