The Property Casualty Insurers Association of America (PCI) says a recent vote by the Michigan House Insurance Committee to pass a package of bills may drive up insurance costs.

PCI contends the bill package imposes excessive restrictions on claims handling and says similar measurers enacted in other states have been shown to result in increases in frivolous lawsuits and insurance costs.

“Michigan consumers are already struggling under the state’s dire economic conditions,” Ann Weber, PCI VP regional manager and counsel for PCI said in a statement. “At a time when lawmakers should be focused on making things better for consumers, they are essentially adding a tax to Michigan insurance policies to subsidize trial attorneys and creating an extraordinarily harsh environment for responsible businesses that are providing jobs and working hard to serve their policyholders in the state.”

PCI says their analysis indicates an estimated $554.2 million in insurance premium increases could be passed on to Michigan’s insured drivers and homeowners as a result of the legislation.


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