Bill Text: MI SB0071 | 2011-2012 | 96th Legislature | Introduced
Bill Title: Insurance; insurers; requirement for 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 secs. 2203, 3149, 3400a, 3501a, 3600a, 4003 & 4403.
Spectrum: Partisan Bill (Democrat 6-0)
Status: (Introduced - Dead) 2011-01-26 - Referred To Committee On Insurance [SB0071 Detail]
Download: Michigan-2011-SB0071-Introduced.html
SENATE BILL No. 71
January 26, 2011, Introduced by Senators ANDERSON, BIEDA, GREGORY, JOHNSON, YOUNG and HOPGOOD 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 sections 2203, 3149, 3400a,
3501a, 3600a, 4003, and 4403.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2203. An insurer obligated to pay benefits or claims
under a property and casualty insurance policy has a duty to deal
fairly and in good faith with an insured claiming the benefits. An
insurer that breaches this duty to deal fairly and in good faith is
liable for compensatory, consequential, and exemplary damages
proximately caused by the breach.
Sec. 3149. An insurer obligated to pay benefits or claims
under an automobile insurance policy has a duty to deal fairly and
in good faith with an insured claiming the benefits. An insurer
that breaches this duty to deal fairly and in good faith is liable
for compensatory, consequential, and exemplary damages proximately
caused by the breach.
Sec. 3400a. An insurer obligated to pay benefits or claims
under a policy of disability insurance has a duty to deal fairly
and in good faith with an insured claiming the benefits. An insurer
that breaches this duty to deal fairly and in good faith is liable
for compensatory, consequential, and exemplary damages proximately
caused by the breach.
Sec. 3501a. A health maintenance organization has a duty to
deal fairly and in good faith with an enrollee claiming benefits
under a health maintenance organization contract. A health
maintenance organization that breaches this duty to deal fairly and
in good faith is liable for compensatory, consequential, and
exemplary damages proximately caused by the breach.
Sec. 3600a. An insurer obligated to pay benefits or claims
under a group disability insurance policy has a duty to deal fairly
and in good faith with an insured claiming the benefits. An insurer
that breaches this duty to deal fairly and in good faith is liable
for compensatory, consequential, and exemplary damages proximately
caused by the breach.
Sec. 4003. An insurer obligated to pay benefits or claims
under a life insurance policy has a duty to deal fairly and in good
faith with any person claiming the benefits. An insurer that
breaches this duty to deal fairly and in good faith is liable for
compensatory, consequential, and exemplary damages proximately
caused by the breach.
Sec. 4403. An insurer obligated to pay benefits or claims
under a group life insurance policy has a duty to deal fairly and
in good faith with any person claiming the benefits. An insurer
that breaches this duty to deal fairly and in good faith is liable
for compensatory, consequential, and exemplary damages proximately
caused by the breach.
