Bill > SB0545

This bill amends the Michigan Insurance Code to require greater transparency from insurers when making material changes to automobile or homeowners insurance policies. Specifically, insurers must provide written notice to policyholders explaining the principal factors behind any significant policy changes, such as premium increases over 10%, coverage reductions, or policy cancellations. The notice must be clear, specific, and provide a point of contact for discussion. Insurers cannot use generalized or vague explanations like "poor loss history" and must offer detailed reasoning for the change. Policyholders have the right to request a written explanation of the factors leading to the material change, and if they do so, the insurer must provide a comprehensive response. The bill also requires insurers to send these notices to independent insurance producers who were involved in the policy. The notices can be sent via first-class mail or electronic means, and the bill provides specific definitions of terms like "material change" and "insured." These requirements will apply to policies issued or renewed after January 1, 2026, and are designed to increase transparency and help consumers better understand changes to their insurance coverage.

Budget and Finance

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-SB-0545