Bill Text: MI HB5694 | 2023-2024 | 102nd Legislature | Engrossed
Bill Title: Insurance: unfair trade practices; unfair trade practices in the insurance industry; revise. Amends sec. 2025 of 1956 PA 218 (MCL 500.2025) & repeals secs. 2024a & 2024b of 1956 PA 218 (MCL 500.2024a & 500.2024b).
Spectrum: Partisan Bill (Democrat 19-0)
Status: (Engrossed) 2024-06-26 - Referred To Committee On Finance, Insurance, And Consumer Protection [HB5694 Detail]
Download: Michigan-2023-HB5694-Engrossed.html
Substitute For
HOUSE BILL NO. 5694
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
by amending section 2025 (MCL 500.2025).
the people of the state of michigan enact:
Sec. 2025. (1) Nothing in sections 2017 through 2024 shall be construed as including within the definition of discrimination or rebates any of the The following practices are not included in the definition of discrimination or rebates in sections 2017 to 2024:
(a) (1) In the case of any For a contract of life insurance or life annuity, paying bonuses to policyholders or otherwise abating their the policy holder's premiums in whole or in part out of surplus accumulated from non-participating insurance. : Provided, That any such However, any bonuses or abatement of premiums shall must be fair and equitable to policyholders and for the best interest of the company and its policyholders. ;
(b) (2) In the case of For life insurance policies issued on the industrial debit plan, making allowance to policyholders who have continuously for a specified period made premium payments directly to an office of the insurer in an amount which that fairly represents the saving in collection expense. ;
(c) (3) Readjustment of the rate of premium for a group insurance policy based on the loss or expense experience thereunder, under the group insurance policy, at the end of the first or any subsequent policy year of the group insurance thereunder, which policy, that may be made retroactive only for such the group insurance policy year.
(2) A life or property and casualty insurer offering insurance products, by or through its employees, affiliates, insurance producers, or third-party representatives, or an insurance producer acting on the insurance producer's behalf, may offer or provide, for free or at a discounted price, value-added products or services that are not specified in the policy of insurance if the product or service meets the following criteria:
(a) Relates to the insurance coverage.
(b) Is primarily designed to satisfy 1 or more of the following objectives:
(i) Provides loss mitigation or loss control.
(ii) Reduces claim costs or claim settlement costs.
(iii) Provides education about liability risks or risk of loss to persons or property.
(iv) Monitors or assesses risk, identifies sources of risk, or develops strategies for eliminating or reducing risk.
(v) Enhances health.
(vi) Enhances financial wellness through items such as education or financial planning services.
(vii) Provides post-loss services.
(viii) Incentivizes behavioral changes to improve the health or reduce the risk of death or disability of a customer.
(ix) Assists in the administration of the employee or retiree benefit insurance coverage.
(c) The cost to the insurer or producer offering the product or service to any given customer must be reasonable in comparison to that customer's premiums or insurance coverage for the policy class.
(d) If the insurer or producer is providing the product or service offered, the insurer or producer must ensure that the customer is provided with contact information to assist the customer with questions regarding the product or service.
(3) The director may adopt rules under the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, when implementing this section to ensure consumer protection, including, but not limited to, rules, consistent with applicable law, that address consumer data protections, privacy and consumer disclosure, and unfair discrimination.
