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 new 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 the obligations of insurers when handling claims, particularly emphasizing the need for transparency in settlement offers and the requirement for insurers to provide detailed documentation when denying repairs or costs related to vehicle safety.

Furthermore, the bill introduces 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 claims handling standards. This provision ensures that any contractual language limiting the ability to pursue such actions is deemed void and unenforceable. Additionally, if a violation occurs, the court is mandated to award reasonable costs and attorney fees to the aggrieved party, thereby strengthening the enforcement of consumer rights in the automobile insurance sector.

Statutes affected:
Introduction: 72A.201