Michigan Lawmakers Proposed Insurance Division Changes
The legislation aims to clarify language in state insurance codes to reduce potential liability disputes.
Updated on Sept. 28, 2026 in Insurance
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State representatives introduced House Bill 6375 to amend the Michigan Insurance Code regarding how insurer divisions are defined. The proposal seeks to resolve ambiguity in existing statutes by replacing pronouns with specific noun phrases to clarify liability.
Why it matters
Ambiguous pronouns in current law may create coverage and liability disputes during insurance company splits. The bill intends to modernize the statute and ensure legal consistency across industry operations.
The bill updates a Uniform Commercial Code cross-reference from MCL 440.9994 to MCL 440.12501. Its implementation is contingent on the passage of a separate, related measure, House Bill 6347.
The players
Representative Carter
Carter is a member of the Michigan House of Representatives and a primary sponsor of the newly introduced insurance legislation.
Representative Wozniak
Wozniak is a member of the Michigan House of Representatives and co-sponsored the bill to amend state insurance statutes.
The details
Representatives Carter and Wozniak sponsored the bill, which is now sitting before the Committee on Finance. The legislation is strictly technical, focusing on clarity in legal drafting to prevent future misinterpretations during corporate insurance restructuring.
Timeline
Public Act 421 established the insurer division framework in 2018.
House Bill 6375 was officially introduced on September 24, 2026.
Market Landscape
This effort follows the regulatory framework established by the 2018 Public Act 421, which originally enabled insurer divisions in Michigan. The proposed amendments refine these existing rules to better align state law with modern corporate liability standards.
The proposed technical changes are designed to improve legal clarity for insurance companies operating in Michigan. While the bill does not change insurance rates, it aims to prevent future litigation that could complicate coverage for policyholders.
The takeaway
Legislative cleanup of existing statutes is a common method for states to reduce the likelihood of costly legal disputes between corporations. Residents should monitor the progress of House Bill 6347, as the current proposal cannot move forward without its enactment.
Further reading
For more information on state oversight, see our Insurance section.
Source note: This article includes information reported by Insurance Business.
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Should states prioritize simplified legal language to reduce potential disputes in insurance company divisions?
