MN SF2573

Requires life insurers to refund all premiums paid plus interest (at the rate specified in Minnesota Statutes section 549.09, subdivision 1, paragraph (c), clause (2)) if a life insurance policy is voided, voided ab initio, or terminated on grounds other than nonpayment of premium.

Requires life insurers to respond within 120 days to a verification of coverage request (submitted more than two years after policy issuance) by either stating they will not contest the policy for lack of insurable interest or face potential court action.

Allows policyowners to bring a district court action for judicial declaration of policy validity if an insurer refuses to confirm it will not contest the policy for lack of insurable interest; if the court determines the policy is valid, the insurer must pay all court costs and attorney fees.

Exempts policyowners who engaged in fraud in connection with policy issuance from the refund and validation protections provided in this section.

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