2014 House Bill 5558 / Public Act 251

Clarify preemption of insurance lawsuits under Consumer Protection Act

Introduced in the House

May 8, 2014

Introduced by Rep. Tom Leonard (R-93)

To clarify that a prohibition of "unfair practices" lawsuits against insurance companies under the state Consumer Protection Act (rather than the state's Insurance Code) applies even if the cause of action occurred before a 2001 law was enacted specifying that industries like insurance which are already subject to a comprehensive state regulatory regime are not covered by the Consumer Protection Act.

Referred to the Committee on Judiciary

May 22, 2014

Reported without amendment

Without amendment and with the recommendation that the bill pass.

June 5, 2014

Amendment offered by Rep. Jeff Irwin (D-53)

To tie-bar the bill to House Bill 5522, meaning this bill cannot become law unless that one does also. HB 5522 would authorize penalties of $10,000 plus three times the amount of any benefits withheld and attorney costs for a insurer that fails to pay a claims in a timely manner due to a variety of specified unfair practices.

The amendment failed by voice vote

Amendment offered by Rep. Jeff Irwin (D-53)

To tie-bar the bill to House Bill 5521, meaning this bill cannot become law unless that one does also. HB 5521 would essentially authorize what this bill prohibits.

The amendment failed by voice vote

Amendment offered by Rep. Jeff Irwin (D-53)

To tie-bar the bill to House Bill 5520, meaning this bill cannot become law unless that one does also. HB 5520 would essentially authorize what this bill prohibits.

The amendment failed by voice vote

Amendment offered by Rep. Sam Singh (D-69)

To tie-bar the bill to House Bill 5378, meaning this bill cannot become law unless that one does also. HB 5378 would essentially authorize what this bill prohibits.

The amendment failed by voice vote

Amendment offered by Rep. Kate Segal (D-62)

To authorize what this bill prohibits.

The amendment failed by voice vote

Amendment offered by Rep. Phil Cavanagh (D-10)

To essentially authorize what this bill prohibits, and undo the 2001 law that created the prohibition.

The amendment failed by voice vote

Amendment offered by Rep. Tom McMillin (R-45)

To remove the law's retroactive prohibition of lawsuits for insurance company actions taken before the 2001 preemption law, but create a July 1, 2014 deadline for filing such a suit.

The amendment failed by voice vote

Amendment offered by Rep. Klint Kesto (R-39)

To remove the law's retroactive prohibition of lawsuits that have already been filed for insurance company actions taken before the 2001 preemption law.

The amendment passed by voice vote

Passed in the House 57 to 49 (details)

To clarify that a prohibition of "unfair practices" lawsuits against insurance companies under the state Consumer Protection Act (rather than the state's Insurance Code) applies even if the cause of action occurred before a 2001 law was enacted specifying that industries like insurance which are already subject to a comprehensive state regulatory regime are not covered by the Consumer Protection Act. Lawsuits that have already been filed could still proceed, however.

Received in the Senate

June 10, 2014

Referred to the Committee on Insurance

June 11, 2014

Reported without amendment

With the recommendation that the bill pass.

June 12, 2014

Passed in the Senate 24 to 13 (details)

To clarify that a prohibition of "unfair practices" lawsuits against insurance companies under the state Consumer Protection Act (rather than the state's Insurance Code) applies even if the cause of action occurred before a 2001 law was enacted specifying that industries like insurance which are already subject to a comprehensive state regulatory regime are not covered by the Consumer Protection Act. Lawsuits that have already been filed could still proceed, however.

Motion by Sen. Gretchen Whitmer (D-23)

To give the bill immediate effect.

The motion failed 25 to 12 (details)

Motion by Sen. Arlan Meekhof (R-30)

That the bill be given immediate effect.

The motion failed 25 to 10 (details)

Signed by Gov. Rick Snyder

June 21, 2014