This bill amends the Michigan Insurance Code of 1956, specifically sections 2006 and 3142, to update the requirements for timely payment of insurance claims and the interest owed on overdue payments. Key changes include the establishment of a new interest structure for late payments, which specifies rates of 1.5% per month for the first 30 days, 2% for payments 31 to 90 days late, and 4% for payments more than 90 days late. Additionally, the bill mandates that insurers must pay claims within 60 days after receiving satisfactory proof of loss, and it clarifies that interest is due if claims are not paid on time unless the claim is reasonably in dispute.

Furthermore, the bill introduces new reporting requirements for insurers, which will take effect starting January 1, 2027. Insurers will be required to report on their websites the number of claims paid within the specified time frame, the number of claims that were not timely paid, and the total amount of interest paid for late claims. The amendments aim to enhance transparency and accountability in the insurance claims process, ensuring that claimants receive timely payments and appropriate interest for delays.

Statutes affected:
Senate Introduced Bill: 500.2006, 500.3142