Bill > HB5197

This bill amends the Insurance Code of 1956 by adding a new section, Section 4506. The key provisions are: 1. Insurers that reasonably believe or know a fraudulent insurance act has occurred involving a Michigan policyholder or a claim for benefits submitted through the assigned claims plan must report the incident to the Director of the Department of Insurance and Financial Services (the Director) using a prescribed form. The Director will review the reports and conduct any necessary further investigation, and may then report the suspected fraudulent act to the insurer, appropriate authorities, the prosecuting attorney, or the Attorney General. 2. Insurers do not need to file the report if their initial investigation found the act was not fraudulent or if they do not have reasonable grounds to believe a fraudulent act occurred. 3. This section does not relieve insurers of their obligation to also report suspected legal violations to authorized agencies. 4. Authorized agencies must provide the Director with any relevant documents, reports, or other evidence upon request and assist with the Director's investigation.