HB 4672 Summary

• Creates the Michigan Automobile Insurance Fraud Authority within the Michigan Automobile Insurance Placement Facility to reduce insurance fraud and automobile thefts in the state.

• Establishes a 25-member board of directors consisting of insurer representatives, law enforcement, prosecutors, medical professionals, attorneys, consumer advocates, and public members to govern the authority.

• Grants the authority power to provide financial support to law enforcement and prosecutorial agencies for fraud reduction programs and to fund an independent entity to investigate insurance claims practices.

• Requires all insurers writing automobile insurance in Michigan to participate in funding the authority through voluntary contributions from non-premium sources until December 31, 2022.

• Dissolves the authority on January 1, 2023, and requires annual reporting to the legislature on fraud prevention efforts, unfair claims practices, and cost savings achieved.