Bills Would Ensure Greater Transparency and Accountability in Insurance Industry, Give DIFS the Tools Needed to Better Enforce Insurance Code Regulations and Violations.
In September, state Senator Mary Cavanagh (D-Redford Twp.) (pictured), Chair of the Michigan Senate Committee on Finance, Insurance, and Consumer Protection, led the introduction of a bill package to ensure greater transparency and accountability in the insurance industry. The package came after Senator Cavanagh’s committee heard testimony from experts and drivers raising concerns regarding insurance affordability and accountability.
Co-sponsored by Sens. Veronica Klinefelt (D-Eastpointe), Rosemary Bayer (D-West Bloomfield), Stephanie Chang (D-Detroit), Jeff Irwin (D-Ann Arbor), Dayna Polehanki (D-Livonia), and Jeremy Moss (D-Bloomfield), Senate Bills (SBs) 543-550 would equip the Michigan Department of Insurance and Financial Services (DIFS) with the tools needed to better enforce insurance code regulations and violations.
“For too many families, the cost of insurance is not only unaffordable, but also unsustainable – leaving families to decide between paying their insurance premiums or putting food on the table,” said Sen. Cavanagh. “As we heard today in our committee, insured Michiganders have lived through decades of reforms, promises of relief, and shifting rules – yet we are still seeing unfair pricing, improper underwriting, and in some cases, predatory practices for our most vulnerable communities. This impacts not only auto insurance consumers, but all insurance consumers, and it breaks trust in the industry.”
In the testimony heard by the Committee, experts and impacted drivers around the state discussed concerns with auto insurance payments and practices and underscored the need to strengthen protections for Michigan consumers.
Together, the legislation would implement commonsense reforms to improve insurance accountability and transparency, protecting Michigan consumers from unfair, deceptive industry practices. More specifically:
- SB 543, introduced by Sen. Cavanagh, would increase fines for violations of the Insurance Code, ensuring bad actors are held accountable.
- SB 544, introduced by Sen. Klinefelt, would ban post-claim underwriting, requiring insurers to complete all underwriting before issuing a policy.
- SB 545, introduced by Sen. Cavanagh, would improve underwriting transparency by requiring insurers to provide consumers with written notice if a material change is made to their auto or homeowners policies.
- SB 546, introduced by Sen. Bayer, would expand penalties for insurers that pay claims late.
- SB 547, introduced by Sen. Chang, would strengthen utilization review compliance.
- SB 548, introduced by Sen. Irwin, would establish a market conduct examination framework to ensure insurer compliance with the rules of the marketplace.
- SB 549, introduced by Sen. Polehanki, would enhance cybersecurity safety for consumers.
- SB 550, introduced by Sen. Moss, would improve transparency in auto insurer manuals.
“Families shouldn’t have to worry about their insurance company trying to back out of a policy after a claim is filed,” said Sen. Klinefelt. “My bill in this package would make sure insurance companies do their homework before issuing a policy, so when people need help, they can count on their coverage being there.”
“Michigan consumers deserve the peace of mind and sense of security that come with transparent and accountable insurance systems – not more headaches and harm during an already stressful situation,” said Sen. Bayer. “That’s what this legislative package is about – holding insurance companies accountable so that our residents are safeguarded in times of distress. By prompting insurers to respond to claims in a swift, timely, and fair manner, my bill would help ensure Michiganders can access the relief they’re entitled to at the time they need it most.”
“While insurance coverage is intended to provide a safety net in times of trouble, too often we’ve seen insurers operate with unscrupulous and unchecked behavior, leaving Michiganders without the critical support they rely on – and that they’ve paid into,” said Sen. Chang. “By holding our insurers accountable, my legislation would help people to get the care they need, when they need it, without having to worry about hidden or unexpected costs.”
“Without resources to investigate insurance companies and enforce the rules against ripping off customers, people in Michigan can’t hold these companies accountable,” said Sen Irwin. “Senate Bill 548 would give Michigan’s insurance laws real teeth to protect people, and would require insurance companies to pay for the costs of the examinations to keep them honest.”
“Every Michigan consumer should be able to rest assured that their private data is secure and protected,” said Sen. Polehanki. “My legislation, Senate Bill 549, works to not only improve cybersecurity safety and accountability – but to also ensure that DIFS has the authority to effectively enforce compliance. I’ll continue fighting to expand protections for the millions of Michiganders with auto insurance.”
“Michiganders need all of the information possible when making decisions on which insurance plan works best for them and their family,” said Sen. Moss. “I championed Senate Bill 550 to require auto insurers to provide their complete and up-to-date policies to our state’s insurance department, improving transparency and accessibility for Michigan consumers seeking those needed details. The bills in our legislation provide Michigan families with the tools to seek the most affordable coverage.”
“As a lawmaker, it is my obligation to listen to what constituents are sharing and protect all Michiganders from deceptive practices by strengthening the state’s ability to address harmful insurance tactics. That’s why I’m championing legislation that will allow the Dept. of Insurance and Financial Services to address bad actors in this space with a variety of tools,” said Sen. Cavanagh. “As Chair of the Senate Committee on Finance, Insurance, and Consumer Protection, I will continue to fight to ensure that residents have access to a more transparent and equitable insurance system that serves every Michigan consumer with accountability and integrity.
Senate Bills 543-550 have been referred to the Senate Committee on Finance, Insurance, and Consumer Protection, where they currently await further deliberation.
Sources:
Michigan Senate Democrats Press Release, “Sen. Cavanagh Champions Insurance Accountability Package to Improve Michigan Consumer Protections,” September 17, 2025