MI SB0851

Requires firearm owners to obtain liability insurance coverage for bodily injury or death resulting from discharge of their firearm, with exemptions for governmental agencies and antique firearms.

Establishes the Firearms Claims Association as a nonprofit organization that all insurers writing firearm liability coverage must join, which provides indemnification for losses exceeding $100,000 per occurrence (adjusted to $105,000 for policies issued July 1, 2016 to June 30, 2018, then increased biennially by the lesser of 6% or CPI).

Imposes civil fines starting at $25 for first violations of the insurance requirement, doubling for each subsequent violation, with unpaid fines accruing 10% monthly interest after 60 days.

Allows insurers to offer premium discounts based on firearm safety measures including gun safes, trigger locks, and completion of firearm safety courses.

Creates the Illegal Firearm Authority to administer a prevention fund financed by 5% of insurers' firearm claims association assessments, with funds directed toward law enforcement teams, prosecution programs, community organizations, and firearms safety education.