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Bill

HB 6268

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

2023-2024 Regular Session Introduced by Kristian Grant and 3 co-sponsors

Michigan strengthens insurance industry data security requirements and enforcement mechanisms to better protect consumer information from breaches and cyber threats.

bill electronically reproduced 12/10/2024
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Bill Summary · HB 6268

Legislative bill overview

HB 6268 amends Michigan's Insurance Code to strengthen data security requirements and enforcement mechanisms for insurance companies. The bill modifies existing sections and adds new provisions (564 and 564a) to establish or clarify data security standards and potentially create enforcement authority for violations.

Why is this important

Insurance companies handle vast amounts of sensitive personal and financial information. Strengthened data security requirements help protect Michigan consumers from data breaches, identity theft, and fraud, while also establishing clear compliance expectations for insurers operating in the state.

Potential points of contention

  • Compliance costs: Insurance companies may argue that new or expanded security requirements impose significant costs that could be passed to consumers through higher premiums
  • Regulatory clarity: The specific security standards aren't detailed in this summary, leaving uncertainty about whether requirements are practical and clearly defined
  • Enforcement scope: The creation of new enforcement provisions raises questions about which state agency enforces these rules, penalties for violations, and whether enforcement is adequate or excessive

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

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