Minnesota 2023-2024 Regular Session

Minnesota Senate Bill SF2004

Introduced
2/21/23  

Caption

Certain claims practices regulation

Impact

The impact of SF2004 on state laws is significant, as it introduces stricter guidelines on how insurance claims for total and partial losses are handled. Insurers will be mandated to offer specific settlement methods to policyholders that ensure fair compensation, thereby protecting consumers from having to accept inadequate settlements. This legislation aims to bolster consumer confidence in insurance claims processes and ensure that rights under existing policies are upheld.

Summary

Senate File 2004 focuses on regulating certain claims practices related to automobile insurance in Minnesota. It amends Minnesota Statutes to clarify what constitutes unfair settlement practices by insurers, adjusting how claims are handled and the settlement offers made to insured individuals. Notably, the bill emphasizes the insured's right to a transparent settlement process, requiring insurers to provide clear options for compensation and justification for any deviations from standard settlement protocols.

Contention

Discussion around SF2004 has highlighted points of contention primarily related to how stringent the regulations should be. Advocates argue that the bill is necessary to prevent insurers from exploiting consumers and to enforce better transparency and accountability in claims handling. Opponents may contend that overly strict regulations could lead to increased costs for insurers, which could ultimately be passed down to consumers through higher premiums. Balancing regulatory oversight with insurance market viability remains a central challenge as discussions continue.

Companion Bills

MN HF2383

Similar To Claims practices regulated.

Previously Filed As

MN HF2383

Claims practices regulated.

MN SF2209

Provisions modification governing claims handling and settlement offers and agreements

MN HF1322

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

MN H5855

Unfair Claims Practices Act

MN S0925

Unfair Claims Practices Act

MN HB591

Provides for certain claims settlement practices

MN S3105

Expands the definition of "unfair claims practices".

MN H5496

Unfair Claims Settlement Practices Act

MN H5418

Unfair Claims Settlement Practices Act

MN H5536

Unfair Claims Settlement Practices Act

Similar Bills

NJ S4534

Requires automobile insurers to include appraisal provisions in insurance policies.

MN HF2383

Claims practices regulated.

MN HF1322

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

MN SF2209

Provisions modification governing claims handling and settlement offers and agreements

IA HF436

A bill for an act relating to child restraint systems by excluding purchases from the sales and use tax and by including the value in the loss calculations for specified insurance settlements of automobiles, and including applicability provisions.

IA SF215

A bill for an act relating to the inclusion of the value of child restraint systems in the loss calculation for specified insurance settlements of automobile partial or total losses, and including applicability provisions.

IA HF499

A bill for an act relating to the inclusion of the value of child restraint systems in the loss calculation for specified insurance settlements of automobile partial or total losses, and including applicability provisions.(Formerly HF 324.)

IA HF324

A bill for an act relating to the inclusion of the value of child restraint systems in the partial loss calculation for specified insurance settlements of first-party automobile partial losses and including applicability provisions.(See HF 499.)