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HB 4179

Insurance: life; gift limit for life insurance producers; modify. Amends sec. 2024a of 1956 PA 218 (MCL 500.2024a).

2025-2026 Regular Session Introduced by Joe Aragona and 2 co-sponsors

Raises promotional merchandise limit to $50 per insured per calendar year and applies to applicants and insureds, allowed if cost to insurer and within limits.

REFERRED TO COMMITTEE ON FINANCE, INSURANCE, AND CONSUMER PROTECTION
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Bill Summary · HB 4179

Summary — HB 4179 (Insurance: life; gift limit for life insurance producers; modify)

Main purpose: Amends the Insurance Code (MCL 500.2024a) to raise and clarify the allowable value and treatment of promotional merchandise that life insurers or life insurance producers may give to applicants and insureds without violating anti‑rebate/special‑inducement rules.

Key provisions

  • Increases the allowable per‑insured promotional merchandise limit from $5.00 to $50.00.
  • Changes the basis of the limit from an “invoice value” per article to the cost to the insurer.
  • Changes the frequency from a one‑time/cumulative interpretation to per calendar year (i.e., up to $50 per applicant/insured per calendar year).
  • Expands the recipients from “each applicant for a life insurance policy” to each applicant for or insured under a life insurance policy (so both prospective policyholders and current policyholders may receive items).
  • Replaces or clarifies terminology to apply to life insurers or life insurance producers (rather than just agents).
  • Explicitly states that sections 2024, 2066, and 2070 (which address rebates, special inducements, and reduction of policy benefits) are not construed to prohibit these limited merchandise gifts when they meet the above criteria.

Who is affected

  • Life insurers and life insurance producers (agents/brokers) operating in Michigan.
  • Applicants for and holders of life insurance policies who may receive modest promotional items.
  • State regulators enforcing anti‑rebate and inducement provisions.

Background / Rationale

  • The current $5 threshold has not been increased since 1986. Supporters argue the amount is outdated and too small to cover common promotional items.
  • HB 4179 is identical to a prior House bill (HB 4704) from the 2023–24 session that previously passed the House.

Fiscal impact

  • The House Fiscal Agency estimates no fiscal impact on state or local government.

Legislative status & timeline

  • Introduced: March 2025 (sponsor: Rep. Joseph A. Aragona; cosponsors later include Rep. Jay Hoffman and Rep. Charles Meier).
  • Passed the Michigan House on April 15, 2025 (Roll Call #51: Yeas 87, Nays 17) and was given immediate effect by the House.
  • Referred to the Senate Committee on Finance, Insurance, and Consumer Protection for further consideration.

Positions reported

  • Support: National Association of Insurance and Financial Advisors (NAIFA) Michigan, Big I Michigan, American Council of Life Insurers.
  • Neutral: Michigan Department of Insurance and Financial Services (testimony reported).

Practical effect

If enacted, life insurers and producers may legally provide modest promotional items valued at up to $50 (to the insurer) per insured per calendar year without triggering anti‑rebate or inducement prohibitions—facilitating routine marketing/thank‑you items while retaining a statutory cap to limit undue influence.

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

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