Fraud, Tort Reform Bills Pass in Minnesota

The 2004 Minnesota legislative session adjourned on May 16, with several insurance-related bills signed into law, and a fraud bill now on Republican Gov. Tim Pawlenty’s desk, according to the Property Casualty Insurers Association of America (PCI).

So far, insurance bills that have been signed into law include:

—HF 425, which helps insurers deal with frivolous class-action lawsuits by limiting appeal bond amounts to the actual amount of the judgment, with a $150 million cap.

—HF 2444, which deals with legal causes of action arising outside of Minnesota, enacting the NCCUSL Model Conflict of Laws Limitations Act.

—HF 2017, which allows the Minnesota Joint Underwriting Association to issue medical malpractice insurance policies on a primary basis to nursing facility applicants and other long-term care provider applicants.

Bills that have been presented to the governor for signature include:

—HF 2640, which establishes the Division of Insurance Fraud Prevention to conduct investigations and make arrests in relation to the enforcement of Minnesota insurance fraud law.

—HF 2175, mandating a study on dentist and podiatrist malpractice, and requiring the Board of Dentistry to make recommendations to the legislature by January 15, 2005, on proof of malpractice insurance and determining whether a minimum amount of insurance should be required for licensure.

—SF 1922, which prohibits insurers from refusing to renew, or declining to offer or write, homeowners insurance coverage solely to properties housing day care services for up to five children.

—SF 2620, which clarifies the language regulating notice requirements in the event that a standard fire insurance policy is declined.

Several bills failed to pass the session, including HF 2670, the Department of Insurance’s omnibus bill, which included language governing the use of CLUE reports, and HF 1801, which would have allowed attorneys fees to homeowners who prevailed in construction defect litigation with their builders.

Chiropractors and physical therapists blocked the progress of HF 2915, the Workers’ Compensation Advisory Council (WCAC) legislation that included provisions on medical cost containment and dispute resolution.

However, two auto repair bills PCI called “onerous” never even got a committee hearing thanks to industry lobbyists. One would have eliminated company direct repair programs by enacting “any willing provider” legislation; the other would have banned insurers from owing auto repair facilities.

PCI is based in Des Plaines, Ill.

Topics Fraud Legislation Minnesota