Bills Target the Insurance Companies That Drag Their Feet on Claims of Legit
Insurance companies drag out or deny claims are legitimate targets of the hearings that led this week by House Democrats, who said Monday that those companies should be fined up to $ 1 million and their executives charged with crimes The Democrats ‘package of 12 accounts that would allow the Commissioner of Insurance of the state levy a fine of up to $ 1 million. Create civil penalties up to treble the cost of 5 years of high treason of the original claim and the insurance company’s executives to encourage erroneous denial of claims.
The spokesman for the insurance industry criticized the proposal as politically motivated, unnecessary and likely drive up the cost of insurance with frivolous legal proceedings. Lori Conarton, spokesperson for the institute of insurance of Michigan, said that only a small percentage of claims filed in the state are disputed. He said the work of employees of the insurance company hard to help customers keep their losses. We ‘with no reference to flagrantly deny claims. Each occasionally, errors occur, Conarton said, adding that laws exist that require insurers handle claims quickly.
Those laws are too weak, the House Democrats said, adding that Michigan is one of only four states without strong legal remedies for policyholders of insurance claims are unjustly denied and in some cases, forced the action of man or cut to drain savings for pay for medical expenses. No one should have his life ruined because an insurance company won’t do what it promised, representative.
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