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SB 548

Insurance: other; market conduct exams; require insurers to pay for. Amends 1956 PA 218 (MCL 500.100 - 500.8302) by adding ch. 4A.

2025-2026 Regular Session

Michigan requires insurers to pay for state market conduct examinations, shifting regulatory costs from taxpayers to insurance companies and potentially affecting consumer premiums.

REFERRED TO COMMITTEE OF THE WHOLE WITH SUBSTITUTE (S-1)
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Bill Summary · SB 548

Legislative bill overview

SB 548 amends Michigan's insurance law to require insurance companies to pay for market conduct examinations conducted by the state insurance commissioner. Previously, the state bore these examination costs. The bill adds a new chapter to the Insurance Code establishing this payment requirement and related procedures.

Why is this important

Market conduct exams ensure insurers comply with consumer protection laws and fair business practices. Shifting examination costs to insurers could reduce state budget burdens but may increase insurance premiums if companies pass costs to consumers. This represents a significant policy shift in how regulatory oversight is funded.

Potential points of contention

  • Cost pass-through concerns: Insurers may increase premiums to recover examination fees, potentially raising insurance costs for Michigan consumers
  • Regulatory fairness debate: Opponents may argue insurers shouldn't fund their own oversight, while supporters contend they benefit from the regulatory framework and should bear compliance costs
  • Competitive disadvantage: Smaller insurers may face disproportionate burden relative to larger competitors, potentially affecting market competition
  • Implementation details: The substitute language (S-1) may contain specific fee structures, appeal processes, or exemptions that determine real-world impact

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

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