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SB 245

Insurance: insurers; processing of a claim; modify duties. Amends secs. 2005, 2006, 2026 & 2049 of 1956 PA 218 (MCL 500.2005 et seq.) & adds sec. 2005b & ch. 30B.

2025-2026 Regular Session Introduced by Rosemary Bayer and 8 co-sponsors

SB 245 amends Michigan insurance law to modify insurer claim processing duties, potentially strengthening consumer protections or clarifying claim handling standards.

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Bill Summary · SB 245

Legislative bill overview

SB 245 modifies Michigan's insurance claim processing requirements by amending the Insurance Code of 1956. The bill revises insurer duties in sections 2005, 2006, 2026, and 2049, adds a new section 2005b, and creates a new chapter 30B. The specific amendments and their scope are not detailed in the introduced version, but the bill appears designed to strengthen protections or clarify obligations for claim processing procedures.

Why is this important

Insurance claim processing directly affects consumers' ability to recover damages after losses (property damage, health issues, accidents). Changes to insurer duties can speed up claim resolution, improve transparency, increase payouts, or establish clearer standards for denials. This impacts millions of Michigan residents with auto, home, health, and other insurance policies, making claim handling standards a material consumer protection issue.

Potential points of contention

  • Insurer operational costs: Stricter processing requirements or expanded duties may increase administrative expenses, potentially raising insurance premiums for consumers or reducing insurer profitability
  • Claim denial standards: Changes to sections governing claims decisions could make denials harder or easier to challenge, affecting both consumer rights and insurers' ability to prevent fraud
  • Implementation timeline: Without seeing specific amendments, unclear whether requirements are immediately enforceable or have phase-in periods, creating uncertainty for insurance industry compliance

Compiled from official sources — confirm details with the bill’s official record.

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