HB-4593, As Passed House, October 13, 2011




























     A bill to amend 1956 PA 218, entitled


"The insurance code of 1956,"


(MCL 500.100 to 500.8302) by adding chapter 21A.








     Sec. 2151. As used in this chapter:


     (a) "Adverse action" means an increase in any charge for, or a


reduction or other adverse or unfavorable change in the terms of


coverage or amount of, any personal insurance, existing or applied




     (b) "Consumer reporting agency" means any person which, for


monetary fees or dues or on a cooperative nonprofit basis,


House Bill No. 4593 (H-1) as amended October 12, 2011


regularly engages in whole or in part in the practice of assembling


or evaluating consumer credit information or other information on


consumers for the purpose of furnishing consumer reports to third




     (c) "Credit information" means any credit-related information


derived from a credit report, found on a credit report itself, or


provided on an application for personal insurance. Information that


is not credit-related shall not be considered credit information,


regardless of whether it is contained in a credit report or in an


application, or is used to calculate an insurance score.


     (d) "Credit report" means any written, oral, or other


communication of information by a consumer reporting agency bearing


on a consumer's credit worthiness, credit standing, or credit


capacity that is used or expected to be used or collected in whole


or in part for the purpose of serving as a factor in the rating [  


            ] of personal insurance.


     (e) "Insurance score" means a number or rating that is derived


from an algorithm, computer application, model, or other process


that is based in whole or in part on credit information for the


purposes of predicting the future insurance loss exposure of an


individual applicant or insured.


     (f) "Personal insurance" means property/casualty insurance


written for personal, family, or household use, including


automobile, home, motorcycle, mobile home, noncommercial dwelling


fire, boat, personal watercraft, snowmobile, and recreational


vehicle, whether written on an individual, group, franchise,


blanket policy, or similar basis.


     Sec. 2159. Nothing in this chapter shall be construed to


provide an insured or applicant for insurance with a cause of


action that does not exist in the absence of this chapter.


     Sec. 2161. An insurer shall indemnify, defend, and hold


harmless producers from and against all liability, fees, and costs


arising out of or relating to the actions, errors, or omissions of


a producer resulting from the use of credit information or


insurance scores for the insurer, provided that the producer


follows the procedures and instructions established by the insurer


and complies with all applicable laws and regulations.


     Enacting section 1. Chapter 21A as added by this amendatory


act takes effect January 1, 2012.


     Enacting section 2. This amendatory act does not take effect


unless all of the following bills of the 96th Legislature are


enacted into law:


     (a) House Bill No. 4594.


     (b) House Bill No. 4595.


     (c) House Bill No. 4596.