2007 House Bill 4998

Allow lawsuit over non-good faith dealing by insurers

Introduced in the House

June 28, 2007

Introduced by Rep. Virgil Smith (D-7)

To allow a person who believes that an insurance company has not dealt fairly and in good faith to sue for compensatory, consequential, and exemplary (punitive) damages caused by the unfair dealing, notwithstanding the prohibition on punitive damages in other areas of Michigan tort law.

Referred to the Committee on Insurance

April 24, 2008

Reported without amendment

With the recommendation that the amendments be adopted and that the bill then pass.

May 27, 2008

Amendment offered

To clarify language that has the effect of very slightly broadening the scope of the bill, but applying it to any action by an insurer, not just those regulated under the insurance code; and remove language making the insurer liable for the false statement of an agent related to a claim.

The amendment passed by voice vote

Amendment offered by Rep. John Garfield (R-45)

To cap the legal fees a court may award a winning plaintiff in addition to damages at $1,000.

The amendment failed by voice vote

Passed in the House 59 to 48 (details)

Received in the Senate

June 3, 2008

Referred to the Committee on Economic Development and Regulatory Reform