HF1322

This bill, Minnesota H.F. No. 1322 (2025 Session), proposes amendments to Minnesota Statutes 2024, section 72A.201, regarding automobile insurance claims handling, settlement offers, and agreements. The key aspects of the legislation are:

1. Definitions Update:

• Expands and clarifies definitions related to insurance claims, such as adjusters, claim settlement, insurers, insured parties, and repair operations.
• Includes references to self-insurers and self-insurance administrators.

2. Enhanced Standards for Automobile Insurance Claims Handling:

• Total Loss Claims: Insurers must provide policyholders with clear settlement options, including cash settlements covering all costs or replacing the vehicle with a comparable one.
• Partial Loss Claims: Ensures that insurers pay full costs for repairing a vehicle to its pre-loss condition, including hidden damages.
• Prevents insurers from denying or reducing settlement amounts based on unrelated or undisclosed conditions.
• Protects repair facilities by ensuring that insurers approve or deny repair supplements within three days.

3. Consumer Protections in Claim Settlements:

• Prevents insurers from steering policyholders to preferred repair shops through intimidation or coercion.
• Requires insurers to inform claimants about their rights, including the right to choose a repair shop or rental vehicle company.
• Mandates prompt communication and action by insurers, preventing delays or underpayments in claims handling.

4. New Private Right of Action Against Insurers:

• Grants insured individuals, contractors, and repair shops the ability to sue insurers or adjusters who violate automobile claims handling regulations.
• Invalidates any contractual provisions restricting this right.
• Courts must order violating insurers to cover reasonable attorney fees, witness fees, and other costs incurred in legal actions.

This bill strengthens consumer rights, holds insurers accountable for fair claim settlements, and prevents insurers from unfairly pressuring claimants or repair shops.