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House passes bill allowing MN Insurance Guarantee Association to require net-worth affidavits be returned within 60 days
Summary
House File 1014 would presume noncompliance with MNIGA net-worth affidavits means the policyholder exceeds the $25 million threshold; the House passed the bill 132-0.
St. Paul — The Minnesota House on March 20 approved House File 1014, a bill intended to speed claims processing when property-and-casualty insurers are declared insolvent. The measure passed on third reading by a vote of 132-0.
Representative Liz Ryer, the bill's author, told the chamber that when an insurance company is liquidated, the Minnesota Insurance Guarantee Association (MNIGA) protects policyholders but must determine whether claimants exceed a $25 million net-worth threshold that disqualifies them from coverage. "House file 10 14 offers a very simple solution," Ryer said, explaining the bill would create a consequence for failing to return a net-worth affidavit: if a claimant does not return the affidavit within 60 days, MNIGA may assume the claimant exceeds the threshold and deny eligibility for coverage.
Supporters said the change reduces administrative burden and speeds payments to smaller policyholders. Representative Dave O'Driscoll, who spoke during debate, said the bill had bipartisan support in committee. Representative Keith Allen said currently about 90% of affidavit requests go unanswered, requiring MNIGA to research claimants' finances and slowing settlements.
The bill's backers said the $25 million threshold aligns Minnesota with national practice; Ryer told colleagues there have been four insurer insolvencies in Minnesota since 2021. The chamber approved HF1014 on a 132-0 roll-call vote.
The bill will proceed to the next steps required in the legislative process.
