MI SB1255

Amends section 2111 of the Insurance Code of 1956 to establish that classifications and territorial base rates for automobile and home insurance must conform to specified requirements, with an exception for mile-based rating plans under new section 2111b.

Requires automobile insurance classifications to be based only on specified factors including driver age/experience, driver primacy, average miles driven, type of use, vehicle characteristics, commuting mileage, number of cars/licensed operators, and insurance amount, applied uniformly statewide.

Prohibits automobile insurance rates or classifications based on sex or marital status, and establishes merit rating plans allowing premium surcharges for at-fault accidents and traffic violations, with civil infractions rated only as long as points are carried on the motor vehicle record.

Adds section 2111b allowing insurers to offer customers a choice between mile-based rating plans (where exposure is measured per mile traveled) and time-based rating plans (where exposure is measured per unit of time) for automobile insurance.

Requires the insurance commissioner to analyze mile-based versus time-based rates, reject excessive mile-based rates, compile data on insurers using mile-based plans, and adopt rules governing mile-based rating plan implementation including prepayment arrangements and odometer auditing.