* The 2009 Minnesota legislative session ended late yesterday and insurance consumers throughout the state will benefit from the legislature’s handling of two key issues which were poised to unnecessarily inject extra costs into the Minnesota insurance system, according to the American Insurance Association (AIA).The two key property/casualty industry related bills include:
House File 417 was originally a highly objectionable bill that would have permitted the awarding of damages, attorneys’ fees and costs, and substantial prejudgment interest to commercial policyholders who won coverage dispute lawsuits with their insurers. The legislation was somewhat improved in the closing days of session to only allow for 10 percent interest on awards and no additional damages or attorneys’ fees. AIA worked closely in concert with others in the industry and the broader business community to help improve this bill.
Senate File 263 was a bill to ban insurers’ use of credit information for rating and underwriting. AIA opposed this onerous bill and testified at its committee hearing that the legislation would eliminate an objective, proven risk factor that currently benefits a majority of Minnesotans in the form of lower premiums for their home and car insurance.
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