The bill amends the Michigan Insurance Code of 1956, specifically sections 150 and 2038, to update the penalties for violations of the act. It introduces new provisions that establish civil fines for insurers and individuals found in violation of the act. For insurers, the bill stipulates a civil fine of up to $50,000 for each violation, which can increase to $100,000 if the insurer knew or should have known about the violation, with a cap of $500,000 on total fines. For individuals other than insurers, the fines are set at a maximum of $1,000 per violation, increasing to $5,000 for those who knowingly violated the act, with a total cap of $50,000.

Additionally, the bill modifies the language regarding the director's authority to issue cease and desist orders and to impose penalties for unfair competition or deceptive practices. It clarifies the definitions of violations and the penalties associated with them, including the potential for suspension or revocation of licenses for persistent violations. The bill also allows the director to reopen and modify orders based on changes in fact or law, ensuring that enforcement remains responsive to evolving circumstances.

Statutes affected:
Senate Introduced Bill: 500.150, 500.2038