The bill amends the Michigan Insurance Code of 1956 by adding a new section, 1202a, which allows insurance agencies or producers to impose fees for payments made via credit card, debit card, electronic funds transfer, electronic check, or other electronic means. These fees are intended to offset the actual costs incurred by the insurance producer for processing such payments. The bill stipulates that the fees must not exceed the actual costs and requires that the insured be notified of the fee amount before completing the transaction. Additionally, the insured must have the option to cancel the transaction without incurring a fee and to make payments by check or money order without a fee.

The bill also modifies section 1915, allowing licensees to charge a fee for surplus lines insurance policies and introduces a provision for credit card transaction fees when premiums are paid using a credit card. It emphasizes that all fees must be reasonable, fully disclosed to the insured, and separately itemized on relevant documentation. Furthermore, the bill clarifies that fees should not be included in the computation of premium taxes, ensuring transparency and fairness in the fee structure for insurance transactions.

Statutes affected:
House Introduced Bill: 500.1915