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Minnesota Legislature Update

Posted by: euser
January 19, 2007
Topic: Minnesota No-Fault Law

The Minnesota Legislature has introduced its first bill relating to no-fault insurance for the 2007 session. The legislation, introduced in the Senate on January 17 by Sen. David Tomassoni (DFL - Chisholm), and in the House on January 18 by Rep. Tom Rukavina (DFL - Virginia) and Rep. Joe Atkins (DFL - Inver Grove Heights), would require actions to terminate or deny basic economic loss benefits under no-fault automobile insurance to be based on awards obtained in arbitration proceedings. The Senate bill, SF 119, was referred to the Senate Commerce and Consumer Protection Committee. The House bill, HF 215, was referred to the House Commerce and Labor Committee.

Here is the text of the proposed legislation:

 

A bill for an act relating to insurance; no-fault auto; regulating benefit terminations or denials; proposing coding for new law in Minnesota Statutes, chapter 65B.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1. [65B.565] BENEFIT TERMINATIONS OR DENIALS; ARBITRATION.

No reparation obligor shall terminate basic economic loss benefits or deny a claim by an insured for basic economic loss benefits unless this action is taken based on an award obtained in an arbitration proceeding pursuant to section 65B.525.

Sec. 2. EFFECTIVE DATE; APPLICATION.

Section 1 is effective August 1, 2007, and applies to basic economic benefits claims arising from incidents on or after that date.