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MI SB0329

MI SB0329
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).


summary

Introduced
05/29/2025
In Committee
10/28/2025
Crossed Over
Passed
Dead

Introduced Session

103rd Legislature

Bill Summary

A bill to amend 1956 PA 218, entitled"The insurance code of 1956,"by amending sections 2116b, 2118, and 2120 (MCL 500.2116b, 500.2118, and 500.2120), section 2116b as added and sections 2118 and 2120 as amended by 2019 PA 21; and to repeal acts and parts of acts.

AI Summary

This bill modifies Michigan's insurance code to eliminate certain restrictions and penalties related to automobile insurance policy lapses. Specifically, the bill removes the previous time-limited provision that protected eligible persons from insurance discrimination due to past insurance lapses, making this protection permanent. The legislation prevents automobile insurers from refusing to insure, continuing to insure, limiting coverage, charging reinstatement fees, or increasing premiums solely because a person previously failed to maintain required insurance. The bill also removes language that previously allowed insurers to deny or adjust coverage based on a person's six-month insurance history, streamlining the underwriting rules for automobile insurance. Additionally, the bill repeals Section 2116a of the insurance code, which likely contained previous provisions about insurance policy lapses. The changes aim to make automobile insurance more accessible and prevent insurers from penalizing drivers for temporary gaps in their insurance coverage, potentially helping more Michigan residents maintain continuous automobile insurance.

Committee Categories

Budget and Finance

Sponsors (11)

Last Action

Placed On Order Of Third Reading (on 10/28/2025)

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