Advocacy News – June 18, 2026
What’s new: This week the Senate Committee on Finance, Insurance and Consumer Protection voted through SB 245, otherwise known as “bad faith,” which would significantly raise the cost of insurance and disrupt the insurance market across the state.
Why it matters: The legislation would create dozens of new opportunities to sue Michigan insurers over disputed claims, forcing insurance companies (and self-insured employers) to pay claims now and ask questions later.
- If implemented, Michigan would become a national hotspot for insurance fraud and premiums could skyrocket by up to 21%, significantly raising the cost to live and do business in the Great Lakes State.
Case studies: States across the political spectrum have adopted and subsequently repealed similar policies. In California premiums increased 32% to 53% under similar caselaw before it was ultimately changed. Lawsuit abuse became rampant under policy in Florida, where 9% of the nation’s homeowner’s claims accounted for 79% of the nation’s homeowner litigation.
What we’re saying: The Michigan Chamber opposes SB 245 and any legislation that would expose Michigan employers to lawsuit abuse and higher costs. The Chamber has also partnered with dozens of stakeholders across Michigan to submit a coalition letter to lawmakers urging opposition to SB 245.
For more information or to get involved, contact Randy Gross.