Insurance: other; post-claim underwriting; prohibit. Amends sec. 2026 of 1956 PA 218 (MCL 500.2026).

SB 1089 prohibits insurance companies in Michigan from conducting post-claim underwriting, which means insurers cannot investigate a policyholder's risk or deny a claim based on information discovered after the policy was issued. This change directly affects consumers by preventing insurers from using facts learned during a claims investigation to retroactively justify denying coverage. The bill amends existing unfair practices laws to explicitly ban this specific behavior, ensuring that underwriting decisions are made only before a policy is issued or renewed. Additionally, the legislation requires insurers to maintain detailed records of customer complaints and mandates that agents forward written complaints to their companies promptly.