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State Representative Joe Atkins
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-4192
For more information contact: Matt Swenson 651-297-8406
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"GOOD FAITH" CONSUMER PROTECTION BILL SIGNED INTO LAW
ST. PAUL - A bill requiring insurance companies to have a reasonable basis for denying a claim was signed into law today, making Minnesota the fiftieth and final state to adopt such a standard. Authored by State Representative Joe Atkins (DFL - Inver Grove Heights/South St. Paul), the bill (HF 3115) would require insurance companies to act in good faith when in denying the claim of a policyholder. If the insurance company does not have a reasonable basis for denying a claim, Minnesotans would have the right to hold their insurer accountable for attorney's fees, damages, and court costs incurred during the claim dispute.
"Minnesota is the only state in the nation that doesn't provide its citizens this basic consumer protection right," said Rep. Atkins. "Minnesotans pay thousands of dollars in premiums every year, trusting their insurance company will be there to help if they get in a car accident or if their home is damaged by a storm. But too often, claims are denied without warrant, and insurance companies cash in a profit on the misfortune of good people. This bill would change that by giving Minnesotans the means to hold their insurance companies accountable and receive the coverage they deserve."
"This new law is like a Swiss army knife for consumers," said Atkins. "It can be used in any kind of insurance claim to force insurance companies to treat consumers fairly and not issue baseless denials."
In addition to the hundreds of thousands of individual consumers and homeowners in Minnesota who would benefit from this legislation, the bill would also help thousands of Minnesota businesses - both big and small. Many of the policyholders in Minnesota whose insurance claims are denied for no good reason, are businesses.
"Businesses throughout Minnesota have been forced to fight it out with their own insurance companies for years before finally seeing their claim settled," said Atkins. "This bill would create a strong incentive for insurance companies to settle claims early rather than stringing these businesses along."
"It's time for Minnesotans to get the fair treatment they paid for," said Atkins. "By making good faith an industry standard here in our state, Minnesotans can finally rest assured that's exactly what they'll receive."
News Items
- Rep. Atkins, Sen. Lourey Introduce Health Insurance Exchange Legislation - (Posted: Jan 9 2013 3:44PM)
- Rep. Atkins – Statement on Deal to End NHL Lockout - (Posted: Jan 7 2013 2:05PM)
- Rep. Atkins to Hold Minnesota House Hearing on Economic Impact of Hockey Lockout - (Posted: Jan 2 2013 3:20PM)
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