Michigan insurance laws
Insurance regulations, rate filing requirements, department info, and recent bulletins for Michigan. Updated Mar 31, 2026.
Department of Insurance
Michigan operates under a Modified Prior Approval rate system, requiring insurers to file personal automobile rates at least 90 days prior to their proposed effective date under MCL 500.2108(6). Following comprehensive no-fault auto insurance reform in 2019 (Public Acts 21 and 22), Michigan transitioned from mandatory unlimited PIP coverage to a choice-based system. The state maintains robust consumer protections across all insurance lines, with DIFS actively enforcing compliance through bulletins and market conduct oversight.
Auto Insurance
Notable Laws
- MCL 500.3101 et seq. - Michigan No-Fault Insurance Act requiring personal injury protection coverage for motor vehicle owners
- MCL 500.3107d - PIP choice option allowing selection of coverage levels ($50K, $250K, $500K, unlimited, or opt-out with qualifying health insurance)
- MCL 500.3157 - Medical provider fee schedule with annual CPI adjustment, capping reimbursement rates at 200-250% of Medicare rates depending on provider type
- MCL 500.2108(6) - 90-day prior filing requirement for personal automobile rate changes
- MCL 500.3145 - Enhanced medical reimbursement for hospitals with qualifying indigent care volumes (hospitals with 20%+ indigent care get 250% Medicare rates)
Homeowners Insurance
Notable Laws
- MCL 500.2123 - Requires insurers to provide at least 30 days notice before termination of homeowners insurance
- MCL 500.1511 - Cancellation for non-payment requires at least 10 days written notice
- MCL 500.2845 - Fire insurance escrow provisions for mortgaged properties with annual CPI adjustments
- MCL 500.2227 - Additional fire insurance escrow requirements with annual adjustments
- MCL 500.2103 - Prohibits home insurance cancellation based solely on prior claims within specific timeframes
Recent Bulletins
Auto Insurance: Fee Schedule CPI Adjustment
Announces 16.38% increase to auto medical fee schedule rates for services rendered July 2, 2026 through July 1, 2027. Updates MCL 500.3157 fee schedule adjustments based on medical component of Consumer Price Index.
View bulletinQualified Health Coverage Deductible Adjustment
Updates qualified health coverage deductible amount under no-fault auto insurance law. Sets deductible threshold for opting out of PIP coverage.
View bulletinMichigan Property and Casualty Guaranty Association's Annual Adjustment
Announces annual CPI adjustment of net worth limit and claim cap for Michigan Property and Casualty Guaranty Association pursuant to MCL 500.7925(4) and (6).
View bulletinImproper Claims Administration Practices in Automobile Insurance
Identifies and addresses unfair or abusive claims administration practices in automobile insurance industry. Reminds insurers of obligations under Insurance Code to prevent detriment to consumers.
View bulletinUse of Aerial Imagery by Personal Lines Homeowners and Dwelling Insurers
Reminds homeowners and dwelling insurers that decisions based on aerial imagery must comply with all applicable insurance laws. Addresses proper use of aerial imagery for property assessment.
View bulletinRecent Law Changes
Mental Health Parity Act
Requires health insurers to provide equal coverage for mental health and substance use disorder treatment with the same cost-sharing requirements and benefit limitations as physical health coverage. Mirrors federal Mental Health Parity and Addiction Equity Act of 2008.
Health insurers must eliminate discriminatory cost-sharing and treatment limitations for mental health and substance use disorder services affecting all insured Michigan residents.
Effective: 2024-05-21
Telemedicine Reimbursement Parity
Amends MCL 500.3476 to require private insurers to provide coverage parity for telemedicine services. Insurers must reimburse telehealth services at the same rate as in-person services for the same care.
Health insurers must pay telehealth providers the same rates as in-person visits, increasing access to remote healthcare for Michigan residents.
Effective: 2024-06-06
Oral Chemotherapy Cost Parity
Requires health insurance coverage for orally administered anticancer chemotherapy medication with cost-sharing cap of $150 per 30-day supply. Ensures parity between oral and intravenous chemotherapy treatment costs.
Cancer patients using oral chemotherapy medications are protected from excessive cost-sharing, with maximum $150 co-pay per month.
Effective: 2024-01-01
Pharmacy Benefit Manager Licensure and Regulation Act
Establishes comprehensive licensing and regulatory framework for pharmacy benefit managers (PBMs) operating in Michigan. Requires $5,000 annual license fee, transparency reporting, and compliance with anti-gag clause provisions.
All PBMs operating in Michigan must obtain DIFS licensure and submit annual transparency reports, increasing accountability in prescription drug pricing.
Effective: 2024-01-01
No-Fault Auto Insurance Reform - Coverage Choices
Comprehensive reform allowing drivers to choose PIP coverage levels ($50K, $250K, $500K, unlimited) or opt-out with qualifying health insurance. Increased mandatory bodily injury liability minimums to $250K/$500K. Established medical provider fee schedule with CPI adjustments.
Michigan drivers can now select PIP coverage levels based on individual needs, with mandatory 8-year rate reduction requirements for insurers affecting all auto insurance policyholders.
Effective: 2020-07-01
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