MI SB1555

Prohibits insurers from using credit information or insurance scores as the sole basis to deny, cancel, or nonrenew personal insurance policies for automobiles, homes, boats, motorcycles, and similar property/casualty coverage.

Requires insurers to disclose to applicants that credit information may be obtained and prohibits use of income, gender, address, zip code, ethnicity, religion, marital status, and nationality in calculating insurance scores.

Mandates insurers recalculate insurance scores or obtain updated credit reports at least every 36 months, and prohibits use of certain negative factors (medical collection accounts, old bankruptcy, non-consumer-initiated credit inquiries) in insurance scores as of January 1, 2011.

Allows insurers to provide reasonable exceptions to rates and underwriting rules for applicants experiencing catastrophic events, serious illness, identity theft, involuntary job loss, military deployment, divorce, or other specified hardships if documented within 60 days of application or renewal.

Requires insurers to file scoring models with the commissioner, provide specific reasons for adverse actions, and refund overpaid premiums if credit information is later found to be incorrect or incomplete; takes effect January 1, 2011.