SENATE BILL No. 19

January 30, 2001, Introduced by Senator BYRUM and referred to the Committee on Health

Policy.

A bill to amend 1961 PA 236, entitled

"Revised judicature act of 1961,"

(MCL 600.101 to 600.9948) by adding section 2972.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 SEC. 2972. (1) IN ADDITION TO ANY OTHER REMEDIES PROVIDED

2 BY LAW, AN INSURER WHO FAILS TO NEGOTIATE AND SETTLE AN INSURANCE

3 CLAIM IN GOOD FAITH IS LIABLE TO THE CLAIMANT FOR DAMAGES

4 INCURRED AS A RESULT OF THAT FAILURE. IN AN ACTION UNDER THIS

5 SECTION, THE CLAIMANT MAY ALSO RECOVER EXEMPLARY DAMAGES, COSTS

6 OF THE ACTION, AND REASONABLE ATTORNEY FEES.

7 (2) AS USED IN THIS SECTION:

8 (A) "INSURER" MEANS ANY OF THE FOLLOWING:

9 (i) AN INSURER OR A HEALTH MAINTENANCE ORGANIZATION AS

10 DEFINED IN AND REGULATED UNDER THE INSURANCE CODE OF 1956, 1956

11 PA 218, MCL 500.100 TO 500.8302.

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1 (ii) A HEALTH CARE CORPORATION AS DEFINED IN THE NONPROFIT

2 HEALTH CARE CORPORATION REFORM ACT, 1980 PA 350, MCL 550.1101 TO

3 550.1704.

4 (iii) A THIRD PARTY ADMINISTRATOR AS DEFINED IN THE THIRD

5 PARTY ADMINISTRATOR ACT, 1984 PA 218, MCL 550.901 TO 550.962.

6 (B) "INSURANCE CLAIM" MEANS A CLAIM UNDER ANY OF THE

7 FOLLOWING:

8 (i) AN INSURANCE POLICY OR CERTIFICATE OR A HEALTH MAINTE-

9 NANCE ORGANIZATION CONTRACT REGULATED UNDER THE INSURANCE CODE OF

10 1956, 1956 PA 218, MCL 500.100 TO 500.8302.

11 (ii) A CERTIFICATE AS DEFINED IN THE NONPROFIT HEALTH CARE

12 CORPORATION REFORM ACT, 1980 PA 350, MCL 550.1101 TO 550.1704.

13 (iii) A BENEFIT PLAN AS DEFINED IN THE THIRD PARTY ADMINIS-

14 TRATOR ACT, 1984 PA 218, MCL 550.901 TO 550.962.

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