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MI SB1021
Bill
AI Summary
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Prohibits automobile insurers from refusing coverage, limiting coverage, or charging different rates based on employment, trade, business, occupation, profession, education level, or credit history for an insured or applicant.
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Allows discounts for group, blanket, or franchise automobile insurance based on actual expense savings, which are exempt from the prohibitions in subsection (1)(a) through (f).
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Amends existing section 2027 of the Insurance Code to clarify that rate differentials for sex, marital status, age, residence, location of risk, disability, or lawful occupation must be based on sound actuarial principles and related to actual loss statistics, subject to the new restrictions.
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Applies to the Insurance Code of 1956 (MCL 500.2027) and takes effect January 1, 2010.
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Introduced December 10, 2009, by Senators Thomas, Brater, Anderson, Clarke, Scott, Clark-Coleman, Jacobs, Prusi, Cherry, Olshove, and Switalski; referred to the Committee on Economic Development and Regulatory Reform.
Legislative Description
Insurance; unfair trade practices; use of credit scores, occupation, and level of education for rating; prohibit. Amends sec. 2027 of 1956 PA 218 (MCL 500.2027) & adds sec. 2027a.
Insurance, unfair trade practices
Last Action
Referred To Committee On Economic Development And Regulatory Reform
12/10/2009