Michigan’s House Bill No. 4854 would require insurance agents to disclose exactly who they represent before selling or negotiating any insurance application in the state.
On September 9, 2025, House Bill No. 4854 was introduced in the Michigan House of Representatives by Representatives Wozniak and Wortz and referred to the Committee on Insurance. The bill proposes an amendment to the Insurance Code of 1956 by adding section 1201b.
If enacted, the bill would require that an agent of the insurer must not sell, solicit, or negotiate an application for insurance unless the agent discloses to the insured or prospective insured, on a form issued by the director, that the agent is a representative of the insurer. Likewise, an agent of the insured would be required to disclose, on the same director-issued form, that the agent is a representative of the insured before selling, soliciting, or negotiating an application for insurance.
The bill does not address or amend any specific insurance policy clauses. Its focus is on the disclosure of the agent’s representative status at the point of sale or negotiation, using a standardized form provided by the director.
For insurance professionals and businesses, the effect of this bill would be a new compliance step in the sales and application process. Agencies and agents would need to ensure that the appropriate disclosure form is provided to clients or prospective clients before any insurance application activity takes place.
There are no provisions in the bill regarding changes to premiums, claims, or the terms of insurance policies. The bill is limited to the disclosure requirement and does not introduce new obligations beyond this point.
The bill is currently under consideration in committee and has not yet become law. Its outcome will depend on further legislative review.
This proposed amendment is directly relevant to the insurance business industry, as it introduces a new regulatory requirement for agent conduct and disclosure. The bill does not focus on general consumer protections or policyholder benefits, but rather on clarifying the role of agents in insurance transactions.
If passed, House Bill No. 4854 would require insurance professionals in Michigan to adopt a new disclosure practice, ensuring transparency about whether they represent the insurer or the insured in each transaction.
