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Bill

SB 545

Insurance: other; underwriting transparency; provide for. Amends 1956 PA 218 (MCL 500.100 - 500.8302) by adding sec. 2229.

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

Michigan bill requires insurers to disclose underwriting criteria and decision processes to increase transparency and help regulators identify unfair or discriminatory insurance practices.

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Bill Summary · SB 545

Legislative bill overview

SB 545 amends Michigan's Insurance Code by adding Section 2229, which establishes new underwriting transparency requirements for insurance companies. The bill requires insurers to disclose their underwriting criteria and decision-making processes to consumers and regulators, though the specific disclosure mechanisms are not detailed in the bill summary provided.

Why is this important

Insurance underwriting decisions directly affect whether consumers can obtain coverage and at what cost, yet these processes have historically operated as "black boxes" with limited public visibility. Increased transparency could help identify discriminatory practices, allow consumers to understand denial reasons, and enable regulators to better oversee the insurance market for fairness and compliance.

Potential points of contention

  • Industry burden and cost: Insurance companies may argue that detailed disclosure of underwriting algorithms and criteria increases administrative costs and competitiveness concerns, particularly regarding proprietary risk models
  • Data privacy balance: Requiring disclosure of underwriting factors raises questions about how much consumer data and decision logic should be public versus protected as trade secrets
  • Scope ambiguity: The bill's effectiveness depends heavily on implementation details—what "transparency" means in practice (algorithms, factors, individual decision explanations) remains unclear from the summary alone

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

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