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MI HB5523
Bill
Status
5/6/2014
Primary Sponsor
Ellen Lipton
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AI Summary
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Creates a presumption of bad faith against property or casualty insurers found to have committed unfair trade practices, unfair or deceptive acts, or failed to pay benefits timely, shifting the burden to the insurer to disprove bad faith.
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Entitles individuals who successfully bring actions against insurers found in bad faith to receive interest under section 2006(4), damages and costs under section 2203, attorney fees and punitive damages under section 2027a, and damages and costs under section 3149.
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Applies to home insurers, automobile insurers, commercial property insurers, and workers' compensation insurers.
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Takes effect only upon enactment of seven companion bills: HB 5518, HB 5519, HB 5520, HB 5521, HB 5522, and HB 5525.
Legislative Description
Insurance; unfair trade practices; violation of unfair and prohibited trade practices act by certain insurers; create presumption that violation was in bad faith and create remedies. Amends 1956 PA 218 (MCL 500.100 - 500.8302) by adding sec. 2027d. TIE BAR WITH: HB 5518'14, HB 5519'14, HB 5520'14, HB 5521'14, HB 5522'14, HB 5525'14
Insurance, unfair trade practices
Last Action
Printed Bill Filed 05/07/2014
5/8/2014