Bill Text: MI SB0312 | 2017-2018 | 99th Legislature | Introduced
Bill Title: Insurance; no-fault; rate setting; limit criteria that may be used. Amends secs. 2110a & 2111 of 1956 PA 218 (MCL 500.2110a & 500.2111).
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2017-04-20 - Referred To Committee On Insurance [SB0312 Detail]
Download: Michigan-2017-SB0312-Introduced.html
SENATE BILL No. 312
April 20, 2017, Introduced by Senator HOOD and referred to the Committee on Insurance.
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
by amending sections 2110a and 2111 (MCL 500.2110a and 500.2111),
as amended by 2012 PA 441.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2110a. If uniformly applied to all its insureds, an
insurer may use factors in addition to those permitted by section
2111 for home insurance if the plan is consistent with the purposes
of this act and reflects reasonably anticipated reductions or
increases
in losses or expenses. This section does not affect
benefits
or obligations required under chapter 31. This section
does
not authorize an insurer to offer or prohibit an insurer from
offering
premium discount plans concerning any of the following:
(a)
Health care services, health care providers, or health
care
facilities.
(b)
Automobile repair providers.
(c)
Materials used in the repair of an automobile.
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 must
conform to the applicable
requirements of this section.
(2) Classifications established under this section for
automobile
insurance shall must be based only on 1 or more of the
following
factors, which shall must 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:
(a)
(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,
automobile
insurance risks may be grouped by territory.
(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.
(c) Loss experience of and prior claims by the insured.
(3) (7)
Classifications established under
this section for
home insurance other than inland marine insurance provided by
policy
floaters or endorsements shall must
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 is 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.
(4) (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.
