MI HB5020

Establishes a duty for property and casualty insurers (home, automobile, commercial property, and workers compensation) to deal fairly and in good faith with insureds claiming benefits under their policies.

Insurers that breach this duty are liable for compensatory, consequential, and exemplary damages proximately caused by the breach, as well as litigation costs and actual attorney fees.

Defines specific breaches of the duty to deal fairly and in good faith, including misrepresenting policy provisions, failing to promptly acknowledge or act on claims, refusing to pay claims without reasonable investigation, and failing to settle claims when liability is reasonably clear.

Additional prohibited conduct includes attempting to settle claims for less than entitled amounts, delaying investigations through duplicate submission requirements, withholding explanations for claim denials, and appealing arbitration awards to compel lower settlements.

Establishes that whether an insurer has breached the duty is a question of fact, not law, and the bill takes effect only if House Bills 4244, 4844, 5145, 5146, 5147, 5148, 5150, and 5151 are all enacted into law.