January 22, 2008, Introduced by Senators SCOTT, JACOBS, CLARK-COLEMAN, ANDERSON, BRATER, THOMAS, GLEASON, SCHAUER, HUNTER, CHERRY 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 2120 (MCL 500.2120), as amended by 2007 PA 35.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2120. (1) Affiliated insurers may establish underwriting
rules so that each affiliate will provide automobile insurance only
to certain eligible persons. This subsection shall apply only if an
eligible person can obtain automobile insurance from 1 of the
affiliates. The underwriting rules shall be in compliance with this
section
, section and sections 2118 , and section 2119.
(2) An insurer may establish separate rating plans so that
certain eligible persons are provided automobile insurance under 1
rating plan and other eligible persons are provided automobile
insurance under another rating plan. This subsection shall apply
only if all eligible persons can obtain automobile insurance under
a rating plan of the insurer. Underwriting rules consistent with
this
section , section and
sections 2118 , and section 2119
shall
be established to define the rating plan applicable to each
eligible person.
(3) Underwriting rules under this section shall be based only
on the following:
(a) 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.
(b)
Failure of the person to provide proof that insurance
required
by section 3101 was maintained in force with respect to
any
vehicle owned and operated by the person or by a member of the
household
of the person during the 6-month period immediately
preceding
application or renewal of the policy. Such proof shall
take
the form of a certification by the person that the required
insurance
was maintained in force for the 6-month period with
respect
to such vehicle.
(b) (c)
For purposes of insuring persons who have refused a
deductible
lawfully required under section 2118(2)(h) 2118(2)(g),
the claim experience of the person with respect to comprehensive
coverage.
(c) (d)
Refusal of the person to pay a minimum deposit
required
under section 2118(2)(g) 2118(2)(f).
(d) (e)
A person's insurance eligibility point accumulation
under section 2103(1)(h), or the total insurance eligibility point
accumulation of all persons who account for 10% or more of the use
of 1 or more vehicles insured or to be insured under the policy.
(e) (f)
The type of vehicle insured or to be insured as
provided
in section 2118(2)(e) 2118(2)(d).
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No. 1034
of the 94th Legislature is enacted into law.