MI SB0545

Requires insurers to provide written notice to policyholders when making material changes to automobile or homeowners insurance policies, explaining the principal factors behind the change or informing them of their right to request such explanation

Defines "material change" as nonrenewal, cancellation, premium increases over 10%, coverage reductions, or other adverse policy changes, excluding general rate increases, insured-initiated changes, or telematics program adjustments

Prohibits vague explanations referencing "internal standards," "scoring systems," or generalized terms like "poor loss history" or "poor insurance score" — notices must be specific enough for the insured to understand the basis for the decision

Mandates that notices include a description of the most heavily weighed factors and provide a point of contact for the insured to discuss the material change

Applies to policies issued, delivered, amended, or renewed after January 1, 2026, and requires copies of notices be sent to independent insurance producers who represented the insured or insurer