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

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) 2017-09-07 - Bill Electronically Reproduced 09/06/2017 [HB4904 Detail]

Download: Michigan-2017-HB4904-Introduced.html




















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.




     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




     (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




     (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




     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.