Insurance: other; penalties for violations of the insurance code; increase. Amends secs. 150 & 2038 of 1956 PA 218 (MCL 500.150 & 500.2038).
Impact
The proposed changes will substantially impact how the state regulates insurance practices by escalating penalties. For instance, insurers found in violation can face fines up to $100,000 for each incident, significantly higher than previous limits. This increase aims to deter misconduct and ensure that insurance providers adhere to state regulations. Moreover, it establishes a system where the fines collected will be channeled to the state's general fund, implying a potential boost in state revenues from enforcement of these regulations.
Summary
Senate Bill 543 aims to amend specific sections of Michigan's Insurance Code established in 1956. The bill specifically addresses the penalties for violations related to insurance regulations, increasing the fines and penalties for non-compliance. It explicitly provides a detailed structure for civil fines against insurers and individuals who violate the outlined provisions, ensuring that there are clear consequences for breaching insurance laws. These amendments are designed to enhance regulatory compliance in the state's insurance sector and protect consumer interests.
Contention
Notable points of contention surrounding SB 543 include concerns from certain stakeholders about the severity of the penalties. Critics argue that the increased fines could disproportionately affect smaller insurance companies, potentially leading to higher operational costs that could be passed down to consumers. Additionally, there are apprehensions about the administrative burden on regulatory bodies tasked with enforcing these new penalties. Balancing the need for strict compliance while supporting a competitive insurance market will likely be a key point of debate among legislators and industry representatives.
Insurance: other; the insurance code of 1956; amend to reflect amendments to the public health code. Amends sec. 2006 of 1956 PA 218 (MCL 500.2006). TIE BAR WITH: HB 5477'24
Insurance: other; an enrollee's defined cost sharing for prescription drugs; provide for. Amends secs. 5, 7 & 9 of 2022 PA 11 (MCL 550.815 et seq.) & adds sec. 10.