This bill amends Minnesota Statutes 2024, section 325F.71, to enhance consumer protection for senior citizens and disabled persons regarding disability and long-term care insurance policies. It introduces new definitions, including a specific definition for "insurance policy," which encompasses agreements that provide income benefits due to temporary or permanent disability or long-term care. The bill also clarifies the criteria under which these individuals can recover benefits from insurers, emphasizing the need for insurers to have a reasonable basis for denying claims.

Additionally, the bill adds a new subdivision that outlines the conditions under which senior citizens and disabled persons can seek private remedies against insurers. Specifically, it states that these individuals can recover if they can demonstrate that the insurer either lacked a reasonable basis for denying benefits or acted with reckless disregard for the absence of such a basis. This legislative change aims to provide greater protection and recourse for vulnerable populations in the insurance landscape.

Statutes affected:
Introduction: 325F.71