The bill amends the Michigan Insurance Code of 1956 by adding a new section, 2116c, which establishes specific regulations regarding the disclosure of resident relatives by named insured individuals in automobile insurance policies. Under this new provision, automobile insurers are prohibited from requiring named insureds to disclose the addition of resident relatives during the term of their policy. Furthermore, insurers cannot cancel, rescind, or take any detrimental actions against a policy solely based on the failure to disclose a resident relative who joined the household during the policy term.

Additionally, the bill outlines conditions under which insurers may require disclosure of resident relatives at the time of application or renewal. Insurers must clearly define who qualifies as a resident relative in the application and must notify the named insured at renewal about the requirement to disclose all resident relatives, including minors or non-drivers, in a conspicuous manner. This aims to ensure transparency and protect policyholders from potential penalties related to undisclosed household members.

Statutes affected:
Senate Introduced Bill: 500.100, 500.8302