January 22, 2008, Introduced by Senators HUNTER, JACOBS, CLARK-COLEMAN, ANDERSON, BRATER, THOMAS, GLEASON, SCHAUER, CHERRY, SCOTT and CLARKE and referred to the Committee on Economic Development and Regulatory Reform.
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
by amending section 2118 (MCL 500.2118), as amended by 2007 PA 35;
and to repeal acts and parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2118. (1) As a condition of maintaining its certificate
of authority, an insurer shall not refuse to insure, refuse to
continue to insure, or limit coverage available to an eligible
person for automobile insurance, except in accordance with
underwriting rules established pursuant to this section and
sections 2119 and 2120.
(2) The underwriting rules that an insurer may establish for
automobile insurance shall be based only on the following:
(a) Criteria identical to the standards set forth in section
2103(1).
(b) The insurance eligibility point accumulation in excess of
the amounts established by section 2103(1) of a member of the
household of the eligible person insured or to be insured, if the
member of the household usually accounts for 10% or more of the use
of a vehicle insured or to be insured. For purposes of this
subdivision, a person who is the principal driver for 1 automobile
insurance policy shall be rebuttably presumed not to usually
account for more than 10% of the use of other vehicles of the
household not insured under the policy of that person.
(c) With respect to a vehicle insured or to be insured,
substantial modifications from the vehicle's original manufactured
state for purposes of increasing the speed or acceleration
capabilities of the vehicle.
(d)
Except as otherwise provided in section 2116a, failure by
the
person to provide proof that insurance required by section 3101
was
maintained in force with respect to any vehicle that was both
owned
by the person and driven or moved by the person or by a
member
of the household of the person during the 6-month period
immediately
preceding application. Such proof shall take the form
of
a certification by the person on a form provided by the insurer
that
the vehicle was not driven or moved without maintaining the
insurance
required by section 3101 during the 6-month period
immediately
preceding application.
(d) (e)
Type of vehicle insured or to be
insured, based on 1
of the following, without regard to the age of the vehicle:
(i) The vehicle is of limited production or of custom
manufacture.
(ii) The insurer does not have a rate lawfully in effect for
the type of vehicle.
(iii) The vehicle represents exposure to extraordinary expense
for repair or replacement under comprehensive or collision
coverage.
(e) (f)
Use of a vehicle insured or to be
insured for
transportation of passengers for hire, for rental purposes, or for
commercial purposes. Rules under this subdivision shall not be
based on the use of a vehicle for volunteer or charitable purposes
or for which reimbursement for normal operating expenses is
received.
(f) (g)
Payment of a minimum deposit at the
time of
application or renewal, not to exceed the smallest deposit required
under an extended payment or premium finance plan customarily used
by the insurer.
(g) (h)
For purposes of requiring
comprehensive deductibles of
not more than $150.00, or of refusing to insure if the person
refuses to accept a required deductible, the claim experience of
the person with respect to comprehensive coverage.
(h) (i)
Total abstinence from the
consumption of alcoholic
beverages except if such beverages are consumed as part of a
religious ceremony. However, an insurer shall not utilize an
underwriting rule based on this subdivision unless the insurer has
been authorized to transact automobile insurance in this state
prior to January 1, 1981, and has consistently utilized such an
underwriting rule as part of the insurer's automobile insurance
underwriting since being authorized to transact automobile
insurance in this state.
(i) (j)
One or more incidents involving a
threat, harassment,
or physical assault by the insured or applicant for insurance on an
insurer employee, agent, or agent employee while acting within the
scope of his or her employment so long as a report of the incident
was filed with an appropriate law enforcement agency.
Enacting section 1. Section 2116a of the insurance code of
1956, 1956 PA 218, MCL 500.2116a, is repealed.
Enacting section 2. This amendatory act does not take effect
unless Senate Bill No. 1035
of the 94th Legislature is enacted into law.