Bill Text: MI HB5197 | 2023-2024 | 102nd Legislature | Introduced
Bill Title: Insurance: other; requirement to file a fraud report; provide for. Amends 1956 PA 218 (MCL 500.100 - 500.8302) by adding sec. 4506.
Spectrum: Moderate Partisan Bill (Democrat 20-4)
Status: (Introduced) 2024-05-16 - Referred To Second Reading [HB5197 Detail]
Download: Michigan-2023-HB5197-Introduced.html
HOUSE BILL NO. 5197
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
(MCL 500.100 to 500.8302) by adding section 4506.
the people of the state of michigan enact:
Sec. 4506. (1) An insurer that reasonably believes or knows that a fraudulent insurance act under section 4503 has occurred shall, not later than 60 days after the insurer determines that the fraudulent insurance act has occurred, send to the director, on a form prescribed by the director, the information requested by the form and any additional information relative to the factual circumstances of the alleged fraudulent insurance act and the parties claiming loss or damages that the director may require. The director shall review each report and take any further investigation the director considers is necessary to determine the validity of the allegations. If the director determines that a fraudulent insurance act has occurred, the director shall report the fraudulent insurance act to the insurer, the appropriate authorized agency, the prosecuting attorney of the county in which the fraudulent insurance act occurred, or the attorney general. If the director determines that a fraudulent insurance act has not occurred, the director shall report that determination to the insurer.
(2) This section does not require an insurer to submit to the director the form under subsection (1) in either of the following circumstances:
(a) The insurer's initial investigation indicated a potentially fraudulent insurance act, but further investigation revealed that the act was not a fraudulent insurance act.
(b) The insurer does not have reasonable grounds to believe that a fraudulent insurance act occurred.
(3) This section does not relieve an insurer of the insurer's obligations to also report suspected violations of law to an authorized agency.
(4) An authorized agency shall submit all papers, documents, reports, complaints, or other facts or evidence to the director on request. The authorized agency shall otherwise assist and cooperate with the director's investigation under this section.
