BY CHRIS CHRISTOFF • FREE PRESS LANSING BUREAU CHIEF • July 14, 2009
Insurance companies that drag out or deny legitimate claims are the targets of hearings this week led by House Democrats, who said Monday that those companies should be fined up to $1 million and their executives charged with crimes.
The Democrats' 12-bill package would allow the state insurance commissioner to levy a fine of up to $1 million. It would create civil penalties up to triple the cost of the original claim and 5-year felonies for insurance company executives who encourage wrongful denial of claims.
Insurance industry spokespeople criticized the proposal as politically motivated, unnecessary and likely to drive up insurance costs with frivolous lawsuits.
Lori Conarton, spokeswoman for the Michigan Insurance Institute, said only a small percentage of claims filed in the state are disputed. She said insurance company employees work hard to help customers recoup their losses.
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Wednesday, July 15, 2009
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