Our mission is simple: protect working families and small businesses from so-called “bad faith” legislation being proposed in Lansing.
Why it Matters:
What is Bad Faith Legislation?
Bad faith legislation is bad for everyone. Michiganders are struggling with the cost of everything—from gas to groceries—and Senate Bill 329 and House Bill 4681 would likely result in higher insurance costs. Homeowners, drivers, and small businesses could be saddled with significant rate increases if this legislation is enacted.
The Bottom Line: This misguided legislation would open the litigation floodgates and force unnecessarily high settlements that line the pockets of plaintiffs' attorneys while the costs of this litigation would likely be passed to consumers. Other states with similar laws have seen a dramatic increase in fraudulent claims and frivolous lawsuits, escalating costs for consumers and businesses in those states. Insurance fraud increases the cost of everything we buy and use. This legislation will make it far worse.
The only real winners in this legislation are plaintiffs’ attorneys who would benefit at the expense of hardworking Michiganders
“The proposed bills would lead to higher insurance costs that could have a disproportionate effect on low-income Michiganders, who are less likely to be able to pay higher premiums,”
- Dawn Crandall, Executive Vice President of the Home Builders Association of Michigan
Legislation could create a potential cost to Michigan consumers of between $2.4 billion and $4.7 billion
Proposed legislation could most dramatically impact Michigan’s 7.2 million drivers whose auto insurance policies could skyrocket by nearly 40 percent.
“This is the last thing consumers need, when they are already feeling the impact of higher costs due to inflation.”
- Tim Daman, President & CEO of the Lansing Regional Chamber of Commerce
