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House passes 'good faith' insurance bill
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Share on DiggThe Minnesota House today passed a bill that would expand consumers' rights to sue their insurance companies.
It would require insurance companies to act in "good faith" in denying claims from their clients or face penalties.
Hotly debated and lobbied by trial lawyers on one side and the insurance industry on the other, the bill passed the House 81 to 51. The House legislation differs slightly from a Senate version, and the two proposals have to be reconciled in a conference committee. The Senate version passed last week.
In a major compromise, both bills set limits on damages and attorneys' fees, making it more palatable to both sides. The bill would require a policyholder to show that the insurer had no reason to deny the claim and was reckless in its denial.
Mark Brunswick • 651-222-1636
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Citations?
People are throwing out a lot of stats, but they aren't giving links to the information- how can we fact check it? I don't think this bill … read more covers health insurance. I thought it was for when your insurance company denies your claim just to see if you'll go away, even though you have a good claim. This bill lets you go after them for malicously denying your valid claim which they know is a good claim. You would get to sue them for your original claim plus another lawsuit that punishes them for not dealing farily with you.
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