HB 4839 Summary

• Amends the Insurance Code of 1956 to establish requirements for automobile and home insurance rate classifications and territorial base rates used by insurers in Michigan.

• Prohibits insurers from establishing rates or classifications for automobile insurance based on sex or marital status.

• Requires insurers to establish a secondary or merit rating plan for automobile insurance (other than comprehensive coverage) that allows premium surcharges based on substantially at-fault accidents and driving violations, with civil infractions not subject to merit rating longer than the secretary of state carries points on the motor vehicle record.

• For automobile insurance, allows insurers to consider factors including driver age/experience, vehicle characteristics, usage type and mileage, commuting distance, safety belt use, and completion of accident prevention courses (minimum 8 hours classroom instruction).

• For home insurance, establishes allowed classification factors including coverage amounts, security devices, fire protection class, construction type, prior claims history, and distance from fire hydrants.