Bill Text: MI HB4907 | 2015-2016 | 98th Legislature | Introduced
Bill Title: Insurance; no-fault; territorial rating by zip code; prohibit. Amends sec. 2111 of 1956 PA 218 (MCL 500.2111).
Spectrum: Partisan Bill (Democrat 26-1)
Status: (Introduced - Dead) 2015-09-30 - Printed Bill Filed 09/30/2015 [HB4907 Detail]
Download: Michigan-2015-HB4907-Introduced.html
HOUSE BILL No. 4907
September 29, 2015, Introduced by Reps. Banks, Love, Gay-Dagnogo, Byrd, Robinson, Schor, Zemke, Cochran, Garrett, Talabi, Moss, Chang, Hovey-Wright, Dianda, Guerra, Wittenberg, Callton, Geiss, Yanez, Derek Miller, Neeley, Phelps, Plawecki, Chirkun, Liberati, Hoadley and Lane 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 2012 PA 441.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2111. (1) Notwithstanding any provision of this act or
this chapter to the contrary, classifications and territorial base
rates used by an insurer in this state with respect to automobile
insurance or home insurance shall conform to the applicable
requirements of this section.
(2) Classifications established under this section for
automobile insurance shall be based only on 1 or more of the
following factors, which shall be applied by an insurer on a
uniform basis throughout this 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 on the proportionate use of each
vehicle insured under the policy by individual drivers insured or
to be insured under the policy.
(iii) 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 the 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, 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.
(4) An insurer shall not establish or maintain rates or rating
classifications for automobile insurance based on sex or marital
status.
(5)
Notwithstanding other provisions of this chapter, An
insurer shall not establish or maintain rates or rating
classifications
for automobile insurance risks may
be grouped by
territory.based on the zip code in which the insured
resides or
works.
(6) This section does not limit insurers or rating
organizations from establishing and maintaining statistical
reporting territories. This section does not 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.
(7) Classifications established under this section for home
insurance other than inland marine insurance provided by policy
floaters or endorsements shall be based only on 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 on 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.
(8) Notwithstanding other provisions of this chapter, home
insurance risks may be grouped by territory.
(9) An insurer may use factors in addition to those permitted
by this section for insurance if the plan is consistent with the
purposes of this act and reflects reasonably anticipated reductions
or increases in losses or expenses.
