Michigan bills target insurers' denial of proper claims

MASON – The state House will hold three hearings this week on legislation to punish insurance companies that wrongfully deny legitimate claims by their policyholders.

The state could fine insurance companies $1 million for denying legitimate claims by policyholders, under legislation House Democrats say will put an end to insurers cheating their customers.

The package of 12 bills also would allow courts to levy heavy fines and charge insurance executives with felonies for encouraging the delay or denial of insurance claims.

Too many consumers are denied claims for injuries or property damages to boost insurance company profits, House Democrats said at one of five press conferences planned across the state.

Rest of article at: http://freep.com/article/20090713/NEWS06/90713046/Michigan-legislation-targets-insurers--denial-of-proper-claims