1.1    .................... moves to amend S.F. No. 276, as amended to insert the language
1.2of H.F. 464, as follows:
1.3Page 4, after line 19 insert:

1.4    "Sec. 2. [62A.663] GOOD FAITH INSURANCE PRACTICES.
1.5    Subdivision 1. Required conduct. (a) The board shall act in good faith in
1.6connection with any matter involving a claim under an insurance policy.
1.7    (b) The board does not act in good faith if the board delays or denies benefits offered
1.8or paid without an objectively reasonable basis for its offer, delay, or denial. The board
1.9also does not act in good faith if the board engages in any fraud, false pretense, false
1.10promise, misrepresentation, misleading statement, or deceptive practice that others rely on
1.11in connection with any matter involving a claim under an insurance policy.
1.12    (c) For purposes of this section:
1.13    (1) "insurance policy" means an insurance policy or contract issued, executed,
1.14renewed, maintained, or delivered in this state; and
1.15    (2) "the board" means the School Employee Insurance Board.
1.16    Subd. 2. Penalties and remedies. A person violating subdivision 1 is acting against
1.17the public interest and is liable to the injured party for costs, damages, and reasonable
1.18attorney fees.
1.19    Subd. 3. Insurance producers; liability limited. A licensed insurance producer
1.20is not liable under this section for errors, acts, or omissions attributed to the board that
1.21appointed the producer to transact business on its behalf, except to the extent the producer
1.22has caused or contributed to the error, act, or omission.
1.23    Subd. 4. Report to commissioner. The board shall promptly report to the
1.24commissioner of commerce the date and disposition of every settlement and award against
1.25the board for a violation of subdivision 1."