INSURER; NOTICE OF PAYMENT OF SETTLEMENT S.B. 1087:
SUMMARY OF BILL
REPORTED FROM COMMITTEE
Senate Bill 1087 (as reported without amendment)
CONTENT
The bill would amend the Insurance Code to do the following:
-- Require an insurer that paid at least $5,000 to a licensed attorney or other representative in a settlement or satisfaction arising out of an insurance policy issued in Michigan to send to the claimant or judgment creditor a notice of the payment within five business days after the payment was made or sent.
-- Prescribe the language the notice would have to contain.
-- Prohibit an insurer from communicating with a claimant or judgment creditor known to be represented by a licensed attorney or other representative regarding a settlement or satisfaction without the written consent of the attorney or other representative.
The bill specifies that it would not do any of the following:
-- Create a cause of action for monetary damages for any person against an insurer based on a failure to provide notice as required by the bill or the provision of a defective notice.
-- Establish a defense for any person to any cause of action based on a failure to provide the notice or the provision of a defective notice.
-- Invalidate or affect the settlement or satisfaction for which the payment was made by the insurer.
Proposed MCL 500.2081 Legislative Analyst: Drew Krogulecki
FISCAL IMPACT
The bill would have no fiscal impact on State or local government.
Date Completed: 12-7-18 Fiscal Analyst: Elizabeth Raczkowski
This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.