The “Good Faith” Bill
The Commerce Committee approved a bill (HF 3115, Atkins) that would require insurance companies to have a reasonable basis for denying an insurance claim submitted by one of its policyholders. The “Good Faith” Bill is modified from a similar bill that was passed out of Committee in 2007 and included in the Public Safety Finance Omnibus Bill. The bill was approved on a divided voice vote and referred to the General Register.
Disclosure Requirement for Flood Insurance
The Commerce Committee also approved a bill (HF 3582, Tschumper) that requires insurance agents to disclose to homeowners if their homeowners’ policy includes flood insurance. In the wake of the flooding last August in southeastern Minnesota, many homeowners mistakenly believed they had flood insurance, while others assumed flood insurance was not available. Nearly all homeowners are indeed eligible to purchase flood insurance. The Governor proposed this “disclosure requirement” just after the flooding in August. The bill was approved on a unanimous voice vote and was sent to the General Register.