HB 4716 Michigan House · 2025-2026 Regular Session

Insurance: other; penalties for fraudulent insurance acts; increase. Amends sec. 4511 of 1956 PA 218 (MCL 500.4511).

HB 4716 increases criminal penalties for insurance fraud in Michigan based on the amount of fraudulent claims or number of claims involved. It raises maximum prison terms from 4 years to 20 years and fines up to $50,000, with higher penalties for larger frauds (e.g., $100,000+ claims or 100+ claims) or repeat offenses. The law requires courts to order restitution to victims and allows aggregating claims made within any 12-month period to determine penalty levels. This directly affects individuals committing fraud, as well as insurers or practitioners found responsible for fraudulent acts under Michigan law.

Issues: ✗ Criminal Justice

Bill status passed both 4 of 5 stages cleared

Introduction

Jul 2025

Committee Review

Sep 2025

House Passage

Sep 2025

Senate Passage

Sep 2025

Governor

Introduced Jul 1, 2025 Last action Sep 18, 2025

Maddy AI version diff · 1 comparison

What changed between versions

House Introduced Bill → As Passed by the House · 7 edits · Sep 16, 2025

MODERATE

This bill significantly expands penalties for fraudulent insurance claims by creating a tiered sentencing structure based on claim amount, number of claims, and prior offenses. It increases maximum prison terms from 4 years to as much as 20 years for severe cases and adds specific provisions for conspiracy and practitioner liability.

Scope change

The bill expands the scope of fraudulent insurance acts to include conspiracy agreements and adds new criteria for enhanced penalties including prior convictions and aggregated claims within 12-month periods.

ENFORCEMENT

Added new subsection (2) specifically addressing conspiracy to commit fraudulent insurance acts with penalties up to 10 years imprisonment.

Created a tiered penalty system with 6 subsections based on claim amount thresholds ranging from less than $1,000 to $100,000 or more.

Added new subsection (7) allowing aggregation of fraudulent claims made within any 12-month period to determine total penalties.

Added new subsection (8) requiring prosecuting attorneys to list prior convictions on complaints and establishing court procedures for determining prior convictions.

Increased maximum penalties significantly, with felony penalties now ranging from 1 year to 20 years imprisonment depending on severity, compared to the original 4-year maximum.

REQUIREMENT

Added new subsection (9) requiring courts to notify licensing authorities when practitioners or insurers are found guilty of fraudulent insurance acts.

DEFINITION

Added new subsection (6) clarifying that all misdemeanor and felony convictions under this section require restitution payments.

Floor votes · House Sep 16, 2025

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Sep 18, 2025

Committee

REFERRED TO COMMITTEE ON FINANCE, INSURANCE, AND CONSUMER PROTECTION

upper

Sep 18, 2025

Upper · Passed

PASSED BY HOUSE WITH IMMEDIATE EFFECT

upper

Sep 16, 2025

Lower · Passed

passed; given immediate effect Roll Call #209 Yeas 101 Nays 2 Excused 0 Not Voting 7

lower

Sep 3, 2025

Committee

referred to second reading

lower

Sep 3, 2025

Lower · Passed

reported with recommendation without amendment

lower

Jul 1, 2025

Committee

referred to Committee on Insurance

lower

Jul 1, 2025

Introduced

introduced by Representative Rep. Mike McFall

lower

1 primary · 9 co-sponsors