Let’s say you own a store and a fire destroys the building and your inventory. You have insurance, but you may find you have to hire a lawyer to get them to pay up.
A new law will allow for a 10 percent interest charge on the insurance proceeds calculated from the time the insured requests payment of the policy amount, plus reasonable attorney fees and court costs. Effective Aug. 1, 2009, the law is sponsored by Rep. Joe Atkins (DFL-Inver Grove Heights) and Sen. Tom Bakk (DFL-Cook).
Opponents say the legislation will increase insurance litigation costs and, in turn, increase insurance payments. Some say the law goes beyond similar regulations in other states.
The new law also clarifies the term and usage of “surviving spouse” as it relates to a business of a deceased professional who was the sole owner of a firm at the time of the professional’s death.