The bill amends the Michigan Insurance Code of 1956 by adding a new section, 4506, which outlines the responsibilities of insurers regarding suspected fraudulent insurance acts. Under this new provision, insurers who have conducted a good-faith investigation and reasonably believe that a fraudulent insurance act has occurred must report their findings to the director using a prescribed form. The director is then tasked with reviewing these reports and conducting further investigations as deemed necessary. If appropriate, the director may report the suspected fraud to relevant authorities, including the insurer, authorized agencies, or law enforcement.

Additionally, the bill specifies circumstances under which insurers are not required to submit reports, such as when initial investigations do not substantiate the suspicion of fraud. It also clarifies that insurers must still report any suspected legal violations to authorized agencies. The term "insurer" is defined broadly to include various entities involved in insurance, such as those defined in existing law and the Michigan automobile insurance placement facility. This amendment aims to enhance the reporting and investigation of fraudulent insurance activities in Michigan.

Statutes affected:
Substitute (H-1): 500.100, 500.8302
House Introduced Bill: 500.100, 500.8302
As Passed by the House: 500.100, 500.8302