The Minnesota Good Faith Law was signed into law April 18, 2008 and went into effect August 1, 2008. It applies to claims against your own insurance company — setting the standard of conduct for insurance companies when settling no fault (NF), underinsured (UIM), and uninsured (UM) policy claims. It requires that insurers have a credible basis for denying a claim by its insured — that they act in good faith toward the insured.
If you have been in a car accident, it is beneficial to have legal representation even for the no fault claim in order to ensure that the insurance company acts in good faith so that you receive fair compensation for damages. TSR Injury Law has years of experience combating insurance company injustices. Our attorneys have recovered millions for our clients. Call 612-TSR-TIME or submit our free consultation form.
Good Faith Law: Minnesota Statute 604.18
This good faith law is being hailed one of the most significant pro-consumer insurance legislation passed in Minnesota in many years. The basics of the law are:
- The court may award damages and costs to an insured if the following can be proven against the insurer:
- the absence of a reasonable basis for denying the benefits of the insurance policy; and
- that the insurer knew of the lack of a reasonable basis for denying the benefits of the insurance policy or acted in reckless disregard of the lack of a reasonable basis for denying the benefits of the insurance policy
The damages awarded would be an amount equal to one-half of the proceeds awarded that are in excess of an amount offered by the insurer at least ten days before the trial begins or $250,000, whichever is less. The court may also award reasonable attorney fees actually incurred for filing a good faith claim.
An example of how the good faith law will work:
The insurance company offers $20,000 on a policy with $100,000 limit, but the jury awards $200,000. If it can be proven that the insurance company's offer violated the good faith law, the plaintiff will receive the $100,000 policy limit PLUS $90,000 (half of the difference between what was offered and what the jury awarded) in damages. In addition, the insurance company would be required to pay the attorney fees for the subsequent claim.
Minnesota Good Faith Claim Lawyer
The Good Faith Law should make insurance companies more accountable for their actions toward the insured. If you have been in a car accident, truck accident, or motorcycle accident, and you feel like the insurance company has not offered a reasonable amount, contact a Good Faith Lawyer at 612-TSR-TIME. Our lawyers have years of experience handling Minnesota Car Accident cases. We have a reputation for getting the job done with excellent results.