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.




     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




     (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.