Bill > SB0549

This bill modifies the Michigan Insurance Code's data security provisions, enhancing regulations for insurance licensees regarding cybersecurity events and consumer data protection. The bill revises definitions related to cybersecurity, clarifies notification requirements for data breaches, and provides the state insurance director with expanded investigative and enforcement powers. Key changes include modifying the definition of a "cybersecurity event" to focus more specifically on unauthorized access and potential misuse of information systems, adjusting the circumstances under which licensees must notify consumers about data breaches, and establishing new provisions for how and when notifications must be made. The bill also gives the insurance director authority to examine and investigate licensees for potential violations, with the ability to take enforcement actions if misconduct is suspected. Additionally, the bill introduces potential financial penalties for licensees who fail to comply with the new cybersecurity requirements, with fines that can be levied under existing sections of the insurance code. The overall aim appears to be strengthening data protection and breach notification standards for insurance companies and related entities operating in Michigan.

Budget and Finance

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-SB-0549