Not legal advice. We paraphrased these Minnesota statutes from the Revisor of Statutes' official online publication.
What is different in Minnesota
In Minnesota, interest on a death claim always runs from the date of death, with no initial window in which the insurer can pay without interest, and the whole period is charged two points higher if the insurer takes more than 60 days after proof of death to pay. Minnesota also allows a suicide exclusion for only one year, not two, and its claims statute sets business-day deadlines that apply to life insurers.
Contest period
A life policy issued in Minnesota must say that it is the entire contract and that it becomes incontestable after two years in force during the insured’s lifetime, counted from its date. The only exceptions are nonpayment of premium and breaches of conditions on naval and military service in wartime; disability and extra accidental-death benefits may be excepted at the insurer’s option (Minn. Stat. 61A.03, subd. 1(c)).
Suicide clause
A policy or certificate issued or delivered in Minnesota may limit or exclude the death benefit for suicide only if the death occurs within one year of the issue date. The exclusion must be stated clearly, and if the benefit is denied on that ground, the insurer must refund all premiums paid for that coverage. Whether the insured was mentally competent is not a factor in deciding whether the death was a suicide under an individual or group policy (61A.031).
Application misstatements
The policy must provide that, absent fraud, the insured’s statements are representations rather than warranties, and that a statement can void coverage only if it appears in a written application endorsed on or attached to the policy when issued (61A.03, subd. 1(d)). If the insured’s age was understated, the benefit is what the premium would have bought at the true age (61A.03, subd. 1(e)).
For a policy issued without a medical exam, or without the insured’s knowledge or consent, the application’s statements about the insured’s age, physical condition and family history bind the company unless they were willfully false or intentionally misleading (61A.11). Minnesota’s general misrepresentation rule for other insurance, 60A.08, subd. 9, says it does not apply to life insurance.
Grace period and lapse
Each premium after the first has a one-month grace period during which the insurance continues; the insurer may add a finance charge and may deduct the overdue premium if the insured dies in that month (61A.03, subd. 1(b)). A policy whose nonforfeiture value bought other insurance after a default may be reinstated within three years on satisfactory evidence of insurability and payment of back premiums with interest, if it was not surrendered and canceled (61A.03, subd. 1(h)).
Interest on death benefits
Minnesota’s interest statute covers any life insurer admitted in the state, including fraternal benefit societies, under individual or group policies. It applies when the beneficiary lives in Minnesota, the policy was issued there, or the insured lived there at death (61A.011, subds. 1, 2).
- Base rate. Interest runs from the date of death to the date of payment, at no less than the insurer’s current rate on death proceeds left on deposit. An insurer with no such rate must use its policy loan rate (subd. 1).
- Late rate. If the insurer does not pay within 60 days after it receives due proof of death, it must instead pay interest two percentage points higher, still computed from the date of death (subd. 2).
- Notice. Any payment that includes interest must come with a notice stating the rate and the amount of interest (subd. 3).
- Exceptions. No interest is owed if the beneficiary or owner chose in writing a non-lump-sum settlement option effective within 60 days of death, for some credit-type policies, or where the beneficiary’s home state has its own interest law (subd. 4).
- “Payment” means issuing the check, or depositing the money with a Minnesota court under its civil rules, with a court elsewhere as its law allows, or in a trust account the commissioner can inspect (subd. 6). Accidental death benefits are covered too (subd. 7).
The policy must also promise settlement within two months after due proof of death (61A.03, subd. 1(i)).
Claim handling deadlines
Minnesota’s claims practices statute lists unfair settlement practices by insurers. For a life claim, these include:
- not acknowledging a notice of claim within 10 business days, and not promptly sending all necessary forms and instructions, unless the claim is settled within that time; the acknowledgment must give the phone number of someone who can help (72A.201, subd. 4(1));
- not answering other claim communications that call for a response within 10 business days (subd. 4(2));
- not finishing the investigation and accepting or denying the claim within 30 business days after notice, unless that cannot reasonably be done, in which case the insurer must explain why within that time and give an expected completion date (subd. 4(3));
- not accepting or denying within 60 business days after a properly executed proof of loss; a denial must be in writing and must cite any policy provision, condition or exclusion it relies on (subd. 4(11));
- for a claimant without a lawyer whose claim is known to be unresolved, not giving written warning at least 60 days before a statute of limitations runs out (subd. 4(8));
- not paying an agreed settlement amount within five business days (subd. 5(5)).
