Good Faith Insurance Law: Helping the Minnesotan Uninsured Policy Holder

In Minnesota, Uninsured coverage is a mandatory automobile coverage. At a minimum each policy provides for $25,000 in coverage. It is needed when you are in an accident and the car that is at fault doesn’t have insurance.

In the past a number of insurance companies have used adverse medical examinations, delay and denial to keep from paying benefits. Actions that follow a policyholder paying for their coverage for years. It may be the biggest reason that people get a hold of our office. They just want the benefits that they paid for.

In the past, the only remedies has been a lawsuit against your own insurance company. In the past, victory in court meant that you recovered up to the amount of your Uninsured coverage and maybe some additional court costs and interest. Thus, the insurance company knew their downside and in some cases were able to just sit back and take advantage of limits to their liability. It gave them very little reason to negotiate a fair settlement.

As of August 1st, the Minnesota consumer has been given the chance at a even playing field. Now if the case goes to trial and the judge finds that the suit can include a claim for a good faith violation, a victory can include additional damages of $250,000 and the attorney fess and costs needed to make the additional claim.

This is a victory for the Minnesota consumer, that should get more insureds the benefits they paid for and lead to more fair settlements.