Michigan Senate Bill SB1075

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. 1298. TIE BAR WITH: SB 1069'24, SB 1070'24, SB 1071'24, SB 1072'24, SB 1073'24, SB 1074'24, SB 1076'24, SB 1077'24, SB 1078'24

Impact

The bill stipulates that if a vendor derives more than 50% of its revenue from portable electronics insurance, it must disclose additional ownership details of its officers and directors. Furthermore, the licenses granted under this regulation will have a validity of 24 months and include a fee structure determined by the state department, with varying amounts based on the number of locations a vendor operates. This approach aims to streamline the licensing process and improve oversight within the portable electronics insurance market.

Summary

Senate Bill 1075 proposes amendments to the 1956 PA 218, known as the Insurance Code of Michigan, specifically adding Section 1298 which establishes a framework for vendors seeking a limited line portable electronics insurance producer license. This bill outlines the application process for vendors that wish to sell portable electronics insurance, requiring them to submit a sworn application to the appropriate state department and provide specific information about their business operations and responsible personnel.

Contention

One notable point of contention surrounding SB 1075 is its requirement for transparency and compliance from vendors that focus primarily on portable electronics insurance. Proponents argue that this will enhance regulatory oversight and protect consumers, as it ensures vendors are held accountable. However, critics may raise concerns about the financial burden of licensing fees on smaller vendors or the implications for competition in the portable electronics insurance space, particularly if larger businesses are better equipped to comply with these requirements.