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MI HB4718

MI HB4718
Insurance: 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
In Committee
09/18/2025
Crossed Over
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)

Last Action

Referred To Committee On Finance, Insurance, And Consumer Protection (on 09/18/2025)

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