This bill amends the Michigan Insurance Code of 1956, specifically section 2025, to clarify the definition of discrimination and rebates in relation to life insurance and 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 who have consistently made premium payments and for readjustments of group insurance premiums 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 at a discounted price, as long as these offerings relate to the insurance coverage and meet specific criteria aimed at loss mitigation, risk assessment, and enhancing health or financial wellness. The bill also defines "customer" to include various stakeholders in the insurance process, ensuring that the cost of these products or services remains reasonable in relation to the customer's premiums.

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