Requires insurers offering commercial general liability insurance policies to provide notification of exclusion for communicable disease.
Impact
This legislation seeks to ensure that businesses are fully aware of their liability coverage in the context of communicable diseases, addressing concerns that many insurers may have introduced exclusions following the COVID-19 pandemic. By requiring insurers to provide clear information on these exclusions, the bill aims to help businesses better understand their risk exposure and prevent potential financial losses that could arise from unclear policy language. This move is expected to enhance consumer protection and create a more competitive insurance market.
Summary
Senate Bill 211 aims to enhance the transparency of insurance coverage related to communicable diseases, including COVID-19, within commercial general liability policies. The bill mandates that insurers must provide prospective policyholders and existing policyholders seeking renewals with a clear and prominent notification regarding any exclusions for coverage of communicable disease. Specifically, if a policy contains such an exclusion, the insurer is required to inform the policyholder if the exclusion can be removed and what the cost would be, or if the coverage can be obtained from another insurer.
Contention
While the bill could be seen as a positive step for policyholders seeking clarity from insurers, there exists the underlying tension regarding how this bill may affect insurance companies' risk management strategies. Insurers may argue that such transparency requirements could lead to increased liability and higher premiums, potentially limiting accessibility to essential commercial coverage for businesses. Conversely, advocates for the bill highlight the importance of clear communication and the need for insured parties to understand the limits of their coverage, particularly in the wake of global health crises.
Requires rate filings for prior approval for commercial property insurance, commercial general liability insurance, and personal residential property insurance; requires insurers provide written explanations for premium increases in certain covered policies; requires certain insurers of homeowners' insurance to refile its homeowners' insurance rates and, in certain circumstances, be required to reduce rates.
Health: other; authority to limit patient visitation in certain health care facilities; restrict in emergency orders and under certain circumstances. Amends secs. 2253, 2453 & 5145 of 1978 PA 368 (MCL 333.2253 et seq.).
Creates "Manufacturing Reboot Program" in EDA to provide financial assistance to certain manufacturing businesses; makes $10 million appropriation to EDA.
Creates "Manufacturing Reboot Program" in EDA to provide financial assistance to certain manufacturing businesses; makes $10 million appropriation to EDA.