"Bad Faith" Insurance Legislation Package
HB 4244
This bill amends the Insurance Code to prohibit unfair trade practices in the insurance industries of home, auto, commercial business and workmen's compensation. The bill would allow for damages to be paid by the insurer (company) to the insured (consumer) for bad faith actions in the settlement of claims. Damages paid to the insured would be equal to $10,000 or three times the amount of benefits withheld in addition to certain incurred costs, such as reasonable attorney fees.
HB 4844
This bill would establish an auto insurance company's duty to deal fairly in the settlement of auto insurance claims.
HB 4846
This bill would increase penalties for insurance companies who are found by the Insurance Commissioner to have engaged in unfair or deceptive acts or practices. Currently, the law states that a fine of not more than $500 be charged for each violation, but not exceed a maximum of $5,000. If a company knew or reasonably should have known that they were in violation of the law, the fine would increase to $2,500 for each violation, but not exceed a maximum of $25,000 for all violations committed in a six month period. House Bill 4846 would increase those penalties to $2,000; $20,000; $10,000 and $100,000, respectively.
HB 5020
This bill would establish a "duty to deal fairly" or act in good faith for insurance companies that provide property and casualty insurance. Insurers found to have failed to do so would be liable for compensatory, consequential, economic, non-economic and exemplary damages.
HB 5144
HB 5144 extends protection under the Whistleblower's Protection Act to full-time and part-time employees of insurance companies who report acts of bad faith. HB 5144 also entitles employees who submit useful information to a payment from the Whistleblower Protection Fund.
HB 5145
HB 5145 subjects insurers that commit subsequent bad faith violations to an administrative fine of $1 million following sufficient due process. Fines paid under this Act would be deposited into the Whistleblower Protection Fund.
HB 5146
HB 5146 creates a presumption of bad faith for insurers found to have engaged in bad faith. Along with creating the presumption, the bill also shifts the burden of proving bad faith in such actions from the consumer to the insurer. Insurers that act in bad faith will be liable to consumers for interest, damages and costs, attorney fees and punitive damages.
HB 5147
HB 5147 makes it a felony for high-ranking insurance officials who knowingly encourage work environments where claims are wrongfully denied. HB 5147 imposes punishment of imprisonment up to four years, a fine not more than $50,000, or both.
HB 5148
HB 5148 adds a new provision to the Code of Criminal Procedure making it a Class F felony punishable by a maximum of four years imprisonment for high-ranking insurance officials who knowingly encourage work environments where claims are wrongfully denied.
HB 5149
HB 5149 creates the Insurance Whistleblower Protection Fund. HB 5149 provides that the fines paid by insurers who act in bad faith will be deposited in the fund. HB 5149 also provides that the fund will be administrated by the Office of Insurance Regulation. Additionally, HB 5149 provides guidelines on how monies deposited in the fund may be allocated.
HB 5150
This bill allow private citizens cause for civil action against insurance companies in this state who participate in an unfair method of competition, an unfair or deceptive act or practice, or other violations of the uniform trade act.
HB 5151
HB 5151 provides that insurers found to have acted in bad faith in denying claims must take steps to clear the credit reports of consumers who may have been harmed by the wrongful denial of claims. HB 5149 requires insurers send letters to the three largest credit reporting agencies explaining that any payment delinquencies are not the fault of the consumer and requesting that any resulting delinquencies be cleared from the consumer's credit report. Insurers that do not comply with the reporting requirements are subjected to a monetary fine and also must pay attorney's fees.
Multi-Department Supplemental Funding Bill
SB 334
Senate Bill 334 contains various changes needed following Executive Order 2009-22, which cut over $350 million from the last quarter of Fiscal Year '09. Additionally, the bill includes several time-sensitive supplemental funding items that have been requested by the State Budget Office. Caseload adjustments for Medicaid programs within the Department of Community Health account for most of the additional appropriations. This item alone accounts for $325 million gross, and $140 million general fund spending. In total, the bill would appropriate $450 million gross, and $328 general fund.
Include Upper Peninsula in all State Publications
HB 4995
House Bill 4995 would require that all state publications include the Upper Peninsula. No current publications would need to be destroyed to comply with this legislation; however, all new publications would need to be in compliance.
Extend Utility Truck Seasonal Weight Limit Exemption
HB 4999
House Bill 4999 would allow utility subcontractors to use county roads to conduct utility maintenance and repairs during the frost law season in generally the same manner as utility companies can presently.
Elder Abuse Prevention Package
Staff: Kenwah Dabaja (3-7751)
Next: Sent to Senate for consideration
HB 4618 (HUCKLEBERRY), Passed 106-0
HB 4727 (HUCKLEBERRY), Passed 106-0
House Bill 4618 amends the Penal Code and provides for additional punishment for individuals who through fraud, deceit, misrepresentation, coercion or unjust enrichment obtain or use or attempt to obtain or use a vulnerable adult's money or property to directly or indirectly benefit that person knowing or having reason to know the vulnerable adult is a vulnerable adult. House Bill 4727 amends the corresponding sentencing guidelines associated with these new felonies created in HB 4618.
