The bill amends the Michigan Insurance Code of 1956, specifically section 2025, to clarify the definition of discrimination and rebates in the context of life insurance and life annuity contracts. It specifies that certain practices are not considered discrimination or rebates, including the payment of bonuses to policyholders or the abatement of premiums from surplus accumulated from non-participating insurance, provided these actions are fair and equitable. Additionally, it allows for allowances to policyholders under industrial debit plans and readjustments of premium rates for group insurance policies based on loss or expense experience.

Furthermore, the bill introduces provisions that permit life or property and casualty insurers to offer value-added products or services at no cost or a discounted price, as long as these offerings relate to the insurance coverage and meet specific criteria aimed at loss mitigation, risk assessment, health enhancement, and financial wellness. The bill also empowers the director to adopt rules to ensure consumer protection, including regulations on data protection, privacy, and consumer disclosure.

Statutes affected:
House Introduced Bill: 500.2025