Michigan Senate Bill SB1077

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. 1294. TIE BAR WITH: SB 1069'24, SB 1070'24, SB 1071'24, SB 1072'24, SB 1073'24, SB 1074'24, SB 1075'24, SB 1076'24, SB 1078'24

Impact

The bill establishes consumer protections by requiring clear communication regarding the nature of portable electronics insurance. It aims to ensure that consumers are fully informed about their options and the circumstances under which they might already be covered under existing insurance policies. This transparency is intended to help customers make informed decisions regarding insurance enrollment and avoid unnecessary expenditures. Ultimately, it lends greater accountability to vendors who sell this type of insurance.

Summary

Senate Bill 1077 proposes amendments to the 1956 PA 218, which outlines the Michigan insurance code, by adding Section 1294. This new section mandates that vendors offering portable electronics insurance must provide prospective customers with specific brochures or other written materials. These materials are aimed at informing customers about the potential duplicative nature of portable electronics insurance in relation to existing homeowner's or renter’s insurance policies. Additionally, they clarify that purchasing this insurance is not a prerequisite for leasing or buying electronic devices.

Contention

One of the notable aspects of SB 1077 is its inclusion of enforcement mechanisms that hold vendors accountable for providing necessary information. However, certain stakeholders may raise concerns regarding the burden this places on smaller vendors who may struggle with compliance costs. The bill's requirements for vendors to disclose detailed information about terms, conditions, and claim processes could be seen as an imposition, particularly if it affects their sales practices. The necessity for maintaining consumer trust in the insurance market will also be a point of ongoing discussion as the bill moves through legislative processes.