HOUSE BILL No. 4169

 

January 30, 2007, Introduced by Reps. Leland, Young, Kathleen Law, Gonzales, Polidori, Tobocman, Johnson, Jackson, Miller, Meadows, Gillard, Warren, Scott, Simpson, Constan, Sheltrown and Cheeks and referred to the Committee on Insurance.

 

     A bill to amend 1956 PA 218, entitled

 

"The insurance code of 1956,"

 

by amending section 2110a (MCL 500.2110a), as added by 1996 PA 514,

 

and by adding section 2402a.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 2110a. (1) If Except as otherwise provided in subsection

 

(2), if uniformly applied to all its insureds, an insurer may

 

establish and maintain a premium discount plan utilizing factors in

 

addition to those permitted by section 2111 for insurance if the

 

plan is consistent with the purposes of this act and reflects

 

reasonably anticipated reductions in losses or expenses. This

 

section does not affect benefits or obligations required under

 

chapter 31. Nothing in this section authorizes an insurer to offer


 

or prohibits an insurer from offering premium discount plans

 

concerning any of the following:

 

     (a) Health care services, health care providers, or health

 

care facilities.

 

     (b) Automobile repair providers.

 

     (c) Materials used in the repair of an automobile.

 

     (2) An insurer shall not establish or maintain a premium

 

discount plan based in whole or in part upon an applicant's or

 

insured's credit history or lack of credit history.

 

     Sec. 2402a. Home or automobile insurance written on a group,

 

franchise, blanket policy, or similar basis shall not be rated, in

 

whole or in part, upon a group member's credit history or lack of

 

credit history or upon the credit history or lack of credit history

 

of the group as a whole.