SF2209 (Legislative Session 94 (2025-2026))
Provisions modification governing claims handling and settlement offers and agreements
Related bill: HF1322
AI Generated Summary
This bill, Minnesota Senate File No. 2209, proposes modifications to automobile insurance claims handling, settlement offers, and agreements by amending Minnesota Statutes, Section 72A.201.
Key Changes and Additions:
Definitions Update: The bill clarifies and expands definitions related to insurance claims, including terms such as "adjuster," "claim," "claim settlement," "insured," and "repair operations." Notably, "repair operations" now explicitly include diagnostic and repair verification steps aligned with manufacturer guidelines and industry standards.
Standards for Auto Insurance Claims Handling & Settlements:
- Ensures insured individuals receive proper settlements for total and partial vehicle losses.
- Mandates fair payment practices for claim settlements, accounting for all reasonable costs, including towing, storage, and vehicle safety repairs.
- Prohibits insurers from reducing settlement amounts for required repairs connected to vehicle safety and operation.
- Prevents insurers from coercing claimants into using preferred repair shops and requires them to inform policyholders of their right to choose their own repair shop.
- Requires insurers to quickly inspect damaged vehicles (within 5 business days for non-drivable cars and 15 days for others).
- Establishes guidelines for fair subrogation recoveries so policyholders are reimbursed for their deductible.
- Prohibits insurers from delaying, underpaying, miscalculating, or denying legitimate claim estimates.
- Mandates insurers to expedite repair supplement approvals within three business days.
New Private Right of Action (Subdivision 6a):
- Gives policyholders, contractors, and repair facilities the ability to sue insurers or adjusters for violations of the statute.
- Declares that any contract limiting an insured party’s legal action is void and unenforceable.
- Allows courts to award attorney fees, witness fees, and other legal costs to victims of unfair claim practices.
Intent of the Bill:
This legislation aims to protect policyholders and repair facilities from unfair insurance practices by ensuring fair settlement processes, prohibiting coercion in repair shop selection, and allowing legal action to hold insurers accountable.
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Bill text versions
- Introduction PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 05, 2025 | Senate | Floor | Action | Introduction and first reading | |
| March 05, 2025 | Senate | Floor | Action | Referred to | Commerce and Consumer Protection |
Citations
[
{
"analysis": {
"added": [
"Additional subdivision allowing a private right of action for insureds against insurers."
],
"removed": [
"Prohibition on certain policy provisions that limit legal actions by insureds."
],
"summary": "The bill amends section 72A.201, which governs automobile insurance claims handling and settlement offers.",
"modified": [
"Updated definitions and standards for handling automobile insurance claims."
]
},
"citation": "72A.201"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Section 72B.02 provides the definition of 'adjuster' used in the bill's amendments to section 72A.201.",
"modified": []
},
"citation": "72B.02"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "These sections govern the licensing of insurance agents, which is referenced in the definitions section of the bill.",
"modified": []
},
"citation": "60K.30 to 60K.56"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Section 60A.23 addresses self-insurance administration, referenced in the definition of 'self-insurance administrator' and 'self-insured' in the bill.",
"modified": []
},
"citation": "60A.23"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Section 65B.48 is referenced in the definition of 'self-insured or self-insurer.'",
"modified": []
},
"citation": "65B.48"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Section 176.181's reference establishes authorization criteria for self-insured entities.",
"modified": []
},
"citation": "176.181"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Section 471.617 is involved in defining self-insured entities.",
"modified": []
},
"citation": "471.617"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Section 471.981 is mentioned in the context of defining self-insured entities.",
"modified": []
},
"citation": "471.981"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Section 65B.55 is outlined regarding time limitation provisions in auto insurance policies.",
"modified": []
},
"citation": "65B.55"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Section 65B.56 is mentioned with regard to insured examinations and their procedural requirements.",
"modified": []
},
"citation": "65B.56"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Section 65B.44 outlines benefits for which claim files must be provided upon request.",
"modified": []
},
"citation": "65B.44"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Section 145.64 is cited concerning the exclusion of certain medical reviews from claim file releases.",
"modified": []
},
"citation": "145.64"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "These sections relate to the handling of claim files, with specifics about exclusions outlined.",
"modified": []
},
"citation": "72A.49 to 72A.505"
}
]