Why the Auto-Owners v. Second Chance Ruling Is Unique

In Auto‐Owners Insurance Co. v. Second Chance Investments LLC, 827 N.W.2d 766 (Minn. 2013), the Minnesota Supreme Court addressed the question of whether an appraisal panel can determine whether an insured sustained a total loss.

Law360, New York (April 24, 2013, 1:18 PM ET) ‐‐ Twenty states, including Minnesota, have valued policy statutes. In those states, the insurer must pay the insured property owner the full face value of the policy in the event of a total loss. In Auto‐Owners Insurance Co. v. Second Chance Investments LLC, 827 N.W.2d 766 (Minn. 2013), the Minnesota Supreme Court addressed the question of whether an appraisal panel can determine whether an insured sustained a total loss.

The court answered that question in the negative, finding that the appraisal provision in Minnesota’s statutory standard fire insurance policy does not provide parties the right to have an appraisal panel decide whether a claim involves a total loss.