HOUSE BILL No. 4098


     January 28, 1997, Introduced by Rep. Curtis and referred to the Committee on Insurance.


        A bill to amend 1961 PA 236, entitled

   "Revised judicature act of 1961,"

   (MCL 600.101 to 600.9948) by adding section 2963.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         SEC. 2963.  (1) IN ADDITION TO ANY OTHER REMEDIES PROVIDED

 2    BY LAW, AN INSURER WHO FAILS TO NEGOTIATE AND SETTLE AN INSURANCE

 3    CLAIM IN GOOD FAITH IS LIABLE TO THE CLAIMANT FOR DAMAGES

 4    INCURRED AS A RESULT OF THAT FAILURE.  IN AN ACTION UNDER THIS

 5    SECTION, THE CLAIMANT MAY ALSO RECOVER EXEMPLARY DAMAGES, COSTS

 6    OF THE ACTION, AND REASONABLE ATTORNEY FEES.

 7         (2) AS USED IN THIS SECTION:

 8         (A) "INSURER" MEANS ANY OF THE FOLLOWING:

 9         (i) AN INSURER AS DEFINED IN AND REGULATED UNDER THE

10    INSURANCE CODE OF 1956, 1956 PA 218, MCL 500.100 TO 500.8302.




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 1         (ii) A HEALTH MAINTENANCE ORGANIZATION AS DEFINED IN PART

 2    210 OF THE PUBLIC HEALTH CODE, 1978 PA 368, MCL 333.21001 TO

 3    333.21098.

 4         (iii) A HEALTH CARE CORPORATION AS DEFINED IN THE NONPROFIT

 5    HEALTH CARE CORPORATION REFORM ACT, 1980 PA 350, MCL 550.1101 TO

 6    550.1704.

 7         (iv) A THIRD PARTY ADMINISTRATOR AS DEFINED IN THE THIRD

 8    PARTY ADMINISTRATOR ACT, 1984 PA 218, MCL 550.901 TO 550.962.

 9         (B) "INSURANCE CLAIM" MEANS A CLAIM UNDER ANY OF THE

10    FOLLOWING:

11         (i) AN INSURANCE POLICY OR CERTIFICATE REGULATED UNDER THE

12    INSURANCE CODE OF 1956, 1956 PA 218, MCL 500.100 TO 500.8302.

13         (ii) A HEALTH MAINTENANCE CONTRACT AS DEFINED IN PART 210 OF

14    THE PUBLIC HEALTH CODE, 1978 PA 368, MCL 333.21001 TO 333.21098.

15         (iii) A CERTIFICATE AS DEFINED IN THE NONPROFIT HEALTH CARE

16    CORPORATION REFORM ACT, 1980 PA 350, MCL 550.1101 TO 550.1704.

17         (iv) A BENEFIT PLAN AS DEFINED IN THE THIRD PARTY ADMINIS-

18    TRATOR ACT, 1984 PA 218, MCL 550.901 TO 550.962.





















   00762'97          Final page.                            DKH