Insurance: other; penalties for late payment of claims; increase. Amends secs. 2006 & 3142 of 1956 PA 218 (MCL 500.2006 & 500.3142).

This bill increases the financial penalties for insurance companies that fail to pay valid claims on time. It directly affects insurance providers, policyholders, and third-party claimants by requiring them to pay 12% annual interest on benefits delayed beyond specific deadlines. The legislation establishes new rules for when interest begins to accrue, such as starting 60 days after an insurer receives proof of loss, and sets tiered interest rates based on how late a payment is. Additionally, it outlines specific timelines for health plans to process and pay claims to medical providers, including requirements to notify providers of claim defects within 30 days.