2009 House Bill 5151

Authorize new insurance company regulations and sanctions

Introduced in the House

June 25, 2009

Introduced by Rep. Rashida Tlaib (D-12)

To require that if an insurance company fails to act in good faith and pay benefits in a timely manner, and this leads to an insured receiving a bad credit report, the insurer must contact the credit rating agencies and tell them that it was the company’s fault.

Referred to the Committee on Insurance

Aug. 19, 2009

Reported without amendment

With the recommendation that the substitute (H-1) be adopted and that the bill then pass.

Substitute offered

To replace the previous version of the bill with one that revises details but does not change the substance of the bill as previously described.

The substitute passed by voice vote

Amendment offered by Rep. Kevin Green (R-77)

To cap attorney fees awarded under the bill's provsions at one-third of the first $100,000; 15 percent of the amount between $100,000 and $500,000; and 10 percent of the amount between $500,000 and $1 million.

The amendment failed by voice vote

Amendment offered by Rep. Kevin Green (R-77)

To strip out the proposed damages and triple damages the bill would authorize.

The amendment failed by voice vote

Passed in the House 61 to 45 (details)

Received in the Senate

Aug. 26, 2009

Referred to the Committee on Economic Development and Regulatory Reform