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MI HB5146
Bill
Status
6/25/2009
Primary Sponsor
Bertram Johnson
Click for details
AI Summary
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Adds section 2027d to the Insurance Code of 1956 to establish a presumption of bad faith when property or casualty insurers are found to have engaged in unfair competition, deceptive practices, or failed to pay benefits timely as described in section 2027a(2).
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Shifts burden of proof to the insurer to disprove bad faith once a violation is established under section 2027c.
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Entitles individuals who bring successful bad faith actions to recover interest under section 2006(4), damages and costs under section 2203, attorney fees and punitive damages under section 2027a, and damages and costs under section 3149.
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Defines "property or casualty insurer" as home insurers, automobile insurers, commercial property insurers, or workers compensation insurers.
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Takes effect only upon enactment of seven companion bills: HB 4244, HB 4844, HB 5020, HB 5145, HB 5147, HB 5148, HB 5150, and HB 5151.
Legislative Description
Insurance; unfair trade practices; violation of unfair and prohibited trade practices act by certain insurers; create presumption that violation was in bad faith and create remedies. Amends 1956 PA 218 (MCL 500.100 - 500.8302) by adding sec. 2027b. TIE BAR WITH: HB 4244'09, HB 4844'09, HB 5150'09
Insurance, unfair trade practices
Last Action
Referred To Committee On Economic Development And Regulatory Reform
8/26/2009