April 29, 2009, Introduced by Reps. Nathan, Lisa Brown, Switalski, Scripps, Roberts, Young, Geiss, Kandrevas, Smith, Barnett, Lipton, Jackson, Durhal, Slezak, Constan, Kennedy, Cushingberry, Haase, Liss, Haugh, Mayes, Angerer, Dean, Bettie Scott, Melton, Johnson and Womack 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:
(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.