Michigan auto insurers would lose the ability to cancel policies or deny claims over unreported household members under a newly introduced bill. 

Senate Bill 1153, introduced on September 9, 2026, by McMorrow and referred to the Committee on Finance, Insurance, and Consumer Protection, would add section 2116c to the state's insurance code. 

The core provision would prohibit an automobile insurer from requiring "a named insured to disclose the addition of resident relatives to the named insured's household during the term of the automobile insurance policy." It would also bar insurers from canceling or rescinding a policy, denying a claim, or taking "any other action detrimental to coverage solely due to the named insured's failure to disclose a resident relative" who joined the household during the policy term. 

A second provision would set conditions for when insurers can require resident-relative information at all. Disclosure at application or renewal would only be permitted if three requirements are met: the insurer collects the information solely in the application or at renewal; the application clearly defines which individuals qualify as resident relatives "in a conspicuous manner"; and at renewal, the insurer notifies the policyholder "in a conspicuous manner" that all resident relatives must be disclosed. 

Where that disclosure extends to minors or nondrivers, "the insurer's notice must contain an explicit statement to that effect." 

The practical impact for carriers operating in Michigan would center on application design, renewal notice procedures, and claims workflows. Underwriting teams that currently factor mid-term household changes into coverage or claims decisions would need to revise those practices if the bill becomes law. Claims departments would also need to ensure that undisclosed-resident defenses are not invoked where the bill would prohibit them. 

Senate Bill 1153 is before the Committee on Finance, Insurance, and Consumer Protection. It has not been enacted.