Insurance: other; penalties for fraudulent insurance acts; increase. Amends sec. 4511 of 1956 PA 218 (MCL 500.4511).
Impact
The impact of HB 4716 on state laws includes a notable escalation in the repercussions for those found guilty of fraudulently seeking insurance benefits. It introduces enhanced penalties for repeat offenders and stipulates mandatory restitution for the victims of fraudulent acts. By broadening the definitions of offenses and their corresponding penalties, the bill empowers law enforcement and regulatory agencies to more effectively combat insurance fraud.
Summary
House Bill 4716 amends the Michigan insurance code to enhance penalties for committing fraudulent insurance acts. This legislation establishes stricter penalties, categorizing fraudulent insurance acts under specific conditions as felonies and misdemeanors, each with defined terms of imprisonment and fines based on the severity and scale of the offense. The bill seeks to deter fraudulent activities in the insurance sector by increasing the consequences associated with these crimes.
Contention
Notable points of contention surrounding HB 4716 focus on the balance between effectively prosecuting insurance fraud and ensuring that individuals accused of such acts are afforded due process. Critics argue that the increased penalties may disproportionately affect low-income individuals who may inadvertently commit fraud without malicious intent. Additionally, there are concerns regarding adequate safeguards to prevent wrongful convictions based on circumstantial evidence or misunderstandings regarding fraudulent claims.
Additional_info
In its current form, the bill stipulates several tiers of punishment, which vary based on the amount of the fraudulent claim and the number of incidents involved. The court's authority is expanded in determining sentences and notifying relevant licensing authorities upon adjudication, thus aiming to hold practitioners accountable alongside individuals committing fraud.
Insurance: no-fault; penalties for lapse of insurance policy; provide waiver for certain individuals. Amends secs. 2118 & 2120 of 1956 PA 218 (MCL 500.2118 & 500.2120) & adds sec. 2116c.
Insurance: other; the insurance code of 1956; amend to reflect amendments to the public health code. Amends sec. 2006 of 1956 PA 218 (MCL 500.2006). TIE BAR WITH: HB 5477'24
Criminal procedure: sentencing; mandatory sentencing for certain crimes in the Medicaid false claim act; require. Amends sec. 6 of 1977 PA 72 (MCL 400.606).
Crimes: prostitution; penalties for individual 16 years of age or less in house of prostitution; modify. Amends sec. 462f of 1931 PA 328 (MCL 750.462f).
Labor: fair employment practices; penalty for wage and fringe benefit payment violations with the intent to defraud; increase. Amends sec. 15 of 1978 PA 390 (MCL 408.485).
Labor: fair employment practices; penalty for wage and fringe benefit payment violations with the intent to defraud; increase. Amends sec. 15 of 1978 PA 390 (MCL 408.485).