Bill Text: MI HB4839 | 2009-2010 | 95th Legislature | Introduced
Bill Title: Insurance; no-fault; rates calculated on miles driven or "pay as you drive"; require. Amends sec. 2111 of 1956 PA 218 (MCL 500.2111) & repeals sec. 2110a of 1956 PA 218 (MCL 500.2110a).
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2009-04-29 - Printed Bill Filed 04/29/2009 [HB4839 Detail]
Download: Michigan-2009-HB4839-Introduced.html
HOUSE BILL No. 4839
April 28, 2009, Introduced by Rep. Young and referred to the Committee on Insurance.
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
by amending section 2111 (MCL 500.2111), as amended by 2002 PA 492;
and to repeal acts and parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2111. (1) Notwithstanding any provision of this act and
this chapter to the contrary, classifications and territorial base
rates used by any insurer in this state with respect to automobile
insurance or home insurance shall conform to the applicable
requirements of this section.
(2) Classifications established pursuant to this section for
automobile
insurance shall be based only upon 1 or more of the
following
factors, which shall be applied by an insurer on a
uniform
basis throughout the state:
(a)
With respect to all automobile insurance coverages:
(i) Either the age of the driver; the length of
driving
experience;
or the number of years licensed to operate a motor
vehicle.
(ii) Driver primacy, based upon the proportionate use
of each
vehicle
insured under the policy by individual drivers insured or
to
be insured under the policy.
(iii) Average average miles driven weekly,
annually, or both.
(iv) Type of use, such as business, farm, or pleasure
use.
(v) Vehicle characteristics, features, and options,
such as
engine
displacement, ability of vehicle and its equipment to
protect
passengers from injury and other similar items, including
vehicle
make and model.
(vi) Daily or weekly commuting mileage.
(vii) Number of cars insured by the insurer or number of
licensed
operators in the household. However, number of licensed
operators
shall not be used as an indirect measure of marital
status.
(viii) Amount of insurance.
(b)
In addition to the factors prescribed in subdivision (a),
with
respect to personal protection insurance coverage:
(i) Earned income.
(ii) Number of dependents of income earners insured
under the
policy.
(iii) Coordination of benefits.
(iv) Use of a safety belt.
(c)
In addition to the factors prescribed in subdivision (a),
with
respect to collision and comprehensive coverages:
(i) The anticipated cost of vehicle repairs or
replacement,
which
may be measured by age, price, cost new, or value of the
insured
automobile, and other factors directly relating to that
anticipated
cost.
(ii) Vehicle make and model.
(iii) Vehicle design characteristics related to vehicle
damageability.
(iv) Vehicle characteristics relating to automobile
theft
prevention
devices.
(d)
With respect to all automobile insurance coverage other
than
comprehensive, successful completion by the individual driver
or
drivers insured under the policy of an accident prevention
education
course that meets the following criteria:
(i) The course shall include a minimum of 8 hours of
classroom
instruction.
(ii) The course shall include, but not be limited to, a
review
of
all of the following:
(A)
The effects of aging on driving behavior.
(B)
The shapes, colors, and types of road signs.
(C)
The effects of alcohol and medication on driving.
(D)
The laws relating to the proper use of a motor vehicle.
(E)
Accident prevention measures.
(F)
The benefits of safety belts and child restraints.
(G)
Major driving hazards.
(H)
Interaction with other highway users such as
motorcyclists,
bicyclists, and pedestrians.
(3)
Each insurer shall establish a secondary or merit rating
plan
for automobile insurance, other than comprehensive coverage. A
secondary
or merit rating plan required under this subsection shall
provide
for premium surcharges for any or all coverages for
automobile
insurance, other than comprehensive coverage, based upon
any
or all of the following, when that information becomes
available
to the insurer:
(a)
Substantially at-fault accidents.
(b)
Convictions for, determinations of responsibility for
civil
infractions for, or findings of responsibility in probate
court
for civil infractions for, violations under chapter VI of the
Michigan vehicle code, 1949 PA 300, MCL 257.601 to 257.750.
However,
beginning 90 days after the effective date of this
sentence,
an insured shall not be merit rated for a civil
infraction
under chapter VI of the Michigan vehicle code, 1949 PA
300,
MCL 257.601 to 257.750, for a period of time longer than that
which
the secretary of state's office carries points for that
infraction
on the insured's motor vehicle record.
(3) (4)
An insurer shall not establish or
maintain rates or
rating classifications for automobile insurance based upon sex or
marital status.
(5)
Notwithstanding other provisions of this chapter,
automobile
insurance risks may be grouped by territory.
(4) (6)
This section shall not be construed
as limiting
insurers or rating organizations from establishing and maintaining
statistical reporting territories. This section shall not be
construed to prohibit an insurer from establishing or maintaining,
for automobile insurance, a premium discount plan for senior
citizens in this state who are 65 years of age or older, if the
plan is uniformly applied by the insurer throughout this state. If
an insurer has not established and maintained a premium discount
plan for senior citizens, the insurer shall offer reduced premium
rates to senior citizens in this state who are 65 years of age or
older and who drive less than 3,000 miles per year, regardless of
statistical data.
(5) (7)
Classifications established
pursuant to this section
for home insurance other than inland marine insurance provided by
policy floaters or endorsements shall be based only upon 1 or more
of the following factors:
(a) Amount and types of coverage.
(b) Security and safety devices, including locks, smoke
detectors, and similar, related devices.
(c) Repairable structural defects reasonably related to risk.
(d) Fire protection class.
(e) Construction of structure, based on structure size,
building material components, and number of units.
(f) Loss experience of the insured, based upon prior claims
attributable to factors under the control of the insured that have
been paid by an insurer. An insured's failure, after written notice
from the insurer, to correct a physical condition that presents a
risk of repeated loss shall be considered a factor under the
control of the insured for purposes of this subdivision.
(g) Use of smoking materials within the structure.
(h) Distance of the structure from a fire hydrant.
(i) Availability of law enforcement or crime prevention
services.
(6) (8)
Notwithstanding other provisions of
this chapter, home
insurance risks may be grouped by territory.
(9)
An insurer may utilize factors in addition to those
specified
in this section, if the commissioner finds, after a
hearing
held pursuant to the administrative procedures act of 1969,
1969
PA 306, MCL 24.201 to 24.328, that the factors would encourage
innovation,
would encourage insureds to minimize the risks of loss
from
hazards insured against, and would be consistent with the
purposes
of this chapter.
Enacting section 1. Section 2110a of the insurance code of
1956, 1956 PA 218, MCL 500.2110a, is repealed.
Enacting section 2. This amendatory act takes effect January
1, 2010.