Minn.Trade, National Group Applaud Legislative Defeat of Bad Faith Bill

May 23, 2007

The Minnesota Association of Farm Mutual Insurance Companies, (MAFMIC) and the National Association of Mutual Insurance Companies (NAMIC) stated today that “consumers win” with the legislative defeat of harmful Bad Faith “Double Lawsuit” proposals.

If passed, the “Double Lawsuit” proposals would have allowed attorneys to sue not only the party they think is responsible for an injury, but that party’s insurance company as well, the insurer groups’ written statement said.

Despite passage of the House version, HF 2389, sponsored by Rep. Joe Atkins, Senate Commerce Committee Chair Tarryl Clark, the primary sponsor of SF 2173, failed to garner enough support in that chamber to justify a floor vote Sunday evening, solidifying the ultimate defeat of the proposals.

The insurer trade groups said that The Minnesota Trial Lawyers Association were the main support group for the bill.

Efforts to defeat the bad faith proposals took a positive turn in early May when Republican Gov. Tim Pawlenty threatened to veto the Omnibus Public Safety bill if it was presented to him with the Bad Faith language included.

“We thank Gov. Pawlenty and the legislators who stood up for insurance consumers…,” said Wes Gainey, president of MAFMIC.

“Passage of these proposals would have had a severe impact on Minnesota’s litigation environment and would impact insurance markets and the state’s overall economic health,” Joe Thesing, NAMIC’s director of state affairs said.


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