HB 5818 Summary

• Establishes a minimum 90-day term for automobile liability and motor vehicle liability insurance policies issued by insurers in Michigan.

• Requires insurers to refund unearned premiums and other identifiable charges within 60 days of creditor-placed insurance coverage termination, along with a detailed refund statement.

• Prohibits cancellation of automobile insurance policies at the insured's request unless the insured first provides proof of obtaining replacement coverage from another insurer.

• Allows insurers to apply minimum retention requirements to automobile insurance premiums only when retention exceeds what would be retained on a pro rata basis, with exceptions for renewals and certain cancellation reasons.

• Clarifies that if creditor-placed coverage is not provided, the entire amount of premiums, fees, and charges must be refunded to the insured.