Minnesota Statutes

Minn. Stat. § 65B.53 (2026)

Indemnity; Arbitration Between Obligors; Subrogation

✓ current as of May 2026

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Subdivision 1.Indemnity from obligor of commercial vehicle.

A reparation obligor paying or obligated to pay basic or optional economic loss benefits is entitled to indemnity subject to the limits of the applicable residual liability coverage from a reparation obligor providing residual liability coverage on a commercial vehicle of more than 5,500 pounds curb weight if negligence in the operation, maintenance or use of the commercial vehicle was the direct and proximate cause of the injury for which the basic economic loss benefits were paid or payable to the extent that the insured would have been liable for damages but for the deduction provisions of section 65B.51, subdivision 1.

For purposes of this subdivision, a "commercial vehicle of more than 5,500 pounds curb weight" does not include a vehicle listed in section 65B.47, subdivision 1a.

Subd. 2.Obligor subrogated to economic loss claim.

A reparation obligor paying or obligated to pay basic or optional economic loss benefits is subrogated to the claim for the recovery of damages for economic loss that the person to whom the basic or optional economic loss benefits were paid or payable has against another person whose negligence in another state was the direct and proximate cause of the injury for which the basic economic loss benefits were paid or payable. This right of subrogation exists only to the extent that basic economic loss benefits are paid or payable and only to the extent that recovery on the claim absent subrogation would produce a duplication of benefits or reimbursement of the same loss.

Subd. 3.Obligor subrogated to certain tort, liability, or negligence claim.

A reparation obligor paying or obligated to pay basic economic loss benefits is subrogated to a claim based on an intentional tort, strict or statutory liability, or negligence other than negligence in the maintenance, use, or operation of a motor vehicle. This right of subrogation exists only to the extent that basic economic loss benefits are paid or payable and only to the extent that recovery on the claim absent subrogation would produce a duplication of benefits or reimbursement of the same loss.

Subd. 4.Indemnity enforced through arbitration.

The right of indemnity provided in subdivision 1 shall be enforceable only through mandatory good faith and binding arbitration procedures established by rule of the commissioner of commerce. These procedures shall utilize determinations of comparative negligence. No evidence nor the decision in such an arbitration proceeding shall be admissible in any action by any party.

Subd. 5.Collision coverage subrogation.

Except as provided in this section nothing in sections 65B.41 to 65B.71 shall limit or abridge the subrogation rights of a reparation obligor providing collision coverage to a policyholder.

Subd. 6.Other restrictions.

No reparation obligor shall include in its contract any provision which would require a person to commence a negligence action as a condition precedent to the payment of basic economic loss benefits or which permits the reparation obligor to determine whether such an action will be commenced. No reparation obligor shall contract for a right of reimbursement or subrogation greater than or in addition to those permitted by this chapter.

Subd. 7.Arbitration proceedings and benefit payments.

Arbitration proceedings need not await final payment of benefits, and the award, if any, shall include provision for reimbursement of subsequent benefits, but no question of fact decided by a prior award shall be reconsidered in any such subsequent arbitration hearing.

Subd. 8.Enforceability of subrogation right.

Notwithstanding any law to the contrary, in any action brought for the recovery of damages allegedly caused by the negligent operation, ownership, maintenance or use of a motor vehicle or motorcycle where the right of subrogation is claimed or may be claimed under this section, or in any counterclaim to such an action, the right of an insurer to be subrogated to all or a portion of the claim of an insured, whether the right to subrogation arises from contract, statute or any other source, shall be enforceable against the insured only if the insurer, upon demand by the insured, agrees to pay a share of the attorney fees and costs incurred to prosecute the claim, in such proportion as the insurer's subrogated interest in the claim bears to any eventual recovery on the claim.

Notes of Decisions

Cited in 63 cases, 1980–2019 · leading case: State Farm Mut. Auto. Ins. Co. v. Great West Cas. Co., 623 N.W.2d 894 (Minn. 2001).

