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 a definition for "repair or repair operations," which outlines the procedures for returning a vehicle to its pre-loss condition. The bill also revises existing provisions regarding settlement offers for total and partial losses, emphasizing the need for insurers to provide detailed documentation and justification for any denied repairs or costs. Furthermore, it introduces new standards to prevent unfair settlement practices, such as requiring unreasonable travel for inspections and failing to inform claimants of their rights regarding loss of use coverage.

Additionally, the bill establishes a private right of action for insured individuals, contractors, or repair facilities against insurers or adjusters for violations of the 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. Overall, the bill aims to improve transparency and accountability in the automobile insurance claims process, providing greater protection for consumers.

Statutes affected:
Introduction: 72A.201