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HB 4854

Insurance: producers; disclosure to insured as to whether a producer is an agent of the insured or agent of the insurer; require. Amends 1956 PA 218 (MCL 500.100 - 500.8302) by adding sec. 1201b.

2025-2026 Regular Session Introduced by Jennifer Wortz and 1 co-sponsor

Michigan bill requiring insurance producers to disclose whether they represent the insurer or insured, clarifying potential conflicts of interest for consumers before purchase.

bill electronically reproduced 09/09/2025
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Bill Summary · HB 4854

Legislative bill overview

HB 4854 would require insurance producers in Michigan to disclose to potential customers whether they represent the insurance company (agent of the insurer) or the customer (agent of the insured). This disclosure would be mandated upfront in transactions, clarifying the producer's fiduciary relationship and potential conflicts of interest.

Why is this important

Insurance producers often have competing loyalties—they may earn commissions from insurers while advising consumers on policies. Clear disclosure helps consumers understand whether their producer is legally obligated to act in their best interest or prioritize the insurer's interests, enabling informed decisions about whether to use that producer or seek independent advice.

Potential points of contention

  • Industry burden: Insurance producers and companies may argue compliance adds administrative costs and paperwork without improving consumer outcomes, as disclosure doesn't necessarily change how business operates
  • Existing transparency: Insurers may contend that relationships are already disclosed through policy documents and contracts, making additional disclosure redundant
  • Definitional ambiguity: The bill's reference to amending the 1956 Act doesn't clearly specify when disclosure occurs (verbal, written, digital), to whom, or how to handle dual-representation scenarios common in the industry

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

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