Tuesday, July 14, 2009
By Chad Selweski, Macomb Daily Staff Writer
Insurance companies that deny legitimate claims could face a fine of up to $1 million and insurance CEOs who conspire to delay or deny claims could face four years in prison, under Democratic legislation that will be taken up today by state lawmakers.
A package of 12 bills aims to make insurance companies accountable for the coverage promised in home, auto and health care policies. In a series of five news conferences held across the state, lawmakers said a crackdown is needed against insurers that renege on providing benefits.
"Michigan is one of only four states that have virtually no consumer protections against insurance companies that act in bad faith," said Democratic Rep. Lesia Liss, a Warren Democrat and a registered nurse.
