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SB 549

Insurance: other; data security enforcement; modify. Amends secs. 553, 561 & 563 of 1956 PA 218 (MCL 500.553 et seq.) & adds secs. 564 & 564a.

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

Michigan bill strengthens insurance company data security requirements and enforcement to better protect consumer personal information from breaches.

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Bill Summary · SB 549

Legislative bill overview

SB 549 amends Michigan's insurance code to strengthen data security requirements and enforcement mechanisms for insurance companies. The bill modifies existing sections governing insurance regulations and adds new provisions specifically addressing data security compliance and penalties for violations.

Why is this important

Data breaches in the insurance industry can expose sensitive personal information including Social Security numbers, financial records, and health data for hundreds of thousands of consumers. Strengthening enforcement mechanisms and security standards helps protect Michigan residents and may reduce the frequency and severity of breaches that compromise private information.

Potential points of contention

  • Compliance costs: Insurance companies may argue that enhanced security requirements increase operational expenses, which could be passed to consumers through higher premiums
  • Enforcement scope and penalties: The bill's specific penalties and enforcement powers are not detailed in this summary, but disputes may arise over whether consequences are proportionate and how they're implemented
  • Definition ambiguity: Questions may emerge about what constitutes adequate "data security" under the new standards, potentially creating compliance uncertainty for insurers

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

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