State House Democrats unveil insurance legislation

LANSING, MI – Insurance companies would face fines for denying valid claims under new legislation. The package of bills was unveiled Monday by state House Democrats. The legislation would fine the companies up to a million dollars for denying or delaying a claim.

But insurance company advocates say current regulations already protect consumers from fraudulent practices.

Pete Kuenmench is with the Insurance Institute of Michigan.

"Complaints against insurance companies - particularly against auto insurers - went down last year, according to the Office of Finance and Insurance Regulations own statistics," he says. "So it's a little puzzling to us to see why this is coming up at this time and would lead one to believe that it's politically motivated."

A House committee is expected to vote on the legislation Tuesday when session reconvenes after a two week summer recess.