HB-4593, As Passed House, October 13, 2011
HOUSE BILL NO. 4593
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
(MCL 500.100 to 500.8302) by adding chapter 21A.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
CREDIT INFORMATION AND CREDIT SCORES
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.