This bill amends the Michigan Insurance Code of 1956, specifically section 4511, to redefine the penalties associated with committing fraudulent insurance acts. The previous language, which classified all fraudulent insurance acts as felonies with specific penalties, has been replaced with a tiered system of misdemeanors and felonies based on the severity and amount of the fraudulent claims. For instance, if the fraudulent claim is less than $1,000, it is classified as a misdemeanor, while claims of $100,000 or more are subject to a felony charge with a maximum penalty of 20 years in prison.

Additionally, the bill introduces provisions for restitution and allows for the aggregation of fraudulent claims made within a 12-month period to determine the total amount involved. It also outlines the process for enhancing sentences based on prior convictions, requiring the prosecuting attorney to provide evidence of such convictions during sentencing. The court is mandated to notify the appropriate licensing authority if a practitioner or insurer is found guilty of a fraudulent insurance act.

Statutes affected:
House Introduced Bill: 500.4511
As Passed by the House: 500.4511