Bipartisan Package Stiffens Penalties, Enhances Fraud Detection Tools and Funding, Bolsters Consumer Protections, and Provides for Better Coordination Among State Agencies
On September 16, 2025, the Michigan House of Representatives passed a bipartisan legislative package aimed at combatting insurance fraud. The seven-bill package would update existing laws by expanding the definition of what constitutes insurance fraud, strengthening penalties, and improving information reporting and sharing so that insurance fraud is easier to detect and stop.
The effort was led by state Representative Mike Harris (R-Waterford) (pictured testifying on the bill package before the Michigan House), Chair, House Insurance Committee. Prior to his election to the Michigan House in 2022, Rep. Harris spent 26 years in law enforcement, where he investigated insurance fraud while on the force and as a private investigator.
House Bills 4713-4719 collectively aim to strengthen Michigan’s laws against insurance fraud by:
- Expanding the definition of health care insurers to include auto insurers that provide personal injury protection (PIP) coverage [HB 4713, introduced by state Ron Robinson (R-Utica)]
- Updating the Criminal Code of Procedure to establish sentencing guidelines [HB 4714, introduced by Rep. Harris]
- Authorizing information sharing with the National Insurance Crime Bureau [HB 4715, introduced by Brenda Carter (D-Pontiac)])
- Establishing tiered penalties for insurance fraud based on the number of claims and monetary value [HB 4716, introduced by Mike McFall (D-Hazel Park)]
- Include insurance fraud under the definition of racketeering [HB 4717, introduced by state Sarah Lightner (R-Springport)]
- Requiring insurers to report fraud to the Department of Insurance and Financial Services [HB 4718, introduced by Joe Tate (D-Detroit)]
- Clarifying that fines can be imposed alongside (not in lieu of) other penalties or restitution [HB 4719, introduced by Joe Aragona (R-Clinton Township)]
The bills passed the Michigan House with nearly unanimous support and now move to the Michigan Senate for consideration.
Sources:
State Representative Mike Harris Press Release, “Harris Plan to Combat Insurance Fraud Approved by House,” September 17, 2025
House Fiscal Agency Legislative Analysis of House Bills 4713-4719, Summary as Reported by Committee, Complete to September 9, 2025
