Michigan House Bill HB4595

Michigan 2023-2024 Regular Session

• Introduced: 5/17/23
• Refer: 5/17/23
• Report Pass: 6/22/23

Caption

Insurance: insurers; annual report relating to life and health insurance producer examinations; eliminate. Repeals sec. 1206c of 1956 PA 218 (MCL 500.1206c).

Impact

The repeal of section 1206c could significantly alter the landscape of insurance regulation within Michigan. By removing the mandated annual reporting for producer examinations, the bill is expected to ease the operational load on insurance companies, potentially encouraging more competition in the market. As such, proponents believe that these changes will lead to lower costs for consumers and improved services as producers can now allocate their time to sales and customer relations rather than compliance. This shift could have a positive effect on the state’s insurance market dynamics.

Summary

House Bill 4595 proposes the repeal of section 1206c of the Michigan insurance code of 1956. This section specifically pertains to annual reports related to life and health insurance producer examinations. By eliminating this requirement, the bill aims to reduce administrative burdens on insurance providers and streamline compliance processes. Supporters of the bill argue that this repeal will create a more efficient regulatory environment for insurers in Michigan, allowing them to focus resources on serving their clients rather than on paperwork-related requirements.

Contention

While the bill enjoys support from certain sectors within the insurance industry, there are concerns among consumer advocacy groups about the potential lack of oversight that may arise from this repeal. Opponents of HB4595 argue that the annual reports play a crucial role in maintaining accountability among insurance producers and safeguarding consumer interests. The absence of such evaluations could lead to reduced transparency in the industry, raising fears that consumer protection may be compromised. As a result, the discussion surrounding HB4595 has highlighted the delicate balance between reducing regulatory burdens for businesses and ensuring adequate consumer protections.