Insurance: no-fault; penalties for lapse of insurance policy; eliminate. Amends secs. 2116b, 2118 & 2120 of 1956 PA 218 (MCL 500.2116b et seq.) & repeals sec. 2116a of 1956 PA 218 (MCL 500.2116a).

SB 329 removes penalties that insurers could apply for past lapses in auto insurance coverage. It specifically eliminates requirements for applicants to prove they maintained insurance for the 6 months before applying (prior to January 1, 2022), and prohibits insurers from refusing coverage, raising premiums, or charging reinstatement fees solely due to prior coverage gaps. The bill directly affects drivers applying for auto insurance before 2022 who had brief periods without coverage. These changes streamline the application process by preventing insurers from penalizing applicants for past lapses that occurred before the effective date.