Minnesota Republican Gov. Tim Pawlenty is expected to sign a recently approved measure setting penalties for bad faith actions by insurers, according to an industry trade group, which said the modified bill was "acceptable."
The legislation, given final approval Monday on a 93-39 vote in the House, has exclusions for punitive damages and damage caps that the American Insurance Association said are "relatively high."
"One key aspect we are most pleased with is the bill is limited to first-party claims only, thereby eliminating the potential for double lawsuits for each insurance claim as was the case with the original bill," said Steve Schneider, AIA vice president, Midwest Region.
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