Property Casualty Insurers Association of America

PCI At Work

Michigan House Advances Legislation Favoring Trial Attorneys over Consumers

The Michigan House’s passage of a package of bills that could drive up insurance costs and threaten a stable industry providing jobs in the state is a poor public policy decision that favors trial attorney over consumer interests.

PCI is opposing the bill package (House Bill 5146-5151, 4244, 4844, 4846, and 5020), which singles out the insurance industry and imposes excessive restrictions on claims handling. Such legislation has been shown to result in increases in frivolous lawsuits and insurance costs in other states.

According to a PCI analysis, an estimated $554.2 million in insurance premium increases could be passed on to Michigan’s insured drivers and homeowners as a result of this legislation.

Laws governing insurers’ handling of claims already exist, and Michigan’s insurance regulator already has the power to check into claims handling and issue cease and desist orders, impose fines and revoke certificates of authority.

As the bills move to the Senate, PCI is working with the industry in opposition of the bills and in educating lawmakers about the true costs of the legislation.


PCI News Releases

Michigan House Insurance Committee Favors Trial Attorneys over State’s Consumers, Economy

PCI Estimates $554.2 Million in Additional Insurance Premiums Could Result from Michigan Legislation

Bills Single Out Insurers, Threaten to Worsen Michigan’s Woes


Resources

PCI Whitepaper: The Impact of Enacting “Bad Faith” Legislation on Michigan’s Insured Consumers

The Detroit News: Letter to the Editor - Bill Would Hike State Insurance Costs

Detroit Free Press: Opinion – Attacks on Insurers Unwarranted

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