Legislative Analysis
Phone: (517) 373-8080
GIFT LIMIT FOR LIFE INSURANCE PROVIDERS
http://www.house.mi.gov/hfa
House Bill 4704 as reported from committee Analysis available at
Sponsor: Rep. Joseph A. Aragona http://www.legislature.mi.gov
Committee: Insurance and Financial Services
Complete to 6-22-23
SUMMARY:
House Bill 4704 would amend the Insurance Code to increase (from $5 to $50) the cap on gifts
of merchandise that life insurers can provide applicants for a life insurance policy, allow the
gifts to be given to policyholders as well as to applicants, and change the cap to apply annually
and not on a one-time or cumulative basis.
The act currently provides that sections 2024, 2066, and 2070 (which address rebates, special
inducements, and reduction of insurance policies) do not prohibit a life insurer or life insurance
agent from giving to each applicant for a life insurance policy an article of merchandise that
has an invoice value of $5 or less.
The bill instead would provide that those sections do not prohibit a life insurer or life insurance
producer from giving to each applicant for or an insured under a life insurance policy an article
of merchandise that has a cost to the insurer of $50 or less per calendar year.
MCL 500.2024a
BACKGROUND:
House Bill 4704 is identical to House Bill 6144 of the 2021-22 legislative session as that bill
was passed by the House of Representatives. 1
As noted in committee testimony, the $5 limit has not been increased since 1986.
FISCAL IMPACT:
House Bill 4704 would have no fiscal impact on state or local government.
POSITIONS:
Representatives of the following entities indicated support for the bill (6-20-23):
• Michigan Manufacturers Association
• Big I Michigan
Legislative Analyst: Alex Stegbauer
Fiscal Analyst: Marcus Coffin
■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their
deliberations and does not constitute an official statement of legislative intent.
1
http://legislature.mi.gov/doc.aspx?2022-HB-6144
House Fiscal Agency Page 1 of 1


Statutes affected:
House Introduced Bill: 500.2024
As Passed by the House: 500.2024