Michigan Senate Bill SB1070

Michigan 2023-2024 Regular Session

• Introduced: 11/7/24
• Refer: 11/7/24

Caption

Insurance: other; portable electronics insurance; provide for. Amends 1956 PA 218 (MCL 500.100 - 500.8302) by adding sec. 1293. TIE BAR WITH: SB 1069'24, SB 1071'24, SB 1072'24, SB 1073'24, SB 1074'24, SB 1075'24, SB 1076'24, SB 1077'24, SB 1078'24

Impact

One significant element of SB1070 is the mandate for a supervising entity to maintain a registry of locations authorized to sell or solicit portable electronics insurance. This transparency measure will enhance regulatory oversight, allowing for inspections by the director of the supervising entity, thereby aimed at preventing unauthorized sales and ensuring compliance with the licensing provisions. The requirement to open this registry for examination within a set time frame fosters accountability among vendors, which is expected to enhance consumer protection.

Summary

Senate Bill 1070 aims to amend the 1956 Insurance Code of Michigan by introducing provisions specifically dealing with portable electronics insurance. The bill establishes that vendors who are not classified as insurance producers cannot sell or offer portable electronics insurance policies unless they hold a specific limited line portable electronics insurance producer license. This licensing requirement seeks to regulate the manner in which these insurance products can be sold and creates a framework to ensure that only authorized vendors engage in the provision of such coverage.

Contention

The bill does tie closely with other legislative measures within the 102nd Legislature, meaning its enactment is contingent upon the passage of several other related bills (SB1069 to SB1078). This tie-bar approach indicates that there may be larger reforms aimed at the regulation of insurance practices in Michigan occurring at the same time, potentially generating debate about regulatory coherence and scope. Notably, existing vendors may voice concerns about the new licensing requirements, which could be seen as an increased barrier to entry for smaller businesses wishing to sell portable electronics insurance.