1.1                          A bill for an act 
  1.2             relating to consumer protection; providing relief for 
  1.3             fraud, misrepresentation, or deceptive practices; 
  1.4             providing relief for bad faith settlement practices by 
  1.5             an insurance company; amending Minnesota Statutes 
  1.6             1996, sections 325F.68, subdivision 2, and by adding 
  1.7             subdivisions; and 325F.69, subdivision 1, and by 
  1.8             adding a subdivision. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 1996, section 325F.68, 
  1.11  subdivision 2, is amended to read: 
  1.12     Subd. 2.  "Merchandise" means any objects, wares, goods, 
  1.13  commodities, intangibles, real estate, ~~or~~ services, or an 
  1.14  insurance policy.  
  1.15     Sec. 2.  Minnesota Statutes 1996, section 325F.68, is 
  1.16  amended by adding a subdivision to read: 
  1.17     Subd. 2a.  "Insurance policy" means an insurance policy or 
  1.18  contract issued, executed, renewed, maintained, or delivered in 
  1.19  this state, other than a policy or contract in respect of 
  1.20  workers' compensation insurance. 
  1.21     Sec. 3.  Minnesota Statutes 1996, section 325F.68, is 
  1.22  amended by adding a subdivision to read: 
  1.23     Subd. 2b.  "Insurer" means an individual, corporation, 
  1.24  association, partnership, or other legal entity that issues, 
  1.25  executes, renews, maintains, or delivers an insurance policy in 
  1.26  this state.  
  1.27     Sec. 4.  Minnesota Statutes 1996, section 325F.69, 
  2.1   subdivision 1, is amended to read: 
  2.2      Subdivision 1.  [FRAUD, MISREPRESENTATION, DECEPTIVE 
  2.3   PRACTICES.] The act, use, or employment by any person of any 
  2.4   fraud, false pretense, false promise, misrepresentation, 
  2.5   misleading statement or deceptive practice, with the intent that 
  2.6   others rely thereon in connection with the sale of any 
  2.7   merchandise or any matter involving a claim under an insurance 
  2.8   policy by which the insurer acts in bad faith in its claims or 
  2.9   settlement practices, whether or not any person has in fact been 
  2.10  misled, deceived, or damaged thereby, is enjoinable as provided 
  2.11  herein.  
  2.12     Sec. 5.  Minnesota Statutes 1996, section 325F.69, is 
  2.13  amended by adding a subdivision to read: 
  2.14     Subd. 6.  [INSURER BAD FAITH.] An insurer acts in bad faith 
  2.15  if the insurer delays or denies payment without a reasonable 
  2.16  basis for its delay or denial. 
  2.17     Sec. 6.  [EFFECTIVE DATE.] 
  2.18     Sections 1 to 5 are effective August 1, 1997, and apply to 
  2.19  violations occurring on or after that date.