Insurance: other; penalties for violations of the insurance code; increase. Amends secs. 150 & 2038 of 1956 PA 218 (MCL 500.150 & 500.2038).
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Overview
This bill increases penalties for violations of the Michigan Insurance Code. It allows the director to impose civil fines on individuals and insurers who violate the code, with fines potentially reaching $100,000 for insurers who knew or should have known of the violation. The bill also provides for the suspension or revocation of licenses for repeat offenders and allows the director to seek court orders to prevent violations.
Key provisions
- Increases civil fines for insurance code violations, up to $100,000 for insurers who knew of the violation.
- Allows the director to suspend or revoke licenses for individuals who violate the code.
- Establishes a process for hearings and appeals related to violations.
- Provides for refunds of overcharges in certain cases.
- Authorizes the director to seek court orders to prevent violations.
- Specifies penalties for unfair or deceptive acts or practices, with maximum fines of $50,000 for insurers and $10,000 for other individuals.
- Outlines procedures for reopening and modifying orders based on changed circumstances.
- Clarifies that violations related to filings under specific chapters of the code do not include individual policy actions.
Who is affected
- Insurance companies
- Individuals involved in the insurance industry
- State regulators (the director)
- Consumers of insurance products
Bill text
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Document of record
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- Senate Introduced Bill
- Published
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