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MI HB5147

Bill

Status

Introduced

6/25/2009

Primary Sponsor

Michael Huckleberry

Click for details

Origin

House of Representatives

95th Legislature

AI Summary

  • Adds Section 2026b to the 1956 Insurance Code to establish criminal penalties for insurance company executives who knowingly create, foster, or encourage systematic wrongdoing.

  • 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.

  • Penalty is imprisonment for up to 4 years, a fine of up to $50,000, or both.

  • 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

Committee Referrals

Economic Development & Regulatory Reform8/26/2009
Insurance6/25/2009

Full Bill Text

No bill text available