Finance, Insurance and Consumer Protection

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.

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 amends Michigan's insurance code to establish a new chapter requiring insurers to cover the costs of market conduct examinations. It creates a structured process where the Department of Insurance first conducts broad market analyses to identify potential issues before deciding on specific examinations. The law outlines a range of actions, from simple correspondence and document reviews to on-site inspections, emphasizing that these exams should focus on general business practices rather than minor, isolated errors. By defining terms like "desk examination" and "targeted examination," the bill aims to make the regulatory review process more transparent and cost-effective for both the state and insurance companies.

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 laws to correct cross-references and clarify how benefits are paid in specific situations. It primarily affects drivers, passengers, and their families by updating the rules for claiming personal protection insurance benefits when multiple policies are involved or when traveling in certain vehicles like school buses and ride-share cars. The legislation establishes a clear order of priority for insurers to pay claims in motorcycle accidents and clarifies how benefits are distributed when an injured person is covered by more than one policy. Additionally, it ensures that transportation network company vehicles, such as those used by ride-sharing apps, are properly included in the existing insurance coverage framework.