Michigan House Bill HB4714

Michigan 2025-2026 Regular Session

• Introduced: 7/1/25
• Refer: 7/1/25

Caption

Criminal procedure: sentencing guidelines; sentencing guidelines for fraudulent insurance acts; provide for. TIE BAR WITH: HB 4716'25

Impact

The bill's amendments are expected to have a substantial impact on state laws governing insurance fraud. By instituting more stringent sentencing guidelines, HB4714 would aim to deter potential offenders through increased penalties for various fraud-related offenses. This could lead to higher compliance rates with insurance regulations, further protecting consumers from fraudulent activities. The bill intends to close loopholes in the current law and streamline the judicial process when handling cases of insurance fraud, enhancing accountability within the insurance industry.

Summary

House Bill 4714 aims to amend the existing criminal procedure related to the sentencing guidelines for various forms of fraudulent insurance acts. Specifically, the bill outlines procedures and guidelines for how cases of insurance fraud are handled within the judicial system. This includes stipulations on the classifications and maximum statutory penalties for different types of fraudulent acts within the insurance domain. The bill seeks to strengthen legal responses to insurance fraud, thereby providing clearer standards for prosecution and sentencing in these cases.

Contention

During discussions surrounding HB4714, legislators debated its implications on individuals and businesses involved in the insurance market. Proponents of the bill highlighted the need for tougher measures against fraudulent acts, arguing that such actions undermine the integrity of the insurance system and hurt legitimate policyholders. However, opponents raised concerns that overly harsh penalties might lead to unjust outcomes, particularly for minor infractions or first-time offenders. The tie-bar with House Bill 4716 indicates that the successful enactment of HB4714 is contingent on the passage of related legislation, which has also sparked further debate on the comprehensive approach to tackling insurance fraud.