HB 4620 (BLEDSOE), Passed 106-0
HB 4626 (CONSTAN), Passed 106-0
House Bill 4620 amends the Michigan Penal Code to revise the felony of fraudulently obtaining a signature of any person with the intent to cheat and defraud. House Bill 4626 amends the corresponding sentencing guidelines associated with HB 4620.
HB 5011 (CONSTAN), Passed 105-1
House Bill 5011 amends the Code of Criminal Procedure and requires a magistrate to accept a complaint, signed upon information and belief, from someone other than the victim, alleging any crime committed against a vulnerable adult.
Revise Central Registry Clearance Procedures
HB 4971
House Bill 4971 amends the Child Protection Law to amend the circumstances under which DHS is required to states documentation that an individual is not named in the Central Registry as a perpetrator of child abuse or neglect. The revision provides that DHS is required to provide Central Registry clearances as a group or "batch" to agencies using volunteers or employers using seasonal workers if that employment or volunteer work will include contact with children.
Dedicate Iron County Veterans Memorial Highway
HB 4770
House Bill 4770 would amend the Michigan Memorial Highway Act to designate the portion of Highway US-2 in Iron County beginning in Crystal Falls from M-69 and continuing west to M-189 in Iron River (approximately 16 miles) as the "Iron County Veterans Memorial Highway."
Modification of the Personal Curriculum Under The Michigan Merit Curriculum
HB 4511
The bill would amend the revised school code by making modifications to the personal curriculum. A personal curriculum is an option initiated by the parent/legal guardian that modifies certain requirements of the Michigan Merit Curriculum and allows a district to award a regular high school diploma to students who successfully complete their personal curriculums.
Reporting Requirement for Emergency Financial Managers
HB 5052
House Bill 5052 would amend the Local Government Responsibility Act to require an emergency fiscal manager appointed by the Governor to produce a report every six months for the Governor and the leaders of the Legislature. The report would include a list of expenditures, contracts, loans, and personnel changes.
Submission of Affidavits to Registers of Deeds
HB 4503
House Bill 4503 would amend the list of documents allowed to be submitted to a Register of Deeds under existing statute to include an affidavit to correct errors or omissions to documents kept by the register; rather than having to go through the entire submission process again.
Permits for Building Structures Near Airports
SB 403
Senate Bill 403 would allow for the issuance of permits to construct or alter a structure in close proximity of an airport if the airport zoning board has not ruled on the application within a 90 day period and the application has already been approved by the Michigan Aeronautics Commission and the Federal Aviation Administration.
Create the Uniform Prudent Management of Institutional Funds Act
SB 411
Senate Bill 411 would create the Uniform Prudent Management of Institutional Funds Act ("UPMIFA"), which provides standards for the management and investment of charitable funds and the expenditure of endowment funds. The UPMIFA would replace the Uniform Management of Institutional Funds Act ("UMIFA") and conform to the Uniform Law Commission's recommendation.
Amend the Nonprofit Corporation Act
SB 412
Senate Bill 412 would amend the Nonprofit Corporation Act to refer to the proposed UPMIFA (SB 411) rather than the UMIFA.
Increase MBT Credits for Battery System Manufacturers
HB 5275
House Bill 5275 would increase the number of Michigan Business Tax (MBT) credits available for battery system manufacturers. The bill would require that the new credit be awarded for manufacturing of large scale power systems designed to convert renewable power into firm dispatchable power. Currently all credits must be awarded by October 1, 2009; the bill extends this deadline to March 1, 2010.
Revise Billboard Permit Regulations
HB 5122
The bill would reduce and cap the fee that can be assessed to the owner of a billboard for a later renewal of a permit, as well as allow the Michigan Department of Transportation (MDOT) to issue permits for roadside signs for churches and service groups.
Supplemental Budget Appropriations for Fiscal Year 2009-2010
HB 4311
House Bill 4311 contains various supplemental budget requests received from the State Budget Office that are currently pending before the Legislature. Those requests are as follows: Several pending requests for the Corrections budget totaling $10.0 million in general fund dollars; a fund shift of federal and state revenue between the Human Services and Higher Education budgets to draw down up to $155 million in federal TANF contingency fund revenues; and boilerplate language for the Department of State re-appropriating Help America Vote Act work project balances.
Revise the Michigan Merit Curriculum
HB 4410
Under House Bill 4410 all current graduation requirements would remain the same, except for the math requirements. Under the bill, students would be required to successfully complete four credits in mathematics. These credits would include at least one credit in Algebra I, one credit in geometry earned in a geometry course or the integrated equivalent in a career and technical course, and one credit earned in either a financial literacy course, or an algebra II course or the integrated equivalent in a career and technical education course.