Mich. bills target denials of insurance claims

Democrats in the Michigan House are sponsoring a 12-bill package aimed at stopping insurers from denying or delaying legitimate claims. The legislation would:

_Subject insurers to a $1 million fine if they do not settle claims in a timely manner more than once.

_Require insurers to pay attorney fees to policyholders who recover overdue insurance benefits.

_Force insurers to pay three times the amount of benefits withheld if the insurers acted in "bad faith."

_Make it a felony for chief executives of insurance companies to foster of encourage the wrongful delay or denial of legitimate claims. The executive could get up to four years in prison and a $50,000 fine.

_Protect insurance workers who blow the whistle on companies wrongfully denying claims.

_Require insurers to repair a consumer's credit rating if it has been hurt because of a denied or delayed claim.

Source: House Democrats and House Legislative Analysis Section

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