Bill Text: MI SB1021 | 2009-2010 | 95th Legislature | Introduced
Bill Title: 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.
Spectrum: Partisan Bill (Democrat 11-0)
Status: (Introduced - Dead) 2009-12-10 - Referred To Committee On Economic Development And Regulatory Reform [SB1021 Detail]
Download: Michigan-2009-SB1021-Introduced.html
SENATE BILL No. 1021
December 10, 2009, Introduced by Senators THOMAS, BRATER, ANDERSON, CLARKE, SCOTT, CLARK-COLEMAN, JACOBS, PRUSI, CHERRY, OLSHOVE and SWITALSKI and referred to the Committee on Economic Development and Regulatory Reform.
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
by amending section 2027 (MCL 500.2027), as amended by 1998 PA 26,
and by adding section 2027a.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2027. Unfair methods of competition and unfair or
deceptive acts or practices in the business of insurance include:
(a) Refusing to insure, or refusing to continue to insure, or
limiting the amount of coverage available to an individual or risk
because of any of the following:
(i) Race, color, creed, marital status, sex, or national
origin, except that marital status may be used to classify
individuals or risks for the purpose of insuring family units.
(ii) The residence, age, disability, or lawful occupation of
the individual or the location of the risk, unless there is a
reasonable relationship between the residence, age, disability, or
lawful occupation of the individual or the location of the risk and
the extent of the risk or the coverage issued or to be issued, but
subject to subparagraph (iii) and section 2027a. This section shall
not prohibit an insurer from specializing in or limiting its
transactions of insurance to certain occupational groups, types, or
risks
as approved by the commissioner. of insurance. The
commissioner shall approve the specialization for an insurer
licensed to do business in this state and whose articles of
incorporation contained a provision on July 1, 1976, requiring that
specialization.
(iii) For property insurance, the location of the risk, unless
there is a statistically significant relationship between the
location of the risk and a risk of loss due to fire within the area
in which the insured property is located. As used in this
subparagraph, "area" means a single zip code number under the
zoning improvement plan of the United States postal service.
(b) Refusing to insure or refusing to continue to insure an
individual or risk solely because the insured or applicant was
previously denied insurance coverage by an insurer.
(c) Charging a different rate for the same coverage based on
sex, marital status, age, residence, location of risk, disability,
or lawful occupation of the risk unless the rate differential is
based on sound actuarial principles, a reasonable classification
system, and is related to the actual and credible loss statistics
or reasonably anticipated experience in the case of new coverages
but
subject to section 2027a. This Except as provided in section
2027a,
this subdivision shall does not
apply if the rate has
previously been approved by the commissioner.
Sec. 2027a. (1) It is an unfair method of competition and an
unfair or deceptive act or practice in the business of insurance
for an automobile insurer to refuse to insure, refuse to continue
to insure, limit the amount of coverage available, or charge a
different rate or premium for the same coverage based on any of the
following for an insured or applicant:
(a) Employment.
(b) Trade.
(c) Business.
(d) Occupation.
(e) Profession.
(f) Education level.
(g) Credit history or lack of credit history.
(2) Subsection (1)(a) to (f) does not prohibit a discount
based on expense savings related to group, blanket, or franchise
automobile insurance.
Enacting section 1. This amendatory act takes effect January
1, 2010.
