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Bill > HB4718
MI HB4718
MI HB4718Insurance: other; requirement to file a fraud report; provide for. Amends 1956 PA 218 (MCL 500.100 - 500.8302) by adding sec. 4506.
summary
Introduced
07/01/2025
07/01/2025
In Committee
09/18/2025
09/18/2025
Crossed Over
09/16/2025
09/16/2025
Passed
Dead
Introduced Session
103rd Legislature
Bill Summary
A bill to amend 1956 PA 218, entitled"The insurance code of 1956,"(MCL 500.100 to 500.8302) by adding section 4506.
AI Summary
This bill amends the Michigan insurance code by adding a new section that requires insurers to report suspected fraudulent insurance acts to the state director under specific circumstances. When an insurer completes a good-faith investigation and reasonably believes a fraudulent insurance act has occurred involving a Michigan policyholder or a claim submitted through the assigned claims plan, they must send a detailed report to the director on a prescribed form. The director can then review the report and may choose to forward the information to appropriate agencies or prosecutors. The bill provides two exceptions where insurers are not required to submit the report: if initial investigations suggest potential fraud but further investigation proves otherwise, or if the insurer does not have reasonable grounds to believe fraud occurred. The legislation also specifies that insurers must still report potential law violations to authorized agencies, and those agencies must cooperate with the director's investigations. The definition of "insurer" for this section includes traditional insurance companies, the Michigan automobile insurance placement facility, and entities administering claims through the assigned claims plan. The overall goal appears to be enhancing fraud detection and reporting mechanisms within Michigan's insurance system.
Committee Categories
Budget and Finance, Business and Industry
Sponsors (10)
Joseph Tate (D)*,
Joe Aragona (R),
Brenda Carter (D),
John Fitzgerald (D),
Morgan Foreman (D),
Mike Harris (R),
Sarah Lightner (R),
Mike McFall (D),
Ron Robinson (R),
Helena Scott (D),
Last Action
Referred To Committee On Finance, Insurance, And Consumer Protection (on 09/18/2025)
Official Document
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