The bill amends the Michigan Insurance Code of 1956, specifically section 2024a, to update the provisions regarding the distribution of merchandise by life insurers. It clarifies that life insurers or life insurance producers are permitted to provide an article of merchandise to each applicant for, or an insured under, a life insurance policy. The cost of this merchandise is capped at $50.00 per calendar year, which is an increase from the previous limit of $5.00.

Additionally, the bill removes outdated language that specified the prohibition of such practices and updates the terminology from "agent" to "producer" to reflect current industry standards. The changes aim to modernize the regulations surrounding life insurance policies and enhance the relationship between insurers and their clients by allowing for small promotional items.

Statutes affected:
House Introduced Bill: 500.2024