Minnesota 2023-2024 Regular Session

Minnesota House Bill HF770

Introduced
1/25/23  
Refer
1/25/23  

Caption

Life insurance governing provisions modified.

Impact

By integrating these changes, HF770 is expected to modify how life insurance policies handle suicide claims, thus affecting insurance providers and policyholders alike. It proposes that if a claim is denied due to suicide within one year of policy issuance, insurers are mandated to refund all premiums paid for that coverage. This change is aimed at enhancing consumer protections and ensuring clarity in policy standards, which may lead to adjustments in routine practices among insurance companies.

Summary

House File 770 aims to modify specific provisions related to life insurance within the Minnesota Statutes, particularly focusing on the handling of suicide clauses and the definition of insurance terms. One significant amendment clarifies that the mental state of an individual, whether sane or insane, does not play a role in determining suicide when assessing life insurance claims. This legal clarification seeks to unify the interpretation of suicide-related insurance clauses and ensure that policies include transparent exclusions for any death resulting from suicide within a specified duration.

Sentiment

The sentiment around HF770 appears largely supportive, particularly among legislators and consumer advocacy groups that prioritize clearer regulations in the insurance industry. Supporters argue that the bill enhances consumer rights and ensures that individuals are not unfairly denied benefits due to ambiguous policy clauses. However, there may be some apprehension among insurers regarding potential increased liabilities and the ramifications of the proposed changes to existing policies.

Contention

Notably, discussions surrounding HF770 may reflect concerns regarding the balance between ensuring consumer protection and the risk management practices of insurance providers. While the bill is primarily framed as a consumer protection measure, there are potential implications for insurance companies regarding underwriting criteria and the financial impact of policies that now include refund benefits for suicides within the first year of coverage. This could lead to debates over the financial sustainability and operational adjustments required by insurers in the state.

Companion Bills

MN SF1871

Similar To Life insurance provisions modifications

Previously Filed As

MN SF1871

Life insurance provisions modifications

MN HF4084

Life insurance policy governing provisions modified with respect to suicide.

MN HB2076

Life insurance; illustrations

MN SF2457

Insurance provisions modification

MN SB263

Insurance: annuities and life insurance policies.

MN AB2634

Life insurance.

MN SF4065

Various provisions modification governing debt collection, garnishment, and consumer finance

MN HF1322

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

MN HF4100

Debt collection, garnishment, medical debt, and consumer finance various governing provisions modified; debtor protections provided; statutory forms modified; and statutory form review required.

MN HF4077

Consumer protection, monetary and financial institutions policy, insurance, and telecommunications provisions added, modified, or eliminated; on-sale liquor licenses modified and authorized; technical changes made; reports required; and penalties established.

Similar Bills

No similar bills found.