The bill amends the Michigan Insurance Code of 1956, specifically section 2025, to clarify the definition of discrimination and rebates in the context of insurance practices. It specifies that certain practices are not considered discrimination or rebates, including the payment of bonuses or premium abatements from surplus in life insurance contracts, allowances for policyholders under industrial debit plans, and adjustments to group insurance premiums based on loss or expense experience. The bill emphasizes that any bonuses or premium abatements must be fair and equitable to policyholders.

Additionally, the bill introduces provisions allowing life or property and casualty insurers to offer value-added products or services at no cost or a discounted price, provided they relate to the insurance coverage and meet specific criteria aimed at loss mitigation, risk assessment, and enhancing health or financial wellness. It also establishes that such products or services are not classified as merchandise under certain sections of the code. The bill defines "customer" to include various stakeholders such as policyholders and applicants, ensuring clarity in the application of these provisions.

Statutes affected:
Substitute (H-2): 500.2025
House Introduced Bill: 500.2025
As Passed by the House: 500.2025