2009 House Bill 5145

Authorize new insurance company regulations and sanctions

Introduced in the House

June 25, 2009

Introduced by Rep. Mike Huckleberry (D-70)

To authorize a $1 million fine for a second or subsequent violation by an insurance company that has not dealt “fairly and in good faith” with a customer making a claim. See also House Bill 4844, which allows customers in such cases to sue for punitive damages, notwithstanding the prohibition on punitive (versus actual) damages in other areas of Michigan tort law.

Referred to the Committee on Insurance

Aug. 19, 2009

Reported without amendment

With the recommendation that the substitute (H-2) be adopted and that the bill then pass.

Substitute offered

To replace the previous version of the bill with one that revises details but does not change the substance of the bill as previously described.

The substitute passed by voice vote

Amendment offered by Rep. Pete Lund (R-36)

To extend the $1 million fine on an insurance company that has not dealt “fairly and in good faith” with a customers to so that it also applies to law firms that have not dealth "fairly and in good faith".

The amendment failed by voice vote

Passed in the House 60 to 46 (details)

Received in the Senate

Aug. 26, 2009

Referred to the Committee on Economic Development and Regulatory Reform