The proposed bill adds Chapter 4A to the Michigan Insurance Code of 1956, focusing on market conduct examinations. It defines essential terms such as "complaint," "desk examination," "insurer," and "market analysis," and outlines the director's responsibilities in conducting ongoing market analyses and targeted examinations of insurers. The director is granted the authority to initiate various market conduct actions based on these analyses, which may involve correspondence, interviews, and reviews of policies and procedures. The bill emphasizes consumer protection and aims to ensure compliance with relevant laws and regulations by insurers.

Additionally, the bill establishes protocols for market conduct actions, requiring the director to notify insurers in writing about the actions being considered. It mandates access for market conduct surveillance personnel to necessary records and personnel during examinations while maintaining the confidentiality of certain documents. The legislation also outlines the reporting process for findings, including timelines for draft reports and insurer responses, and specifies that the director must oversee examination costs. Furthermore, it introduces amendments regarding confidentiality, qualifications for surveillance personnel, and legal protections for the director and their representatives during examinations. The amendments are set to take effect on January 1, 2026.