HF1322

HF1322 (Legislative Session 94 (2025-2026))

Automobile insurance; provisions governing claims handling and settlement offers and agreements modified.

Related bill: SF2209

AI Generated Summary

This bill, H.F. No. 1322, proposed in the Minnesota House of Representatives, seeks to amend Minnesota Statutes 2024, section 72A.201, with changes to automobile insurance claims handling, settlement offers, and agreements. The key aspects of the bill include:

Definitions Update: Expands and clarifies definitions related to automobile insurance claims, including terms such as "adjuster," "claim," "claim settlement," "repair operations," and others.
Claims Handling and Settlement Requirements:
- Requires insurers to offer settlements for total losses based on comparable vehicle costs, with itemized justifications for any deviations.
- Mandates insurers cover all reasonable costs for returning a vehicle to pre-loss condition, including hidden damages, and ensures rejected repair items related to safety must be justified.
- Prohibits insurers from requiring claimants to use specific repair shops and mandates informing consumers of their right to choose.
- Requires insurers to notify policyholders about deductible recovery and loss-of-use coverage.
- Prohibits unnecessary delays or repeated requests for information from insured parties, claimants, or repair facilities.
- Sets deadlines for reviewing and approving or denying repair cost supplements within three business days.
Private Right of Action:
- Grants insured individuals, contractors, and repair facilities the legal right to sue insurers for violations of automobile claims handling standards.
- Declares any contractual provision attempting to limit this right as void and unenforceable.
- Requires courts to award attorney fees and other legal costs to aggrieved parties if an insurer or adjuster is found in violation.

In summary, this bill strengthens consumer protections in automobile insurance claims, increases insurer accountability, enhances transparency in claims handling and settlement, and provides clear legal recourse for policyholders and repair businesses.

Bill text versions

Introduction PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
February 19, 2025	House	Floor	Action	Introduction and first reading, referred to	Commerce Finance and Policy
February 19, 2025	House	Floor	Action	Introduction and first reading, referred to	Commerce Finance and Policy
February 26, 2025	House	Floor	Action	Author added
February 26, 2025	House	Floor	Action	Author added
March 05, 2025	House	Floor	Action	Author added

Citations

[
  {
    "analysis": {
      "added": [
        "Terms 'Proof of loss' and 'Notification of claim' among others are defined."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill modifies definitions related to automobile insurance claims under section 72A.201.",
      "modified": [
        "Clarification of terms related to insurance claims, such as 'Claim' and 'Insured'."
      ]
    },
    "citation": "72A.201",
    "subdivision": "subdivision 3"
  },
  {
    "analysis": {
      "added": [
        "Expanded list of unfair settlement practices, including failure to inform on loss of use claims and fail to review repair supplements timely."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill amends standards for automobile insurance claims handling and settlement offer procedures under section 72A.201.",
      "modified": [
        "Standards for handling claims and settlement offers adjusted, including provisions for cash settlements and repair costs."
      ]
    },
    "citation": "72A.201",
    "subdivision": "subdivision 6"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "References to self-insurance administrator defined under section 60A.23.",
      "modified": [
        "Clarification of the definition and regulation of self-insurance administrators."
      ]
    },
    "citation": "60A.23",
    "subdivision": "subdivision 8"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "References time limitation provisions under section 65B.55.",
      "modified": [
        "Notices regarding time limitations clarified for insurers regarding informing insured parties."
      ]
    },
    "citation": "65B.55",
    "subdivision": "subdivisions 1 and 2"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "References rights and obligations for insured examination under section 65B.56.",
      "modified": [
        "Obligations for insurers to inform insured parties about exam-related rights enhanced."
      ]
    },
    "citation": "65B.56",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "References to benefits described in section 65B.44.",
      "modified": [
        "Disclosure requirements modified regarding insurer providing claim files to insured parties."
      ]
    },
    "citation": "65B.44",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "References medical review confidentiality under section 145.64.",
      "modified": [
        "Clarification on exclusion from insurer's claims file due to medical review confidentiality."
      ]
    },
    "citation": "145.64",
    "subdivision": ""
  }
]