AUTO INSURANCE LAPSE PENALTIES; REMOVE        S.B. 329:

        SUMMARY OF BILL

        REPORTED FROM COMMITTEE

 

 

 

 

 

 

Senate Bill 329 (as reported without amendment)

Sponsor: Senator Jeff Irwin

Committee: Finance, Insurance, and Consumer Protection

 

 

CONTENT

 

The bill would amend the Insurance Code to do the following:

 

--       Remove the ability for an automobile insurance company to include in its underwriting rules whether an applicant had maintained insurance for the six-month period prior to the application.

--       Prohibit an automobile insurance company from penalizing an insurance applicant for failing to maintain insurance.

 

BRIEF RATIONALE

 

According to testimony, some bad actors in the insurance industry have harmed residents. Meanwhile, costs rise as residents are uncertain whether they will receive from their insurance providers what their policy should require based on bad practices. Some have suggested that the insurance industry needs more deterrents for these bad practices. The bill would ensure accountability and transparency throughout the industry and more protections for residents.

 

MCL 500.2116b et al.

 

FISCAL IMPACT

 

The bill would have no fiscal impact on State or local government.

 

Date Completed: 10-28-25        Analyst: Nathan Leaman

 

 

 

floor\sb329                Bill Analysis @ www.senate.michigan.gov/sfa

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.