The proposed bill amends the Michigan Insurance Code of 1956 by adding Section 2229, which establishes new requirements for insurers offering automobile and homeowners insurance policies. Under this section, insurers are prohibited from offering, binding, making, issuing, delivering, or renewing such policies unless they comply with specific notice requirements when a material change occurs. A material change is defined as significant alterations to the policy, such as nonrenewal, premium increases over 10%, or reductions in coverage. Insurers must provide written notice to the insured detailing the principal factors for the change or informing them of their right to request an explanation.

Additionally, the bill mandates that insurers provide copies of these notices to insurance producers involved in the policy, ensuring clear communication. The written notices and explanations must be clear and specific, avoiding vague statements about the reasons for changes. The requirements outlined in this section are supplementary to existing notice requirements for policy cancellations and will apply to policies issued, delivered, amended, or renewed after January 1, 2026. The bill aims to enhance transparency and communication between insurers and insured individuals regarding policy changes.

Statutes affected:
Senate Introduced Bill: 500.100, 500.8302