Good Faith Bill 329 requires that the insurance industry acts in good faith
Michigan Association for Justice Announces Support of Michigan Senate Bill 329
MAJ attorneys played a critical role in development of Good Faith bill that upholds the policyholder bill of rights
LANSING — Michigan Association for Justice (MAJ) President Stuart A. Sklar today issued the following statement in support of Senate Bill 329, which creates the policyholder bill of rights that will protect Michiganders and their property by requiring the insurance industry to act in good faith.
“The insurance industry has created a culture where company profits are placed ahead of the interests of policyholders. The corporate tactics they use to delay and deny payment of claims are unfair and can be harmful, even disastrous, to the individuals and businesses who have paid premiums for years only to have their insurer refuse to pay what was owed when a claim is filed. It is critical that we establish insurance industry standards for investigating and paying claims, so that we can protect consumers and businesses by giving them the right force their insurer to pay what they owe and punish the insurer when it intentionally fails to do so.
MAJ will continue to support and fight for policyholders and hold the insurance industry responsible for its Bad Faith conduct. Dozens of MAJ members contributed insights and content to make this bill a reality.”
SB 329 would:
Ensure that the insurance industry has a duty to honor its contracts and obligations in good faith and allows for legal recourse when the industry fails.
Establish the right of consumers to have claims investigated properly and handled fairly.
Require insurance companies to promptly pay valid, rightful claims on home, auto, life, and business policies.
Protect consumers from loss based on policyholder needs, and not on insurance company profits.
Create reasonable industry standards for investigating and paying claims, as well as reasonable industry standards to protect consumers, businesses, and insurance companies.
“One of the biggest challenges for medical providers is timely and predictable payments from insurance companies,” said Tim Hoste, President of the Coalition to Protect Auto No Fault. “If enacted, this law will ensure that medical providers can rely on the fact that payments for medical services will be made timely, which will result in lower costs to patients and drivers.”
Visit https://www.michiganjustice.org/ for more information about the Michigan Association for Justice.
About the Michigan Association for Justice
The Michigan Association for Justice, formerly the Michigan Trial Lawyers Association (MTLA), is a trade association of over 1,300 attorneys who represent individuals in injury, employment, civil rights and criminal matters. The organization’s staff has offices in Lansing, Michigan.
Click here to read SB 329 https://www.legislature.mi.gov/documents/2023-2024/billintroduced/Senate/pdf/2023-SIB-0329.pdf