Bill Text: MI HB5525 | 2013-2014 | 97th Legislature | Introduced
Bill Title: Insurance; insurers; insurer that in bad faith fails to timely pay benefits; require to notify credit reporting agencies. Amends 1956 PA 218 (MCL 500.100 - 500.8302) by adding sec. 2027b. TIE BAR WITH: HB 5518'14, HB 5519'14, HB 5520'14, HB 5521'14, HB 5522'14, HB 5523'14
Spectrum: Partisan Bill (Democrat 25-0)
Status: (Introduced - Dead) 2014-05-08 - Printed Bill Filed 05/07/2014 [HB5525 Detail]
Download: Michigan-2013-HB5525-Introduced.html
HOUSE BILL No. 5525
May 6, 2014, Introduced by Reps. Cochran, Driskell, Lamonte, Brinks, Dillon, Irwin, Switalski, Cavanagh, Geiss, LaVoy, Kandrevas, Roberts, Singh, Slavens, Segal, Abed, Stanley, Dianda, Hobbs, Rutledge, Phelps, Faris, Lipton, Darany and Brown 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 2027b.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2027b. (1) If the director of the department of insurance
and financial services or a court determines that a property or
casualty insurer has acted in bad faith in failing to timely pay
benefits under a property or casualty insurance policy, the insurer
shall send a letter to each of the 3 largest national consumer
reporting agencies that contains both of the following:
(a) A statement that any delinquency by the insured in making
a payment related to the insurer's act of bad faith is the fault of
the insurer and not the insured.
(b) A request that the consumer reporting agency amend the
insured's credit history accordingly.
(2) A property or casualty insurer that fails to comply with
subsection (1) is liable to the insured for all of the following:
(a) The greater of $10,000.00 or 3 times the amount of any
damages sustained by the insured as a result of the failure.
(b) Reasonable attorney fees incurred by the insured in
enforcing the liability under this section.
(3) As used in this section:
(a) "Bad faith" means the failure to timely pay benefits
involving any of the reasons listed in section 2027a(2).
(b) "Consumer reporting agency" means that term as defined in
15 USC 1681a.
(c) "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. 5523 (request no.
03845'13).
(c) Senate Bill No.____ or House Bill No.____ (request no.
03846'13).
(d) Senate Bill No.____ or House Bill No.____ (request no.
03846'13 a).
(e) Senate Bill No.____ or House Bill No. 5521 (request no.
03849'13).
(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).
