June 8, 2005, Introduced by Senators BASHAM, JACOBS and PRUSI 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 2229.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2229. (1) If an insurer refuses to pay an insured for
loss or damage incurred and covered under an automobile or home
insurance policy because the insurer suspects the insured was
involved in arson or theft concerning the loss or damage, the
insurer shall notify the fire or law enforcement authority with
jurisdiction in the locale where the loss or damage occurred of the
insurer's suspicions.
(2) If an insured prevails after trial in an action to recover
under an insurance policy where the insurer had refused to pay
based on suspected arson or theft, the court shall award to the
insured all costs and expenses in bringing the action including,
but not limited to, reasonable and actual attorney fees and court
costs.