State House Dems to introduce anti-insurance-scam bills

LANSING, MI – State lawmakers return to Lansing this week after a two week summer break. House Democrats are expected to unveil new legislation Monday.

The legislation would make easier for people to sue insurance companies for denying claims. It would also allow the state to fine insurance companies up to a million dollars for denying claims.

State Representative Sarah Roberts sponsored the legislation. She expects it to clear the Democrat-controlled state House. Senate Republicans have refused to embrace similar proposals in the past, but Roberts says she hopes GOP leaders can be persuaded.

"I am hopeful the Senate will recognize we need stronger consumer protections in Michigan," says Roberts. "And I can't speak for the Senate Majority Leader, Mike Bishop, on whether he'll pick this up or not, but I think they need to."

Insurance companies have said that these types of proposals force rate increases on consumers by making it easier to file frivolous claims.