HB 4425 Summary

• Establishes new rate filing and disclosure requirements for automobile insurance effective January 1, 2010, requiring insurers to submit annual reports on claims, lawsuits, premiums, and net profits to the insurance commissioner.

• Requires insurers seeking to increase base rates for personal protection, property protection, or residual liability insurance to file detailed disclosures and a "Rate Increase Analysis" justifying the increase with actuarial support.

• Implements a 90-day waiting period before rate increases can take effect, during which the commissioner or interested parties may challenge the proposed increase at a public hearing.

• Mandates that all rate increase filings and supporting information be made public and available for inspection, allowing the commissioner to evaluate rate fairness in relation to Michigan's compulsory automobile insurance system.

• Modifies rate-making standards to require consideration of loss experience, expenses, underwriting profit margins, and other factors specified in sections 2109 and 2110 when developing automobile and home insurance rates.