HB 5680 Summary

• Amends Section 3020 of the Michigan Insurance Code to modify cancellation provisions for casualty insurance policies, excluding workers' compensation and mortgage guaranty insurance.

• Allows insurers to retain a minimum premium from canceled automobile insurance policies, subject to commissioner approval, with exceptions for renewal policies and policies canceled due to loss of coverage requirement or replacement with another insurer.

• Requires insurers retaining minimum premiums to pay the catastrophic claims association an amount equal to the average premium per car calculated under Section 3104(7)(d), reduced proportionally if the original premium was for less than a full year.

• Permits insurers to issue noncancelable, nonrefundable 6-month prepaid automobile insurance policies to meet vehicle registration requirements under Michigan Vehicle Code Section 227a.

• Allows insurers to charge short rate premiums for insurance on motorcycles, watercraft, off-road vehicles, and snowmobiles, subject to filing and commissioner approval of the rate structure.