Insurance companies that deny or delay legitimate claims could face civil penalties up to 1 MILLION dollars.

According to an article in The Detroit Free Press, Insurance companies that drag out or deny legitimate claims are the targets of hearings this week led by House Democrats, who said Monday that those companies should be fined up to $1 million and their executives charged with crimes.

The Democrats’ 12-bill package would allow the state insurance commissioner to levy a fine of up to $1 million. It would create civil penalties up to triple the cost of the original claim and 5-year felonies for insurance company executives who encourage wrongful denial of claims.

Insurance industry spokespeople criticized the proposal as “politically motivated, unnecessary and likely to drive up insurance costs with frivolous lawsuits.”


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