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State Farm Mut. Auto. Ins. Co. v. Great West Cas. Co., 623 N.W.2d 894 (Minn. 2001). · cites it 43× “This case involves a dispute between two insurance companies regarding the Minnesota No Fault Automobile Insurance Act (“No Fault Act”) indemnification provision, which is contained in Minn.Stat. § 65B.53, subd. 1 (2000). Great West Casualty Company, the insurer of a Nebraska…”

Metro. Prop. & Cas. Ins. Co. v. Metro. Transit Comm'n, 538 N.W.2d 692 (Minn. 1995). · cites it 32× “MTC appeals from a court of appeals decision holding that a no-fault insurer’s right of indemnity under Minn.Stat. § 65B.53, subd. 1 (1992) accrues when the insurer actually pays on its insured’s claim.”

Nelson v. Am. Fam. Ins. Grp., 651 N.W.2d 499 (Minn. 2002). · cites it 15× “Minn.Stat. § 65B.53, subd. 2. The Act also provides that the no-fault insurer’s right of subrogation is enforceable only when the no-fault insurer agrees to pay the insured’s attorney fees in such a proportion as the amount of the subrogation interest bears to the amount of the…”

Principal Fin. Grp. v. Allstate Ins. Co., 472 N.W.2d 338 (Minn. Ct. App. 1991). · cites it 52× “Allstate alleged that its insured had not been negligent and that Allstate was entitled to subrogation under Minn.Stat. § 65B.53, subd. 2 because its insured had losses caused by the negligence of a person in an accident in another state.”

State Farm v. Liberty Mut. Ins. Co., 678 N.W.2d 719 (Minn. Ct. App. 2004). · cites it 42× “State Farm filed for arbitration under Minn.Stat. § 65B.53 (2002), seeking indemnity from Liberty Mutual on all expenses it paid to Andrew Heberling and the other children.”

Gruman v. Hendrickson, 416 N.W.2d 497 (Minn. Ct. App. 1987). · cites it 20× “This right of subrogation exists only to the extent that basic economic loss benefits are paid or payable and only to the extent that recovery on the claim absent subrogation would produce a duplication of benefits or reimbursement of the same loss.”

Pfeffer v. State Auto. & Cas. Underwriters Ins. Co., 292 N.W.2d 743 (Minn. 1980). · cites it 14× “In addition, Minn.Stat. § 65B.53, subd. 2 (1974) (amended 1976) 5 .”

Am. Fam. Mut. Ins. Co. v. Vanman, 453 N.W.2d 48 (Minn. 1990). · cites it 18× “Minn.Stat. § 65B.53, subd. 4. Section 65B.”

Great West Cas. Co. v. State Farm Mut. Auto. Ins. Co., 590 N.W.2d 675 (Minn. Ct. App. 1999). · cites it 22× “State Farm argued for this application of pure comparative fault on the basis that pure comparative fault more adequately accomplished shifting the cost of accidents from automobiles to trucks, the purpose of Minn.Stat. § 65B.53, subd. 1. The AFI arbitrator determined that Great…”

Milbrandt v. Am. Legion Post of Mora, 372 N.W.2d 702 (Minn. 1985). · cites it 8× “Minn.Stat. § 65B.53, subd. 3 (1984), provides: A reparation obligor paying or obligated to pay basic economic loss benefits is subrogated to a claim based on an intentional tort, strict or statutory liability, or negligence other than negligence in the maintenance, use, or…”

Short v. Dairyland Ins. Co., 334 N.W.2d 384 (Minn. 1983). · cites it 6× “Minn.Stat. § 65B.53, subd. 2 (1974), in effect at the time of Kearney’s accident, made no reference to full compensation of the victim as a precondition to subrogation.”

Mohs v. Parrish's Bar, 418 N.W.2d 494 (Minn. 1988). · cites it 12× “64, subdivision 2, which states as follows: If a claim qualifies for assignment under subdivsion 1, the assigned claims bureau or any reparation obligor to whom the claim is assigned shall be, as provided in section 65B.53, subrogated to all of the rights of the claimant against…”

Show all 63 citing cases →

— Minn. Stat. § 65B.53(2) — 2 cases

Kral v. Am. Hardware Mut. Ins. Co., 784 P.2d 759 (Colo. 1989).

Marsh v. Farm Bureau Mut. Ins., 505 N.W.2d 162 (Wis. Ct. App. 1993).

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