Bill > HB4716

This bill modifies Michigan's penalties for insurance fraud by creating a more nuanced, graduated system of punishments based on the scale and severity of fraudulent insurance claims. The new law establishes five different levels of punishment ranging from a misdemeanor to a felony, with penalties increasing based on two key factors: the total monetary amount of fraudulent claims and the number of fraudulent claims involved. For smaller fraud cases involving less than $1,000 or fewer than 5 claims, offenders can face up to a year in jail and a fine of $2,000 or three times the fraudulent claim amount. As the monetary value and number of claims increase, potential prison sentences escalate from 5 to 10 to 15 to 20 years, with corresponding fine increases up to $50,000. The bill also considers prior convictions as an aggravating factor that can trigger more severe penalties, and it maintains a requirement that offenders pay restitution. Additionally, the law allows aggregating fraudulent claims made within a 12-month period to determine the total scope of the fraud, and it preserves a provision requiring courts to notify licensing authorities when practitioners or insurers are found guilty of fraudulent insurance acts.

Budget and Finance, Business and Industry

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-4716