Senate Bill 1340 - Fair and Affordable Insurance Act

• Requires all insurers to reduce premiums by at least 20% from February 21, 2009 levels for policies issued or renewed after the bill's effective date, with no increases permitted for one year.

• Mandates insurers provide a good driver discount of at least 20% to drivers with 3 years of valid license and zero points on their driving record.

• Establishes rate approval requirements beginning 11 months after enactment, prohibiting use of rating factors based on religion, race, color, income, credit history, prior insurance, and other discriminatory criteria.

• Restricts insurer cancellations and non-renewals to specific circumstances including non-payment, criminal conviction, fraud, substantially increased hazards, and uninsurable property conditions.

• Applies to property casualty insurance including auto and homeowners coverage in Michigan, subject to commissioner oversight and public disclosure of rate applications.