Insurance: other; market conduct exams; require insurers to pay for. Amends 1956 PA 218 (MCL 500.100 - 500.8302) by adding ch. 4A.
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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 updates Michigan’s insurance laws to require insurers to pay for market conduct examinations conducted by the Department of Insurance and Financial Services (DIFS). It establishes a process for DIFS to identify insurers needing examination based on market analysis, using a continuum of actions ranging from correspondence to on-site inspections. The bill aims to ensure insurers are held accountable for their market practices and protects consumers by focusing on broader business practices rather than isolated errors.
Key provisions
- Establishes a process for DIFS to conduct market analysis to identify insurers needing examination.
- Defines key terms related to market conduct examinations, such as ‘Complaint,’ ‘Desk Examination,’ and ‘Market Conduct Action.’
- Outlines a continuum of market conduct actions, starting with correspondence and progressing to on-site examinations, before a targeted examination is conducted.
- Requires insurers to provide convenient access to records and personnel during examinations.
- Mandates the use of the NAIC’s Market Conduct Examiner’s Handbook and other resources in conducting examinations.
- Specifies that market conduct actions should focus on general business practices and compliance, not isolated errors.
- Establishes procedures for notifying insurers of planned examinations and for sharing information with other regulatory agencies.
- Creates a process for resolving disputes between insurers and the DIFS regarding examination fees.
Bill text
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