Minnesota: 'Bad Faith' Bill Passes House, Conference Committee Expected to Work Out Issues

NAMIC's partners at the Insurance Federation of Minnesota and the Minnesota Association of Farm Mutual Insurance Companies related the most recent twists and turns of the so-called bad faith bill in the Minnesota Legislature, with the taking up and passing of the newest version of S.F. 2822 by the House of Representatives on Thursday.

During the debate, the House considered a number of good and bad amendments to the bill. One particularly serious negative amendment that would have imposed significant additional litigation cost on policies held by farms and small business, was defeated only after an intense effort. "This was an important vote and everyone should appreciate the effort that went into achieving this," said Mark Johnston, NAMIC's Midwest state affairs manager.

According to Joe Thesing, NAMIC's director of state affairs, the House version of SF 2822 is less balanced than the bi-partisan bill that was crafted by the Senate. "We expect that the bill will now go to a conference committee," he said. "Our focus there will be to encourage the committee to take the best parts of each chamber's work and to reject provisions that serve only to increase the cost of insurance for Minnesota consumers. The situation, however, is very fluid and the trial bar is fighting hard to protect its financial interests."

IFM and MAFMIC believe that the conference committee will begin work soon and that the final version of the bill could be brought to the floors of both chambers this week.

Direct questions to NAMIC State Affairs Manager Mark Johnston.

Posted: Tuesday, April 01, 2008 12:00:00 AM. Modified: Wednesday, April 02, 2008 10:34:38 AM.

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