Insurance: insurers; processing of a claim; modify duties. Amends secs. 2005, 2006, 2026 & 2049 of 1956 PA 218 (MCL 500.2005 et seq.) & adds sec. 2005b & ch. 30B.

Senate Bill 245 proposes changes to Michigan's insurance code, primarily affecting how insurers process and pay claims to insureds, beneficiaries, and third-party claimants. The bill expands the definition of unfair or deceptive insurance practices to explicitly include conduct that occurs during claims handling and resolution. It requires insurers to pay benefits on a timely basis or pay 12% interest, otherwise considering it an unfair trade practice unless the claim is reasonably in dispute. Additionally, for benefits not paid timely, the insurer would be liable for the full amount of the loss, irrespective of policy coverage limits.