The Democratic-led House may vote on the legislation Wednesday afternoon. But it probably will stall in the Republican-controlled Senate.
Wednesday, August 19, 2009 at 1:23 p.m.
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LANSING (AP) -- A Michigan House committee has voted to toughen penalties for insurance companies that deny or delay valid claims.
The Democratic-led House may vote on the legislation Wednesday afternoon. But it probably will stall in the Republican-controlled Senate.
Supporters of the bills say Michigan is one of just four states without serious financial penalties when a court rules an insurer has not fairly settled a claim.
A whistle-blower who once worked at Allstate Insurance Co. told reporters last month that Michigan employees were routinely told to deny claims or send claims to a special investigations unit.
The insurance industry says most policyholders are satisfied with their service.
(Copyright ©2009 by The Associated Press. All Rights Reserved.)
