Michigan Senate Bill SB0550

Michigan 2025-2026 Regular Session

• Introduced: 9/17/25
• Refer: 9/17/25

Caption

Insurance: automobile; manuals of rules; provide requirements for. Amends secs. 2021, 2106, 2108, 2112, 2458 & 2652 of 1956 PA 218 (MCL 500.2021 et seq.).

Impact

The proposed changes could significantly affect how insurance services are regulated at the state level. By requiring insurers to furnish detailed information about their rating practices and ensuring timely responses to consumer requests, the bill intends to empower consumers. It emphasizes accountability in the insurance industry and seeks to create a more equitable marketplace by addressing issues of unfair practices and promoting the right to appeal rating decisions. The provisions also aim to prohibit redlining, which is when insurers refuse to provide coverage based on the location of the insured.

Summary

Senate Bill 550 aims to amend the Insurance Code of 1956 by modifying several sections related to the regulation and approval of insurance rates in Michigan, specifically for automobile and home insurance. The bill introduces requirements for insurers and rating organizations, mandating that they provide relevant information to insured parties regarding rate determinations. This is intended to enhance transparency in the insurance process, allowing consumers to better understand how their premiums are calculated and the factors that influence rate changes.

Contention

Although the bill predominantly points towards reforms aimed at consumer protection, it may face opposition from insurance companies who could perceive these requirements as overly burdensome or restrictive. Insurers may argue that providing granular details on rate structures could reveal competitive secrets and limit their ability to manage their businesses effectively. Furthermore, there may be concerns that the stringent stipulations around consumer information could lead to increased operational costs, which might ultimately be passed on to policyholders through higher premiums.