The Oakland Press: State doesn’t need ‘Insurance Bill of Rights’
Some lawmakers in Lansing want to create an “Insurance Bill of Rights” with Senate Bill (SB) 329 and House Bill (HB) 468. This misguided notion that more regulation will mean better outcomes for Michiganders is nothing but fiction. Comparable legislation in Florida and California is a cautionary tale for our state.
In states that have ventured down this path, we have witnessed the unfortunate consequences of more unnecessary lawsuits and insurance fraud. The fallout has been so severe that some insurance companies have stopped offering coverage altogether. This lack of options leaves families and businesses struggling to secure insurance plans that align with their needs and circumstances.
Florida’s example is particularly informative. The unchecked rise in insurance fraud and unnecessary lawsuits led to a decline in insurance choices for Floridians. Only 8% of the staggering $51 billion paid out by Florida insurers over a decade reached claimants, with a whopping $36 billion diverted to attorney’s fees and public adjusters.
California’s misstep in encouraging this kind of litigation created a surge of claims and lawsuits, driving insurance premiums up by an alarming 32% to 53%. The California Legislature repealed that legislation 10 years later, but the damage to residents was already done.
Michiganders must say NO to SB 329 and HB 4681 to avoid learning the lessons of Florida and California the hard way.
Wendy Block
Senior VP of Business Advocacy, Michigan Chamber of Commerce