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HB 5993

Insurance: other; credit card processing fees; allow insurance producers to collect. Amends sec. 1915 of 1956 PA 218 (MCL 500.1915) & adds sec. 1202a.

2025-2026 Regular Session Introduced by Mike Harris and 1 co-sponsor

HB 5993 would authorize insurance producers to collect credit card processing fees from insureds, under defined conditions and disclosures.

bill electronically reproduced 05/19/2026
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Bill Summary · HB 5993

Overview

HB 5993 (Michigan, 2025-2026) proposes changes to the insurance code to address credit card processing fees and the authority of insurance producers to collect certain fees. The bill amends section 1915 of 1956 Public Act 218 (MCL 500.1915) and adds a new section 1202a. It was introduced on May 19, 2026, by Representative Mike Harris and is co-sponsored by Representatives Will Snyder and Mike Harris. It has been referred to the Committee on Insurance.

Main purpose and intent

  • To modify how credit card processing fees are treated within the insurance regulatory framework.
  • To authorize or authorize certain practices by insurance producers (agents/brokers) to collect specified fees related to credit card processing.
  • To amend the Michigan insurance code to align with practices around payment processing costs and their collection by licensees engaged in selling or servicing insurance.

Key provisions and changes

  • Amends MCL 500.1915 (section 1915) of the Insurance Code (1956 PA 218). While the exact text is not provided here, the amendment likely revises regulatory provisions related to fees, commissions, or charges associated with insurance transactions and the handling of credit card processing costs.
  • Adds a new section 1202a. This newly created section presumably authorizes or regulates the authority of insurance producers to collect credit card processing fees, and may specify:
    • Who may collect these fees (e.g., licensed insurance producers, agencies).
    • The types of fees allowed or prohibited.
    • Methods of collection and required disclosures to consumers.
    • Any caps or limitations on the amount or method of charging such fees.
    • Compliance, recordkeeping, and reporting requirements.
  • The bill may establish consumer protection or transparency provisions around credit card processing fees, ensuring fee disclosures are clear and that charges are reasonable and within policy terms.

Note: The exact statutory language is not provided in the summary, so the above reflects typical elements such amendments would include based on the bill’s title and scope.

Who/what would be affected

  • Insurance producers (agents, brokers) operating in Michigan who process premium payments or other insurance-related payments via credit cards.
  • Insurance agencies and entities that handle premium collection and may incur or recoup credit card processing costs.
  • Consumers purchasing or renewing insurance policies who pay via credit card, potentially subject to new disclosures or allowed processing fees.
  • Regulated insurers and potentially third-party processors involved in the credit card transaction ecosystem under the Michigan Insurance Code.

Procedural and timeline aspects

  • Introduced: May 19, 2026.
  • Assigned to: Committee on Insurance (House of Representatives).
  • The bill has a typical legislative path involving committee consideration, potential amendments, floor debate, and votes in both chambers, followed by any requisite governor action for becoming law.
  • As of the latest action history, there is no enacted status; further committee action or floor actions would determine progression.

Potential impacts and considerations

  • If authorized, insurance producers could recoup credit card processing costs directly from insureds or as part of policy payments, subject to any statutory limits and disclosures.
  • Could improve cost recovery for payment processing by licensees but may raise consumer cost considerations or scrutiny over fee visibility and reasonableness.
  • May require changes to consumer-facing disclosures, billing statements, and fee notices to ensure compliance with the new section 1202a.
  • The bill could interact with existing insurance contract terms, premium financing arrangements, and payment processing agreements.

Summary

HB 5993 intends to reform how credit card processing charges are treated under Michigan’s insurance code and to authorize insurance producers to collect related fees under defined conditions. It amends section 1915 of the Insurance Code and introduces a new section 1202a to govern these activities. The bill’s passage would affect licensees involved in premium collections and could influence consumer disclosures and fee practices for credit card payments in insurance transactions. Further detail from the enacted text and committee analysis would clarify exact fee parameters and compliance requirements.

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

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