The bill amends the Michigan Insurance Code of 1956 by updating Section 2026 to clarify and expand the definitions of unfair methods of competition and deceptive practices in the insurance industry. New provisions include requirements for insurers to complete underwriting before issuing policies, to provide reasonable explanations for claim denials, and to maintain comprehensive records of complaints from insureds. Additionally, the bill specifies that insurers cannot deny claims based on material facts that should have been discovered during the underwriting process.

The amendments also refine existing language, such as changing "based upon" to "based on" and "shall" to "must," to enhance clarity. The bill emphasizes the importance of timely communication and fair treatment of claimants, aiming to protect consumers from unfair practices by insurance companies. Overall, the proposed changes seek to strengthen consumer rights and ensure accountability within the insurance industry.

Statutes affected:
Senate Introduced Bill: 500.2026