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HB 5994

Insurance: other; processing fees; allow premium finance companies to collect. Amends sec. 1510 of 1956 PA 218 (MCL 500.1510).

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

HB 5994 would authorize premium finance companies to collect processing fees from insureds in premium financing, with final limits and protections defined in the enacted law.

bill electronically reproduced 05/19/2026
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Bill Summary · HB 5994

Summary of HB 5994 (Michigan, 2025-2026)

Purpose and overall intent

HB 5994 proposes amendments to the Michigan Insurance Code, modifying how processing fees are handled in relation to premium finance companies. Specifically, it amends section 1510 of 1956 PA 218 (Michigan Compiled Laws § 500.1510) to permit premium finance companies to collect certain processing fees. The underlying goal appears to be clarifying and expanding the types of fees that premium finance companies may recover from insureds or policyholders in conjunction with premium financing arrangements.

Key provisions and changes

  • Amendment to sec. 1510 (MCL 500.1510): The bill updates the statute governing insurance processing fees and the collection practices of premium finance companies.
  • Authority to collect processing fees: The language is adjusted to authorize premium finance companies to collect processing fees. The exact scope (which fees, how calculated, and under what circumstances) would be defined by the revised statutory text, as amended by HB 5994.
  • Scope of applicability: Applies to premium finance transactions, where an insured funds insurance premiums through a finance arrangement facilitated by a premium finance company.

Note: The bill as introduced does not provide the full text of the revised clause. The intention is to empower premium finance companies to recoup processing-related charges, subject to any formal statutory limitations, consumer protections, or regulatory guidance embedded in the final enacted language.

Who/what would be affected

  • Premium finance companies: The primary entities impacted, as the bill concerns their ability to collect processing fees.
  • Policyholders/insureds: Individuals who enter into premium financing arrangements; their out-of-pocket costs could increase to reflect newly authorized processing fees, depending on how fees are assessed.
  • Insurance policyholders paying via premium finance: Those paying monthly or in installments through a financing arrangement would be subject to any updated fee structure.

Procedural and timeline aspects

  • Introduced and referral: The bill was introduced on May 19, 2026, by Representative Will Snyder, with Co-sponsors Will Snyder and Mike Harris. It was referred to the Committee on Insurance.
  • Status as of filing: The bill has been electronically reproduced and remains at the committee stage pending hearings, potential amendments, and voting by the full House.
  • Next steps: If advanced, it would move through committee consideration, potential floor debates, and then to the Senate for its own readings and passage, subject to any changes or conflicts with other statutes.

Practical considerations

  • The bill’s impact will hinge on the final statutory text, including:
    • How processing fees are defined (flat, percentage-based, or tiered).
    • Any caps, disclosures, or consumer protections attached to such fees.
    • Interaction with existing fees, interest, and financing terms within premium finance arrangements.
    • Regulation and enforcement by the Michigan Department of Insurance and Financial Services (DIFS).

Bottom line

HB 5994 seeks to authorize premium finance companies to collect processing fees under the state insurance code. The exact limitations, calculation methods, and consumer protections will be clarified in the finalized statutory language, once enacted. The bill is in its early committee stage, with policy implications centered on the cost of premium financing for insureds and the revenue model for premium finance providers.

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

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