SB 0546
Insurance: other; penalties for late payment of claims; increase. Amends secs. 2006 & 3142 of 1956 PA 218 (MCL 500.2006 & 500.3142).
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Sign in to take action- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Bill overview
This bill increases penalties for insurance companies that fail to pay claims on time. It raises the interest rate on overdue claims to 12% per annum, with tiered rates based on the length of the delay. The bill also establishes procedures for submitting proof of loss and outlines requirements for health plans to process and pay claims promptly, including specific timelines and documentation standards. Finally, it mandates reporting of claim payment timeliness on insurer websites.
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