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MI HB5519
Bill
Status
5/6/2014
Primary Sponsor
Winnie Brinks
Click for details
AI Summary
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Establishes a duty for property and casualty insurers to deal fairly and in good faith with insureds claiming benefits under insurance policies.
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Creates liability for insurers that breach this duty, including compensatory, consequential, and exemplary damages, plus litigation costs and attorney fees.
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Defines 14 specific acts that constitute bad faith breaches, including misrepresenting policy provisions, failing to promptly acknowledge or investigate claims, refusing to pay without reasonable investigation, and offering substantially less than amounts due.
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Applies to home insurers, automobile insurers, commercial property insurers, and workers compensation insurers.
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Contingent on enactment of companion bills HB 5518, HB 5520, HB 5521, HB 5522, HB 5523, and HB 5525 in the 97th Legislature.
Legislative Description
Insurance; insurers; requirement for certain insurers to deal fairly and in good faith with individuals claiming benefits; provide for. Amends 1956 PA 218 (MCL 500.100 - 500.8302) by adding sec. 2203. TIE BAR WITH: HB 5518'14, HB 5520'14, HB 5521'14, HB 5522'14, HB 5523'14, HB 5525'14
Insurance, insurers
Last Action
Printed Bill Filed 05/07/2014
5/8/2014