Crains Editorial: Insurance ‘bill of rights' would raise costs for all
An "insurance bill of rights" being pushed by Democrats in Lansing ought to be called the "Higher Costs for All Act."
The basic idea sounds nice for consumers: The bills would prescribe that insurers have to act in good faith and give customers the benefit of the doubt.
We suspect the bills are political payback from Democrats to the trial lawyers lobby that has been one of the party's staunchest and most influential backers.
Supporters say the measures, Senate Bill 329 and House Bill 4681, would empower people and business owners who have little recourse if insurance companies do not act in good faith. The industry says the bills are sweeping in nature and would lead to higher rates for consumers and businesses due to frivolous lawsuits and fraudulent claims.