For purposes of this section:
(1) "insurance policy" means a commercial or professional insurance policy or contract other than:
(i) a workers' compensation insurance policy or contract;
(ii) a health insurance policy or contract issued, executed, renewed, maintained, or delivered in this state by a health carrier as defined in section 62A.011, subdivision 2;
(iii) a life insurance or disability insurance policy or contract; or
(iv) a policy or contract issued by a township mutual fire insurance company operating under chapter 65A;
(2) "insured" means any named insured, additional insured, or insured under an insurance policy; and
(3) "insurer" means an insurer:
(i) incorporated or organized in this state; or
(ii) admitted, authorized, or licensed to do business or doing business in this state but not incorporated or organized in this state. Insurer does not include the joint underwriting association operating under chapter 62F or 62I; or a township mutual fire insurance company operating under chapter 65A.
(a) An insured who prevails in any claim against an insurer based on the insurer's breach or repudiation of, or failure to fulfill, a duty to provide services or make payments is entitled to recover ten percent per annum interest on monetary amounts due under the insurance policy, calculated from the date the request for payment of those benefits was made to the insurer.
(b) Punitive damages or damages for nonmonetary losses are not recoverable under this section.
This section applies to a court action or arbitration proceeding, including an action seeking declaratory judgment.