MI
Michigan House Bill HB4492

Michigan 2023-2024 Regular Session

Michigan House Bill HB4492

Introduced
4/27/23  

Caption

Insurance: no-fault; overdue benefits; make fee schedules inapplicable for. Amends sec. 3142 of 1956 PA 218 (MCL 500.3142).

Impact

The impact of HB 4492 primarily concerns the timely payment of personal protection insurance benefits. By specifically defining the criteria for overdue payments and establishing a 12% interest rate for overdue amounts, the bill aims to ensure that policyholders receive due compensation more promptly. This amendment is expected to address delays that have historically plagued the insurance payout process, significantly affecting beneficiaries who rely on these payments during recovery.

Summary

House Bill 4492 seeks to amend the insurance code of 1956 by modifying section 3142 regarding personal protection insurance benefits. The proposed changes stipulate that benefits are considered overdue if not paid within 30 days after an insurer receives reasonable proof of the loss and its amount. The bill aims to clarify the payment timeline for overdue benefits, establishing a clear process for determining when payments must be made by insurers following an auto accident or other qualifying incident.

Conclusion

Overall, HB 4492 presents a significant alteration to the landscape of personal protection insurance in Michigan, aiming to enhance consumer rights and encourage timely compensation from insurers while simultaneously raising concerns regarding its broader implications on the insurance market.

Contention

However, the bill has generated points of contention among various stakeholders. Supporters of the amendment argue that it provides necessary clarity and protection for consumers, as it holds insurers more accountable for prompt payments. Opponents, including some insurer representatives, contend that these new regulations might lead to unintended consequences, such as increased litigation or higher premiums for consumers as insurers seek to offset the risks of mandatory timely payments.

Companion Bills

No companion bills found.

Previously Filed As

MI HB4493

Insurance: no-fault; fee schedules; make inapplicable for overdue benefits. Amends sec. 3157 of 1956 PA 218 (MCL 500.3157).

MI SB1088

Insurance: other; penalties for late payment of claims; increase. Amends secs. 2006 & 3142 of 1956 PA 218 (MCL 500.2006 & 500.3142).

MI HB5057

Insurance: no-fault; option to exclude work loss benefits; expand. Amends sec. 3107 of 1956 PA 218 (MCL 500.3107).

MI HB6251

Insurance: no-fault; coverage and benefits for caregiver reimbursement; modify. Amends 1956 PA 218 (MCL 500.100 - 500.8302) by adding sec. 3157c.

MI SB0329

Insurance: no-fault; penalties for lapse of insurance policy; eliminate. Amends secs. 2116b, 2118 & 2120 of 1956 PA 218 (MCL 500.2116b et seq.) & repeals sec. 2116a of 1956 PA 218 (MCL 500.2116a).

MI SB0531

Insurance: no-fault; cross-reference to amended section of the insurance code; revise. Amends sec. 2111f of 1956 PA 218 (MCL 500.2111f). TIE BAR WITH: SB 0530'23

MI HB4914

Insurance: no-fault; assigned claims plan; require unlimited-level benefit reimbursement for bicyclists. Amends sec. 3172 of 1956 PA 218 (MCL 500.3172).

MI HB6253

Insurance: no-fault; priorities for payment of benefits; correct cross-references in section. Amends sec. 3114 of 1956 PA 218 (MCL 500.3114).

MI SB0282

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.

MI SB0793

Insurance: no-fault; catastrophic claims association; make miscellaneous operational amendments. Amends secs. 134 & 3104 of 1956 PA 218 (MCL 500.134 & 500.3104). TIE BAR WITH: SB 0794'24

Similar Bills

No similar bills found.