A coalition of 44 Michigan organizations and stakeholders has submitted a joint letter to the Senate Finance, Insurance, and Consumer Protection Committee urging lawmakers to reject SB 245, commonly known as “bad faith” legislation.
According to the coalition, SB 245 could trigger costly new litigation across Michigan’s insurance industry, potentially increasing insurance rates by as much as 21% for consumers and businesses. The letter cites examples from other states where similar policies led to rising costs and fraudulent claims before ultimately being repealed.
Michigan will see costly new lawsuit abuse that will ripple across our economy and impact job providers and consumers,” said Zach Rudat, Director of the Michigan Alliance for Legal Reform. “We urge lawmakers to reject bad faith and any legislation that would open the floodgates to legal system abuse in Michigan.
The Michigan Alliance for Legal Reform is a coalition of employers and associations committed to promoting fairness and balance in Michigan’s legal system.