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MI HB5518
Bill
Status
5/6/2014
Primary Sponsor
Marcia Hovey-Wright
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AI Summary
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Adds section 2026c to the Michigan Insurance Code (1956 PA 218) to establish penalties for repeat violations of insurance trade practice sections.
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Imposes a $1,000,000 administrative fine for second or subsequent violations of section 3149 or section 2203 by an insurer, subject to director notice, opportunity for hearing, and order from the Department of Insurance and Financial Services director.
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Requires fines collected under this section to be deposited into the insurance whistleblower protection fund created in section 2035a.
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Takes effect only upon enactment of all seven related bills: HB 5519, HB 5520, HB 5521, HB 5522, HB 5523, HB 5525, and one additional bill (request no. 03846'13 or 03846'13a).
Legislative Description
Insurance; unfair trade practices; breach of obligation to deal in good faith by certain insurers; impose penalty for second or subsequent violation. Amends 1956 PA 218 (MCL 500.100 - 500.8302) by adding sec. 2026c. TIE BAR WITH: HB 5519'14, HB 5520'14, HB 5521'14, HB 5522'14, HB 5523'14, HB 5525'14
Insurance, unfair trade practices
Last Action
Printed Bill Filed 05/07/2014
5/8/2014