Proposal Easing Lawsuits against Insurers Clears Minnesota House

The Minnesota House has approved legislation making it easier for consumers to sue their insurance companies over denied claims.

The bill passed on a vote of 81-51 after it was changed to make it more like a Senate version that was approved last week.

The sponsor, Representative Joe Atkins, says Governor Tim Pawlenty’s office has had a hand in those changes.

The bill would give consumers the right to sue if their insurance company knowingly denies a reasonable claim. Like the Senate version, it would limit the amount of damages and attorney’s fees they could get.

Atkins says the legislation is intended to make lawsuits less likely.

But minority Republicans warned that it would have the opposite effect and lead to higher insurance premiums.