SF2209

SF2209 (Legislative Session 94 (2025-2026))

Provisions modification governing claims handling and settlement offers and agreements

Related bill: HF1322

AI Generated Summary

The proposed bill, S.F. No. 2209, aims to modify Minnesota's automobile insurance laws, specifically regarding claims handling, settlement offers, and agreements. The bill amends Minnesota Statutes, Section 72A.201, to:

Clarify Definitions – It refines key terms such as "adjuster," "claim settlement," "insured," "repair operations," and others to ensure consistency and accuracy in the interpretation of insurance-related provisions.
Establish Standards for Claims Handling and Settlement Offers – The bill sets explicit requirements for insurance companies, adjusters, and self-insurers in processing auto insurance claims. These include:
- Providing fair cash settlements or vehicle replacements for total loss claims.
- Covering all reasonable repair costs necessary to return a vehicle to its pre-loss condition.
- Prohibiting reductions in settlement amounts for repairs related to vehicle safety.
- Allowing claimants to choose their preferred repair shop without coercion or intimidation.
- Requiring insurers to promptly inspect damaged vehicles and respond to repair estimates.
- Mandating transparency and fairness in subrogation recoveries (when insurers recover costs from liable third parties).
- Ensuring insured individuals are informed of rights related to rental vehicle reimbursement.
- Preventing unnecessary delays in claim processing or settlement payments.
Introduce a Private Right of Action – The bill establishes that insured individuals, contractors, and repair facilities can sue insurers or adjusters for violations of claims handling standards. Courts must award reasonable costs, witness fees, disbursements, and attorney fees to successful plaintiffs.

Overall, this legislation aims to strengthen consumer protections, promote fair claim settlements, and hold insurers accountable for improper claims practices.

Bill text versions

Introduction PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
March 05, 2025	House	Floor	Action	Introduction and first reading
March 05, 2025	Senate	Floor	Action	Introduction and first reading
March 05, 2025	House	Floor	Action	Referred to	Commerce and Consumer Protection
March 05, 2025	Senate	Floor	Action	Referred to	Commerce and Consumer Protection
March 05, 2025	Senate	Floor	Action	Referred to	Commerce and Consumer Protection

Citations

[
  {
    "analysis": {
      "added": [
        "Added definitions related to insurance claims handling and settlement."
      ],
      "removed": [],
      "summary": "The bill revises definitions related to automobile insurance claims handling.",
      "modified": [
        "Clarified and expanded definitions related to claim processes."
      ]
    },
    "citation": "72A.201",
    "subdivision": "subdivision 3"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Refers to existing statutes governing insurance agent licensing.",
      "modified": []
    },
    "citation": "60K.30 to 60K.56",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This citation is included in the definition of self-insurance administrators.",
      "modified": []
    },
    "citation": "60A.23",
    "subdivision": "subdivision 8"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The statute is included in the definition of self-insured entities.",
      "modified": []
    },
    "citation": "65B.48",
    "subdivision": "subdivision 3"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Discusses time limitation provisions in automobile insurance policies.",
      "modified": []
    },
    "citation": "65B.55",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Relates to the examination rights of insurance policyholders.",
      "modified": []
    },
    "citation": "65B.56",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill mentions claim file access rights under this statute.",
      "modified": []
    },
    "citation": "65B.44",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Statute protects certain medical review information related to insurance claims.",
      "modified": []
    },
    "citation": "145.64",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The mentioned statutes concern the broader framework of insurance claim handling.",
      "modified": []
    },
    "citation": "72A.49 to 72A.505",
    "subdivision": ""
  }
]