A Michigan bill, SB 329, has passed through the Senate Committee on Finance, Insurance and Consumer Protection, aiming to prohibit insurance companies from charging reinstatement fees or higher rates due to coverage lapses.
“If someone experiences a lapse in coverage because they’re sick or are having trouble making ends meet, we should make it easy for them to get insured again — not hit them with additional fees from insurance companies looking to turn a profit,”
The bill, introduced by Sen. Irwin, will now move to the floor for a full vote.
Author's summary: Michigan bill bans insurers from charging fees for coverage lapses.