Self-Audit Bill Approved by Michigan Senate Committee

The Michigan Senate Financial Services Committee approved legislation that provides confidentiality protection for insurers that conduct voluntary self-assessments of their compliance with state insurance laws.

“Senate Bill 674 is supported by the NAII because it is a positive approach that encourages insurers to take the necessary steps to stay in compliance with state statutes and regulations, promotes openness with regulators, and provides protection against lawsuit abuse,” said Laura Kotelman, counsel for NAII.

The bill provides confidentiality protection to documents created as part of the insurance compliance audit. These documents submitted to the Commissioner of the Office of Financial and Insurance Services could not be admitted as evidence in a civil, criminal or administrative proceeding.

“By restricting access to these documents, the law encourages insurers to be candid in their review. This is a pro-consumer bill that benefits the commissioner’s office and helps insurers do a better job of monitoring their activities,” said Kotelman.