HB-4998, As Passed House, May 27, 2008

HOUSE BILL No. 4998

(As amended May 27, 2008)

June 28, 2007, Introduced by Rep. Virgil Smith 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 section 3149.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 3149. An insurer obligated to pay benefits or claims for

personal protection insurance benefits under this act [

] has a duty to deal fairly

and in good faith with an injured person claiming benefits and that

person's providers. An insurer that breaches this duty to deal

fairly and in good faith is liable for compensatory, consequential,

economic, noneconomic, and exemplary damages proximately caused by

the breach and the costs of litigation, including actual attorney

fees. A breach of the duty to deal fairly and in good faith

includes, but is not limited to, all of the following:

House Bill No. 4998 as amended May 27, 2008

     (a) A threat or act of intimidation against an injured person

or the person's provider with respect to the submission or payment

of a claim under this act.

     (b) An act of retaliation against an injured person or the

person's provider for having asserted a right to make a claim under

this act.

     (c) A statement or representation with respect to the

submission of a claim, the payment of a claim, or the rights of an

injured person or the person's provider under this act, which

statement or representation is materially false when an insurer [

] knew, or should have known, of the

falsity of the statement or representation.