Michigan Senate Bill SB1074

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. 1296. TIE BAR WITH: SB 1069'24, SB 1070'24, SB 1071'24, SB 1072'24, SB 1073'24, SB 1075'24, SB 1076'24, SB 1077'24, SB 1078'24

Impact

The enactment of SB1074, contingent on the passage of several related bills within the 102nd Legislature, is expected to enhance regulatory oversight of portable electronics insurance transactions. By setting clear penalties for violations, the bill aims to ensure that vendors adhere to state regulations, thereby protecting consumers and fostering a more reliable insurance market. This structure is designed to mitigate the risk of consumer fraud and misunderstanding in transactions involving portable electronics insurance.

Summary

Senate Bill 1074 aims to amend the Insurance Code of 1956 by adding section 1296, which introduces a framework for regulating vendors and their employees concerning portable electronics insurance. Under this bill, the director of insurance is empowered to impose administrative fines on vendors for violations of specified conduct, which could be as much as $500 per violation, capped at a total of $5,000 for similar offenses. The bill also allows the director to levy additional penalties deemed necessary to ensure compliance with the provisions of the act.

Contention

One significant point of contention may arise from the enforcement mechanisms established by SB1074. Opponents could argue that the administrative fines could be disproportionately severe for smaller vendors, potentially stifacing competition in the market. Additionally, stakeholders may debate the extent of regulatory authority handed to the insurance director, questioning whether it could lead to overreach in overseeing vendor actions without sufficient oversight or checks on the process.

Additional_info

As SB1074 is tied to multiple other bills, its implementation cannot occur in isolation, which may complicate legislative discussions and the timeline for enactment. This interdependence creates a scenario where advocates must consider multiple measures collectively, potentially leading to partisan negotiations surrounding the broader legislative package.