The Commerce Commissioner enforces these standards and need not show a general business practice (subd. 1). In Morris v. American Family Mutual Insurance Co., 386 N.W.2d 233 (Minn. 1986), the Minnesota Supreme Court held that a private person has no cause of action for a violation of the Unfair Claims Practices Act, then codified at Minn. Stat. 72A.20, noting that the statute deals with regulation by the Commissioner and says nothing about a private suit. A beneficiary’s own remedies are the policy claim itself, the interest in 61A.011 and, where it applies, 604.18. Morris was decided under 72A.20; the 72A.201 standards are likewise enforced by the Commissioner (subd. 1).
Unreasonable denial
Minnesota lets a court award extra taxable costs against an insurer that denied policy benefits with no reasonable basis, if the insurer knew that or acted in reckless disregard of it. The award can be half of the amount recovered above the insurer’s last offer made at least 10 days before trial, up to $250,000, plus attorney fees for proving the violation up to $100,000. The claim must be added by motion after suit is filed, and the court decides it after the policy amount is set (Minn. Stat. 604.18, subds. 2–4). The statute defines “insured” to exclude anyone claiming as a third-party beneficiary.
Group life insurance
When an employee is terminated or laid off, a group life policy must let them continue coverage for up to 18 months, or until other group coverage starts, at no more than 102% of the group cost. The employer must give written notice within 14 days, and the employee has 60 days to elect. If the employee or a covered dependent dies during the election period before choosing, continuation is treated as elected and the beneficiary receives the amount that could have been continued, less unpaid premium. At the end of continuation, the person may convert to an individual policy without evidence of insurability (61A.092). Some policies that let the employee keep coverage by paying the insurer directly are exempt (subd. 6).
Coverage through a private employer is generally governed by ERISA as well; see employer group life.
Deadline to sue
Minnesota’s general period for an action on a contract is six years, unless another statute sets a different limit (Minn. Stat. 541.05, subd. 1(1)). A life policy may contain its own shorter time-to-sue clause; whether that clause holds depends on Minnesota law.
When the beneficiary caused the death
A named beneficiary who feloniously and intentionally kills the insured gets nothing under the policy; a court decides who receives the money (Minn. Stat. 524.2-803(d)).
- Once the insurer gets written notice at its home office that a beneficiary may have killed the insured, it must withhold payment to all beneficiaries until a court orders otherwise. If it paid before receiving notice, it is discharged to that extent.
- The beneficiary, the insurer or anyone else claiming the money may sue in district court. The court may order payment to whoever is equitably entitled, including the insured’s spouse, children, parents, creditors or estate, and may have the insurer pay the money into court meanwhile.
- A final conviction is conclusive. Without one, the court decides by a preponderance of the evidence (524.2-803(f)).
Dissolution and an ex-spouse beneficiary: 524.2-804
Minnesota’s statute speaks directly of a beneficiary designation. When a marriage is dissolved or annulled, a revocable beneficiary designation made to the former spouse, or to members of the former spouse’s family who are not also members of the insured’s family, is revoked (Minn. Stat. 524.2-804, subd. 1). The exceptions are the express terms of a governing instrument, a court order, a marital property contract, and a plan document governing a qualified or nonqualified retirement plan. The former spouse is treated as having died immediately before the dissolution, and a remarriage to each other revives the designation.
An insurer is protected for good-faith payments made before written notice of the dissolution is delivered to its main office or home. After notice it may pay the amount into the probate court. For employer plans, ERISA can override the statute (Egelhoff).
Worked example
An insured dies on April 6, 2026, and the beneficiary’s due proof of death reaches the insurer on April 20. The insurer should have acknowledged the claim within 10 business days of first notice. If it pays on May 29, within 60 days of the proof, it owes interest from April 6 at no less than its deposit rate. If it does not pay until July 1, more than 60 days after April 20, it owes interest two points higher, for the whole period from April 6 to July 1, and must say on the payment how much interest it included.
Making a complaint
The Minnesota Department of Commerce takes complaints about insurers, including life insurers: File a Complaint (Minnesota Department of Commerce). A complaint does not stop any deadline to sue.
Sources
- Minnesota Statutes 61A.011, 61A.03, 61A.031, 61A.092, 61A.11, 60A.08, 72A.201, 541.05, 524.2-803 and 604.18, from the Office of the Revisor of Statutes: revisor.mn.gov.
- Minnesota Department of Commerce, File a Complaint: mn.gov/commerce.
- Morris v. American Family Mut. Ins. Co., 386 N.W.2d 233 (Minn. 1986) (full opinion, CourtListener): courtlistener.com. Read November 3, 2026.
- Minnesota Statutes 524.2-804 (Office of the Revisor of Statutes): revisor.mn.gov.
Not legal advice. This page summarizes general rules and the specific statutes cited. Your policy's wording, the state whose law applies, and whether the coverage came through an employer can all change the result. See the disclaimer and editorial policy.