2009 House Bill 5150

Authorize new insurance company regulations and sanctions

Introduced in the House

June 25, 2009

Introduced by Rep. Kate Segal (D-62)

To authorize lawsuits by consumers against insurance companies for unfair, unconscionable, or deceptive insurance methods, acts, or practices. Note: Current provisions of the Insurance Code authorize civil penalties for this imposed by government regulators.

Referred to the Committee on Insurance

Aug. 19, 2009

Reported without amendment

With the recommendation that the substitute (H-1) 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. Cindy Denby (R-47)

To require a person to exhaust "all administrative remedies" before bringing a lawsuit under the provisions of the bill. Having to wait more than 120 days for a ruling by the state insurance commission would be considered "exhausting all administrative remedies".

The amendment failed by voice vote

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

To impose "loser pay" rules on lawsuits the bill would allow against insurance companies, and triple-damage loser-pays if the court finds the suit frivolous.

The amendment failed by voice vote

Passed in the House 62 to 44 (details)

Received in the Senate

Aug. 26, 2009

Referred to the Committee on Economic Development and Regulatory Reform