MI SB1242

Amends the Insurance Code to restrict preexisting condition exclusions for individuals transitioning from group health plans to individual coverage, requiring 18 months of continuous prior coverage with no break exceeding 62 days.

Creates the Michigan Catastrophic Protection Plan (MI-CaPP) board to oversee a Michigan Claims Fund that reimburses carriers for 90% of eligible claims between $80,000 and $800,000 annually for individual health benefit plans.

Establishes guaranted renewal requirements for individual health plans except in cases of fraud, intentional misrepresentation, nonpayment, plan discontinuation, or relocation outside service area.

Prohibits carriers from rescinding or canceling plans due to incomplete medical underwriting, engaging in health-status discrimination against producers, or encouraging individuals to avoid applying based on health conditions.

Requires carriers to submit premium rates for approval with actuarial certification that benefits are reasonable relative to premiums, with commissioner authority to reject or modify rates within 60 days of filing.