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MI HB5147
Bill
Status
6/25/2009
Primary Sponsor
Michael Huckleberry
Click for details
AI Summary
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Adds Section 2026b to the 1956 Insurance Code to establish criminal penalties for insurance company executives who knowingly create, foster, or encourage systematic wrongdoing.
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Makes it a felony for a president, chief executive officer, or equivalent position holder at an insurer to knowingly create, foster, or encourage an environment leading to systemic wrongful denial of claims in violation of sections 2203 or 3149.
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Penalty is imprisonment for up to 4 years, a fine of up to $50,000, or both.
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Effective only upon enactment of House Bills 4244, 4844, 5020, 5145, 5146, 5148, 5150, and 5151 of the 95th Legislature.
Legislative Description
Insurance; unfair trade practices; penalties for certain individuals who knowingly create, foster, or encourage an environment that leads to systemic wrongful denial of claims; provide for. Amends 1956 PA 218 (MCL 500.100 - 500.8302) by adding sec. 2026b. TIE BAR WITH: HB 4844'09, HB 5148'09
Insurance, unfair trade practices
Last Action
Referred To Committee On Economic Development And Regulatory Reform
8/26/2009