Minnesota Gov. Tim Pawlenty has directed the Minnesota Department of Commerce to suspend approval of an insurance product to be sold in Minnesota that have been questioned by some to violate Minnesota law.
Earlier this year, the Department approved an insurance product by State Farm Insurance that has reportedly been legally challenged in lawsuits in Hennepin and Ramsey counties. The insurance product in question has not yet gone into effect.
“The lawsuits raise concerns,” the Governor said. “I’m directing the Department of Commerce to suspend approval of the State Farm insurance product or approval of any similar new product pending resolution of the legal issues.”
State law prohibits the practice of ‘redlining’, or basing the price of insurance products solely on the age of a house.
The specific product in question reportedly bases the policy price on the age of electrical utilities.
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