This bill amends the Michigan Insurance Code of 1956 by updating definitions and provisions related to insurance producers and specific types of insurance, particularly focusing on portable electronics insurance. It clarifies terms such as "agent," "insurance producer," and "home state," while removing outdated language. The bill introduces a new chapter, Chapter 12C, which establishes regulations for portable electronics insurance, defining key terms and outlining the responsibilities of vendors in selling this type of insurance. It mandates that vendors provide customers with important information about the insurance, including potential duplications of existing coverage and the claims process, while also ensuring that employees can sell this insurance without a license if they meet certain training requirements.

Additionally, the bill enhances fiduciary responsibilities for agents regarding the handling of premiums, ensuring these funds are treated as fiduciary money. It outlines exemptions from licensing for certain individuals and activities, emphasizes transparency in transactions, and prohibits intimidation in the sale of insurance. The bill also modernizes the delivery of notices and documents in insurance transactions by defining "electronic delivery" and updating terminology, such as replacing "electronic mail" with "email." These changes aim to streamline communication and ensure that all parties involved in insurance transactions are adequately informed.

Statutes affected:
House Introduced Bill: 500.1201