...- actually, all they are seeking to do is readjust it for temporary comfort - and the insurance industry freaks out.

The Democratic-led Michigan House has voted to toughen penalties for insurance companies that deny or delay valid claims.

But the legislation approved today probably will stall in the Republican-controlled Senate.

Supporters of the bills say Michigan is one of just four states without serious financial penalties when a court rules an insurer has not fairly settled a claim.

A whistle-blower who once worked at Allstate Insurance Co. told reporters last month that Michigan employees were routinely told to deny claims or send claims to a special investigations unit.

The insurance industry says most policyholders are satisfied with their service and the legislation would help trial lawyers make money.

What's more ironic about this is that the bill was proposed by a state legislator from a rural district who is about as Blue Dog as they come. If they are freaking out over simple regulation, well, it's quite apparent that the entire industry is based on "bad faith":

Michigan insurance companies say that so-called "bad faith" bills approved by the House Insurance Committee today are unnecessary and will open the floodgates for lawsuits against them, eventually costing consumers money.

Meanwhile, House Democrats who are sponsors of the "bad faith" measures say they will not be intimidated either by the insurers' complaints or by radio ads opposing their measures.

The package of bills (House bills 4244, 4844, 4858, 5020, 5144-5151) would create new causes of actions and increase fines and penalties against insurance companies for failure to act in good faith in handling claim payments.

...

"This bad faith legislation is bad for consumers," Kuhnmuench said. "In reality, the system in Michigan is in good shape. It discourages fraud while at the same time encouraging insurance companies to settle claims promptly and efficiently."

This guys are absolutely incredulous. Too bad that this legislation might not make it pass the state senate:

But House Democrats are not backing down.

"Insurance companies and their CEOs who are promoting the practice of breaking promises to policyholders have been let off the hook and treated with kid gloves for far too long," said Rep. Barb Byrum (D-Onondaga), chair of the House Committee on Insurance. "Radio ads and smear campaigns will not stop us from strengthening consumer protection and holding CEOs accountable when they refuse to honor consumers' legitimate claims."

...

Byrum says the Democrats' bills are an effort to have Michigan join 46 other states that punish insurance companies for wrongfully denying legitimate claims. The House Democrats' plan also will hold CEOs and corporate leaders accountable if they boost profits by denying or low-balling valid claims.

House Democrats' introduced their measures in July.

"Insurance companies are angry that we are listening to real people hurt by the company's unfair practice, and not just their high-priced lobbyists," said another sponsor, Rep. Mike Simpson (D-Jackson), whose family was forced into bankruptcy after fighting an insurance company to get them to live up to their promises after his daughter died from cancer.

"Insurance industry CEOs who promote this unfair practice should be held accountable just like everyone else. No amount of special interest radio attack ads will get me to stop fighting for real people."

This may be only a little consulation, but it's consolation, nonetheless.