LANSING – In an effort to end customer intimidation, State Representative David E. Nathan (D-Detroit) recently introduced a plan requiring auto insurance companies to act in good faith when dealing with clients filing personal injury claims.
"This is an issue that affects countless residents in Detroit," Nathan said. "When people are hurt in a car accident and file a personal injury claim, too often these claims linger because of stalling tactics by their insurer in attempt to make them drop the claim. No one deserves that kind of treatment and we must act to hold insurance companies accountable."
Under the plan that Nathan introduced last week, auto insurers working with an injured person would be required to act in good faith. Any insurer that breaches this agreement by using threats or intimidation of any kind would be liable for all damages. Insurers that deny a person's right to make a claim also would be responsible for legal fees assumed by the injured person.
"Michigan residents who have suffered a personal injury should have the right to file a claim without fear of retribution from their insurance provider," Nathan said. "This plan will prohibit insurance companies from taking advantage of injured residents and force them to treat their customers equally and fairly."