Finance, Insurance and Consumer Protection

This bill updates Michigan's insurance laws to allow continuing education credits earned by producers in professional associations to be carried over for future license renewals. It directly affects insurance agents and brokers who belong to these associations by modifying the rules for how they must complete their required 24 hours of training every two years. The legislation establishes specific criteria for approving study programs, sets fees for program providers, and outlines a process for reviewing and potentially waiving requirements for military service members or those facing severe hardships. By clarifying the system for credit carryover and program approval, the bill aims to streamline the administrative process for maintaining active insurance licenses.

This bill updates Michigan laws governing fraternal benefit societies by clarifying how their benefit contracts are formed and modified. It establishes that changes to a society's rules made after a member joins will apply to them, unless those changes reduce the benefits originally promised. The legislation also outlines procedures for societies to require members to pay a share of financial deficits if the society's reserves become impaired. Additionally, it grants state officials the authority to order a struggling society to transfer its members and assets to another insurer or society without waiting for member approval. These measures aim to provide clearer guidelines for managing member contracts and ensuring financial stability within these specific insurance organizations.

HB 6268 updates Michigan's insurance code to strengthen data security requirements for insurers and related licensees by modifying existing definitions and adding new sections. The bill clarifies what constitutes a "cybersecurity event" and "nonpublic information," specifically including sensitive data like social security numbers, financial account details, and health records. It mandates that licensees notify affected residents without unreasonable delay if unencrypted personal data is accessed or if encrypted data is compromised along with its decryption key. Additionally, the legislation requires licensees to report such security breaches to the owners or licensors of the data if the licensee does not own the information. These changes aim to ensure clearer standards for protecting consumer data and managing security incidents within the insurance industry.

This bill amends Michigan's no-fault insurance law to allow physical therapy services to be covered when provided under the supervision of an advanced practice registered nurse. Currently, reimbursement for such services is only required when a licensed physical therapist or their assistant performs the work under a physical therapist's supervision. The change expands the list of qualified supervisors to include nurses with advanced clinical training, provided they hold a valid state license or an equivalent license from another state. This update directly affects personal protection insurance policies and the healthcare professionals who deliver physical therapy to patients.

This bill requires insurance companies in Michigan to provide clear written notices to customers when making significant changes to their automobile or homeowners policies, such as cancellations, non-renewals, or premium increases of more than 10%. If a policyholder requests details, the insurer must explain the specific principal factors behind the decision rather than using vague terms like "poor loss history" or simply citing internal models. The law also mandates that these notices and explanations be sent directly to the insured and, when applicable, to independent insurance agents who represent the customer. These transparency requirements will apply to policies issued, amended, or renewed on or after January 1, 2026, and do not replace existing rules regarding policy cancellations.