Bill > HB4071

This bill amends the Michigan Insurance Code to clarify and expand the definition of permissible practices in insurance that do not constitute discrimination or rebates. The bill maintains existing provisions allowing life insurers to pay bonuses or abate premiums from surplus, offer allowances for industrial debit plan policies with direct premium payments, and adjust group insurance policy rates retroactively. Additionally, the bill introduces new provisions that allow insurers and insurance producers to offer value-added products or services for free or at a discounted price, provided these offerings meet specific criteria. These value-added services must relate to insurance coverage and aim to achieve objectives such as loss mitigation, risk reduction, health enhancement, financial wellness, post-loss services, or behavioral change incentives. The services must be reasonably priced relative to the customer's premiums, and the insurer must provide contact information for any questions. The bill explicitly states that these value-added products or services are not considered merchandise under existing law, and defines "customer" broadly to include policyholders, potential policyholders, certificate holders, insureds, and applicants.