New Law: Insurance, mortgage law updated

Certain technical updates to statutes governing insurance and mortgage-related transactions are made in a new law.

Except where otherwise indicated, the law, sponsored by Rep. Joe Hoppe (R-Chaska) and Sen. Dan Sparks (DFL-Austin), takes effect Aug. 1, 2011.

Among its provisions, the law:

• allows the term “negative trend” to be used in relation to a property and casualty insurance company as well as a life and health insurance company;

• eliminates an obsolete reference to farmers mutual fire insurance companies, which no longer exist in Minnesota;

• repeals some language related to creation of certain types of separate financial accounts by life insurance companies;

• effective Jan. 1, 2010, reduces the statutory minimum premium reserve required for domestic title insurance companies from 8 percent to 6.5 percent of the risk borne by the title insurance company;

• repeals a Department of Commerce rule limiting bank accounting rules for improvements made on bank-owned foreclosed property; and

• requires mortgage servicers to disclose to a borrower, upon request, who actually owns their mortgage loan and that entity’s contact information.

HF1473/ SF1208*/CH61