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MI HB5518

Bill

Status

Introduced

5/6/2014

Primary Sponsor

Marcia Hovey-Wright

Click for details

Origin

House of Representatives

97th Legislature

AI Summary

  • Adds section 2026c to the Michigan Insurance Code (1956 PA 218) to establish penalties for repeat violations of insurance trade practice sections.

  • 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.

  • Requires fines collected under this section to be deposited into the insurance whistleblower protection fund created in section 2035a.

  • 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

Committee Referrals

Insurance5/6/2014

Full Bill Text

No bill text available