Michigan Senate Bill SB1071

Michigan 2023-2024 Regular Session

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

Caption

Insurance: other; portable electronics insurance; allow. Amends sec. 2266 of 1956 PA 218 (MCL 500.2266). TIE BAR WITH: SB 1069'24, SB 1070'24, SB 1072'24, SB 1073'24, SB 1074'24, SB 1075'24, SB 1076'24, SB 1077'24, SB 1078'24

Impact

The implementation of SB1071 will potentially streamline insurance communications significantly, making it easier for insurers to fulfill their legal obligations in notifying customers. Electronic delivery will be considered equivalent to traditional methods such as first-class mail or certified mail. Insurers must ensure that recipients consent to electronic delivery, allowing a shift from paper to digital communications in the insurance process, which may enhance efficiency and reduce overhead costs associated with mail deliveries.

Summary

Senate Bill 1071 seeks to amend the existing insurance code of Michigan, specifically section 2266 of the 1956 Public Act 218. The bill allows for notices and documents associated with insurance transactions to be delivered electronically, provided they meet standards outlined in the Uniform Electronic Transactions Act. This modernizes the way insurance information can be communicated between insurers and parties involved in insurance agreements, such as policyholders and applicants.

Contention

Notably, there are provisions within the bill that provide parties the right to withdraw consent for electronic delivery, thus ensuring consumer protection. If an insurer fails to deliver documents electronically due to a change in the technology used, such failures can lead to reinstatement of traditional delivery methods. This balance between innovation in delivery methods and maintaining consumer rights is a central aspect of the bill, reflecting the need for oversight in the digitization of sensitive information.

Notable_points

The bill does not apply to health insurers or health maintenance organizations, which is an important distinction. Furthermore, SB1071 is tied to other legislative outcomes as it will not take effect unless multiple associated bills from the 102nd Legislature are enacted. This tie-bar approach suggests that the legislation is part of a broader reform effort aimed at modernizing insurance practices in Michigan while ensuring that all requisite changes are harmonized.