Bill Text: MI HB4904 | 2017-2018 | 99th Legislature | Introduced

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Bill Title: Insurance; insurers; charging a different rate based on sex; prohibit. Amends sec. 2027 of 1956 PA 218 (MCL 500.2027).

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2017-09-07 - Bill Electronically Reproduced 09/06/2017 [HB4904 Detail]

Download: Michigan-2017-HB4904-Introduced.html

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HOUSE BILL No. 4904

 

 

September 6, 2017, Introduced by Rep. Kosowski and referred to the Committee on Insurance.

 

     A bill to amend 1956 PA 218, entitled

 

"The insurance code of 1956,"

 

by amending section 2027 (MCL 500.2027), as amended by 1998 PA 26.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 2027. Unfair methods of competition and unfair or

 

deceptive acts or practices in the business of insurance include:

 

     (a) Refusing to insure, or refusing to continue to insure, or

 

limiting the amount of coverage available to an individual or risk

 

because of any of the following:

 

     (i) Race, color, creed, marital status, sex, or national

 

origin, except that marital status may be used to classify

 

individuals or risks for the purpose of insuring family units.

 

     (ii) The residence, age, disability, or lawful occupation of

 

the individual or the location of the risk, unless there is a

 

reasonable relationship between the residence, age, disability, or

lawful occupation of the individual or the location of the risk and

 

the extent of the risk or the coverage issued or to be issued, but

 

subject to subparagraph (iii). This section shall does not prohibit

 

an insurer from specializing in or limiting its transactions of

 

insurance to certain occupational groups, types, or risks as

 

approved by the commissioner of insurance. director. The

 

commissioner director shall approve the specialization for an

 

insurer licensed to do business in this state and whose articles of

 

incorporation contained a provision on July 1, 1976, requiring that

 

specialization.

 

     (iii) For property insurance, the location of the risk, unless

 

there is a statistically significant relationship between the

 

location of the risk and a risk of loss due to fire within the area

 

in which the insured property is located. As used in this

 

subparagraph, "area" means a single zip code number under the

 

zoning improvement plan of the United States postal service.Postal

 

Service.

 

     (b) Refusing to insure or refusing to continue to insure an

 

individual or risk solely because the insured or applicant was

 

previously denied insurance coverage by an insurer.

 

     (c) Charging a different rate for the same coverage based on

 

sex, marital status, age, residence, location of risk, disability,

 

or lawful occupation of the risk unless the rate differential is

 

based on sound actuarial principles, a reasonable classification

 

system, and is related to the actual and credible loss statistics

 

or, for new coverages, reasonably anticipated experience. in the

 

case of new coverages. This subdivision shall does not apply if the

rate has previously been approved by the commissioner. director.

 

     (d) Charging a different rate for the same coverage based on

 

sex.

 

     Enacting section 1. This amendatory act applies to policies,

 

certificates, and contracts delivered, executed, issued, amended,

 

adjusted, or renewed in this state, or outside of this state if

 

covering residents of this state, beginning 90 days after the date

 

this amendatory act is enacted into law.