Legislators Crack Down On Unfair Insurance Practices

Democratic lawmakers want to stop Michigan insurers from delaying or denying legitimate claims filed by consumers.

Democrats in the state House unveiled legislation Monday that would fine insurance companies $1 million for denying proper claims.

They say the bills also could result in prison time and fines for corporate leaders who encourage the wrongful denial of claims.

People with brain injuries and a whistle-blower who has worked in the insurance industry attended a Lansing-area press conference with legislators.

Tearful families said insurers routinely refuse to pay for needed therapy and other medical treatment.

The whistle-blower said co-workers got prizes for denying claims or sending them to a special investigation unit.