Michigan Senate Bill SB1073

Michigan 2023-2024 Regular Session

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

Caption

Insurance: other; portable electronics insurance; allow. Amends 1956 PA 218 (MCL 500.100 - 500.8302) by adding sec. 1295. TIE BAR WITH: SB 1069'24, SB 1070'24, SB 1071'24, SB 1072'24, SB 1074'24, SB 1075'24, SB 1076'24, SB 1077'24, SB 1078'24

Impact

The implementation of SB1073 is expected to significantly impact how portable electronics insurance is offered in Michigan. By allowing vendors to sell insurance directly, the bill aims to enhance consumer access to portable electronics insurance, thereby potentially increasing sales of such coverage. However, this legislative change also raises questions about the level of consumer protection afforded, as the training and supervision provided by the insurers will directly influence the quality of information and service consumers receive.

Summary

Senate Bill 1073 proposes to amend the Insurance Code of 1956 in Michigan by introducing provisions that allow employees or authorized representatives of a vendor to sell portable electronics insurance without needing an insurance producer license. This provision is targeted at streamlining the process of offering insurance coverage for portable devices, making it easier for consumers to obtain such insurance at the point of sale. The bill outlines specific conditions under which this is permissible, emphasizing training and supervision by insurers to ensure compliance and consumer protection.

Contention

Notably, there may be points of contention regarding the adequacy of training and oversight mandated by the bill. Critics might argue that allowing vendors without a traditional insurance license to sell insurance could lead to inadequate information being provided to customers. Furthermore, the bill specifies that compensation for employees should not be primarily based on the number of customers enrolled, which raises concerns about the motivation and integrity of sales practices involved in the sale of portable electronics insurance.