Insurance: other; underwriting transparency; provide for. Amends 1956 PA 218 (MCL 500.100 - 500.8302) by adding sec. 2229.
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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 aims to increase transparency in automobile and homeowners insurance policies in Michigan. It requires insurers to provide detailed explanations to policyholders when making material changes to their coverage, such as nonrenewal or premium increases. Insurers must also notify insurance producers about these changes and provide clear reasons for the modifications. The law takes effect on January 1, 2026.
Key provisions
- Insurers must provide written notice to policyholders when making material changes to their policies.
- The notice must include an explanation of the principal factors for the change.
- Policyholders can request a detailed explanation of these factors.
- Insurers must notify insurance producers about material changes.
- The notice and explanation must be clear and specific.
- The law outlines what types of statements do not meet the requirements for transparency.
- The law applies to policies issued or renewed after January 1, 2026.
- Material changes are defined, excluding certain automatic increases and changes initiated by the insured.
Who is affected
- Automobile insurance policyholders
- Homeowners insurance policyholders
- Insurance producers
- Insurance companies
- The general public
Notable changes
Bill text
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Document of record
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- Senate Introduced Bill
- Published
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