LANSING, Mich., June 26, 2024 — State Rep. Brenda Carter (D-Pontiac) is proud to announce the passage of a comprehensive, bipartisan package of bills aimed at combating insurance fraud in Michigan. Yesterday, the Michigan House of Representatives approved a legislative insurance fraud package designed to strengthen the state’s ability to detect, deter and prosecute insurance fraud, thereby protecting Michigan consumers and businesses from its costly impacts.

The bills, sponsored by Carter and her colleagues, take several steps to enhance the effectiveness of fraud prevention efforts. The legislative package would increase penalties against insurance fraud, enhance fraud detection tools and funding, bolster consumer protections and provide for better coordination among state agencies fighting fraud.

“Insurance fraud is far from a victimless crime. When fraud is committed, consumers are the ones who pay the costs in the form of higher premiums. This package of bills will hold individuals who file false insurance claims responsible, helping to lower insurance premium costs for Michiganders. Insurance fraud costs the average family between $400 and $700 annually in premiums. This package will not only save money for Michigan families but also help create a fairer and more transparent insurance market,” Carter said.

Carter, chair of the House Committee on Insurance and Financial Services, worked extensively with constituents developing the legislation to improve the insurance system in Michigan. The package also garnered strong backing from a broad range of stakeholders, including the Insurance Alliance of Michigan, the National Crime Insurance Bureau, Big I Michigan, the Michigan Association of Health Plans, CURE Auto Insurance and Attorney General Dana Nessel. The Department of Insurance and Financial Services, the lead agency in these efforts, has expressed full support for the legislation.

“The bad actors who defraud insurers steal from all of us. Our premiums go up to pay for their theft,” said state Rep. Mike Harris (R-Waterford). “With better communication and coordination, insurers and investigators will be equipped to uncover fraud and put a stop to it. And tougher penalties will empower prosecutors to punish fraudsters appropriately for their costly crimes. Our bipartisan plan will protect the hard-earned dollars of homeowners, drivers, patients and small-business owners.”

With the bill’s passage through the House of Representatives, it now goes to the Senate Committee on Finance, Insurance, and Consumer Protection for consideration.