SENATE BILL No. 25

 

 

January 12, 2005, Introduced by Senator SCOTT and referred to the Committee on Banking and Financial Institutions.

 

 

 

     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

 

under an automobile insurance policy has a duty to deal fairly and

 

in good faith with an insured claiming the benefits. An insurer

 

that breaches this duty to deal fairly and in good faith is liable

 

for compensatory, consequential, and exemplary damages proximately

 

caused by the breach.