MN HF2794

Policy owners or designated representatives may recover all premiums paid plus interest (at the rate in Minnesota Statutes section 549.09, subdivision 1, paragraph (c), clause (2)) if a life insurance policy is voided, voided ab initio, or otherwise terminated on grounds other than nonpayment of premium.

Life insurers must respond within 120 days to verification of coverage requests submitted more than two years after policy issuance, either confirming they will not contest the policy for lack of insurable interest or allowing the policyholder to seek judicial declaration of validity in district court.

If a court determines a life insurance policy is valid after the insurer refused to provide the required statement, the insurer must pay all costs of the court action, including attorney fees.

Policy owners who engaged in fraud in connection with policy issuance are excluded from these premium refund and verification rights.

The section becomes effective the day after final enactment and applies to life insurance policies in effect on or issued on or after that date.