Bill Text: MI HB5523 | 2013-2014 | 97th Legislature | Introduced

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Bill Title: 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

Spectrum: Partisan Bill (Democrat 12-0)

Status: (Introduced - Dead) 2014-05-08 - Printed Bill Filed 05/07/2014 [HB5523 Detail]

Download: Michigan-2013-HB5523-Introduced.html

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HOUSE BILL No. 5523

 

May 6, 2014, Introduced by Reps. Lipton, Hovey-Wright, Segal, Hobbs, Rutledge, LaVoy, Slavens, Phelps, Faris, Darany, Brown and Oakes and referred to the Committee on Insurance.

 

     A bill to amend 1956 PA 218, entitled

 

"The insurance code of 1956,"

 

(MCL 500.100 to 500.8302) by adding section 2027d.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 2027d. (1) If a property or casualty insurer is found in

 

an action under section 2027c to have undertaken an unfair method

 

of competition, an unfair or deceptive act or practice, or any

 

other conduct prohibited by sections 2001 to 2050, or is found to

 

have failed to pay benefits in a timely manner as described in

 

section 2027a(2), there is a presumption that the property or

 

casualty insurer was acting in bad faith. The presumption created

 

by this section places the burden of disproving the bad faith on

 

the property or casualty insurer.

 

     (2) If it is determined that a property or casualty insurer

 

was acting in bad faith as provided in this section, the individual

 

who brought the action is entitled to all of the following:

 

     (a) Interest under section 2006(4).

 

     (b) Damages and costs under section 2203.

 

     (c) Attorney fees and punitive damages under section 2027a.

 

     (d) Damages and costs under section 3149.

 

     (3) As used in this section, "property or casualty insurer"

 

means a home insurer, an automobile insurer, a commercial property

 

insurer, or a worker's compensation insurer.

 

     Enacting section 1. This amendatory act does not take effect

 

unless all of the following bills of the 97th Legislature are

 

enacted into law:

 

     (a) Senate Bill No.____ or House Bill No. 5518 (request no.

 

03844'13).

 

     (b) Senate Bill No.____ or House Bill No.____ (request no.

 

03846'13).

 

     (c) Senate Bill No.____ or House Bill No.____ (request no.

 

03846'13 a).

 

     (d) Senate Bill No.____ or House Bill No. 5521 (request no.

 

03849'13).

 

     (e) Senate Bill No.____ or House Bill No. 5525 (request no.

 

03850'13).

 

     (f) Senate Bill No.____ or House Bill No. 5522 (request no.

 

03944'13).

 

     (g) Senate Bill No.____ or House Bill No. 5520 (request no.

 

03945'13).

 

     (h) Senate Bill No.____ or House Bill No. 5519 (request no.

 

03946'13).