Bill
SB 544
Michigan bill prohibits insurers from denying claims based on information discovered after policy issuance, requiring upfront underwriting instead of post-claim denials.
SB 544 would amend Michigan's Insurance Code to prohibit "post-claim underwriting"—the practice where insurers deny or reduce claims based on information discovered after a policy is issued and a claim is filed. The bill targets situations where insurers issue policies without fully vetting applicants, then use discovered discrepancies as grounds to deny coverage when claims are submitted.
Post-claim underwriting can leave policyholders without expected coverage after paying premiums, creating financial hardship during emergencies. This practice disproportionately affects consumers who may have made honest mistakes on applications or whose circumstances weren't thoroughly reviewed at purchase. The prohibition would strengthen consumer protections by requiring insurers to conduct underwriting upfront rather than using claim denials as a profit-protection mechanism.
Compiled from official sources — confirm details with the bill’s official record.
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