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HB 6266

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

2023-2024 Regular Session Introduced by Noah Arbit and 9 co-sponsors

Michigan bill adds insurance underwriting transparency requirements to state code; aims to expose and limit discriminatory pricing practices in the insurance industry.

bill electronically reproduced 12/10/2024
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Bill Summary · HB 6266

Legislative bill overview

HB 6266 amends Michigan's Insurance Code by adding a new section 2229 focused on underwriting transparency. The bill was introduced in December 2024 and is currently in the Committee on Insurance and Financial Services. The specific provisions of section 2229 are not detailed in the available legislative materials, though the title indicates it addresses transparency requirements in insurance underwriting practices.

Why is this important

Insurance underwriting directly affects whether consumers can obtain coverage and at what cost. Transparency requirements in underwriting can expose discriminatory practices, help consumers understand rate determinations, and create accountability in the insurance industry. These provisions are particularly relevant given ongoing concerns about algorithmic bias and opaque decision-making in insurance pricing and approval processes.

Potential points of contention

  • Industry compliance burden: Insurance companies may argue that detailed transparency requirements increase administrative costs and could expose proprietary underwriting models
  • Consumer privacy concerns: Requiring disclosure of underwriting factors could inadvertently reveal personal information or create security risks if data is mishandled
  • Competitive impact: Transparency about underwriting criteria might affect how companies compete or could disadvantage smaller insurers with less sophisticated disclosure systems

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

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