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State Representative Joe Mullery
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-4262
For more information contact: Matt Swenson 651-297-8406
COMMUNITY NOTICE
GOVERNOR ALLOWS INSURANCE COMPANIES TO ACT IN BAD FAITH TOWARD THEIR INSUREDS
Most states have provisions in law or court rules that permit consumers and small businesses to sue insurance companies when they deny a claim by their own insureds without any reasonable basis. Most states call these provisions “good faith" laws and more than 40 states have some type of provision for this. This year, bills requiring insurance companies to act in good faith when handling insurance claims by their own insureds, passed all the committees in which they were heard and passed both the Senate and the House. However, the governor not only threatened to veto the bill if it came to him on its own, but he further threatened to veto any bill (even if it was a major appropriations bill funding state agencies) if that bill had any provision in it that required insurance companies to act in good faith.
Since most states have some type of similar laws, and since the governor would not agree to any language (no matter how hard the proponents tried to appease him with modifications) it shows how much influence insurance companies have on this governor.
News Items
- Reminder: Primary - August 14; Some Voting Locations May Have Changed - (Posted: 2012-07-08 00:00:00)
- Passing of Dr. John Williams - (Posted: 2012-07-09 00:00:00)
- Rep. Mullery: 2012 Legislative Report - (Posted: 2012-07-10 00:00:00)
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