MI HB5628

Establishes a low-cost automobile insurance pilot program in 2-4 regions of Michigan with populations exceeding the statewide average insurance rates, operational by August 1, 2010.

Limits eligibility to individuals age 19+ with 3 years continuous driving license, household income not exceeding 250% of federal poverty level, and clean driving records (no more than 1 property-damage accident or moving violation point, no bodily injury accidents, no DUI, no work zone violations, no felony/misdemeanor motor vehicle convictions).

Sets initial annual policy rate cap at $600 with required liability coverage, 1-year renewable terms, personal protection insurance with reduced work loss benefits capped at 250% of monthly federal poverty level for family of 4, and policies limited to vehicles valued at $20,000 or less.

Restricts policy cancellation to nonpayment of premium or fraud/material misrepresentation; permits nonrenewal only for substantial increase in hazard or loss of qualified applicant status.

Requires annual rate submissions from insurers with commissioner approval within 90 days; rates must cover losses and reasonable expenses with no cross-subsidy from non-pilot policyholders; pilot program expires January 1, 2016; effectiveness contingent on enactment of HB 5627, HB 5629, and HB 5630.