June 25, 2009, Introduced by Reps. Johnson, Lisa Brown, Slezak and Nathan 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 2027b.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2027b. (1) If in an action under section 2027a a person
engaged in this state in the business of property and casualty or
automobile insurance is found to have undertaken an unfair method
of competition, an unfair or deceptive act or practice, or any
other conduct prohibited by sections 2001 to 2050 or to have failed
to pay benefits in a timely manner as described in section 2090,
there is a presumption that the person was acting in bad faith. The
presumption created by this section places the burden of disproving
the bad faith on the person.
(2) If it is determined that a person was acting in bad faith
as provided in this section, the individual who brought the action
is entitled to all of the following:
(a) Interest under section 2006(4).
(b) Damages and costs under section 2026a.
(c) Attorney fees and punitive damages under section 2090.
(d) Damages and costs under section 3149.
Enacting section 1. This amendatory act does not take effect
unless all of the following bills of the 95th Legislature are
enacted into law:
(a) House Bill No. 4244.
(b) House Bill No. 4844.
(c) Senate Bill No.____ or House Bill No.____ (request no.
03545'09).
(d) Senate Bill No.____ or House Bill No. 5150(request no.
03547'09).