This bill amends Minnesota Statutes 2024, section 72A.201, to enhance the standards for automobile insurance claims handling and settlement practices. Key modifications include the addition of definitions for terms such as "repair" and "repair operations," which clarify the procedures involved in returning a vehicle to its pre-loss condition. The bill also introduces new standards for insurers regarding the handling of claims, including requirements for timely inspections, clear communication of coverage, and the prohibition of practices that could intimidate or coerce insured individuals into using specific repair shops. Notably, it establishes that insurers must provide detailed documentation and justification for any denied repairs or costs related to vehicle safety.

Furthermore, the bill creates a new subdivision that grants a private right of action to insured individuals, contractors, or repair facilities against insurers or adjusters for violations of the specified claims handling standards. This provision ensures that any contractual limitations on the ability to pursue such actions are deemed void and unenforceable. If a violation occurs, the court is mandated to award reasonable costs and attorney fees to the aggrieved party, thereby strengthening the rights of consumers in the automobile insurance process.

Statutes affected:
Introduction: 72A.201