Insurance boards can request financial info from high net-worth policyholders

A new law will change Minnesota’s existing high net-worth exclusion law by allowing the Minnesota Insurance Guaranty Association to request financial information from an insured to prove net worth when a property and casualty insurance company becomes insolvent and is ordered by a court to be liquidated.

Existing law does not provide consequences if a high net-worth policyholder doesn’t provide the requested information. If the association can’t determine whether the policyholder is in the high category of at least $25 million in net worth, it’s required to pay the insured’s claim.

Under the new law, the insured’s net worth will be assumed to be at least $25 million if they do not provide the requested financial information within 60 days of the association’s request.

Sponsored by Rep. Liz Reyer (DFL-Eagan) and Sen. Gary Dahms (R-Redwood Falls), the new law takes effective Aug. 1, 2025.

HF1014*/SF1758/CH14

HF1014* / SF1758 / CH14