Auto insurance

Jones and Fellow State Reps Introduce Bill to Fix Auto Insurance Problems – Press and Guide

Embattled state Rep. Jewell Jones (D-Inkster), along with other members of Michigan’s House of Representatives Democratic Caucus, recently introduced a package of bills with bipartisan support to address concerns to transparency and accountability with Michigan’s no-fault law and auto insurance system.

“Insurance companies are posting record profits while hardworking Michiganders grapple with rising prices and reduced coverage,” Jones said. “We need an insurance system that works for us, not just for insurance companies. My bill would tackle the practice of redlining by prohibiting auto insurance companies from using zip codes to charge certain communities, typically those that are black or brown, higher prices. It’s time to fix this problem and give car accident survivors the care they need.

Jones was recently sentenced to two years probation for a drunk driving incident in April 2021 that led to a struggle with police along I-96 in Livingston County. He had pleaded guilty in February to two counts of resisting and obstructing a police officer, operating while intoxicated and possessing a weapon under the influence of alcohol in his original case, as well as charges of attempted escape and reckless driving which were raised while intoxicated. the original case was pending.

New bills he is working on include:

House Bill 5996

House Bill 5996 would address the issue of prohibiting insurers from withholding payment if the treatment is “not generally associated” with the accepted treatment. Sponsored by State Rep. Julie Rogers (D-Kalamazoo).

House Bill 5997

House Bill 5997 would impose penalties on insurance companies that unreasonably deny claims. “Bad faith denial.” Sponsored by State Representative Yousef Rabhi (D-Ann Arbor).

House Bill 5998

House Bill 5998 would close the loophole where some court rulings have essentially exempted all regulated and licensed businesses (like insurance companies) from Michigan’s consumer protection law. Sponsored by Rabhi.

House Bill 5999

House Bill 5999 would require the Department of Insurance and Financial Services to publicly post its reports of no-fault complaints, billing issues, and usage review on its website. Reports will include the number of cases per patient. Sponsored by State Rep. Kevin Coleman (D-Westland).

House Bill 6000

House Bill 6000 would require auto insurers to have their rates approved by the DIFS, with a profit margin cap of 8%. Sponsored by State Representative Rachel Hood (D-Grand Rapids).

House Bill 6001

House Bill 6001 would require payments to be issued within 30 days when the Michigan Catastrophic Claims Association (MCCA) is legally mandated to issue reimbursement payments to consumers. Sponsored by State Representative Kelly Breen (D-Novi).

House Bill 6002

House Bill 6002 would prohibit insurance companies or third-party companies associated with the insurance company from reviewing administrative appeals. Sponsored by State Representative Padma Kuppa (D-Troy).

House Bill 6003

House Bill 6003 would prohibit insurers from refusing to pay vendor invoices on the grounds that the invoice is not in the insurer’s preferred format or on the insurer’s preferred form. Sponsored by State Representative Regina Weiss (D-Oak Park).

House Bill 6004

House Bill 6004 would require the MCCA to disclose the actuarial calculation used in setting the rates. Sponsored by State Rep. Mary Cavanagh (D-Redford).

House Bill 6005

House Bill 6005 would prohibit price discrimination based on any category protected by the Elliott-Larsen Civil Rights Act (marital status, weight, sex, etc.), credit scores or other measures of financial stress, and location in Michigan AND would require insurance companies that have affiliated networks or the same parent company to offer consumers the lowest quote they would get within the company or network. Sponsored by Jones.