The Office of Financial and Insurance Services reports that Michigan is eliminating use of a common policy provision.
The state banned use of "discretionary clauses," or provisions that give insurers wide authority to interpret policy terms, in insurance contracts March 1, Michigan regulators report in a notice posted on the Michigan OFIS Web site.
Insurers are supposed to notify insurance regulators about any policies that include discretionary clauses by April 1, regulators write in the notice.
