Insurance: other; civil penalties for violations; allow. Amends sec. 150 of 1956 PA 218 (MCL 500.150).
Impact
The proposed amendment significantly affects state laws related to insurance regulation by introducing structured penalties for infractions. By defining fines based on the nature of the violation, the bill not only simplifies existing enforcement mechanisms but also increases accountability among licensed agents and insurers. The tiered penalties, which escalate for willful violations, serve as a deterrent for negligent behavior and are aimed at ensuring adherence to state regulations concerning insurance practices.
Summary
House Bill 4719 aims to amend Michigan's 1956 Insurance Code to clarify how violations of its provisions should be penalized. The bill outlines a systematic approach whereby any person found to have violated provisions without explicitly prescribed penalties must be afforded a hearing before the director. Upon finding a violation, the director has the authority to impose various penalties including monetary fines and, in more severe cases, license restrictions. This proactive measure is intended to strengthen compliance within the insurance industry while providing due process for individuals accused of violations.
Contention
While proponents argue that HB 4719 strengthens consumer protections and promotes fair practices in the insurance market, critics caution that the bill could lead to excessive penalties that may inadvertently burden smaller insurers or agents. Concerns have been raised regarding the potential for the bill to create an overly punitive environment, which could stifle market competition and innovation. The debate continues on finding a balance between necessary regulation and the fostering of a competitive insurance landscape.
Insurance: other; the insurance code of 1956; amend to reflect amendments to the public health code. Amends sec. 2006 of 1956 PA 218 (MCL 500.2006). TIE BAR WITH: HB 5477'24
Insurance: other; an enrollee's defined cost sharing for prescription drugs; provide for. Amends secs. 5, 7 & 9 of 2022 PA 11 (MCL 550.815 et seq.) & adds sec. 10.